Indiana Sales Tax: Rates, Rules, and How to Calculate It (2026)

How much is sales tax in Indiana?

Indiana applies a flat 7% sales tax statewide with zero local variations. Every corner of the state, from Gary to Indianapolis to small towns, all use the same 7% rate. There's no variation to worry about, no surprise jumps between cities, and no need to second-guess your calculation.

Because Indiana has one rate everywhere, you don't technically need to look up your address—but doing so is still good practice. Knowing your rate is always 7% lets you calculate taxes accurately on any purchase without confusion or uncertainty.

What's taxed and what's exempt in Indiana

Groceries are exempt from Indiana's 7% sales tax, which gives shoppers a real savings on their food bills. Clothing purchases, however, are fully taxable at 7%.

SaaS subscriptions and digital software are taxable at the 7% rate in Indiana. Prescription medicine is exempt. Restaurant food and prepared items are taxable. If you're not sure whether something falls into a taxable category, use a lookup tool to remove the guesswork.

Do you have to collect Indiana sales tax? (Economic nexus)

Like most states after the 2018 Wayfair decision, Indiana requires out-of-state sellers to register and collect once their sales into the state cross an economic-nexus threshold. That line is commonly around $100,000 of sales into Indiana per year, and some states also count a number of separate transactions — but the exact figure, and whether the transaction count still applies, change from time to time. Confirm Indiana's current threshold before you rely on it.

If you sell into Indiana from out of state, the practical question is whether you've crossed that line. Watching your sales into each state is how you know when you're on the hook — and it's the kind of thing that's easy to miss until a notice shows up.

Nexus rules change often and vary by state (reviewed 2026-01-01). This is general information, not tax advice — confirm your obligations with the Indiana Department of Revenue or a tax professional.

How to calculate Indiana sales tax

The math itself is simple: multiply the taxable price by the combined rate for the buyer's location. A $100 order at 7% means about $7.00 in tax. The hard part is getting the right rate for every address, keeping it current as rates change, and doing it fast enough to run inside a checkout.

That's what Sefro does. One API call returns the combined state, county, city, and special-district rate for any US address, sourced from state Departments of Revenue and refreshed weekly. You can also calculate the full tax on an order, validate addresses, and pull return-ready reports. See how the data is sourced or pricing to start.

Look up the Indiana sales tax rate for any ZIP

Enter an Indiana ZIP code to see the live combined rate from the Sefro API.

Frequently asked questions