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

ECONOMIC NEXUS

10/1/2018 – see state notice

MARKETPLACE NEXUS

7/1/2019

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

Inactive

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.

Administration Information
Streamlined Sales Tax Status

Full Member

NUMBER OF TAXING AUTHORITIES

1 Sales Tax Jurisdiction

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Destination

Sales Tax Return Due Date

Monthly filers: (1) 20th of month following reporting period if average monthly sales and use tax liability in preceding year exceeded $1,000, or if filing combined sales/withholding tax return and withholding tax return is due by 20th; (2) 30th of month following reporting period if average monthly sales and use liability in preceding year did not exceed $1,000. Annual filers: last day of month following reporting period.

Exemption Information
RESALE CERTIFICATE

Indiana Resales Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: Services, unprepared grocery food items, health care items, public transportation

 

Entity types of exemptions: purchases by government agencies, school districts, and nonprofits, utilities

 

Indiana Exemption Certificate Forms

State Links
State Tax Web Page

Indiana Department of Revenue

Rate Look-Up Page

Registration Link

Register for Indiana Sales Tax

History & Fun Facts
HISTORY

  • Indiana enacted its gross retail sales and use tax in 1963.
  • In 2004, Indiana enacted legislation to conform with the Streamlined Sales and Use Tax Agreement.

FUN FACTS
  • In Indiana, marshmallow crème is exempt from sales tax but marshmallows are not. Candy is taxable in Indiana and marshmallows are considered a candy because they are a preparation of sweeteners and flavorings in the form of pieces.

Auto Finance Company May Claim Bad Debt Deductions Despite Repossessions Per Indiana Tax Court

An Indiana Tax Court released a ruling upholding a taxpayer’s refund claims. Case 20T-TA-00017 was an appeal brought by the Indiana Finance Financial Corp in relation to the denial of sales tax refund claims in 2017 and 2018.

Indiana Clarifies Pass-Through Exemptions for Government Construction Contractors

In their response to a request for guidance, Indiana has issued a ruling discussing the eligibility for construction contractors to use the tax-exempt status of their customers when renting or purchasing equipment.

Specific Items used by Auto Parts Manufacturer Qualify for Indiana Manufacturing Exemption

The Indiana Department of Revenue (DOR) determined that certain items purchased by an auto parts manufacturer qualified for the state’s manufacturing exemption.

Clean Room Equipment Qualifies for Indiana Manufacturing Exemption

Indiana has issued a revenue ruling stating that equipment used in a climate-controlled clean room qualified for the state’s manufacturing exemption.

Indiana Enacts Changes to Tax Exemption for Sales by Nonprofit Organizations

Indiana has enacted legislation that makes changes to the state’s sales tax exemption for sales of tangible personal property by nonprofit organizations.

Indiana Denies Taxpayer Refund of Sales Tax Paid for Swim Spa

The Indiana Department of Revenue (DOR) denied a taxpayer’s refund claim for sales tax paid on the purchase of a swim spa, which the taxpayer claimed is used for medical treatment.

Indiana Updates Computer Software Guidance Document

The state of Indiana has released an update to their Information Bulletin #8, which addresses the specific tax treatment of computer hardware, software, and digital goods.

Indiana DOR Revises Tax Guidance on Telecommunication Services

Indiana has released a new tax bulleting covering Telecommunications and Internet Services, effective immediately upon its publication in January 2023.

Indiana Rules Rental of Some Equipment Used on Manufacturing/Production Site Tax Exempt

An Illinois based company that manufactures, assembles, and installs automated food processing, packaging, and conveyor equipment in food production lines at food processing plants successfully argued the rental of some equipment should be tax exempt in Indiana.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

Indiana Enacts Marketplace Nexus Legislation

Indiana has enacted legislation with marketplace nexus provisions, effective July 1, 2019.

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.

Economic Nexus State by State Chart

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.

Indiana’s Temporary Storage Exemption Does Not Apply to Taxpayer’s Purchase of Computer Software

A taxpayer was denied a refund of Indiana sales tax paid on purchases of computer software delivered to Indiana since Indiana does not offer a temporary storage exemption for sales tax.

Indiana Telecom Companies Receive Refund for Taxes Paid for their Associated Companies

Telecommunications companies were initially denied a refund on the purchase of telecommunications equipment by the Indiana Department of Revenue because multiple different companies were named on the invoices.

Delivery Method Changes Everything: Navigating Sales Tax on Intangible Goods

Explore cases where seemingly intangible goods can be converted to tangible personal property for sales tax purposes.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Processor’s Purchase of Utilities Not Exempt in Indiana

An Indiana-based processor was not entitled to an exemption on utility purchases since they were used in processes that took place outside the production process.

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.