Indiana Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in Indiana?

What is taxable in Indiana?

How do you register to collect sales tax in Indiana?

What is the economic nexus threshold for Indiana?

How to register for sales tax in Indiana

Before you can collect sales tax, you need to register with the Indiana Department of Revenue. Here is the step-by-step process.

1. Register online through INTIME (Indiana Taxpayer Information Management Engine) at intime.dor.in.gov
2. Apply for a Registered Retail Merchant Certificate — the fee is $25
3. Provide your FEIN or SSN, business entity type, and Indiana location
4. Indiana is a member of the Streamlined Sales Tax (SST) — you can also register through sstregister.org
5. Certificates are typically issued within 5-7 business days

How to collect sales tax in Indiana

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in Indiana.

1. Indiana has a flat 7% sales tax rate statewide with no local add-ons — compliance is straightforward
2. Determine taxability — Indiana taxes most tangible goods, digital goods, and SaaS
3. Charge 7% on all taxable sales regardless of location within Indiana
4. Itemize sales tax on receipts and invoices
5. Accept Indiana resale certificates (Form ST-105) from qualifying wholesale buyers
6. Keep records of all transactions and exemption certificates for at least 3 years

How to file and remit sales tax in Indiana

Filing your sales tax return on time is critical to avoid penalties. Indiana requires electronic filing for most businesses.

1. File electronically through INTIME at intime.dor.in.gov
2. Filing frequency is assigned: monthly, quarterly, or annually based on tax liability
3. Returns are due on the 20th of the month following the reporting period (30th for annual filers)
4. Report gross retail income, exempt sales, and taxable sales
5. Pay electronically through INTIME
6. Retain all records for at least 3 years

What is exempt from Indiana sales tax?

Not everything is subject to sales tax. Indiana provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the Indiana Department of Revenue.

• •Sales for resale with a valid Indiana resale certificate (Form ST-105)
• •Grocery food for home consumption
• •Prescription drugs and insulin
• •Manufacturing equipment and materials consumed in production
• •Agricultural inputs including feed, seed, fertilizer, and farm machinery
• •Sales to federal, state, and local governments
• •Qualifying nonprofit organizations with an exemption certificate

What is use tax in Indiana?

Indiana use tax applies at 7% when you purchase taxable goods from out-of-state vendors who do not collect Indiana sales tax. Businesses report use tax on their regular sales tax return (Form ST-103). Individual consumers can report use tax on their Indiana income tax return. Common triggers include online purchases, out-of-state equipment, and supplies from non-collecting vendors.

Does Indiana have marketplace facilitator rules?

Indiana requires marketplace facilitators with $100,000 in Indiana sales or 200 transactions to collect and remit sales tax on behalf of third-party sellers. Amazon, eBay, Etsy, and similar platforms collect Indiana's 7% sales tax on marketplace transactions. Sellers using marketplace facilitators are not required to collect on those sales but must collect on direct sales.

What are the penalties for sales tax non-compliance in Indiana?

Indiana imposes a penalty of 10% of the tax due for late filing or late payment. Interest accrues at the adjusted prime rate plus 3%. A negligence penalty of an additional 10% applies if underpayment is due to carelessness. Fraud penalties are 100% of the underpayment. Criminal penalties for willful evasion include felony charges with fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Indiana Department of Revenue.