Indiana Home Buyer Rebate: See How Much Cash You Get Back

Can you get money back at closing?

About rebates

Commission rebates to buyers are legal in Indiana. Most buyers can get about 2% of the home price back in cash at closing.

Some states let your agent share part of the commission with you. About 2% of the price is typical when it is legal. Rules differ by state; the plan checks yours.

Legal. About $5,400 back.

Indiana allows buyer rebates. At 2% of a $270,000 home that is $5,400 at closing.

State ruleAllowed
Typical rebateAbout 2% of price
On a $270,000 home$5,400
See how much help you could getOpens your plan with $270,000 filled in
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Indiana rebate policy and key takeaways

Indiana rebate policy

In Indiana, a buyer's agent may share part of their commission with the buyer they represent, and this is legal. Because the buyer's-agent commission is already built into the home's price, a rebate simply returns part of that money to you at closing.

Indiana rule permits offering inducements or rebates provided written disclosure is given to all parties. 876 IAC 1-1-40(b)

In Indiana, home buyers can typically get about 2% of the purchase price back as a commission rebate at closing, roughly $5,464 on Indiana's median-priced home (about $273,200). It is legal here, and it returns money that is already built into the price.

Frequently asked questions

Frequently asked questions

Are home buyer rebates legal in Indiana?

Yes. Commission rebates to buyers are legal in Indiana. Most buyers can get about 2% of the price back in cash at closing.

How much is a buyer rebate in Indiana?

About 2% of the purchase price, paid to you in cash at closing. On Indiana's median-priced home (about $273,200) that is roughly $5,464.

How do I get a rebate when buying a house in Indiana?

Ask a buyer's agent, before you sign a representation agreement, whether they will rebate part of their commission. If they agree, get it in writing; it usually comes as a credit toward your closing costs or a check after closing.

Does a buyer rebate cost me anything?

No. The rebate comes out of the buyer's-agent commission, which the seller pays and which is already built into the home's price. A rebate simply returns part of that money to you, at no extra cost.

Is a buyer rebate taxable in Indiana?

Generally no. The IRS treats a buyer rebate as a reduction in the home's purchase price, not income, so you lower your cost basis by the rebate amount instead of paying tax on it (IRS Letter Ruling 157111-06). This is general information, not tax advice.

Official sources

Official sources

More about rebates

Indiana rebates by city

Indiana home buying costs by county

Property tax, loan limits, closing costs and first-time buyer help for each Indiana county, to set beside your rebate.

All 92 Indiana counties

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See how Indiana's rebate ranks against every state →

See Indiana closing costs and how a rebate offsets them →

This is general information, not legal advice. Rules change, so confirm the current rule with your state real estate agency (linked above) before you rely on it.

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