Indiana Sales Tax Guide: Rate, Rules & Filing

Indiana applies a flat 7% state sales and use tax with no local sales taxes, so every taxable sale is 7% regardless of location.

Because the rate is uniform, there is no city-by-city variation to track.

To look up the combined rate for a specific Indiana address, use our US sales tax calculator.

Indiana use tax is 7%, the same as sales tax. It's owed by individuals and businesses alike on items bought for use, storage or consumption in Indiana when at least 7% Indiana sales tax wasn't paid to the seller [9].

Individuals report use tax on their annual income tax return (Form IT-40 or IT-40PNR), due April 15, or pay it as they go with Form ST-115, the Consumer Use Tax Return [9]. A registered retailer reports use tax on its next sales tax return, and a business with no sales tax account files Form ST-115 [9].

Indiana economic nexus applies once your gross revenue from sales into the state exceeds $100,000 in the current or prior calendar year. Indiana removed its 200-transaction threshold effective in 2024, so the dollar amount is the only economic trigger. Physical presence creates nexus immediately.

Indiana's marketplace facilitator collection duty took effect July 1, 2019 under IC 6-2.5-2-1, and effective January 1, 2024, Senate Enrolled Act 228 removed the 200-transaction alternative, leaving a single $100,000 gross-revenue threshold measured over the current or preceding calendar year. A marketplace facilitator must register, collect, and remit Indiana sales tax on transactions it facilitates once its combined direct Indiana sales and facilitated marketplace-seller sales exceed that threshold, charging tax on the full amount the customer pays, including any separately stated marketplace service fee. An individual marketplace seller's transactions through the marketplace do not count toward that seller's own nexus threshold once the facilitator has met its own threshold (though they do count if the facilitator has not); facilitators are treated as the retailer for facilitated sales and must file a monthly Indiana sales tax return through INTIME, including a $0 return in months with no sales.[8]

Indiana assigns monthly or annual filing based on tax liability. Monthly returns are due the 20th or 30th of the following month depending on your assigned schedule, filed through INTIME. Larger filers are placed on the earlier deadline. For the portal, return, and step-by-step, see our guide to filing Indiana sales tax online.

Indiana exempts groceries and prescription drugs. Prewritten software delivered electronically is taxable, but SaaS — where the customer accesses software hosted by the provider — is exempt by statute.

Indiana buyers give the seller Form ST-105 (General Sales Tax Exemption Certificate) to purchase for resale or another exempt use [5]. The form has no fixed expiration but is valid only while the buyer's Registered Retail Merchant Certificate or exemption status stays active [5].

For the official form, multistate certificate rules and expiry, see the Indiana resale certificate guide.

Late filing or payment carries a penalty of 10% of the tax due, with a minimum of $5, plus interest from the due date. Our Indiana filing guide lists late filing penalties, interest, and what to do if you missed a return.

You have 60 days from the date a proposed assessment is issued to file a written protest with the Department of Revenue, a deadline that cannot be extended [6]. After the Department's Letter of Findings, you can appeal to the Indiana Tax Court within 90 days [6].

• [1] Indiana DOR — Remote Seller FAQs (7% rate, economic nexus)

• [2] Indiana DOR — Sales Tax Information Bulletin #8 (SaaS exempt)

• [3] Indiana DOR — Sales Tax Information Bulletin #29 (grocery food exempt)

• [4] Indiana DOR — Sales Tax Information Bulletin #93 (specified digital products taxable)

• [5] Indiana DOR — Form ST-105 (General Sales Tax Exemption Certificate)

• [6] Indiana DOR — Appeals (60-day protest, Indiana Tax Court)

• [7] Indiana — INBiz Business Registration ($25 RRMC)

• [8] Indiana Department of Revenue — Sales Tax Information Bulletin #89 (Marketplace Facilitators)

• [9] Indiana DOR — Business Tax FAQs (use tax)

• [10] Indiana BMV — Buying and Selling a Vehicle (sales tax at titling)

• [11] Indiana BMV — Vehicle Excise Tax

Verified July 2026 against Indiana Department of Revenue published guidance.

• Indiana Sales Tax Exemption Guide: What You Need to Know
• Is There Sales Tax on Clothes in Indiana? A Guide for Businesses