Which State Tax Am I Supposed to Pay?
Buying a vehicle out of state can be intimidating! Let's clear the air and address a couple of the main concerns about taxes you may have.
Within the state of Indiana, an out of state buyer is required to pay their home state sales tax to the state of Indiana. For more information about State Sales Taxes when it comes to purchasing a vehicle from out of state, click here.
For Example, if you live in Ohio, your State sales tax rate is only 5.75%. That means you would only pay 5.75% in sales taxes while purchasing your vehicle in Indiana.
Will I Be Taxed Again When I Go To Register Your Vehicle Back In Your Home State?
The short answer is that 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!
Will I Be Stuck With Two Sales Tax Bills If My State Is NOT A "Reciprocal State"?
No is the short answer, but you will need to be reimbursed from the State of Indiana.
If your state is not a reciprocal state and you end up paying your state sales tax twice, you can now apply for reimbursement from the state
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