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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 Sales Tax Rates
State Rate

7.000%
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
ECONOMIC NEXUS

10/1/2018 – see state notice
MARKETPLACE NEXUS

7/1/2019
Sales Tax Amnesty
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.

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.

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.

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.

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.

Midwest State Tax Updates You May Have Missed

This blog post will explore three recent Midwestern state tax updates that could have a big impact – positive or negative – on your business.

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.

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.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Separately Stated Food and Beverage Services Charges Exempt in Indiana

An Indiana hotel operator, which provided meeting rooms and made food and beverages arrangements, was not liable for sales tax on separately stated service charges for serving food and beverages on customer invoices.

Online Backup Software Not Taxable in Indiana

An information technology company was not liable for additional Indiana sales tax on online backup software it provided to its clients since the software was incidental to the company’s provision of online backup subscription services.

Manufacturer’s Purchases of Shipping Labels and Printer Ribbons Are Taxable in Indiana

Purchases of shipping labels and printer ribbons by a manufacturer of medical devices did not qualify for an exemption from Indiana use tax since the products did not constitute an integral and material part of the finished product.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

Sale of Advertising Materials by Advertising Company Taxable in Indiana

An advertising company’s sale of advertising materials to customers was subject to sales tax in Indiana since the sale constituted a \”unitary transaction,” in which one price is charged for the sale of property and services together and is taxable.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.