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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

New thresholds: January 1, 2024
MARKETPLACE NEXUS

7/1/2019

New thresholds: January 1, 2024
Sales Tax Holidays
Gas Use Tax Holiday

April 8, 2026 - May 8, 2026

Indiana Gov. Mike Braun (R) signed an executive order declaring an emergency 30-day suspension of the state gasoline use tax, citing the ongoing conflict in Iran and dispute over the Strait of Hormuz.
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.

Status

Future

Amnesty Filing Dates

July 15, 2026 - September 9, 2026

Go to Indiana Amnesty Page
AMNESTY INCLUSION PERIODS

Period ending before January 1, 2024

TAX TYPES AND CONDITIONS

 The department will:

  • abate and not seek to collect any interest, penalties, collection fees, or costs that would otherwise be applicable;
  • release any liens imposed;
  • not seek civil or criminal prosecution against any individual or entity; and
  • not issue, or, if issued, will withdraw, an assessment, demand notice, or a warrant for payment against any individual or entity, for the listed taxes due from the taxpayer.

Exclusion: If a taxpayer participated in a prior Indiana amnesty program, they will be ineligible to participate in this one.
AMNESTY BENEFITS

Waiver of all related 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

Indiana Rate Look-Up
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.

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.

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.