In Indiana how is sales tax figured on a car trade?

In Indiana, when you trade in a car as part of a vehicle purchase, the sales tax is calculated on the price of the new vehicle minus the trade-in value. For example, if you buy a car for $20,000 and trade in your old car valued at $5,000, you would pay sales tax on $15,000. This trade-in deduction helps reduce the overall sales tax owed on the transaction. It's important to keep documentation of the trade-in value for accurate tax calculation.