Indiana is a destination-based state (sales are taxed where the buyer is located).
To file your sales tax return and make payments online go to INtax, the Indiana Tax Center.
Indiana’s state sales tax rate is 7%. No additional local general sales taxes are charged (see food and beverage tax below).
Generally, the sale of food and food ingredients are exempt from sales tax with the following exceptions:
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.
Business activities that establish a minimum tax connection to the state include:
Find more information about nexus in Indiana.
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.
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.
Indiana charges a late filing penalty of 10% or $5, whichever is greater.