Sales Tax in Indiana: A Complete Guide for Ecommerce Sellers

Indiana is an SST member state with a flat 7% statewide rate and no local additions. The same rate applies in Indianapolis, Fort Wayne, and every other Indiana location. Combined with SST membership, Indiana is among the fastest and simplest states to add to a multi-state compliance program, one registration application, one rate, straightforward filing.

Quick reference

Economic nexus

Indiana’s OR threshold: $100,000 in gross sales OR 200 or more separate transactions into Indiana in the current or prior calendar year. Either condition alone triggers registration.

Indiana enacted its economic nexus rules effective October 1, 2018.

Physical nexus

Physical presence in Indiana creates nexus without any threshold:

• Warehouse, office, or storage facility in Indiana
• Amazon FBA inventory in Indiana fulfillment centers
• Employees, agents, or independent contractors in Indiana
• Sales representatives in Indiana

Registration

Indiana is an SST member state. Register through a Certified Service Provider for simultaneous registration in Indiana and all other SST states at no charge.

Sellers can also register directly with the Indiana Department of Revenue through INBiz (inbiz.in.gov). Registration is free.

Tax rates

State rate: 7% flat

No local additions: Indiana does not allow counties, cities, or other local jurisdictions to levy additional sales taxes. The 7% state rate is the only rate, it applies uniformly across all Indiana locations.

Any Indiana ship-to address: 7%.

What’s taxable

Generally taxable: Electronics, clothing, furniture, sporting goods, toys, most tangible personal property.

Generally exempt:

• Prescription medications
• Food for human consumption (groceries — Indiana broadly exempts food for home consumption)
• Agricultural equipment and supplies
• Manufacturing equipment used directly in production

Notable Indiana rules:

• Clothing: Taxable in Indiana, no clothing exemption
• Digital products: Indiana taxes specified digital products transferred electronically, including downloaded software, digital audio works, and digital audiovisual works
• SaaS: Indiana taxes SaaS, software delivered via remote access to Indiana customers is taxable under Indiana’s rules for specified digital products
• Food: Indiana broadly exempts food for home consumption. Prepared food, restaurant meals, candy, and soft drinks are taxable

Shipping taxability

Indiana taxes delivery charges when the shipped goods are taxable. When all goods in a shipment are exempt, the delivery charge is also exempt.

Marketplace facilitator rules

Indiana enacted marketplace facilitator legislation effective July 1, 2019. Qualifying marketplace facilitators collect and remit Indiana sales tax on marketplace-facilitated sales.

Remote sellers with no Indiana physical nexus whose only Indiana sales are through marketplace facilitators may not need to separately register. Sellers with Indiana physical nexus must register regardless.

State-specific notes

Flat 7% rate, no lookup needed: Indiana’s single-rate structure eliminates all rate complexity. No county tables, no city lookups, no special districts. Any Indiana address is 7%. For sellers adding Indiana to a multi-state program, this is operationally one of the simplest states.

SaaS is taxable: Indiana explicitly taxes software delivered remotely. Sellers of SaaS, subscription software, or cloud-based services delivering to Indiana customers should collect 7% Indiana sales tax.

SST membership + flat rate: Indiana combines two simplifying factors — SST registration covers it in one application, and the flat rate means any calculation engine handles it correctly without jurisdiction-level setup.