Indiana Sales and Use Tax
How to compute Indiana Sales and Use Tax for Indiana, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
Key facts — Indiana, 2025
| 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 |
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About
Use this skill whenever asked about Indiana sales and use tax. Trigger on phrases like "Indiana sales tax", "IN sales tax", "IC 6-2.5", "Indiana DOR". Indiana has one of the SIMPLEST structures -- 7% flat with no local sales taxes. ALWAYS load us-sales-tax first.
Full guide
Indiana Sales and Use Tax Skill v2.0
Section 1 -- 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.
Section 3 -- 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 |
Section 10 -- Prohibitions
- NEVER add local tax -- Indiana has no local sales taxes.
- NEVER treat SaaS as taxable in Indiana.
- NEVER compute any number.
Disclaimer
Informational only. Review by qualified professional required before filing.
Disclaimer
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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More Indiana tax skills
Other Indiana computations in the OpenAccountants library.