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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 - June 7, 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. He later extended it for another 30 days.
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.

Online Hotel Reservation Fees are Taxable in Indiana

An out-of-state taxpayer that operates an internet website that allows customers to reserve hotel rooms was assessed sales tax on the fees it charged to customer. For the transactions in question, the taxpayer’s customers would reserve a room through the…

Indiana Surgical Guides are Tax Exempt

A company manufactures surgical cutting guides, designed on a custom basis, to correct the injuries and deformities in the knee.

Indiana Credit Card Processing Taxable

A taxpayer was found liable for sales tax for its purchase of individualized credit cards because it did not meet the requirements of a service transaction with transfers of tangible personal property for a consideration.

Indiana Adds/Amends Definitions To Conform To SSTP, Delays Changes to Floral Sourcing

Indiana has added and amended several sales and use tax statutory definitions in order to comply with the Streamlined Sales and Use Tax Agreement, including \”specified digital products\”, \”end user\”, and \”durable equipment\”.

Indiana Sales and Use Tax Rate Increased to 7%

Governor Mitch Daniels signed HB 1001 which will increase the state sales and use tax rate from 6% to 7%, effective April 1, 2008. In addition, other provisions added to the new legislation include caps on the following: homeowners’ property…

Indiana Finds Software Maintenance Agreements and Optional Warranties Taxable

The Indiana Department of Revenue stated that all software maintenance agreements and optional warranties are subject to sales and use taxes, unless proven otherwise by the taxpayer.

Golf Simulators Not Eligible For Rental Exemption In Indiana

Golf simulators described as \”high tech driving ranges\” were not eligible for an exemption provided for property that was acquired for rental or leasing.

Raw Materials, Tools, and Wiring May Be Exempt In Fabrication

Tools acquired for use in the fabrication of tangible personal property are exempt from Indiana sales tax. An exemption is also extended for raw materials incorporated into manufactured, refined, or assembled tangible personal property for resale. Wiring and other parts…

Indiana: Delivery Charges on Rented Property Taxable.

A taxpayer that rented modular buildings to customers and delivered the property to the customer\’s location was properly assessed Indiana sales tax on its separately-stated delivery charges.

Indiana Amnesty Program

Indiana Department of Revenue was authorized to establish a tax amnesty program that provides a limited-time opportunity for individuals and businesses to pay past-due listed taxes free of penalty, interest and collection fees without fear of criminal or civil prosecution.

Indiana Issues Ruling Discussing Software and Software Maintenance Agreements.

The State of Indiana recently issued a Letter Ruling indicating that optional warranties and maintenance agreements…

Indiana Issues Letter on VOIP Calling Cards.

An Indiana taxpayer protested the assessment of sales tax on their sale of calling cards at a grocery store.

Indiana assesses sales tax on the sale of prepaid voice over internet calling cards.

The Indiana Department of Revenue issued a Letter of Findings denying a taxpayer\’s request for abatement of sales tax assessed on the sale of prepaid voice over internet calling cards.

Indiana verifies that contractor’s purchase and use of items outside the state are not subject to use tax.

A contractor was not required to pay an assessment of use tax on its purchase of seeds, a fan, bathroom rough-in kits, painting and wallpapering supplies, and fabric books.

Indiana finds taxpayer failed to provide significant information in exempting the purchase of display booths.

The Indiana Department of Revenue found that a taxpayer failed to provide a significant amount of information that its purchase of display booths was shipped to a location outside the State of Indiana.

Indiana issues Letter of Findings indicating certain software maintenance agreements are not taxable.

A taxpayer who entered into a software maintenance agreement was not subject to sales tax on the purchase of the agreement.

Indiana Issues Letter of Findings in Regards to Manufacturing Exemption and Resale Exemption.

A taxpayer whose main business operation was the finishing of furniture products provided by its customers and then returning such items was not able to employ either the manufacturing exemption or the resale exemption under a recent audit.

Indiana products consumed in the production of electricity exempt.

An Indiana company is in the business of developing and manufacturing electricity using a new technology that is \”cleaner\” than methods traditionally used with emissions levels that fall below both current and anticipated future environmental standards.

Indiana airplane merchant protests imposition of both tax and penalty.

In Indiana, a corporation was found liable for sales tax on the purchase of an airplane that were later leased or rented to the public.

Indiana automotive components exempt.

An automotive component manufacturer was entitled to an exemption from Indiana sales and use tax for equipment and supplies that were either consumed or used in the process of manufacturing.

Indiana Exemption form eliminated.

The Commissioner\’s Directives No. 24 and 25 declare Form ST-137, and Form ST-136A no longer effective exemption documentation.

Indiana telecommunication services bundled with taxable services can still be exempt.

Nontaxable telecommunication services that are bundled with other taxable service charges can still be considered exempt from sales tax.

Vendor list must be provided to the Indiana Department of Revenue.

Purchasing agents for the department of administration and state educational institutions must provide the department of revenue with a list of vendors who want to sell them property or services. The department will do a check and get back to…

Indiana sale of basketball calendars taxable.

In Mid America Publishing, Inc v. Indiana Department of Revenue the court decided that sales of custom printed calendars bearing the logo of the publishing company and an image of Indiana University\’s Men\’s basketball team were subject to sales tax.