Free Indiana Car Bill of Sale
Indiana runs a uniform car-sale system: a flat 7% sales tax that is identical in all 92 counties (no city or county may add a cent), a centralized BMV whose branches all process the same paperwork, and no statewide inspection — only Lake and Porter counties in the northwest corner test emissions, a legacy of the Chicago metro airshed. The forms are the pair to keep straight: State Form 44237 is the BILL OF SALE and State Form 205 is the TITLE APPLICATION, so double-check the numbers before the BMV visit. Title promptly — Indiana charges an administrative penalty for late applications.
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Indiana Car Bill of Sale — What You Need to Know
Sales Tax Details
Indiana charges 7.0% flat state sales tax on vehicle sales — no local add-ons. Tax is on actual sale price.
Inspection Requirements
Indiana does not require statewide safety or emissions inspection. Lake and Porter counties (NW Indiana, Gary/Hammond metro) require emissions testing every 2 years.
Indiana Car Sale — Step-by-Step Checklist
- Complete a bill of sale (State Form 44237) with VIN, odometer, sale price — the BMV uses one only in limited cases, such as a title missing the sale date or price.
- Seller completes odometer disclosure on Indiana title.
- Seller signs title over.
- Buyer completes State Form 205 (Application for Certificate of Title) at Indiana BMV within 45 days.
- Buyer pays 7.0% flat state tax + $15 title fee + registration.
- Lake/Porter counties: confirm emissions certificate.
- Seller removes the license plate at the sale and may move it to another vehicle they own; the buyer gets a new plate and registration at the BMV.
Common Pitfalls
- Missing the 45-day deadline — an administrative penalty applies.
- Underreporting sale price — the 7% tax is due on the purchase price.
- Forgetting emissions in Lake/Porter (NW Indiana only).
- Assuming a newer car skips emissions in Lake or Porter County. Only the four latest model years are exempt; after that, cars of 9,000 lbs GVWR or less are tested every two years, in odd years for odd model years and even years for even ones.
Pro Tip
IN car sales: flat 7% tax, BMV process, 45-day deadline, no inspection (except Lake/Porter).