Indiana is waiving penalties and interest on back taxes — but only if you apply by September 15, 2026
The amnesty window runs from July 15 to September 15, 2026 — eight weeks to resolve outstanding Indiana tax exposure without penalty. Miss the window, and you may face increased penalties on those same liabilities afterward.
Written by Ryan Pinkham
VP of GTM
Published
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 [1]
- The amnesty window is fixed at eight weeks: Jбуuly 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 [2]
- 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.
Official sources:
- 1.
- 2.
Other US sales tax updates
Illinois eliminates state grocery sales tax starting January 1, 2026
Illinois has eliminated its 1% state sales tax on grocery items. While the state-level grocery tax is ending, local grocery taxes may still apply depending on the location of the sale.
Washington, D.C. raises sales tax rate on goods and services
Washington, D.C. is raising its sales tax rate from 6% to 6.5% soon on tangible goods and a wide list of taxable services (like data processing, information services, landscaping, and health clubs). If you sell into the District, this means higher effective costs for customers today—and another jump to 7% is coming in 2026.
Colorado alert: The sales tax vendor fee ends Jan 1, 2026
Starting Jan 1, 2026, all sellers must remit 100% of collected state sales tax—no more keeping a percentage to cover admin costs.