Indiana has one of the simpler sales tax systems in the country, with a 7% statewide sales tax and no local sales taxes. If you sell taxable goods or services in Indiana, you may be required to collect and remit sales tax. This guide explains who must register, what’s taxable, filing requirements, and how to stay compliant.
Indiana Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 7% |
| Local sales tax | None |
| Economic nexus | $100,000 in sales |
| Sales tax permit required | Yes (RRMC) |
| Filing frequency | Monthly, annually, or seasonal |
| Registration | INBiz |
When Do You Have Sales Tax Nexus in Indiana?
You generally have nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in Indiana
- Uses a third-party fulfillment center located in Indiana
- Exceeds $100,000 in Indiana sales during the current or previous calendar year
If you meet any of these conditions, you’ll generally need to register and collect Indiana sales tax.
What Is Taxable in Indiana?
Most tangible personal property sold in Indiana is taxable, including:
Taxable products include:
- Clothing
- Electronics
- Furniture
- Household goods
Indiana also taxes many digital products and certain taxable services.
Common exemptions include:
- Unprepared groceries
- Prescription medications
- Qualifying manufacturing equipment
- Sales made with a valid exemption certificate
Registering for an Indiana Registered Retail Merchant Certificate
You cannot legally collect Indiana sales tax without a Registered Retail Merchant Certificate (RRMC). This is Indiana’s version of a sales tax permit, and it’s required for every business location.
Here’s how to get one:
- Create an INBiz account.
- Complete Form BT-1.
- Pay the $25 registration fee per location.
- Receive your Registered Retail Merchant Certificate (RRMC).
Processing typically takes a few business days.
Calculating and Collecting the Correct Tax Amount
Once registered, you need to charge the right amount on every taxable transaction. Indiana makes this easier than most states, but there are still rules to follow.
Indiana Sales Tax Rates
Indiana has a 7% statewide sales tax with no local sales taxes, making compliance simpler than in many states.
Indiana uses destination-based sourcing, meaning sales tax is based on where the customer receives the product.
Filing Sales Tax Returns via INTIME
Collecting the tax is only part of your obligation. You must also file returns and remit what you’ve collected to the state through Indiana’s online tax portal.
Determining Your Filing Frequency
Indiana assigns your filing frequency based on your expected tax liability:
- Monthly: if your annual tax liability exceeds $1,000 (most active businesses fall here).
- Annual: if your annual tax liability is under $1,000.
- Seasonal: available for businesses that only operate during specific months, like a farmer’s market vendor operating May through October.
The DOR may adjust your frequency as your sales volume changes. If you’ve been filing annually and your business grows significantly, expect a notice switching you to monthly filing. You can also request a change proactively through INTIME.
Due Dates and Timely Filing Discounts
Monthly returns are due on the 20th of the following month. If you collected tax in March, your return and payment are due April 20th. Annual returns are due on the 20th of January for the previous year. When the 20th falls on a weekend or holiday, the deadline shifts to the next business day.
Here’s a financial incentive worth knowing: Indiana offers a collection allowance for timely filers. If you file and pay on time, you can keep 0.73% of the tax collected, up to $150 per filing period. That’s not a fortune, but for a business collecting $20,000 in sales tax monthly, it’s $146 back in your pocket each month, or about $1,752 annually. Set a calendar reminder for the 15th of each month to give yourself a buffer before the deadline.
Late filings may result in penalties, interest, and additional enforcement actions. Businesses that intentionally fail to collect or remit sales tax may face further penalties.
Special Considerations for Marketplace Facilitators
Marketplace facilitators such as Amazon, Etsy, Walmart Marketplace, and eBay generally collect and remit Indiana sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Indiana Sales Tax Compliance Checklist
- Determine whether you have nexus.
- Register for an RRMC through INBiz.
- Collect the correct 7% sales tax.
- Keep exemption certificates on file.
- File returns on time.
- Maintain accurate sales records.
FAQs
What is the Indiana sales tax rate?
Indiana has a 7% state-wide sales tax with no local sales taxes.
Who needs to collect Indiana sales tax?
Businesses with a physical presence or more than $100,000 in Indiana sales generally must collect Indiana sales tax.
How do I register for an Indiana Registered Retail Merchant Certificate?
Register online through INBiz by completing the Business Tax Application (BT-1).
Does Amazon collect Indiana sales tax?
Yes. Marketplace facilitators like Amazon, Etsy, Walmart Marketplace, and eBay generally collect and remit Indiana sales tax on marketplace sales.
What happens if I file my Indiana sales tax return late?
Late filings may result in penalties, interest, and other enforcement actions by the Indiana Department of Revenue.
Final Thoughts
Indiana’s statewide sales tax system is one of the simplest in the country, but businesses must still determine whether they have nexus, register before making taxable sales, collect the correct tax, and file returns on time.
Need help with Indiana sales tax registration, filings, or compliance? Contact our tax professionals today.
