Ultimate Indiana Sales Tax Guide

State taxing authority: | Indiana Department of Revenue |
2023 Indiana state sales tax rate: | 7% |
Local sales tax rates? | No |
Streamlined Sales and Use Tax Agreement Member? | Yes |
Do I have to collect Indiana sales tax from customers?
Retailers who meet these two requirements are required to collect sales tax in Indiana:
- Has sales tax nexus in Indiana
- Sells taxable products or services in Indiana
What creates sales tax nexus in Indiana?
- Physical presence - A location, inventory, personnel or other business activities in the state OR
- Economic nexus - Your gross revenue exceeds $100,000 or your make 200 or more separate transactions during the previous or current calendar year
Learn more about sales tax nexus and when that means you’re required to collect sales tax here.
Do I have to collect sales tax from Indiana customers if I sell on Amazon, Walmart, eBay or Etsy?
No. Indiana has a marketplace facilitator law, which means that marketplaces like Walmart or eBay are required to collect sales tax on behalf of 3rd party sellers on their platform.
If you have sales tax nexus in Indiana, keep in mind that you are still required to collect sales tax on your other, non-marketplace, Indiana sales.
Read more about marketplace facilitator sales tax laws here.
Are my products taxable in Indiana?
Most tangible personal property is subject to sales tax. However, some necessities like food, clothing and medication are not taxable in some states. And sometimes states consider things like digital goods (eBooks, music, movies) and software-as-a-service (SaaS) taxable even though they can’t be touched or held.
Here’s how Indiana taxes the most commonly sales tax exempt items:
Are groceries taxable in Indiana?
No, groceries are non-taxable in Indiana.
Is clothing taxable in Indiana?
Yes, clothing is taxable in Indiana.
Are digital products taxable in Indiana?
Yes, digital products are taxable in Indiana, as long as the buyer has permanent access to the digital goods. If only temporary access (such as renting a digital movie to watch temporarily) then the transaction is not taxable.
Is software-as-a-service (SaaS) taxable in Indiana?
No, SaaS is non-taxable in Indiana.
Are services taxable in Indiana?
In general, services are non-taxable in Indiana. However if the sale involves renting a room or a service that results in tangible personal property (such as designing and selling a t-shirt) then the transaction might be taxable.
How to Register for a Indiana Sales Tax Permit
File a business tax application at the Indiana Department of Revenue’s INTIME page.
Go here to learn how to register for a sales tax permit in every US state.
Do I need a Indiana sales tax permit if I only sell temporarily in the state?
Yes. Indiana requires that everyone who makes retail sales in the state, even temporarily, register and collect sales tax.
How to Collect Sales Tax in Indiana
Indiana has a single sales tax rate of 7%. That means anytime you make a taxable sale to a buyer in the state you’d simply charge the 7% sales tax rate.
Should you collect sales tax on shipping charges in Indiana?
Yes. Shipping charges are subject to sales tax in Indiana.
Learn about sales tax on shipping in every US state here.
How to File and Pay Sales Tax in Indiana
When your sales tax filing due date approaches, you can file Indiana sales tax returns in multiple ways.
- File and pay online - File online at the Indiana Taxpayer Information Management Engine (INTIME).
- Let Zamp handle your Indiana sales tax filing and remittance so you never have to look at a sales tax return again!
Learn how to file and pay sales tax in other US states here.
I didn’t collect any Indiana sales tax this period. Do I still need to file a return?
Yes. You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.
What is the penalty for filing and/or paying Indiana sales tax late?
The penalty for failing to file and the penalty for failing to pay Indiana sales tax is 10% of the tax due.
How often will I be required to file and pay sales tax in Indiana?
Indiana requires sales taxpayers to file and pay either monthly or annually. Taxpayers who average less than $1,000 in tax due per month are required to pay by the 30th day of the month following the taxable period.
Taxpayers who average $1,000 or more in tax due per month are required to pay by the 20th of the month following the taxable period.
If your sales tax filing due date falls on a weekend or holiday, it’s due the next business day.
Indiana sales tax due dates
Indiana Monthly Sales Tax Filing Due Dates for “Regular” Filers
Taxpayers with less than $1,000 in monthly sales tax liability have sales tax due on these dates
Taxable Period | Filing Due Date |
January 2023 | March 2, 2023 |
February 2023 | March 30, 2023 |
March 2023 | May 1, 2023 |
April 2023 | May 30, 2023 |
May 2023 | June 30,2023 |
June 2023 | July 31, 2023 |
July 2023 | August 30, 2023 |
August 2023 | October 2, 2023 |
September 2023 | October 30, 2023 |
October 2023 | November 30, 2023 |
November 2023 | January 2, 2023 |
December 2023 | January 30, 2024 |
Indiana Monthly Sales Tax Filing Due Dates for “Early” Filers
Taxpayers with $1,000 or more in monthly sales tax liability have sales tax due on these dates
This is determined by the fact that the taxpayer had $1,000 or greater average monthly tax liability for the previous calendar year OR the fiscal year ending on June 30.
Taxable Period | Filing Due Date |
January 2023 | February 21, 2023 |
February 2023 | March 20, 2023 |
March 2023 | April 20, 2023 |
April 2023 | May 22, 2023 |
May 2023 | June 20,2023 |
June 2023 | July 20, 2023 |
July 2023 | August 21, 2023 |
August 2023 | September 20, 2023 |
September 2023 | October 20, 2023 |
October 2023 | November 20, 2023 |
November 2023 | December 20, 2023 |
December 2023 | January 22, 2024 |
Indiana Annual Sales Tax Filing Due Date
Taxable Period | Filing Due Date |
Year 2023 | January 31, 2024 |
- Do I have to collect Indiana sales tax from customers?
- Are my products taxable in Indiana?
- How to Register for a Indiana Sales Tax Permit
- How to Collect Sales Tax in Indiana
- How to File and Pay Sales Tax in Indiana