Which state tax am I supposed to pay?
Purchasing a vehicle from another state can feel overwhelming, but we're here to simplify the process! Let's address some common concerns about taxes that you might have. If you're an out-of-state buyer in Indiana, you'll be required to pay your home state's sales tax to Indiana. For detailed information about state sales taxes when buying a vehicle out of state, click here.
For instance, if you reside in Ohio, your sales tax rate is just 5.75%. This means you would only pay 5.75% in sales tax when purchasing your vehicle in Indiana.Â
Will I be taxed again when I go to register your vehicle back in your home state?Â
It's possible, but it depends if your state is a "reciprocal state" or not. If so, then you shouldn't have to worry about paying sales tax twice. You'd pay once and you're done!