Council Approves Increase in Indy Vehicle Tax

Vehicles subject to the county wheel tax will pay a $240 annual fee.

indianapolis-city-county-building — Source: Indianapolis City-County Building. Picture from Indy.gov

INDIANAPOLIS — People who live and drive in Marion County will pay more to register their vehicles starting next year after the City-County Council approved changes to vehicle fees Monday night.

The new plan replaces the current vehicle excise surtax and wheel tax structure with flat annual fees.

Most vehicles will have a $100 registration fee each year. Vehicles subject to the county wheel tax will pay a $240 annual fee. People will only pay one of the fees depending on their vehicle type.

The changes begin Jan. 1, 2027, and are expected to raise about $356 million over the next five years for road improvements across Marion County.

Supporters say the additional money will help pay for repairs and other transportation projects. The plan is also expected to help Marion County receive additional state funding for roads.

The proposal has faced opposition from some local leaders and residents who say raising costs is difficult as people continue to deal with higher prices for everyday expenses.

Indianapolis Mayor Joe Hogsett previously opposed the increase, saying he did not believe residents should have to pay more through a tax increase to fund infrastructure improvements.

The City-County Council approved the changes Monday night after the proposal moved through committee last week. The new fees will be collected when people renew their vehicle registrations beginning in 2027.