It’s important to understand that you will have to pay tax, title, and license fees when buying an automobile in Indiana. You must pay these fees in order to register your car and get a license plate. The kind of car you drive and where you reside in Indiana will both have an impact on how much you spend. Tax, title, and license fees are included. In Indiana, the cost of the car is used to determine how much tax, title, and license costs will be. You must pay both the 7% state sales tax and the additional county-specific sales tax. Depending on where you live, the county sales tax ranges from 0.5% to 2.5%. As a result, the overall sales tax rate may reach 9.5%.
You will also have to pay a $15 title charge and a $21.35 license plate price. Depending on the kind of vehicle you drive, the license plate fee may change. For instance, the cost of a motorcycle plate is $18.75, whereas the cost of a personalized plate is $45. Registration fees for vehicles When you register your vehicle in Indiana, you must pay vehicle registration costs. Your vehicle’s type and weight will determine the registration fees. For instance, the registration charge for a passenger car is $21.35, while the fee for a truck varies from $30.75 to $46.25 depending on the weight of the vehicle. Tax on Trade-Ins
Only the difference between the trade-in value and the purchase price of the new car will be subject to sales tax in Indiana when you trade in a car. For instance, if the trade-in value is $10,000 and the cost of the new automobile is $20,000, only the $10,000 difference in price will be subject to sales tax. Giving a Car as a Gift In Indiana, you are still required to transfer the title to the new owner after giving an automobile as a gift. The title transfer is not subject to sales tax, but the new owner is still obligated to pay the title and registration fees. Purchase from a Family Member
In conclusion, it’s critical to take into account all applicable tax, title, and license fees when buying an automobile in Indiana. Budgeting for these costs is crucial because they can add up rapidly. Additionally, you can save money on sales tax and other charges by being aware of the regulations governing trade-ins, car gifts, and sales to family members.