Costs of Selling Land in Indiana

Selling Costs in Indiana: What to Know

Indiana does not charge a real estate transfer tax, so selling land here costs less in fixed government fees than in many states. You still file a sales disclosure form, and there are title, closing and income tax costs.

This page lists each cost, who usually pays it, and where it comes from, with a worked example on a $25,000 lot.

No transfer tax, but a sales disclosure form

Indiana has no state or county tax on the transfer of real estate. Instead, most sales need a sales disclosure form filed with the county auditor before the deed is recorded. The form reports the price and details of the sale for property tax assessment.

State law charges a filing fee for the sales disclosure form, paid to the county auditor. Counties have reported different amounts, so ask your county auditor for the current fee. Some transfers, such as many court ordered or family partition transfers, are exempt from the fee.

Recording the deed

Indiana county recorders charge a flat $25 to record a deed under IC 36-2-7-10. The buyer usually pays this, but the contract decides.

Who pays what by custom in Indiana

With no transfer tax, the main seller costs are the owner's title policy (often paid by the seller), a share of the closing fee, prorated property taxes and any agent commission. The buyer usually pays to record the deed and any loan costs.

Custom varies by county and by contract. Read the cost section of your purchase agreement before you sign.

Attorney or title company closing

Most Indiana land sales close at a title company. Indiana does not require an attorney at every closing, but a deed should be prepared by someone qualified to do it. Hire an attorney if the title has problems or the owner has died.

Capital gains tax when you sell land in Indiana

Your gain is the sale price minus your basis. Basis is usually what you paid plus improvements and some purchase and sale costs. If you inherited the land, your basis is usually the value on the date of death, so the gain is often small.

If you owned the land for more than one year, the federal government taxes the gain at 0%, 15% or 20%, depending on your taxable income. For 2025 the 0% rate applies to single filers with taxable income up to $48,350. Land held one year or less is taxed as ordinary income. Higher earners can also owe the net investment income tax. See IRS Topic 409.

Indiana taxes individual income at a flat rate: 2.95% for 2026, falling to 2.90% in 2027. Indiana counties also charge a local income tax, and the rate depends on your county. A capital gain is part of that income. See the Indiana Department of Revenue rates page.

The closing agent usually reports the sale to the IRS on Form 1099-S. Vacant land is reportable real estate. See the Form 1099-S instructions. This page is general information, not legal or tax advice. Rules change, so confirm with the office named or a tax professional.

How selling to a cash buyer changes your costs

On a listed sale, the seller often pays an agent commission, part of the closing fee, the title policy and any transfer tax custom puts on the seller. Those costs come out of your proceeds.

When you sell your Indiana land to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. We make a cash offer within 24 hours and can close in as few as 7 days. If the land has back taxes, they are paid at closing from the sale. Capital gains tax is still yours, because it depends on your own tax situation.

• No agent commission
• We pay closing costs
• Back taxes paid at closing from the sale
• We buy land with liens, title issues or no road access, and from heirs and estates