Indiana Sales Tax Guide for eCommerce Businesses
Indiana Sales Tax Guide for eCommerce Businesses
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Indiana's Sales Tax Authority
State Phone Information
317-232-2240
Member of the Streamlined Sales Tax Governing Board?
Tax percent range for remote sellers in Indiana
7%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Indiana?
If you have nexus in Indiana you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Indiana charge sales tax on shipping?
In Indiana sales tax on shipping charges depends on the method of delivery.
A seller must use th U.S mail serice to ship the items and state the charges for shipping separately on the bill.
If a seller delivers the goods themselves or uses third party courier services such as UPS and FedEx then the seller is required to charge sales tax on shipping charges.
Also a seller must charge for shipping separately on the invoice to be exempt from sales tax on the shipping charges.
Do you have physical nexus in Indiana?
A seller has physical nexus in Indiana if they have any of the following:
Owned or leased tangible property
An employee or independent sales representative in the state
Indiana inventories
Third parties that install, repair or service property that is sold to Indiana customers.
Do you have economic nexus in Indiana?
Indiana's Economic Nexus Sales Threshold
$100,000
Economic Transactions Threshold
Or 200 transactions
Economic Nexus Evaluation Period
Either Current or Previous Calendar Year
Economics Nexus Effective Date
October 1, 2018
What types of sales are included in Indiana's Economic Nexus Sales Threshold?
Gross Sales
(All sales including Marketplace Facilitator sales are included in the Economic Nexus Sales Threshold)
How does Indiana treat exempt transactions when calculating economic nexus?
Exempt sales and exempt services are included in the threshold
Does Indiana have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Indiana sales tax returns are generally due the 20th of the month following the reporting period, though some may be due on different dates. If the Indiana filing due date falls on a weekend or holiday, sales tax is due the next business day.
How often are Sales Tax Returns filed?
Monthly or Yearly
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - Use the Indiana Department of Revenue website to file online
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