Seller's guide
Sales tax in Indiana
Everything an online seller needs to know about sales tax in Indiana: the rate, when you have to register, marketplace rules, filing, and when you can cancel — in plain English.
Confidence: moderate
Parts of this page (often the trailing-nexus timing) are still being verified, so our confidence here is moderate rather than high. Confirm anything you act on with Indiana Department of Revenue or a tax professional before you register or deregister.
- Statewide base rate
- 7%
- Economic threshold
- $100,000 in sales
- Marketplace law
- Yes
- Trailing nexus
- ≈ 12 mo
- Tax authority
- Indiana Department of Revenue
Source: Indiana Department of Revenue
Nexus & savings calculator
Estimate whether you still have nexus in Indiana — and what canceling could save.
Indiana no longer counts transactions — only sales matter here.
- Physical presence
- Sales over $100,000
- Transactions (not counted here)
Based on these numbers you likely no longer have nexus in Indiana. You can usually deregister after clearing the trailing-nexus window and filing your final return.
Trailing nexus: Indiana applies trailing nexus — expect to keep filing for roughly 12 months after your nexus ends. Confirm the exact window before canceling.
You could stop paying
$600/ yr
Estimate only — general education, not tax advice. Confirm with Indiana's tax authority before you register or deregister.
Do you need to collect sales tax in Indiana?
You have a duty to collect once you have nexus: physical presence (inventory, staff, an office) or economic nexus from crossing $100,000 in sales over current or preceding calendar year. Indiana used to trigger nexus at 200 transactions but removed that count in January 2024 — only the sales figure matters now.
The Indiana rate
Indiana has a single statewide sales tax rate of 7%. There are no local or district sales tax add-ons; the 7% rate applies uniformly across all cities and counties statewide.
Marketplace and direct sales
Marketplaces like Amazon collect Indiana tax for you, but those sales don't count toward your own threshold. Direct sales on your own store you collect yourself.
Filing and zero returns
Once registered, Indiana requires a return every assigned period even when you owe $0 — miss one and you can face penalties. Filing frequency is assigned by the Indiana DOR based on average monthly sales tax liability: monthly filers have average monthly liability exceeding $1,000; quarterly filers have average monthly liability between $200 and $1,000; annual filers have average monthly liability below $200.
When you can cancel
If your Indiana returns are mostly $0, you may be over-registered. Canceling your Indiana sales tax registration makes sense once you have confirmed that your gross sales into Indiana did not exceed $100,000 in both the current and the preceding calendar year, meaning you can wait until you have completed the full following calendar year below threshold. The key catch is that Indiana requires you to file and remit a final sales tax return covering all activity through your permit's closing date before the cancellation is complete — if you skip this step, the Indiana DOR may continue issuing estimated tax bills.
Where TrailingZero fits
TrailingZero connects to your store read-only, maps where you actually have nexus state by state, and maps your real nexus in Indiana and flags whether you should register, keep filing, or cancel. During any wind-down it can file the zero-dollar returns so nothing lapses — and you only pay for the states you genuinely keep. Run a free audit anytime; this page is free education either way.
Indiana Sales tax guide FAQ
- Does Indiana have a sales tax?
- Yes. The statewide base rate is 7%. Remote sellers collect it once they have nexus.
- When do I have to register for sales tax in Indiana?
- When you have physical presence there or cross $100,000 in sales over current or preceding calendar year.
- Can I cancel my Indiana registration if I'm under the threshold?
- Generally yes, after clearing Indiana's trailing-nexus window and filing a final return.
- Is this tax advice?
- No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.
More on Indiana sales tax
See what you can stop paying in Indiana
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Other states
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Primary sources reviewed for this page. Data current as of June 2026.
- https://www.in.gov/dor/i-am-a/business-corp/business-faq/remote-seller-faqs/
- https://www.in.gov/dor/i-am-a/business-corp/closing-business/
- https://secure.in.gov/dor/business-tax/closing-a-business-account/
- https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/
- https://hbkcpa.com/insights/indiana-eliminates-transaction-count-from-economic-nexus-threshold/
- https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- https://www.avalara.com/us/en/learn/guides/state-by-state-guide-economic-nexus-laws.html
- https://www.avalara.com/blog/en/north-america/2024/03/indiana-wyoming-drop-remote-seller-transaction-threshold.html
TrailingZerois software, not a CPA or law firm, and this page is general education — not tax or legal advice. State rules and thresholds change frequently; confirm your situation with the state's tax authority or your accountant before you register or deregister. See how we research and review this data in our editorial & accuracy policy.