Indiana Sales Tax Guide & Nexus Calculator (2026)
Indiana has one of the higher state sales tax rates at 7% and taxes SaaS and digital goods broadly. The state has no local sales taxes — one rate applies statewide, which simplifies collection significantly. Indiana is an SST member, making multi-state registration straightforward.
Quick Reference
Section titled “Quick Reference”| Criterion | Detail |
|---|---|
| State Rate | 7% |
| Economic Nexus Threshold | $100,000 gross sales (rolling 12 months) |
| Transaction Threshold | None |
| Digital Goods / SaaS | Taxable |
| Typical Filing Frequency | Monthly |
| SST Member | Yes |
| Registration Portal | intime.dor.in.gov |
Economic Nexus
Section titled “Economic Nexus”For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026
Indiana’s economic nexus threshold is $100,000 in gross sales into Indiana in the current or prior calendar year. Once exceeded, registration and collection are required.
Marketplace-facilitated sales (Amazon, Etsy, eBay) count toward the threshold. Indiana eliminated its 200-transaction alternative threshold before 2025. Only the revenue threshold applies.
Tax Rate and Product Taxability
Section titled “Tax Rate and Product Taxability”Indiana’s state rate is 7%. Indiana does not permit counties or municipalities to impose local sales taxes. The 7% rate applies uniformly across the entire state.
This statewide uniformity makes Indiana one of the simplest states for rate calculation — no ZIP code lookups, no local rate tables, no county surcharges.
Product Categories
Section titled “Product Categories”Taxable: Tangible personal property, digital goods (including SaaS), most retail goods.
Exempt: Prescription drugs, groceries (food and food ingredients for human consumption are exempt), qualifying agricultural inputs, some medical devices.
Grocery exemption: Indiana exempts most food items intended for home consumption. Prepared food (restaurant meals, candy, certain beverages) remains taxable at 7%.
Digital Goods and SaaS
Section titled “Digital Goods and SaaS”Indiana taxes SaaS and digital goods under its sales tax framework. Indiana’s Department of Revenue has taken the position that digital products, including remotely accessed software, are taxable.
Indiana’s digital goods framework:
- SaaS — taxable; Indiana treats the right to access and use software, even remotely, as a taxable transaction
- Downloaded software — taxable as the electronic delivery of prewritten computer software
- Digital content (ebooks, music, movies) — taxable
- Streaming subscriptions — taxable
Indiana is one of the more comprehensive digital goods taxability states. If you sell any digital products or SaaS into Indiana and cross the $100,000 threshold, you have a collection obligation on that revenue.
Custom software: Separately designed and written custom software for a specific customer may be treated differently. Consult Indiana DOR guidance for bespoke development arrangements.
Registration
Section titled “Registration”Indiana is an SST member state. You can register through the Streamlined Sales Tax Registration System (SSTRS) at streamlinedsalestax.org to cover Indiana alongside other SST states.
For Indiana-only registration:
- Go to the Indiana Tax Information Management Engine (INTIME): intime.dor.in.gov
- Create an account and select “Register a New Business”
- Choose “Sales Tax” as the registration type
- Provide EIN, business details, and expected Indiana sales
- You will receive an Indiana Registered Retail Merchant Certificate
Registration is free. Indiana does not charge a permit fee.
Foreign Sellers
Section titled “Foreign Sellers”Indiana accepts foreign business registrations through INTIME. A US EIN is required. A registered agent or Indiana address is not required for remote sellers.
Filing Frequency and Deadlines
Section titled “Filing Frequency and Deadlines”Indiana assigns filing frequency based on prior-year Indiana sales tax liability:
| Annual Tax Liability | Filing Frequency |
|---|---|
| Less than $1,200 | Annual |
| $1,200–$12,000 | Quarterly |
| More than $12,000 | Monthly |
Monthly due dates: Returns are due by the 20th of the following month (e.g., January return due February 20).
Returns are filed through INTIME. Electronic filing is required for sellers above certain liability thresholds.
Compliance Notes
Section titled “Compliance Notes”No local rates: Indiana’s single statewide rate dramatically simplifies compliance. Configure 7% for all Indiana delivery addresses and you are done — no rate variance by county or city.
SST membership: Indiana’s SST participation enables multi-state registration through the SSTRS. Use this for efficient multi-state onboarding.
Digital sellers must register: Indiana taxes SaaS. If you sell software subscriptions or digital products into Indiana and cross $100,000, register — your digital revenue is taxable here.
Amazon FBA: Amazon operates fulfillment centers in Indiana. FBA inventory creates physical nexus immediately regardless of the $100,000 threshold.
Grocery classification: If your catalog includes food items, ensure proper classification for Indiana’s grocery exemption. Candy, soft drinks, and prepared food are taxable at 7%; qualifying grocery items are exempt.
Use tax: Indiana customers who purchase from unregistered out-of-state sellers owe use tax to Indiana. Once you register, you eliminate this exposure for your customers.