Bloomington Sales Tax Guide 2025 (Indiana)
Navigating sales tax compliance, including the streamlined sales tax program, in Bloomington, Indiana, can be challenging for businesses of all sizes. Understanding the sales tax registration process, legislation, local regulations, Indiana sales tax rates, use tax considerations, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses through various integrations, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Bloomington for 2025.
Bloomington Sales Tax Rate (Indiana)
In 1963, Indiana enacted its first retail sales tax at a rate of 2%. As of 2025, the sales tax rate in Bloomington, Indiana, is 7%, comprising only the state rate, as there are no additional local taxes.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 7.00% |
| County Tax | 0.00% |
| City Tax | 0.00% |
| Special Tax | 0.00% |
| Combined Tax | 7.00% |
(Note: Sales tax rates are subject to change. Check the Indiana Department of Revenue’s website for the latest updates.)
Bloomington Sales Tax Calculator (Indiana)
Step 1: Identify the Sales Tax Rate
The total sales tax rate in Bloomington, IN, is 7% or 0.07 in decimal form.
Step 2: Determine If the Item Is Taxable
Most physical goods (electronics, furniture, clothing, etc.) are taxable, while most groceries and prescription medications are exempt. However, for online purchases or out-of-state buys where sales tax is not collected, consumers may need to account for the use tax. Let’s say you own a bookstore, and a customer buys a hardcover novel for $25.
Step 3: Calculate the Sales Tax
Use the formula:
Sales Tax = Sale Price × Sales Tax Rate
25 × 0.07 = 1.75
So, the sales tax is $1.75.
Step 4: Calculate the Total Amount Charged to the Customer
Total Price = Sale Price + Sales Tax
25 + 1.75 = 26.75
Your customer owes $26.75 at checkout.
Key Takeaways for Your Business
- Bloomington’s sales tax rate is 7% (state tax only).
- Multiply the sale price by 0.07 to calculate the sales tax.
- Collect and remit the tax to the Indiana Department of Revenue through INTIME.
FAQ on Sales Tax in Bloomington IN
What is the Sales Tax in Bloomington IN?
The sales tax in Bloomington, IN, is 7%, which is the statewide Indiana sales tax rate, with no additional local taxes.
What is the Sales Tax Rate for Bloomington Indiana?
The sales tax rate in Bloomington, Indiana, is 7%, applying to most retail goods and taxable services.
Bloomington Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Bloomington?
Sales tax collection in Bloomington is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Bloomington.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Indiana.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Bloomington?
In Bloomington, Indiana, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Grocery Food, Machinery, Raw Materials, Utilities & Fuel, Medical Devices, Newspapers, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Bloomington
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.in.gov/dor/business-tax/sales-tax/.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.in.gov/dor/business-tax/sales-tax/ by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Bloomington often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Bloomington?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
Ready to automate your sales tax?
Find Sales Tax Information for Other Cities in Indiana
Looking for sales tax rates and compliance details for other cities in Indiana? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Salamonia | 7.00% |
| Saratoga | 7.00% |
| Selma | 7.00% |
| Shirley | 7.00% |
| Spiceland | 7.00% |
| Springport | 7.00% |
| Straughn | 7.00% |
| Sulphur Springs | 7.00% |
| Union City | 7.00% |
| Webster | 7.00% |
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