The Indiana state sales tax rate is 7.0% in 2026. When county and city taxes are added, the combined rate ranges from 7.0% in areas with no local additions up to 7.0% in the highest-taxed jurisdictions. The most populated areas of Indiana — including Marion County — have a combined rate of 7.0%.
Indiana has a flat 7% statewide sales tax with no local additions. Every location in Indiana has the exact same rate, making it one of the simplest sales tax systems in the US.
💡 Quick Reference: $100 purchase in Indiana at the average combined rate costs approximately $107.00 after tax. Use the calculator above to find the exact amount for any county or city in Indiana.
Groceries in Indiana are most grocery food is exempt from Indiana sales tax. Clothing purchases are taxable at full rate. Prescription drugs and medical devices are generally exempt from sales tax in Indiana, as they are in most US states.
Common Indiana Sales Tax Exemptions
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Prescription Medicine
Prescription drugs are fully exempt from Indiana sales tax.
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Grocery Food
Unprepared groceries are most grocery food is exempt from Indiana sales tax in Indiana.
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Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
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Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in Indiana.
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Clothing
Clothing is taxable at full rate in Indiana.
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Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does Indiana Sales Tax Work?
Sales tax in Indiana is collected at the point of purchase by retailers and remitted to the Indiana Department of Revenue. The total rate you pay is the sum of the Indiana state rate (7.0%) plus any applicable county and city rates in your location.
Businesses with a physical presence in Indiana — including offices, warehouses, or employees — have sales tax nexus and must collect and remit Indiana sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in Indiana annual sales or 200+ Indiana transactions must also register and collect Indiana sales tax even without a physical presence.
📅 Indiana Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the Indiana Department of Revenue based on your sales volume. File and pay online through the Indiana state tax portal.
The Indiana state sales tax rate is 7.0% in 2026. With county and city additions, combined rates range from 7.0% to 7.0% depending on your location. The most common combined rate in populated Indiana counties is around 7.0%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in Indiana are most grocery food is exempt from Indiana sales tax. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate Indiana sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Marion County at 7.0%: $200 × 0.70 = $14.00 in sales tax, making the total $214.00. Or simply use the free Indiana sales tax calculator at the top of this page.
Yes, if you meet Indiana’s economic nexus threshold. Remote sellers must collect and remit Indiana sales tax if they have $100,000 or more in Indiana sales or 200+ separate Indiana transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in Indiana.
Most services are not subject to Indiana sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in Indiana — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the Indiana Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in Indiana is 7.0%, which occurs in areas with the maximum local tax additions on top of the 7.0% state base rate. The lowest rate is the state base rate of 7.0% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of Indiana.