General Dealer Information
DOR is a proud partner of the Indiana Secretary of State's Auto Dealer Seminars. A recording of our 2020 seminar is available to watch online. Click the play button below to jump to our presentation.
Vehicle and Watercraft Information
- Frequently Asked Questions for Vehicle and Watercraft Dealers - Including dealer documentation requirements, dealer-to-dealer sales issues, sales tax for out-of-state transactions and more.
Updated Motor Vehicle Dealer Rules
Sales Tax Rates for Vehicles Purchased in Indiana That Will be Registered in Another State Within 30 Days
For each of these transactions, the dealer must complete and retain Form ST-108NR. Dealers must also provide a copy to the buyer as evidence of the amount of sales tax collected. Dealers must collect Indiana sales tax at the applicable tax rate on all sales and remit to DOR.
The various state tax rates are listed in the table below. DOR recommends that dealers verify the current state tax rates and information for all out-of-state transactions. The most accurate and updated rate for each state's sales tax can be found at the state's official revenue agency website.
This table was last updated on August 25, 2020.
|State||Sales Tax Rate|
|Alabama||2% (special vehicle rate)|
|Alaska||0% (no sales tax currently imposed)|
|Arkansas||6.5%, (Arkansas does not tax vehicles below $4,000)|
|California||6.00% (mandatory local rate not included)|
|Connecticut||6.35%; 7.75% if the vehicle is over $50,000 prior to trade-in|
|Delaware||0% (no sales tax currently imposed)|
|Georgia||0% (tax imposed not considered a sales tax)|
|Iowa||5% (special vehicle rate)|
|Maryland||0% (no sales tax currently imposed)|
|Minnesota||6.5% (special vehicle rate)|
|Mississippi||5% (special vehicle rate); 3% (GVW>10,000 lbs)|
|Montana||0% (no sales tax currently imposed)|
|New Hampshire||0% (no sales tax currently imposed)|
|New Mexico||4% (special vehicle rate)|
|North Carolina||3.00% (special vehicle rate)|
|Oklahoma||1.25% (special vehicle rate; excludes excise tax)|
|Oregon||0% (no sales tax currently imposed)|
|South Carolina||5% (special vehicle rate; cap disregarded)|
|South Dakota||4% (special vehicle rate)|
|Tennessee||7% (single article tax not applicable)|
|Virginia||4.15% (special vehicle rate)|
|Washington||6.8% (includes additional 0.3% for motor vehicles)|
|District of Columbia||0% (tax imposed not considered a sales tax)|
- Frequently Asked Questions for RV & Cargo Trailers Dealers - Including requirements for sales to nonresidents, a list of nonreciprocal states and more.
Nonresident Sales Tax Exemption
Recreational vehicle and cargo trailer dealers should use sales tax return ST-103CAR. To update your online return template to the ST-103CAR form, contact us via the INTIME message center (available after login).
The purchase of a recreational vehicle or cargo trailer (as defined in I.C. 6-2.5-5-39) by a nonresident, to be registered and/or titled outside Indiana will be afforded an exemption if the state where the vehicle is to be registered allows a similar exemption to an Indiana resident.
DOR has developed Form ST-137RV for dealers. The dealer must keep a copy of Form ST-137RV to document the exempt RV or cargo trailer sale to a nonresident. Form ST-137RV contains an affidavit the buyer and dealer must sign.
For more detailed information please access the Sales Tax Exemption for RVs & Cargo Trailers FAQs or Sales Tax Information Bulletin #72.
Note: The ST-137RV exemption form is only applicable to a sale to a nonresident where the nonresident takes delivery (possession) within Indiana. Note exceptions for certain nonresidents as indicated on the form. The ST-108NR form still must be retained for sales between July 1, 2017, and June 30, 2019.
The ST-137RV exemption is not applicable if the RV or trailer is delivered by the dealer or the dealer hires a third party carrier to deliver to a point outside of Indiana, as a condition of the purchase agreement.
Sales Tax Rates for Nonresident Purchasers
The taxability of an RV or trailer purchased by a nonresident is dependent upon whether the RV or trailer will be registered in a reciprocal state or nonreciprocal state. The purchase by a customer registering in a reciprocal state is exempt. A reciprocal state is a state that provides a similar exemption for an Indiana resident making a purchase in that state. The purchase by a customer registering in a nonreciprocal state is subject to Indiana sales tax. A nonreciprocal state provides no such exemption to Indiana residents.
Most states are reciprocal, but the states below (including Canada and Mexico) are nonreciprocal. Beginning July 1, 2020, the Indiana sales tax required to be collected from the purchaser from these states is rate indicated on the table. Prior to July 1, 2020, the tax rate was 7%. Please note that this is Indiana sales tax, and must be remitted to the Indiana Department of Revenue.
|Taxing Jurisdiction||Abbreviation||Tax Rate||Indiana Dealer Requirements|
|Arizona||AZ||5.6||Dealer must collect Indiana sales tax|
|California||CA||6||Dealer must collect Indiana sales tax|
|Canada (country)||CAN||7||Dealer must collect Indiana sales tax|
|Florida||FL||6||Dealer must collect Indiana sales tax|
|Hawaii||HI||4||Dealer must collect Indiana sales tax|
|Kentucky||KY||6||Dealer must collect tax on trailers only (RVs are exempt)|
|Maine||ME||5.5||Dealers must collect tax on trailers only (RVs are exempt)|
|Massachusetts||MA||6.25||Dealers must collect Indiana sales tax|
|Mexico (country)||MEX||7||Dealer must collect Indiana sales tax|
|Michigan||MI||6||Dealer must collect Indiana sales tax|
|North Carolina||NC||3||Dealer must collect Indiana sales tax|
|Rhode Island||RI||7||Dealer must collect tax on trailers only (RVs are exempt)|
|South Carolina||SC||5||Dealer must collect Indiana sales tax|
- Frequently Asked Questions for Aircraft Dealers - Including sales reporting requirements, aircraft registration information and more.
Online Services Now Available to Aircraft Dealers
Indiana's new online tax portal, INTIME, enables Hoosiers to manage their taxes in one convenient location, 24/7. Aircraft dealers can use this service to:
- Register an aircraft with DOR online (Form AE-7)
- Apply for or renew an Aircraft Dealer's Certificate with DOR online (Form AE-8)
- Make payments using a bank account or credit card
- View and respond to correspondence from DOR
- Request and print return transcripts on-demand
- Receive online customer service support through secure messaging
|Form Name||Description||File Type|
|ST-105D||Dealer-to-Dealer Resale Certificate of Sales Tax Exemption|
|ST-108||Certificate of Gross Retail or Use Tax Paid||fill-in pdf|
|ST-108A||Certificate of Sales Tax Paid or Exemption for Auctions||fill-in pdf|
|ST-108E||Certificate of Gross Retail or Use Tax Exemption||fill-in pdf|
|ST-108NR||Certificate of Gross Retail or Use Tax Paid on the Purchase of a Motor Vehicle For a Nonresident||fill-in pdf|
|ST-137RV||Affidavit of Exemption by a NONRESIDENT On the Purchase of a Recreational Vehicle/Cargo Trailer||fill-in pdf|
|Tax Comparison Chart||Sales Tax Rate Chart for RVs and Trailers||html|
|AE-7||Application for Aircraft Registration||File online with INTIME|
|AE-8||Application for Aircraft Dealer's Certificate||File online with INTIME|
|ST-108 AIR||Certificate of Exemption from Retail Sales Tax on Aircraft Purchases||fill-in pdf|
Dealers may also obtain Form ST-108 and ST-108E at any Bureau of Motor Vehicles branch office.