Key takeaways
- Indiana sales tax rates: A flat 7% rate applies statewide with no local sales taxes, though some counties add a 1%–2% food and beverage tax on prepared food and drink.
- Economic nexus: Remote sellers must collect once gross sales into Indiana exceed $100,000 in the current or previous calendar year. The 200-transaction threshold was removed on March 29, 2024.
- Filing & penalties: Returns are due on the 20th of the month after the period. Late filing costs 10% of the tax due or $5, whichever is greater, and late payment costs 10% of the unpaid tax.
Indiana sales tax key facts (2026)
| Item | Indiana |
|---|---|
| Statewide rate | 7% (no local sales tax) |
| County food & beverage tax | 1%–2% (some counties) |
| Economic nexus threshold | $100,000 (no transaction count since Mar 29, 2024) |
| Sourcing | Destination-based |
Collect and file Indiana sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
No.
| Item | Indiana |
|---|---|
| Groceries | Exempt (prepared food taxable) |
| Registration fee | $25 (Registered Retail Merchant Certificate) |
| Return due date | 20th of the month after the period |
| Governing agency | Indiana Department of Revenue |
What is the sales tax rate in Indiana?
Indiana keeps it simple: a single statewide sales and use tax rate of 7% with no local sales taxes, so the same rate applies everywhere. The main local add-on to watch is a county food and beverage tax of 1%–2% that applies to prepared food and drink in certain counties.
Do you have sales tax nexus in Indiana?
Nexus is the connection that obligates your business to collect and remit Indiana sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Indiana, such as:
- A place of business such as a warehouse or store
- Owning or leasing tangible personal property in the state
- An employee or independent sales representative in Indiana
- Storing inventory in the state (including 3PL or Amazon-FBA stock)
- Delivering goods in Indiana using company-owned vehicles
Economic nexus
Out-of-state sellers establish economic nexus once gross sales into Indiana exceed $100,000 in the current or previous calendar year. Indiana removed its 200-transaction threshold effective March 29, 2024, so the test is now the dollar amount only.
What is taxable in Indiana?
Tangible personal property is generally taxable, with various exemptions. Services are not taxable unless they involve fabricating, altering, or preparing a product.
Is SaaS taxable in Indiana?
No. Indiana treats SaaS as a nontaxable service — under a longstanding Department ruling, cloud computing, remote storage, and data transfer are classified as services rather than taxable tangible personal property. (Prewritten software delivered to the customer can be taxable.)
How is food taxed in Indiana?
Groceries (food and food ingredients) are generally exempt. Prepared food, meals, and food sold through vending machines or by street vendors are taxable — and in certain counties a 1%–2% food and beverage tax applies on top, so sellers of prepared food in those counties register for both taxes.
How to register for an Indiana sales tax permit
You need a Registered Retail Merchant Certificate (RRMC) before collecting. Taxually can register for you, or you can apply online through INBiz. There is a $25 registration fee.
Have ready: personal identification (SSN, address), business identification (EIN, address), your entity type, and estimated monthly taxable sales (leave it blank and you’ll be assigned monthly filing).
How to collect sales tax in Indiana
Collection is straightforward: apply the flat 7% rate to all taxable Indiana sales, whether you’re in-state or remote. Add the county food and beverage tax only where it applies to prepared food and drink.
Filing and paying Indiana sales tax
The DOR assigns monthly, quarterly, or annual filing based on your volume. Returns and payments are due the 20th of the month following the period (next business day if a weekend or holiday).
File and pay online through the Indiana DOR’s INTIME portal. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing: 10% of the tax due or $5, whichever is greater.
- Late payment: 10% of the unpaid tax.
- Interest accrues on unpaid tax at the current rate.
Frequently asked questions
What is the sales tax rate in Indiana in 2026?
A flat 7% statewide, with no local sales taxes. Some counties add a 1%–2% food and beverage tax on prepared food and drink.
What is the economic nexus threshold for Indiana?
$100,000 in gross sales into Indiana in the current or previous calendar year. Indiana removed the 200-transaction threshold on March 29, 2024.
Is SaaS taxable in Indiana?
No. SaaS, cloud computing, and remote storage are treated as nontaxable services. Prewritten software delivered to the buyer can be taxable.
Are groceries taxed in Indiana?
No, unprepared groceries are exempt. Prepared food and vending sales are taxable, and some counties add a food and beverage tax.
When are Indiana sales tax returns due?
The 20th of the month following your reporting period, filed through INTIME.
Automate Alaska sales tax compliance
.avif)
.avif)
