Free Indiana Used Car Bill of Sale
Used car sales in Indiana are straightforward — a flat 7% sales tax, no statewide inspection, and Form 44237 as the BMV-published bill of sale. The biggest risks for used car buyers are odometer fraud and the 45-day title transfer deadline, so getting the paperwork right at the time of sale saves headaches at the BMV branch later.
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Indiana Used Car Bill of Sale — What You Need to Know
Sales Tax Details
Used cars are taxed at the same flat 7% Indiana state sales tax as new cars. The tax is calculated on the purchase price, which the seller records on the title. Indiana does not currently use a "book value" floor for private-party sales, so the purchase price is what the BMV will tax.
Exemption: Some family transfers and inherited vehicles may be exempt; confirm with the BMV before assuming no sales tax is due.
Inspection Requirements
No statewide safety inspection. Emissions testing is only required for used vehicles registered in Lake or Porter counties (NW Indiana). All other counties have no inspection requirement at sale or registration.
Indiana Used Car Sale — Step-by-Step Checklist
- Verify VIN on the dashboard, door jamb, and title all match
- Record odometer reading on Form 44237 and on the title assignment
- Get the seller's signature on the title assignment (and the lienholder release if applicable)
- Complete Form 44237 with sale price, names, addresses, and date
- Pay 7% Indiana sales tax at the BMV when titling
- Apply for a new title with State Form 205 within 45 days
Common Pitfalls
- Buying a used car with an open lien — Indiana will not issue a clean title until the lienholder releases
- Accepting an unsigned or improperly assigned title (the back must be filled in completely)
- Skipping a Carfax/NMVTIS check — Indiana does not flag salvage history at point of sale
- Underreporting the sale price on the title to dodge tax — the 7% is due on the purchase price
Pro Tip
Generate a 44237-style Indiana used car bill of sale with VIN verification, odometer disclosure, and 7% tax acknowledgment in under two minutes — designed for the Indiana BMV.