How to compute Indiana Sales Tax for Indiana, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
What this Guide still needs
Rates and citations we keep current from primary sources. The method, how a practitioner actually does this work, can only come from someone who has done it.
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General reference only
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Quick reference
| Field | Value | |---|---| | Jurisdiction | Indiana | | State rate | 7.00% (flat -- no local sales tax) | | Local taxes | None | | Maximum combined rate | 7.00% | | Sourcing | Destination-based (SST) | | Economic nexus | $100,000 OR 200 transactions | | Tax authority | Indiana Department of Revenue | | Portal | https://intime.dor.in.gov | | SST member | Yes (full member) | | Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes | |---|---|---| | General TPP | TAXABLE 7% | Uniform statewide | | Clothing | TAXABLE | No exemption | | Grocery food | EXEMPT | | | Prepared food | TAXABLE | | | SaaS | NOT TAXABLE | Indiana does not tax SaaS | | Canned software (download) | TAXABLE | | | Professional services | NOT TAXABLE | | | Manufacturing equipment | EXEMPT | IC 6-2.5-5-3 | | Prescription drugs | EXEMPT | | | OTC drugs | EXEMPT | | | Resale | EXEMPT | |IC 6-2.5-5-3
No local tax
NEVER add local tax -- Indiana has no local sales taxes.
SaaS not taxable
NEVER treat SaaS as taxable in Indiana.
No computation
NEVER compute any number.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Indiana |
| State rate | 7.00% (flat -- no local sales tax) |
| Local taxes | None |
| Maximum combined rate | 7.00% |
| Sourcing | Destination-based (SST) |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | Indiana Department of Revenue |
| Portal | https://intime.dor.in.gov |
| SST member | Yes (full member) |
| Skill version | 2.0 |
One of the simplest sales tax states -- 7% flat rate statewide, no local add-ons.
Transaction pattern library (IC 6-2.5-5-3)
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 7% | Uniform statewide |
| Clothing | TAXABLE | No exemption |
| Grocery food | EXEMPT | |
| Prepared food | TAXABLE | |
| SaaS | NOT TAXABLE | Indiana does not tax SaaS |
| Canned software (download) | TAXABLE | |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | IC 6-2.5-5-3 |
| Prescription drugs | EXEMPT | |
| OTC drugs | EXEMPT | |
| Resale | EXEMPT |
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This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Depends on
Other Indiana computations in the OpenAccountants Tax Library.
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