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You generally pay the sales tax where you purchase the vehicle. Sometimes, if it is in another state they are unwilling or unable to collect tax for that state. I would pay the tax at the dealer where you are purchasing it if that's what they say in Indiana. Make sure it is listed on your bill of sale so that when you register the vehicle, you can get credit for the sales tax in your state. If it is wrong, they States should work it out between themselves. If I were you I would call your Tax Commissioner's Office where you live and ask them as well unless you are will to pay sales tax twice.

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Q: If I purchase a used car in Indiana but title it in AL do I pay Indiana sales tax or defer the tax when I title the car in AL IN law says no exemption for out of state purchasers can that be right?
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