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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.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

Electricity Used by Restaurants Exempt in Indiana

Electricity used by a restaurant group qualified for the consumption exemption from Indiana sales and use tax. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Indiana Enacts Amnesty Program

Indiana established a tax amnesty program to take place 09/15/15 through 11/16/15. More…

Construction Materials Pulled from Inventory Non-Taxable in Indiana

A retailer also acting as a general contractor was not liable for Indiana sales tax on construction materials. More…

Industrial Gas Producer Doesn’t Qualify for Manufacturing Exemption in Indiana

An Indiana industrial gas producer didn’t qualify for the state’s manufacturing exemption on equipment used to produce gases. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Full Sales Tax Refund Claim Allowed for Defaulted Loans Purchased at Discount in Indiana

A finance company that purchased installment sale contracts at a 30% discount was entitled to the full amounts of its Indiana sales tax refund claims.

Conveyor Equipment Is Taxable for Indiana Manufacturer

Conveyors and conveyor equipment used by a cardboard box manufacturer did not qualify for Indiana’s manufacturing exemption because the items were used in post-production.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Services Sold in Bundled Transaction Taxable in Indiana

A business was liable for Indiana sales tax on nontaxable design and installation services because the services were sold as part of a bundled transaction.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Indiana Enacts Legislation Authorizing Review, Analysis, and Evaluation of Tax Incentives

Indiana has enacted legislation that requires the Commission on State Tax and Financing Policy to regularly review, analyze, and evaluate Indiana state and local tax incentives…

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Indiana Discusses Exemption for Nonreturnable Packaging Materials

A company that provided industrial processing services to customers but was not a retail merchant was liable for Indiana use tax on purchases of nonreturnable packaging materials.

Email Service Fees Not Taxable in Indiana

Charges paid for the use of a mass emailing service were not subject to Indiana sales and use tax because there was no transfer of tangible personal property or specified digital products from the provider to the purchaser of the services.

Postage Charges Taxable in Indiana

A commercial printing company was liable for Indiana sales and use tax on postage charges for delivering printed materials because postage charges are taxable delivery charges. The company charged customers for actual postage costs without any markup, separately stating the…

Invoices Separately Stating Labor and Materials Taxable as Time and Materials Contract in Indiana

An excavation business\” sales of sand and gravel as part of improvements to realty are subject to Indiana sales tax because the sales occurred under time and materials contracts.

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Indiana Discusses Electronic Filing Requirements

The Indiana Department of Revenue reminds retail merchants and withholding agents that sales and withholding taxes must be reported and paid electronically.

Installation Contract Taxable in Indiana Despite Lump-Sum Payment

An Indiana company\’s contracts for real property improvements were deemed to be time and materials contracts subject to sales tax, not nontaxable lump-sum contracts, despite the fact that customers paid the entire contract price when the contract was executed.