The Indiana vehicle excise tax is an annual tax you pay when you register or renew a passenger car, motorcycle, or light truck in the state. It runs from $12 for older or low-value vehicles up to $532 for a brand-new car in the top price class, with the exact amount set by your vehicle’s original retail price and its age.1Bureau of Motor Vehicles. Excise Tax Information It’s separate from sales tax and registration fees, and most counties add a surtax on top.
The tax is authorized by IC 6-6-5 and covers passenger cars, motorcycles, and trucks with a declared gross weight of 11,000 pounds or less. Recreational vehicles, truck campers, and commercial vehicles over 11,000 pounds fall under separate excise chapters with their own schedules and aren’t covered here.2Justia. Indiana Code Title 6, Article 6, Chapter 5.1 – Excise Tax on Recreational Vehicles and Truck Campers
How the Amount Is Calculated
Two things drive the number: the vehicle’s original manufacturer’s suggested retail price and how old it is. Indiana sorts vehicles into 17 price classes under IC 6-6-5-3, then applies a sliding age-based rate that shrinks each year.3Indiana General Assembly. Indiana Code 6-6-5-3 – Valuation of Vehicles
Price Classes
Class I covers vehicles with an original price under $1,500. Class XVII covers vehicles at $42,500 and above. A few reference points in between:
- Class V: $4,000 to under $5,500
- Class IX: $10,000 to under $12,500
- Class XIII: $22,000 to under $25,000
- Class XV: $30,000 to under $35,000
Because the class thresholds are fixed in the statute and haven’t been adjusted for inflation since the mid-1990s, most new vehicles sold today land in Class XVI or XVII.
Age-Based Rate Schedule
Once the class is set, IC 6-6-5-5 gives the tax for each year of the vehicle’s life. The first year is the highest; the tenth year and beyond is the floor.4Indiana General Assembly. Indiana Code 6-6-5-5 – Amount of Tax Credit Against Tax Sample amounts:
- Class XVII ($42,500 and up): $532 first year, $461 second, dropping to $63 in year nine and $50 from year ten onli>
- Class XIV ($25,000–$29,999): $350 first year, $304 second, $50 in year nine, $36 from year ten on
- Class X ($12,500–$14,999): $172 first year, $149 second, $50 in year nine, $12 from year ten on
- Class V ($4,000–$5,499): $66 first year, tapering to $12 by year nine
- Class I (under $1,500): a flat $12 regardless of age
Age is calculated by subtracting the model year from the calendar year the vehicle is due for registration. A 2024 model registered in 2026 counts as two years old.1Bureau of Motor Vehicles. Excise Tax Information
Flat-Rate Vehicles
A few vehicle types skip the class-and-age table entirely:
- Mini-trucks: $30
- Motor-driven cycles: $10
- Passenger vehicles, trucks up to 11,000 lbs, and motorcycles from model year 1980 or older: $12
What Else Appears on the Bill
County and Municipal Surtaxes
Most counties impose a vehicle excise surtax under IC 6-3.5-4 on top of the state amount. Counties without an INDOT-approved transportation asset management plan can set the surtax at 2% to 10% of your excise tax, or a flat amount between $7.50 and $25. Counties with an approved plan can go as high as 20% or $50. The minimum in either case is $7.50. Some municipalities add a wheel tax or municipal surtax as well. All of these appear as line items on the same BMV renewal, bundled with the state excise tax and registration fees.
Hybrid and Electric Supplemental Fees
Indiana charges a supplemental registration fee on hybrids and electric vehicles to make up for gas tax they don’t pay. For 2025, the fee was $230 for fully electric vehicles and $77 for hybrids, adjusted annually based on consumer price and personal income indices.5Bureau of Motor Vehicles. Vehicle Registration Fees and Taxes Motor-driven cycles, government vehicles, and vehicles carrying a fuel tax license are exempt.
When and How You Pay
The excise tax is due at registration or renewal. You don’t get a separate bill; the BMV calculates the amount and puts it on the renewal notice.6Indiana General Assembly. Indiana Code 6-6-5-7.2 – Application of Section; Proration of Tax; Credits; Refund for Destroyed Vehicle Not Replaced You can pay online at the BMV’s website, in person at any branch, or by mailing the notice with payment. Online is fastest and lets you print a temporary registration right away.
Your Renewal Deadline
Indiana staggers registration expiration dates across the year based on the first four letters of the vehicle owner’s last name. The BMV publishes the full schedule under IC 9-18.1-11-1, with dates running from early February through mid-December.7Bureau of Motor Vehicles. Registration Expiration Schedule Names beginning AAAA through ARNN expire February 7; WRIH through ZZZZ expire December 14; everyone else lands somewhere in between. Your renewal notice shows your specific date.
Proration for Mid-Year Registrations
If you buy a vehicle or move one into Indiana partway through your registration year, you don’t pay the full year. The BMV reduces the tax by one-twelfth for each full calendar month that has already passed since your regular registration date.6Indiana General Assembly. Indiana Code 6-6-5-7.2 – Application of Section; Proration of Tax; Credits; Refund for Destroyed Vehicle Not Replaced
If You Miss the Deadline
The BMV collects the excise tax as part of registration under IC 6-6-5-10 and will not renew your registration until the tax is paid. Driving with an expired registration is a separate traffic offense. If your registration lapses, expect to pay the full excise for the current period plus any applicable late fees when you catch up.
Exemptions
Non-Resident Military
Active-duty military members stationed in Indiana whose legal residence is another state can claim a full exemption. Bring a valid military ID and a leave-and-earnings statement issued within the last 60 days when you renew. If you’re renewing by mail, include photocopies with the completed affidavit, State Form 46402, signed by your commander or supervisor.8Indiana Bureau of Motor Vehicles. Affidavit for Military Exemption From Excise Tax
Disabled Veterans
Veterans with a service-connected disability qualify for an excise tax credit. The Indiana Department of Veterans’ Affairs determines eligibility, and the credit amount depends on the disability rating. It’s applied at registration.5Bureau of Motor Vehicles. Vehicle Registration Fees and Taxes
Government-Owned Vehicles
Vehicles owned by federal, state, and local government entities, including municipalities and school corporations, are exempt.
Credits and Refunds When You Sell or Move
If you sell, trade in, destroy, or register a vehicle in another state before your Indiana registration period ends, you can claim a credit or refund for the unused portion of the tax.9Indiana Bureau of Motor Vehicles. Application for Vehicle Excise Tax Credit / Refund
- Vehicle sold, destroyed, or disposed of: you get a credit good for any other BMV transaction within 90 days. After that, any remaining credit of at least $4 is refunded by check.
- Vehicle registered out of state: a refund check goes out after processing, once you provide a copy of the new state’s registration or receipt.
The BMV deducts a $3 processing fee from either refund. File State Form 55296 with proof of sale, disposal, or out-of-state registration, and mail it to the BMV Finance office in Indianapolis. For a totaled vehicle, include a statement from your insurance company confirming the total loss and listing the VIN.
Deducting the Tax on Your Federal Return
Indiana’s vehicle excise tax qualifies as a deductible personal property tax on your federal return because it’s based on the vehicle’s value and charged annually.10Internal Revenue Service. Topic No. 503, Deductible Taxes You have to itemize on Schedule A to claim it.
The deduction falls under the state and local tax cap, which limits the combined deduction for state income taxes, property taxes, and vehicle excise taxes to $40,000 ($20,000 if married filing separately), with small annual increases built into the law. For most Indiana vehicle owners the excise tax alone won’t push you past the cap, but it adds up if you own several vehicles or live in a high-property-tax county. Keep your BMV renewal receipt as documentation.