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Indiana Sales Tax Rate

Written by:

Edited by:

Reviewed by: Daniel Javor

Published on April 22, 2022

Updated on September 13, 2022

Indiana Sales Tax Rate

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Indiana Sales Tax Rate

If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Indiana, the first step is visiting the revenue department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

What Products and Services Are Subject to Sales Tax in Indiana?

businessman calculating tax using calculator with laptop

Sales of tangible property are subject to sales tax in Indiana. Hotel accommodations are also subject to sales tax, as is gasoline. Groceries and some drugs and medical equipment are exempt from sales tax in Indiana. 

Indiana Sales Tax Rate

The sales tax rate in Indiana is 7%.

Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.

How to Register for Indiana Sales Tax

In Indiana, acquire a seller’s permit by following the instructions for registration: 

  1. Go to the Indiana business portal website
  2. Register for an account.
  3. Fill out the business registration form.
  4. Pay the $25 business registration fee. 

Use our Sales Tax Calculator to calculate taxes and total purchase amount. 

Conclusion 

In Indiana, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.