Updated · Mike Certo, NMLS #260555
Indiana Closing Costs, No Transfer Tax, and the Sales Disclosure Form (2026)
Indiana keeps closing simple. There is no state real estate transfer tax at all. What you get instead is a small Sales Disclosure Form fee and ordinary recording fees. This page covers what you skip, the one Indiana-specific form, and where down payment help fits.
Why Indiana has no transfer tax
Most states charge a transfer tax when property changes hands, usually a set amount per five hundred or per thousand dollars of the price. Indiana does not. There is no state statute imposing a real estate transfer, deed, or documentary-stamp tax. For a buyer or seller, that removes what is often the single largest government line at closing. It is one of the reasons Indiana stays among the more affordable states to buy in.
The Sales Disclosure Form
Indiana has one form that stands in where a transfer tax would be, though it is nothing like a tax in size. When real estate is conveyed, the parties file a Sales Disclosure Form with the county auditor, and there is a ten-dollar filing fee under Indiana Code 6-1.1-5.5. The form records the sale details for assessment purposes. In Marion County, home to Indianapolis, there is also a small county transfer fee in addition to the form fee. Your title company handles the filing at closing.
What you still pay
No transfer tax does not mean a free closing. Indiana buyers still cover the usual costs, generally 2% to 5% of the price:
- Title insurance and search at Indiana rates, plus settlement and escrow fees.
- Lender and third-party fees (appraisal, credit, flood certification) itemized on your Loan Estimate.
- Prepaids and escrows for homeowners insurance and property taxes.
- The Sales Disclosure Form fee and county recording fees, both small and flat.
If you use IHCDA, note that First Step and Next Home are second mortgages you repay when you sell or refinance, not grants, so factor the repayment into a future sale. The down payment assistance page explains how they work.
When does an Indiana purchase become a jumbo loan?
Above $832,750. That is the 2026 conforming limit, and in Indiana it applies in every one of the 92 counties, because no Indiana county qualifies as high-cost. Given Indiana's affordable prices, most buyers stay well under the limit; it comes up mainly in the higher-end Carmel, Fishers, and Zionsville markets north of Indianapolis. Mike runs both agency and jumbo, so a price near the line does not force a scramble.
Indiana closing-cost FAQ
Does Indiana have a real estate transfer tax?
No. Indiana levies no state transfer, deed, or documentary-stamp tax. When you buy or sell, you file a Sales Disclosure Form with the county auditor for a ten-dollar fee, and you pay flat recording fees, but there is no percentage-of-price transfer tax. That saves what most states charge and keeps an Indiana closing affordable.
What is the Indiana Sales Disclosure Form fee?
Ten dollars, paid to the county auditor when real estate is conveyed, under Indiana Code 6-1.1-5.5. The form records the sale for assessment purposes. Marion County adds a small separate transfer fee on top of the form fee. Your title company files it at closing, so it is a routine, low-cost step rather than a tax.
What closing costs do Indiana buyers pay?
Roughly 2% to 5% of the price, covering title insurance and search, lender and third-party fees, prepaids and escrows for insurance and property taxes, the Sales Disclosure Form fee, and county recording fees. There is no transfer tax line. IHCDA's First Step or Next Home assistance can cover part of the buyer's side, though both are repayable seconds rather than grants.
What is the 2026 conforming loan limit in Indiana?
$832,750 on a one-unit home in every Indiana county for 2026. Indiana has no high-cost conforming county, so the same limit applies statewide, from Indianapolis to the rural counties. Above it, an Indiana loan is a jumbo, which carries stricter underwriting and typically a larger down payment.