Indiana sales tax rates 2026: Calculator, nexus, and due dates

Indiana sales tax rates by city and county

Indiana’s sales tax structure is simple. The 7.00% statewide rate applies uniformly across all cities and counties. There are no local or district add-on taxes.

When a transaction is sourced to a location, it is subject to that jurisdiction’s sales tax rules. If a transaction is sourced to Indiana, it is subject to Indiana sales tax law. This includes economic nexus provisions, exemptions, and other related matters.

Major Indiana cities and their 2026 combined rates:

Indiana sales tax calculator

Can’t find your city? Use our Indiana sales tax calculator to look up the exact sales tax rate for any Indiana address.

TaxCloud’s sales tax calculation engine calculates to the rooftop level — because rates can vary within the same ZIP code, and zip-level estimates aren’t accurate enough for compliance.

Indiana nexus thresholds

Every business with customers in Indiana is subject to nexus laws. You are required to register and collect sales tax if you trigger “nexus” through a physical presence in the state or by exceeding specific economic thresholds as a remote seller.

Indiana economic nexus

You will trigger Indiana economic nexus if you exceed the following thresholds in the current or previous calendar year.:

• Sales threshold: $100,000 in total gross sales (not including marketplace sales).
• Transaction threshold: None.

Indiana physical nexus

You will trigger Indiana physical nexus (and must register from dollar one) if you have:

• Inventory: Storing goods in a 3PL or Amazon FBA warehouse in Indiana.
• Personnel: Remote employees, contractors, or sales reps based in the state.
• Property: Leasing tangible property like physical offices, stores, or sample rooms in Indiana.

How to register for an Indiana sales tax permit

Once you trigger nexus, you must register with the Indiana Department of Revenue (DOR) before you can legally collect sales tax.

Operating without a permit after crossing the threshold exposes you to back taxes, penalties, and interest from the date nexus was established — not the date you registered.

1. Gather info: You’ll need your FEIN, estimated sales, business structure details, and bank account information.
2. Submit: Use the Indiana Department of Revenue portal (INBiz) to apply for your Registered Retail Merchant Certificate.
3. Note your effective date: Indiana requires you to begin collecting sales tax on the date nexus was triggered — not the date you registered. If there’s a gap, you may owe back taxes for that period.

If you have questions about your Indiana registration or compliance history, TaxCloud’s U.S.-based support team typically responds within 2 hours and can review your setup directly.

How to calculate sales tax in Indiana

Indiana’s sales tax calculation rules are relatively straightforward because the state applies a single statewide rate and does not impose local sales taxes. However, destination-based sourcing and marketplace reporting requirements can still pose compliance challenges for sellers new to the state.

What is taxable in Indiana?

Taxability in Indiana is determined by how a product is classified under state law. Below is a high-level summary of how major categories are generally treated for 2026:

• Tangible personal property: Most physical goods, such as furniture, electronics, and standard retail items, are subject to sales tax unless a specific exemption applies. In Indiana, these items are taxed at the statewide rate of 7%, since the state does not impose additional local sales taxes.
• SaaS, software, and digital products: Indiana generally taxes digital goods (eBooks, music, prewritten computer software), but does not tax Software as a Service (SaaS).
• Food & groceries: Indiana typically exempts grocery staples. However, prepared or heated food sold for immediate consumption is generally taxable.
• Clothing: Clothing and footwear are generally taxable at standard rates because no specific exemption exists. There are no specific price thresholds or sales tax holiday exemptions.

What is tax exempt in Indiana?

Below is a high-level summary of items that are generally tax-exempt in Indiana:

• Essential exemptions: Indiana provides specific exemptions for items such as prescription medicine and medical equipment or supplies prescribed by a licensed practitioner.
• Additional exemptions: Most grocery staples intended for home consumption are exempt from Indiana sales tax. However, prepared or heated food sold for immediate consumption is generally taxable. Certain manufacturing equipment, agricultural production inputs, and purchases made for resale are also exempt, typically when the purchaser provides a valid Indiana exemption certificate (such as Form ST-105) to the seller.

Indiana sales tax return due dates and filing frequency

Filing frequency is assigned by the Indiana Department of Revenue based on your reported or estimated sales volume. In Indiana, returns are generally due on the 20th of the month following the reporting period.

Critical 2026 compliance notes:

• Zero-return requirement: If you are registered for Indiana sales tax but had $0 in taxable sales during the reporting period, you must still file a return. Indiana requires a “zero-dollar ($0) return” for each filing period. Late returns are subject to penalties of up to 20% of the tax due, with a minimum penalty of $5.
• Electronic filing requirement: All businesses in Indiana must file and pay sales tax electronically. Returns are submitted through the Indiana Department of Revenue’s INTIME portal.
• Weekend rule: If the filing deadline falls on a weekend or legal holiday, the return is due the next business day.

Indiana and the SST program

Yes, Indiana is a member state of the Streamlined Sales Tax (SST) program.

Because TaxCloud is an SST Certified Service Provider, we can handle your registration and filing at no additional cost to your business in Indiana and all other SST-member states.

See how our SST status can eliminate your filing fees.

The latest Indiana sales tax changes

We track Indiana’s shifting sales tax landscape so you don’t have to.

Here are the latest updates:

• Generative AI tools are sales-tax free (2025): The Indiana Department of Revenue issued guidance confirming that generative AI services accessed online are not subject to Indiana sales tax under current law. The ruling applies when the AI platform is delivered as a cloud-based service and customers do not download or take ownership of the software.