Indiana Sales Tax

On this page you will find handy sales and use tax information about Indiana.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Indiana that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

7.000%

Range of Local Rates

0%

Local Rates Apply to Use Tax

N/A

Status

Inactive

Amnesty Filing Dates

September 15, 2015 - November 16, 2015

Go to Indiana Amnesty Page
AMNESTY INCLUSION PERIODS

Applies to unpaid tax liability for a listed tax that was due and payable for a tax period ending before January 1, 2013.

TAX TYPES AND CONDITIONS

Income tax, sales tax, withholding tax, inheritance tax, estate tax and generation-skipping transfer tax liabilities.

Ineligible if participated in 2005 or SST amnesty.  Prohibited from participating in future amnesty.  Non participants subject to double penalty for any liability discovered post amnesty. More Details.

AMNESTY BENEFITS

Interest, penalties and collection fees waived.

Status

Active

Amnesty Filing Dates

May 2, 2018 - June 30, 2019

Go to Indiana Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes due after January 1, 2017.

TAX TYPES AND CONDITIONS

Sales, use, and income taxes.

To qualify, a retailer must meet these qualifications:

• Applicant has inventory located in a third-party Indiana warehouse and sells to Indiana customers.
• Never filed tax returns in Indiana for tax type in question.
• Never registered for tax type in question.
• Never been audited or contacted by DOR about tax type in question.

AMNESTY BENEFITS

Waiver of all taxes prior to 2017, waiver of penalties and interest.

Economic Nexus State Guide

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Midwest State Tax Updates You May Have Missed

In sales tax, legislative updates and law changes are a constant. It is virtually impossible to keep up with all of the changes taking place in the states where you conduct business, especially if there are more than one. But…

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

Online Educational Services Not Subject to Indiana Sales Tax

An out-of-state taxpayer’s online educational services were not subject to tax because they were considered remotely accessed software.

Indiana Issues Directive on Heavy Equipment Rental Excise Tax

Indiana has a heavy equipment rental excise tax imposed at a rate of 2.25% and effective January 1, 2019.

Use of Cloud Software Services via Hotel Internet Exempt in Indiana

Indiana has updated guidance regarding sales tax for hotels, motels and lodging establishments to reflect legislative changes regarding cloud computing.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Waste Disposal Company Qualifies for Indiana Exemption as Public Transportation Provider

A waste disposal and recycling company’s purchase of natural gas qualified for Indiana’s public transportation exemption since the taxpayer established that it was in the business of providing public transportation.

Indiana Enacts Economic Nexus Legislation

Effective July 1, 2017, Indiana requires remote sellers to collect and remit sales tax on sales of tangible personal property, products transferred electronically, and services delivered in Indiana if gross revenue or number of sales exceed a certain threshold.

Company Could Issue Exemption Certificate to Purchase Materials for Construction Services Provided to Federal Government

An out-of-state company was allowed to purchase construction materials exempt from Indiana sales tax since it performed construction services exclusively for the federal government.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Indiana Grants Predominant Use Exemption to Utilities Purchase

A taxpayer’s purchase of electricity qualified for Indiana’s predominant use exemption because the taxpayer produced documentation showing a higher exemption rate for utility usage than originally determined by the DOR.

Indiana Offering Voluntary Disclosure Initiative for Certain Online Sellers

The Indiana Department of Revenue is offering a limited time voluntary disclosure initiative for out-of-state online retailers that have inventory located in third-party Indiana warehouses and sell to Indiana customers.

Purchase of Copier/Printer for Product Label Printing Exempt in Indiana

The purchase of a copier/printer used for printing product labels qualified for an Indiana sales and use tax exemption.

Liner Carts Subject to Partial Manufacturing Exemption in Indiana

The purchase of liner carts by a plastic parts manufacturer was determined to be partially exempt from Indiana use tax since the carts were an integral part of an integrated manufacturing process.

Indiana Enacts Exemption for Cloud Software Transactions

Effective July 1, 2018, Indiana has enacted an exemption for cloud software transactions.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

Sales of Banking Software Not Taxable in Indiana

Online banking, online bill payment, and mobile banking products sold to financial institutions are considered nontaxable services in Indiana, and are not subject to sales or use tax.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Tax Base of Aircraft Acquired in Exchange Not Reduced for Like-kind Exchange from Indiana Sales Tax

A company was required to collect Indiana sales tax on the leasing of an aircraft it acquired in an exchange based on the total consideration the company provided with a deduction for the value of a like-kind exchange.