Indiana Sales Tax Calculator
Calculate the exact sales tax for any purchase in Indiana. Get instant breakdowns of state, county, and city taxes. Updated with current 2026 rates.
IN Base State Rate: 7%
Allen
Total Amount
$107.00
$100.00 + $7.00 tax
Tax Components
Indiana Sales Tax Highlights
Indiana has a flat 7% state sales tax
No local sales taxes - same rate statewide
Groceries are exempt
Simple, uniform rate across the state
Indiana Sales Tax FAQ
What is Indiana's sales tax rate?
Indiana has a flat 7% state sales tax rate with no local sales taxes. The rate is the same everywhere in Indiana.
Indiana Sales Tax Rate Structure in 2026
Indiana imposes a flat 7% state sales tax with no local sales taxes. Every purchase in Indiana is taxed at exactly the same rate regardless of location — Indianapolis, Fort Wayne, Gary, Bloomington, and every other city and town all charge 7%. This makes Indiana one of the simplest states for sales tax compliance.
Indiana's 7% rate is one of the higher flat rates among states without local taxes, tying with Mississippi and Tennessee's state-level rate. However, because there are no local additions, Indiana's effective combined rate is often lower than states with lower state rates but high local taxes.
| Area | State Rate | Local Rate | Combined Rate |
|---|---|---|---|
| Indianapolis (Marion Co.) | 7% | 0% | 7% |
| Fort Wayne (Allen Co.) | 7% | 0% | 7% |
| South Bend (St. Joseph Co.) | 7% | 0% | 7% |
| Carmel (Hamilton Co.) | 7% | 0% | 7% |
| Evansville (Vanderburgh Co.) | 7% | 0% | 7% |
Indiana also imposes a food and beverage tax in certain counties (up to 2%) on restaurant meals and catered food, but this is separate from the general sales tax and applies only to prepared food in participating counties.
Tax-Exempt Items and Special Rules in Indiana
Indiana exempts groceries (unprepared food for home consumption) from the 7% sales tax. Prescription drugs are also exempt. Clothing is fully taxable with no exemptions.
| Category | Taxable? | Notes |
|---|---|---|
| Groceries (unprepared food) | Exempt | Food purchased for home consumption |
| Prepared food / restaurants | Yes — 7% | Plus county food and beverage tax in some areas |
| Clothing | Yes | No clothing exemption |
| Prescription drugs | Exempt | All prescription medications |
| Over-the-counter medicine | Yes | Non-prescription drugs are taxable |
| Manufacturing equipment | Exempt | Equipment directly used in manufacturing |
| Utilities (residential) | Exempt | Residential electricity, gas, water |
Indiana provides a residential utility exemption — electricity, natural gas, water, and steam used in a residential dwelling are exempt from sales tax. This is a meaningful exemption that many other states do not offer. Agricultural products sold at farmers' markets may also qualify for exemption under Indiana's agricultural exemptions.
Filing and Compliance for Indiana Sales Tax
The Indiana Department of Revenue (DOR) administers all sales tax collection. Businesses register for a Registered Retail Merchant Certificate through the INtax system. The registration costs $25 per location. Filing frequency: monthly (annual liability over $1,000), quarterly ($75–$1,000), or annually (under $75).
Indiana adopted economic nexus effective October 1, 2018, requiring remote sellers with more than $100,000 in sales or 200 transactions to Indiana customers to collect and remit sales tax.
| Filing Detail | Requirement |
|---|---|
| Economic nexus threshold | $100,000 in sales or 200 transactions |
| Marketplace facilitator rule | Yes — effective July 1, 2019 |
| Filing frequency | Monthly, Quarterly, or Annual |
| State agency | Indiana Department of Revenue |
| Registration fee | $25 per location |
| Late filing penalty | 10% of tax due or $5 minimum |
| Sourcing method | Destination-based |
Indiana is a full member of the Streamlined Sales Tax (SST) agreement. The flat, no-local-tax structure combined with SST membership makes Indiana among the easiest states for multi-state sellers to manage. Sellers registered through SST can use certified service providers for automated compliance at no cost.
Related Calculators
Official References
This calculator uses current sales tax rates based on official sources:
- Indiana Department of Revenue
Official Indiana tax authority
Tax rates are updated regularly but may change. Always verify current rates with local tax authorities for official transactions.