Indiana Sales Tax Calculator 2026

How to Use the Indiana Sales Tax Calculator

Use the Indiana sales tax calculator when you know the purchase price and want to estimate the sales tax and final total. For most taxable purchases in Indiana, use the 7.00% statewide sales tax rate.

Indiana does not have a local general sales tax, so the same 7.00% rate applies in Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Lafayette, Gary, Muncie, Terre Haute, and Noblesville for standard taxable retail purchases. However, some Indiana counties and municipalities impose a separate local food and beverage tax on prepared food and restaurant meals.

How Indiana Sales Tax Works

Indiana has a statewide sales tax rate of 7.00%. The state use tax rate is also 7.00%. Sales tax generally applies to retail sales of tangible personal goods and selected taxable services unless a specific exemption applies.

For shoppers, Indiana is much simpler than states with many local city and county tax layers. A normal taxable purchase in Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Lafayette, Gary, Muncie, Terre Haute, or Noblesville uses the same 7.00% rate. There are no local general sales tax add-ons for ordinary retail goods.

Indiana does have a separate local food and beverage tax in certain counties and municipalities. This is not a general sales tax — it applies specifically to prepared food, restaurant meals, and alcoholic beverages in participating areas. This tax is separate from the 7.00% state sales tax and must be reviewed separately.

Indiana also has use tax. Use tax applies when a buyer uses, stores, or consumes taxable goods in Indiana but did not pay at least 7.00% Indiana sales tax at the time of purchase. This often matters for online purchases, out-of-state purchases, or purchases made in another state and brought into Indiana.

One significant Indiana-specific rule: grocery-style food and food ingredients for home consumption are generally exempt from Indiana sales tax. Candy, soft drinks, dietary supplements, alcohol, tobacco, prepared food, and restaurant meals are generally taxable.

For consumers, the calculator is simple: use 7.00% for most taxable purchases. For businesses, the key issues are determining whether an item is taxable or exempt, checking local food and beverage tax obligations, understanding use tax, and verifying remote seller obligations.

Indiana Sales Tax Formula

Indiana Sales Tax Examples

Example 1: $100 purchase in Indiana

Using Indiana's standard 7.00% rate:

Example 2: $250 purchase in Indianapolis, Indiana

Using Indiana's standard 7.00% rate:

This same standard calculation applies in all Indiana cities and counties for general taxable retail purchases.

Example 3: Reverse sales tax from an Indiana receipt

Suppose your Indiana receipt total is $107.00 and the rate was 7.00%:

Use this reverse calculation when the receipt shows only the final total and you want to estimate the original taxable price.

Major Indiana City Sales Tax Rates

Before deployment, verify each city rate against the Indiana Department of Revenue. All major Indiana cities use 7.00% for general retail sales tax, but local food and beverage tax rules may apply separately to restaurant and prepared-food sales.

Why Sales Tax Usually Does Not Vary by City in Indiana

Indiana sales tax does not vary by city because the state does not allow local governments to impose a general retail sales tax on top of the 7.00% state rate. This makes Indiana much simpler than states such as Colorado, Alabama, Arizona, Arkansas, or Louisiana.

For most users, the same 7.00% calculation works in Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Lafayette, Gary, Muncie, Terre Haute, and Noblesville.

The exception is the separate local food and beverage tax. Some Indiana counties and municipalities have voter-approved local food and beverage taxes. These are not general sales taxes — they apply only to prepared food, restaurant meals, and alcoholic beverages. A restaurant customer in a county with a food and beverage tax may pay the 7.00% state sales tax plus a local food and beverage tax on the same transaction.

For consumers, the practical rule is: use 7.00% for most purchases. If you are buying prepared food or restaurant meals, check whether the county or city has a local food and beverage tax. For businesses, verify the correct food and beverage tax treatment for each location.

What Is Taxable in Indiana

Online Purchases and Remote Sellers in Indiana

Online purchases delivered into Indiana may be subject to Indiana sales or use tax. If the seller does not collect at least 7.00% Indiana sales tax, the buyer may owe Indiana use tax on taxable goods used or stored in Indiana.

