Indiana is waiving penalties and interest on back taxes — but only if you apply by September 15, 2026

Key takeaways

• Indiana’s 2026 tax amnesty covers sales and use tax liabilities for periods ending before January 1, 2024 — penalties, interest, and collection fees are fully waived for participating businesses
• The amnesty window is fixed at eight weeks: July 15 through September 15, 2026
• Businesses that skip the program and later get caught may face elevated penalties on the same liabilities

What changed

• Program established: Indiana’s 2025 budget bill created the amnesty program; Senate Bill 243, signed March 5, 2026, expanded eligibility by one year
• Covered tax types: Sales and use tax (gross retail), individual and corporate income, financial institution, fuel, and withholding taxes — wagering taxes, property taxes, and unemployment taxes are excluded
• Eligible periods: Tax liabilities for periods ending before January 1, 2024
• What’s waived: Penalties, interest, fees, and collection costs; liens released; civil and criminal prosecution waived
• What’s not waived: The underlying tax balance — you must pay the full amount owed
• Program window: July 15 – September 15, 2026
• Not eligible: Businesses that participated in Indiana’s 2005 or 2015 amnesty programs

Who this affects

• Ecommerce and SaaS businesses that started selling into Indiana without registering — if you crossed Indiana’s nexus threshold before January 1, 2024 and never registered or remitted sales tax, this program is your lowest-cost path to resolution
• Businesses that registered late or filed inconsistently — underpayments and unfiled periods ending before January 1, 2024 are eligible
• Sellers who migrated platforms and lost historical compliance continuity — gaps in filing history are common during platform migrations; the amnesty window covers those periods
• CPAs and accountants managing Indiana compliance for multi-state clients — now is the time to audit client exposure before July 15; clients who qualify but don’t participate may face elevated penalties after September 15

Note: If you participated in Indiana’s 2005 or 2015 amnesty programs, you are not eligible for this program.

Next steps for sellers

• Audit your Indiana sales tax history for periods ending before January 1, 2024 — identify any unfiled returns, underpayments, or unregistered periods
• Consult a tax advisor before July 15 to determine whether amnesty or Indiana’s existing voluntary disclosure program is the better path for your situation
• If you participate, be prepared to enter into an amnesty agreement with the Indiana DOR, pay your full liability in full (or establish a permitted payment plan), and relinquish your right to protest, appeal, or claim refunds on taxes paid under the program
• Monitor the Indiana DOR website for additional guidance — further details on the application process are expected ahead of the July 15 opening date

If you use TaxCloud: TaxCloud’s sales tax engine handles Indiana sales and use tax calculation going forward — but if you have historical exposure from periods before January 1, 2024, the amnesty program is worth reviewing with a qualified tax advisor before the window opens.