We develop an information theoretic waveform design algorithm for target tracking in the presence of multipath. We employ a co-located multiple-input-multiple-output (MIMO) radar configuration using wideband orthogonal frequency division multiplexing (OFDM) signalling scheme. Apart from the frequency diversity provided by OFDM, we also exploit polarization to resolve the multipath signals by using polarization-sensitive transceivers. Thus, we can track the scattering coefficients of the target at different frequencies along with its position and velocity. We apply a sequential Monte Carlo method (particle filter) to track the target, while integrating an optimal waveform design technique based on mutual information criterion. Our numerical examples demonstrate the achieved performance improvement due to the adaptive waveform design.