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Indiana Guide

How to Gift a Car in Indiana

Last verified: October 2026 against Indiana BMV and DOR sources

A car given outright, with nothing in return, is exempt from Indiana sales tax. You claim the exemption on Form ST-108E.

Here is how to do it and what still costs money.

Step by step

  1. 1

    Check that it is a true gift

    Exemption 7 covers a vehicle transferred from one person to another with no consideration, as an outright gift or inheritance.

    Taking over the loan payments counts as payment, so it is not exempt, unless you were listed on the original security agreement. In that case, include a copy of the agreement.

  2. 2

    Know the family title exemption

    Adding or removing a spouse, child, grandparent, parent, or sibling of the owner on the title is exempt under exemption 11. Complete the Direct Relative Identification section of the form.

  3. 3

    Complete Form ST-108E

    Fill in the purchase price lines and your Social Security number or taxpayer ID, which the form requires for every exemption, and write the exemption number.

  4. 4

    Get the title signed over

    The giver completes the seller section of the title and you complete the purchaser section. Any lien must be released first.

  5. 5

    Apply within 45 days

    Apply at a BMV branch within 45 days. Pay the $15 title fee, registration, and the yearly vehicle excise tax.

What to bring

  • Form ST-108E with the exemption number
  • The title, signed over to you
  • A copy of the original security agreement, if you are taking over a loan you were already on
  • Proof of identity and Indiana address
  • Payment for the title, registration, and excise tax

Estimate your Indiana costs

For an exempt gift, enter $0 as the price to see the title, registration, and vehicle excise tax.

Open the full Indiana calculator

Vehicle & Transaction Details

Enter purchase information to calculate true out-of-pocket costs in Indiana.

51 Jurisdictions Active
Indiana 7% tax base
$
7 years old
Sets the yearly tax
$

The Indiana vehicle excise tax is figured from the price when new and drops as the vehicle ages. Blank uses $30,000.

Indiana tag options
1-Year Term (Indiana registers for one year)
EV surcharge rules
Lien fee: $0.00
Indiana: Non-Deductible
$

Indiana Notice: Indiana taxes the full agreed vehicle price. Trade-ins do not reduce the tax base on private-party sales.

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Estimated taxes & fees

Estimated taxes & fees

Jurisdiction

Indiana

Estimated taxes & fees
$1,192.35

Sales Tax + Title Certificate + Tags & Registration

Itemized Line ItemEstimated Fee
1Vehicle Sales Tax (7%)

Calculated at 7% on taxable base of $15,000

$1,050.00
2Certificate of Title Fee

Standard state title certificate issuance

$15.00
3Lien / Security Filing Fee

Unfinanced / cash purchase (waived $0.00)

$0.00
4Registration & Tag Fee

Base license plates & tags + $91.00 Indiana vehicle excise tax for a $30,000.00 list price

$127.35

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Indiana rates last verified: October 2026
Official Notice & Statutory Disclaimers

Estimates only, not tax or legal advice. Verify with the Indiana BMV or Department of Revenue.

County and municipal vehicle excise and wheel taxes are not included, and motorcycles are shown without the excise tax. A motorcycle’s registration is $26.35 plus the $15 fee. The BMV’s Quick Quote tool gives your exact total.

Registration shown is the BMV fee chart revised January 1, 2026.

The estimate shows a full year of the excise tax. Registering partway through your registration year, or a credit for excise paid on a vehicle you sold, can change the amount due (IC 6-6-5-7.2).

County & Local Tax Note: Indiana has no local sales tax on vehicles. The BMV collects a yearly vehicle excise tax with registration, set by the original retail price and the vehicle’s age; the estimate includes it. Some counties and cities add their own vehicle excise or wheel tax, which is not included.

Frequently Asked Questions

Common questions about this Indiana BMV and DOR process.

Not just because you are related. The exemption is for an outright gift with nothing in return, or for adding or removing a close relative on the title.

Sources

Last verified: October 2026. Rules change, so check with Indiana BMV and DOR before you go.

More Indiana guides

How to Title a Private Car Sale in IndianaThe completed title, 45 days, 7% sales tax, and the fees.Titling a Car in Indiana After Moving From Another State60 days, the VIN inspection, no sales tax, and the fees.
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