Indiana sales tax for online sellers: nexus, permit and filing

What is the Indiana sales tax rate?

The rate is 7% statewide, and Indiana has no local sales taxes, so the same rate applies to every delivery address. Software that customers only access remotely is not treated as a retail sale, so it is not taxed, while downloaded software and many digital goods are.

When does an online seller have to collect in Indiana?

You must collect if you have a physical presence in Indiana, such as staff, an office or inventory, or if your gross revenue from sales into Indiana is more than $100,000 in the current or previous calendar year. Exempt sales count towards the figure. Sales made through a marketplace that is registered and collecting are not counted towards your own threshold. The separate test of 200 transactions was repealed, with effect from January 1, 2024.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Indiana requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online through INTIME, the Department of Revenue's portal, for a registered retail merchant certificate. The fee is $25 for each location, paid once; the certificate then renews automatically while your returns are up to date. Indiana is a member of the Streamlined Sales Tax agreement, so you can also register through the Streamlined system. See Streamlined Sales Tax registration.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Indiana against its threshold.

2. Register before collecting

   With the Indiana tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Indiana assigns, including zero returns where required.

How are returns filed?

Returns are filed through INTIME. Most sellers file monthly, with the due date in the following month depending on the amount of tax collected; smaller sellers may be moved to a less frequent schedule. A return is required for every period, including periods with no sales.

See how to file a sales tax return.

What changed in 2024?

Indiana used to require registration at either $100,000 of revenue or 200 transactions. The transaction test was removed, backdated to January 1, 2024, so a seller with many small orders but less than $100,000 of Indiana revenue no longer has economic nexus. A seller that registered only because of the old transaction test can ask to close its account once it is clearly below the threshold, after filing a final return. See cancelling a sales tax permit.

What does an example look like?

A stationery seller ships 600 orders to Indiana in a year, worth $18,000. Under the old rule it had nexus because of the order count. Under the current rule it does not, because $18,000 is below $100,000. A second seller ships 90 orders worth $130,000; it has nexus, registers through INTIME and charges 7% on every Indiana order.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.