Indiana state seal

IndianaSales Tax

A Complete Guide For Businesses

Automate My IndianaSales Tax Filings

State Rate
7.00%

Local Tax
no

State Portal
Department of Revenue

Phone
(317) 233-4015

General requirements

Indiana is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the retail sale of tangible personal property (TPP)
  • Services are generally not taxable in the state
  • Items sold to contractors and farmers are generally exempt

To file your sales tax return and make payments online go to INtax, the Indiana Tax Center.

Rates

Indiana’s state sales tax rate is 7%. No additional local general sales taxes are charged (see food and beverage tax below).

How food is taxed

Generally, the sale of food and food ingredients are exempt from sales tax with the following exceptions:

  • Indiana sales tax applies to all sales of food and beverages that are packaged, prepared, sold as meals, or in a form which is normally consumed on or near the premises
  • The sale of food through vending machines or street vendors is also taxed

In some counties, businesses that sell food and beverages must register for both sales tax and food and beverage tax. This additional tax ranges from 1% to 2% in most counties.

Nexus in Indiana

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a place of business in the state
  • Maintaining inventory in the state
  • Accepting orders in the state
  • Owning property in the state
  • Delivering goods in the state by company-owned vehicle

Economic nexus in Indiana:

  • According to state law, out-of-state sellers whose sales into the state exceed $100,000 gross revenue or 200 separate transactions in the current or previous calendar year are required to register with the state, collect sales tax on sales to Indiana, and remit that sales tax to the state.
  • Effective date: July 1, 2017
  • Indiana has an amnesty program available through the end of 2018 for online retailers to enter into a voluntary disclosure agreement (VDA) with unique terms and waive penalties for late registration.

Find more information about nexus in Indiana.

Filing schedule

Returns and sales tax are due on the 20th of the month following the reporting period. Most businesses in Indiana will file monthly, and your filing frequency is determined by the Department of Revenue when you register.

Registering to collect sales tax in Indiana

To collect sales tax in the state you will need a Registered Retail Merchant Certificate. To create an account with the Indiana Department of Revenue, complete your business registration online at INBiz.

You will also need to contact your county clerk’s office to apply for a Vendor’s License.

Penalties

Indiana charges a late filing penalty of 10% or $5, whichever is greater.

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