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Aircraft tax · United States

Indiana aircraft sales and use tax

Indiana charges 7 percent sales or use tax on aircraft, with a nonresident exemption if the aircraft leaves within 30 days. The aircraft rental inside a flight lesson is taxed while separately stated instruction is not, and aircraft register every year with the Department of Revenue and pay an aircraft excise tax by weight, age and type.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Indiana?

Taxed. 7% sales or use tax on the purchase price less any trade-in. An aircraft bought from a private seller is reported and the tax paid when the owner registers it with the Department of Revenue, within 31 days of purchase.

Do you owe use tax on an aircraft bought outside Indiana?

Depends. Use tax at 7% applies to an aircraft brought into Indiana, with a credit for sales tax paid to another state up to the Indiana amount. A nonresident who bases an aircraft in Indiana for more than 60 days must register it. Aircraft brought in only for repair, completion work or a prepurchase evaluation, and flown out within 30 days after the work, are exempt.

What aircraft sales tax exemptions does Indiana have?

Depends. A nonresident's purchase is exempt if the aircraft leaves Indiana within 30 days after delivery or after work done in Indiana, is titled or registered elsewhere, and is not titled or registered in Indiana. Indiana presumes evasion when an Indiana resident buys through a business formed in a state without sales tax, such as Montana or Delaware, and from July 1, 2026 adds a $500 penalty. A purchase for rental is exempt only if yearly rental revenue reaches 7.5% of the price, and aircraft leased for public transportation are exempt.

Are aircraft rentals taxed in Indiana?

Taxed. Aircraft rentals and leases are taxed, and every use of a rental aircraft, including by related parties, must be charged a rental fee plus sales tax. An owner who bought the aircraft tax-free for rental must keep yearly rental revenue at 7.5% of the price until the tax collected on rentals equals the tax exempted, or 13 years pass, or owe use tax on the original price.

Is flight instruction taxed in Indiana?

Depends. When a lesson combines aircraft rental with instruction, the aircraft rental charge is taxable. The instructor's charge is exempt if it is stated separately from the aircraft rental.

Are aircraft parts and maintenance labor taxed in Indiana?

Depends. Parts, materials, equipment and engines used in repairing or maintaining an aircraft or its avionics are exempt when the work is done by an FAA repair station, or by an FAA-certified mechanic working from a leased maintenance facility at a public-use airport that meets the airport's minimum standards.

Does Indiana register or tax aircraft every year?

Taxed. Aircraft based in Indiana register with the Department of Revenue every year for a $10 fee and pay an aircraft excise tax per pound of maximum landing weight, set by class and age. A piston aircraft up to 4 years old pays four cents a pound, falling with age to one cent a pound at 26 years and older.

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works

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