Is There an Indiana Real Estate Transfer Tax?
Does Indiana have a real estate transfer tax? Learn how transfer taxes work in Indiana.
Selling your home in Indiana? You might have some questions about the Indiana transfer tax.
Transfer taxes are fees the state, county, or city imposes when property ownership is transferred from one party to another. These taxes can vary widely depending on where you’re located and the specifics of the property sale.
In this guide, we’ll dig into how transfer taxes work in Indiana, giving you insight into what you can expect when it comes to transfer taxes in The Hoosier State.
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What are transfer taxes?
Real estate transfer taxes are assessed by state or local authorities when property ownership changes hands. According to the Federal Trade Commission, this tax is triggered once the title—or the legal rights to a property—is transferred from one person to another.
The actual tax rate and the responsibility for paying this tax can vary significantly depending on the property’s location, reflecting different state, county, or city regulations.
Who pays for transfer taxes?
Unlike many other states, Indiana does not have a real estate transfer tax on real estate transactions, which can alleviate some of the financial burden on sellers.
Property taxes in Indiana are on the lower end of the spectrum, ranking 32nd in the nation, according to the Tax Foundation.
