Indiana

Provinces
Indiana
Provinces
Indiana
About
Indiana
About
Indiana
Indiana
Indiana

Standard rate

The standard rate in Indiana for sales tax for 2024 is 7%.

Reduced rate

There is no reduced rate for sales tax in Indiana.

Who is obliged to register sales tax in Indiana

If a retailer does not have a physical presence in Indiana but has exceeded the threshold in the current or previous calendar year, it must register with the department.
Standard rate 7% Reduced rate - Threshold $100,000
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Threshold

A retailer must register for sales tax in Indiana if either of the following conditions is met:
  • Gross revenue from sales into Indiana exceeding $100,000, including tax-free sales;
  • 200 or more separate transactions in Indiana.
Sales and use tax is not imposed on digital services if only it is not specified digital products such as digital audio works, digital audiovisual works and digital books. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Online Marketplaces

If all of your sales in Indiana are through a marketplace platform, you can not register for paying Indiana sales tax: Your marketplace facilitator pays itself. But you should apply for an exemption certificate.

Sales tax payment and filing date

The frequency of filing a tax return depends on the number of tax liabilities:
  • Annual – $83.33 or less- 30 days after the end of the frequency;
  • Quarterly – $1,000 or less – 30 days after the end of the frequency;
  • Monthly – More than $1,000 – 20 days after the end of the frequency.
If the filing due date falls on an off day, sales tax is due the next day. Quarterly filing periods ended last days of April, July, October, and January.

Penalty and interest

Failure to file or pay results in a penalty of 10% of the tax due.

Sales tax holidays in Indiana

Indiana has several periods when tax is not imposed on certain items:
  • Annual School Supplies tax-free weekend: The first weekend in August (August 3-4, 2024), there is no tax on school supplies valued up to $100 per student.
  • Annual Computer Tax Free Weekend: The first weekend in October (October 5-6, 2024) there is no tax on computers and software valued up to $1,000.
  • Energy Star Tax Exemption: There is no tax on energy efficient home devices that meet Energy Star standards throughout the year.

Indiana Sales Tax Nexus:

  • Physical Nexus: In Indiana, physical presence Nexus is established if a business has a physical location, employees, or property in the state. This includes having warehouses, offices, or salespeople operating within the state. If a business conducts significant in-state activities, it is subject to Indiana’s tax laws and must collect and remit sales tax.
  • Economic Nexus: Economic Nexus in Indiana is determined by a threshold of $100,000 in sales or 200 separate transactions in the state within a calendar year. If a remote seller exceeds either threshold, they are required to register, collect, and remit sales tax in Indiana.
October 10, 2024 149
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