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: 

1. Has sales tax nexus in Indiana
2. 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.

1. File and pay online - File online at the Indiana Taxpayer Information Management Engine (INTIME).
2. 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