Indiana used car dealer paperwork and sales tax guide
How Indiana sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Indiana dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Indiana: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Indiana deal.
Indiana tax and fees at a glance
| Item | Indiana |
|---|---|
| State tax | 7% state rate |
| Who pays it | Collected by the dealer |
| Trade-in | Reduces the tax |
| Documentary fee | Part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $15 |
How Indiana sales tax is worked out
Indiana: the dealer collects 7% on the price, the documentary fee and other charges, less a like-kind trade-in, and certifies it on form ST-108 for the BMV. An optional warranty contract is not taxed. There is no local sales tax. The documentary fee must be shown as its own line and included in the advertised price (the state's 2026 enforcement limit is $261.72). Title fee starts at $15. A trade-in counts only when it is a like-kind motor vehicle titled in the buyer's name. The BMV convenience fee is not taxed.
Indiana paperwork a dealer prints
DMS Apex prints these documents for a Indiana deal, all in black and white:
- SF 205 Application for Certificate of Title
- SF 43230 Odometer Disclosure
- Buyer's Order
- Buyers Guide
Step-by-step form guides
- SF 205 Application for Certificate of Title: how to fill it out
- SF 43230 Odometer Disclosure Statement: how to fill it out
This is general information, not legal or tax advice. Indiana rules change: confirm current requirements with the Indiana Bureau of Motor Vehicles or the Indiana Department of Revenue.
Common questions
How much is sales tax on a used car in Indiana?
7% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Indiana Bureau of Motor Vehicles or the Indiana Department of Revenue.
Does a trade-in lower the tax in Indiana?
Yes. In Indiana the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Indiana?
Yes. In DMS Apex the documentary fee is part of the taxable amount for Indiana.
Does DMS Apex print Indiana dealer forms?
Yes. It prints SF 205 Application for Certificate of Title, SF 43230 Odometer Disclosure, Buyer's Order, Buyers Guide.
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