Indiana Closing Cost Estimator
Indiana has no transfer tax. This tool estimates your typical recording fees and title-related costs instead.
| Real estate transfer tax | $0 — None |
| Deed recording fee (est.) | — |
| Title insurance (owner's — est.) | — |
| Est. total state/county fees | — |
Recording fees vary by county ($15–$40 typical). Title insurance is negotiable. Real estate agent commission is separate.
Did Indiana Ever Have a Transfer Tax?
Yes — Indiana had a Gross Income Tax on real estate transactions until 2009, when the Indiana General Assembly repealed it entirely (IC 6-2.5 revisions under House Enrolled Act 1001). The legislature decided that taxing property transfers created friction in the real estate market and disadvantaged Indiana sellers compared to neighboring no-tax states like Ohio (very low) and Illinois (moderate).
Since the repeal, Indiana has consistently been one of the cheapest states in the Midwest to close a real estate transaction from a tax perspective.
What Indiana Home Sellers Actually Pay at Closing
No transfer tax doesn't mean no closing costs. Here's what Indiana sellers typically see on their closing disclosure:
| Cost Item | Who Pays | Typical Range | Notes |
|---|---|---|---|
| Real estate transfer tax | N/A | $0 | Abolished 2009 |
| Deed recording fee | Buyer | $15–$40 | Per county recorder |
| Owner's title insurance | Seller (by custom) | 0.3%–0.5% of price | One-time premium |
| Agent commission | Seller | 5%–6% of price | Negotiable |
| Mortgage payoff | Seller | Varies | Outstanding balance |
| Lender fees (buyer) | Buyer | 1%–2% of loan | Origination, points |
Indiana vs. Neighboring States on Transfer Tax
Indiana's zero transfer tax makes it stand out in the Midwest. Illinois charges $0.50/$500 (state) plus major city taxes in Chicago. Ohio charges $1/$1,000 plus county add-ons. Kentucky charges $0.50/$500. Michigan charges $3.75/$500 plus county fees. Indiana's sellers save thousands compared to selling in any neighboring state.
If you're deciding between listing a property in Indiana vs. a border county in Kentucky or Ohio, the transfer tax difference can add up to $2,000–$4,000 on a $400K home — a real competitive advantage for Indiana sellers.
See How Every State Compares
Our free calculator covers all 50 states — see who charges the most (and least) at closing.
Open the 50-State Calculator →Indiana Transfer Tax FAQ
No. Indiana abolished its real estate transfer tax in 2009. There is no state, county, or city-level transfer tax on deed recordings in Indiana. The only deed-related cost is a small recording fee (typically $15–$40) paid to the county recorder's office.
Indiana repealed its real estate transfer tax effective in 2009 as part of a broader tax reform package. The Indiana General Assembly eliminated the Gross Income Tax on real estate transfers to make the state more competitive and reduce seller closing costs.
Indiana sellers typically pay: real estate agent commission (5–6%), owner's title insurance premium (0.3–0.5% of price), prorated property taxes, and any outstanding mortgage payoff. The recording fee is usually paid by the buyer. Total state/county-mandated fees are minimal compared to most states.
No. Indiana cities and counties do not have local transfer taxes. The abolition of the transfer tax applies statewide — there are no jurisdictions in Indiana with a deed transfer tax. Recording fees are the only deed-related cost, and these vary slightly by county.
Yes — Indiana consistently ranks among the lowest-cost states for sellers from a tax perspective. No transfer tax, low property tax rates, and no inheritance tax on most property transfers combine to make Indiana one of the most seller-friendly states in the Midwest.