This paper proposes an on-line rotor time constant estimation strategy for indirect field oriented induction machines. The performance of the indirect field oriented control is dependent especially on the rotor time constant whose value varies according to the temperature. The proposed method calculates the difference between the nominal rotor time constant and the real value from the d- and q-axis integration terms of a proportional integral (PI) current regulator and the demanded voltages of the induction machine to regulate the current in the steady state. Because the proposed strategy has a simple structure and is available in wide speed and torque ranges, the proposed method can be easily used in the industrial field. The effectiveness of proposed strategy is verified with simulations and a 7.5kW experimental setup.