Indiana Sales Tax

Indiana Sales Tax Guide (2026)

7% everywhere, with no local sales tax at all, which removes the hardest part of multistate compliance and leaves the risk entirely in what you classify.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: IN DOR & Indiana Code
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Quick Facts

Sales Tax at a Glance

State rate
7% [1]
Local sales tax
None [1]
Combined rate
7% statewide [1]
Economic nexus
$100k, no transaction test [2]
Transaction test repealed
Jan 1, 2024 [2]
SaaS
Not a retail transaction [3]
Groceries
Exempt [4]
Registration fee
$25, valid two years [5]
Food & beverage tax
1%, or 2% in Marion County [5]
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No local sales tax does not mean nothing local to file

Indiana has no county or city sales tax, but two genuinely local taxes ride alongside the 7%: the county innkeeper’s tax on short stays and the food and beverage tax on prepared meals.[6]

7% state rate, one jurisdiction County innkeeper’s tax on stays under 30 days Food & beverage tax at 1% 2% in Marion County Registered and filed separately Marketplace facilitators report twice a year
A single flat 7% configuration under-collects. A restaurant in Marion County charges 7% sales tax plus 2% food and beverage tax on the same meal, and a hotel adds the applicable innkeeper’s rate. Both are filed outside the sales tax return.[6]
Estimate

Indiana sales tax calculator

Indiana · state rate 7%
There is no local sales tax anywhere in Indiana.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only. The food and beverage and innkeeper’s taxes are separate levies reported on their own returns rather than on the sales tax return.[6] Talk to CrownGlobe about local registrations.

Rates & Registration

Indiana Sales Tax Rates, Nexus & the single jurisdiction

What applies to an Indiana sale

State gross retail tax7%
County or city sales taxNone
Food & beverage tax1%, adopting jurisdictions
Food & beverage tax, Marion County2%
County innkeeper’s taxVaries by county

Because the sales tax rate is uniform, sourcing decides only whether Indiana tax applies at all, never which rate applies.[7]

Who must register

Either trigger applies: economic nexus at $100,000 or more of gross revenue from Indiana sales in the current or preceding calendar year, or any physical presence. The former 200-transaction test was repealed effective 1 January 2024.[2]

Software turns on delivery, not function: a prewritten application downloaded or shipped on media is taxable at 7%, while the identical application accessed remotely from the vendor’s server is not a retail transaction at all.[3]

Compliance

Sales Tax Registration and Filing

A Registered Retail Merchant Certificate costs $25 and renews automatically.

How to register

  • Confirm nexus→
  • INTIME registration→
  • Pay $25 fee→
  • Certificate issued→
  • File electronically

The certificate runs for two years and updates automatically at no further charge while the account stays in good standing; letting it lapse means paying the $25 again.[5]

Filing & due dates

RequirementApplies whenNotes
Annual returnUnder $1,000 collected a yearSingle return
Monthly returnAll other retail merchantsStandard assignment
Marketplace local reportsFacilitatorsMar 30 and Aug 31

Waiting for the Department to bill unreported use tax rather than self-reporting adds a 10% penalty plus interest to the tax due.[5]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Indiana taxes tangible goods and downloaded software at 7%, exempts groceries and hosted software, and leaves most services outside the base.[1]

Generally taxable

  • Tangible retail goodsIC 6-2.5-4-1
  • Downloaded prewritten softwareBulletin #8
  • Specified digital products with permanent useIC 6-2.5-4-16.4(b)
  • Candy, soft drinks & prepared foodOutside the food exemption
  • Accommodations under 30 daysIC 6-2.5-4-4
  • Marketplace-facilitated salesIC 6-2.5-4-18

Generally exempt

  • Food & food ingredientsIC 6-2.5-5-20
  • SaaS & remotely accessed softwareIC 6-2.5-4-16.7
  • Custom computer softwareBulletin #8
  • Bottled waterTreated as food
  • Manufacturing equipmentIC 6-2.5-5-3
  • Sales for resaleIC 6-2.5-5-8
Worth flagging: a digital product is taxable only where the buyer receives a permanent right of use that does not depend on continued payment. A subscription that ends when payment stops falls outside that rule, while the same content sold outright does not.[3]
Reference

Glossary of key terms

Gross retail tax
Indiana’s statutory name for its sales tax, imposed at 7% on retail transactions.
Registered Retail Merchant Certificate
Indiana’s $25 sales tax registration, valid two years and renewed automatically at no charge.
County innkeeper’s tax
A county tax on accommodations rented for fewer than 30 consecutive days, charged on top of the 7%.
Food and beverage tax
A 1% local tax on taxable food and beverage sales, 2% in Marion County, registered and filed separately.
Remotely accessed software
Prewritten software hosted on the seller’s server; Indiana does not treat access to it as a retail transaction.
Specified digital products
Digital audio, audiovisual works and books, taxable when transferred with a permanent right of use.
FAQ

Sales Tax FAQs

7% statewide. Indiana has no county or city sales tax, so 7% is the combined rate at every address in the state.

No. Indiana provides by statute that a transaction for prewritten software accessed remotely from a hosted server is not a retail transaction, so no sales or use tax applies. Software downloaded or delivered on media remains taxable.

$100,000 or more of gross revenue from sales into Indiana in the current or preceding calendar year. The 200-transaction alternative was repealed effective 1 January 2024, so the dollar test is the only economic trigger.

No. Food and food ingredients for human consumption are exempt, and bottled water is treated as exempt food. Candy, soft drinks and prepared food for immediate consumption remain taxable at 7%.

Because the county innkeeper’s tax and the food and beverage tax are separate levies rather than sales taxes. They apply in addition to the 7% on lodging and prepared food respectively, and they are registered for and filed on their own returns.

The Registered Retail Merchant Certificate is valid for two years and renews automatically at no further charge while the account is in good standing. If it lapses and you must reapply, the $25 fee applies again.

Verification

Sources & methodology

  1. IN DOR – Sales Tax
  2. IN DOR – Bulletin #89 Remote Sellers
  3. IN DOR – Bulletin #8 Software & Digital Goods
  4. IN DOR – Bulletin #45 Food
  5. IN DOR – Business Tax Handbook
  6. IN DOR – Bulletin #41 Accommodations
  7. IN DOR – Bulletin #91 Seller Registration
  8. IN DOR – Sales Tax Information Bulletins
  9. IN DOR – Business Tax
  10. IN DOR – Departmental Notices
  11. INBiz – Tax Registration
  12. INBiz – Business Owner’s Guide
  13. Indiana Code – IC 6-2.5-2-1
  14. IN DOR – Department Home
Methodology: Every rate, threshold and deadline is taken from the Indiana Department of Revenue’s bulletins and publications or the Indiana Code directly. Where the Department’s index pages and its published bulletins disagree on dates, the bulletin PDF is treated as controlling.
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