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:
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?
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.
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
Filing Due Date
March 2, 2023
March 30, 2023
May 1, 2023
May 30, 2023
July 31, 2023
August 30, 2023
October 2, 2023
October 30, 2023
November 30, 2023
January 2, 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.