As an e-commerce seller, you will need to collect sales tax in Indiana if you have:
(1) Gross revenue exceeding $100,000 or 200 or more separate transactions in the previous or current calendar year (economic nexus), or
(2) Physical presence in Indiana (physical nexus).
Below, we will highlight some of the basic provisions of Indiana sales tax law.
What is the tax rate range for Indiana?
State: Indiana’s general sales tax rate is 7%.
Local: Indiana does not have local sales tax jurisdictions.
Do you have physical or economic nexus in Indiana?
Physical nexus. Certain business activities create physical nexus for retail merchants in Indiana. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Indiana. Examples of business activities that can create physical nexus in Indiana include:
- Maintains an office, place of distribution, sales location, sample location, warehouse, storage place, etc. in Indiana
- Maintains a representative, agent, salesperson, canvasser, or solicitor who, while operating in Indiana under the authority of and on behalf of the retail merchant or a subsidiary of the retail merchant, sells, delivers, installs, repairs, assembles, sets up, accepts returns of, bills, invoices, or takes orders for sales of tangible personal property or services to be used, stored, or consumed in Indiana
Economic nexus. Remote sellers and marketplace facilitators that have gross revenue exceeding $100,000 or 200 or more separate transactions in the previous or current calendar year are required to collect and remit Indiana sales or use tax. Additional information on economic nexus requirements:
- Gross revenue includes all sales of tangible personal property, products delivered electronically, and services delivered in Indiana
- Remote sellers that exceed either threshold are required to be registered and file returns even if none of its sales are taxable
- Exception: Since services are generally not taxable in Indiana, a service provider that meets either threshold but does not sell tangible personal property or provide taxable services is not required to be registered
- Remote sellers do not count transactions made through a marketplace facilitator in determining if it has economic nexus, unless the marketplace facilitator has not met the thresholds
- Marketplace facilitators must include both transactions made on its own behalf and transactions facilitated for sellers in determining if it has economic nexus in Indiana
What are examples of sales of taxable items?
- Tangible personal property, unless specifically exempted
- Candy, soft drinks, prepared food
- Digital goods, if sold to the end user with rights for permanent use
What are examples of sales of nontaxable/exempt items?
- Services are generally not taxable
- Prescription drugs
- Certain agricultural items
- Software as a service (SaaS)
Are there any sales tax holidays?
Currently, Indiana does not have any sales tax holidays.
Is Indiana a member of the SST (Streamlined Sales Tax)?
Currently, Indiana is a full member of the Streamlined Sales Tax (SST) project.
How to get a sales tax permit / links to register in this state?
You can register online at:
Indiana is a one-rate state, there are no local jurisdictions that impose a sales tax.