Indiana State Sales Tax – A Quick Guide for Businesses

Part of our state spotlight series

Indiana State Image

The Indiana state sales tax calculator (provided by EcomTax) can be found here.

Indiana’s over all sales tax rate is an even 7%. As of now, there are no city or county taxing jurisdictions.

Economic Nexus?

Yes. The law went into effect October 1, 2018. If your business makes more than 100,000 dollars in sales or you have 200 or more separate transactions into Indiana, then you have to remit sales tax. However, like most states this is not retroactive and you aren’t responsible for your previous collections. Indiana is a state that includes actual products shipped AND the electronic transfers.

Also Indiana is a member of the Streamlined Sales and Use Tax Agreement. IN worked to simplify tax requirements for online sellers and created the same rules for ‘brick and mortar’ stores as they did for e-Commerce stores.

The SSUTA also allows you to register in all of the member states at once. Keep in mind: even if you don’t have nexus, once you register you must file.

Indiana State Sales Tax Due Dates

Typically, sales taxes are due on the 20th of the month. If the 20th falls on a weekend or holiday, then it goes to the next business day.

Another option for Indiana sellers is a yearly remittance. Typically the state will tell you when you remit sales tax, but some sellers have had luck submitting a request to change filing frequency. The yearly sales are due on the 20th of January of the following year. For example, yearly sales tax for 2019 will be due on January 20, 2020.

Sales Tax Holiday?

Sorry Indiana residents, no sales tax holiday. Though this does simplify things a tiny bit for remote sellers. Even out of state sellers are required to keep track of the not taxable items (even those not taxable for a 48 hour period) and ensure they correctly charge buyers in Indiana.

Amazon Fulfillment Center?

Yes. Indiana has several fulfillment centers, so FBA merchants beware. In the majority of states keeping inventory in an Amazon Warehouse triggers nexus in that state.

Weirdest Indiana State Sales Tax Law

Indiana, like quite a few states, exempts food from taxes. Also like most states what is ‘food’ is subject to quite the debate. For example in Indiana, marshmallow creme is tax exempt, but marshmallows are considered a candy, so they are subject to tax. Another interesting example is honey roasted peanuts: they are considered candy. Salted peanuts? Food, and not taxed. A jar of honey? Also not taxed.

Indiana State Flag

Helpful Links

Release Specifically For Remote Sellers

General Guide to Paying Taxes in Indiana

Sales Tax and Food

Filing dead-lines, a complete list

We’re making our way though all fifty states. Check out our State Spotlight category to see all that we’ve done so far.

Please note: this blog is for informational purposes and should not to be considered, or used in place of, professional advice for your specific situation.

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