Out-of-state retailers without physical presence in Indiana must collect Indiana sales tax when their gross revenue from Indiana sales exceeds $100,000 in the previous or current calendar year. Effective Jan. 1, 2024, Indiana uses only the $100,000 gross revenue threshold — the old 200-transaction threshold no longer applies.

Marketplace facilitators are also treated as sellers for purposes of this threshold. When a marketplace facilitator's combined Indiana sales and third-party Indiana marketplace sales exceed $100,000, the facilitator must collect Indiana sales tax on marketplace transactions.

The correct rate for most Indiana online purchases is 7.00%. However, if the purchase is restaurant delivery or prepared food, a local food and beverage tax may also apply if the restaurant operates in a participating county or municipality.

Plain-English example: if an ecommerce seller ships taxable products to Indiana customers and has more than $100,000 in Indiana sales during the current or previous year, it may need an Indiana seller's permit and must collect 7.00% Indiana sales tax.

Local Food and Beverage Tax in Indiana

Some Indiana counties and municipalities impose a local food and beverage tax in addition to the 7.00% state sales tax. This is not a general sales tax — it applies only to prepared food, restaurant meals, and sometimes alcoholic beverages sold in the taxing jurisdiction.

As of 2026, counties such as Marion (Indianapolis), Hamilton (Carmel, Fishers, Noblesville), Monroe (Bloomington), Allen (Fort Wayne), Vanderburgh (Evansville), and many others have some form of local food and beverage tax. Rates and covered categories vary by jurisdiction.

The Indiana Department of Revenue and the specific county or municipal taxing authority should be consulted for exact local food and beverage tax rates and rules. This guide does not attempt to list every local food and beverage tax rate because they vary and can change.

Common Indiana Sales Tax Mistakes

• Assuming Indiana cities have different general sales tax rates when the rate is 7.00% statewide.
• Confusing the local food and beverage tax with a general local sales tax.
• Forgetting that grocery food is generally exempt in Indiana but candy, soft drinks, and prepared food are taxable.
• Assuming all food is exempt because grocery food is exempt.
• Ignoring Indiana use tax on online or out-of-state purchases when less than 7.00% tax was paid.
• Still using the old 200-transaction threshold for remote seller obligations.
• Treating shipping and handling the same way in every transaction without checking whether the underlying sale is taxable.
• Forgetting that marketplace facilitators may have collection obligations in Indiana.
• Applying the grocery food exemption to restaurant meals, hot food, or food sold with utensils.

Indiana Sales Tax for Businesses

Businesses selling taxable goods or taxable services in Indiana may need an Indiana registered retail merchant certificate (sales tax permit). In general, sellers of taxable goods or services must collect sales tax, file sales tax returns, and remit the collected tax to the Indiana Department of Revenue.

Most Indiana businesses collect the 7.00% state sales tax. However, businesses selling prepared food, restaurant meals, or alcoholic beverages should review whether a local food and beverage tax applies in their county or municipality.

Businesses should also understand Indiana use tax. If a business buys taxable goods for use in Indiana and the seller does not charge at least 7.00% Indiana tax, the business may owe use tax. This often applies to out-of-state purchases, equipment, supplies, online purchases, and items originally bought for resale but later used by the business.

Remote sellers and marketplace facilitators should monitor the $100,000 Indiana sales threshold. The old 200-transaction threshold ended on Jan. 1, 2024.

Keep records of taxable sales, exempt sales, resale certificates, shipping charges, local food and beverage tax, marketplace sales, remote sales, use tax purchases, digital product sales, lodging transactions, and returns filed through the Indiana DOR's INtax system.

This calculator is useful for estimates, but businesses should verify exact obligations through the Indiana Department of Revenue, INtax, local county auditor or tax office, or a qualified tax professional.

Official Indiana Sales Tax Sources

Use these sources to verify Indiana sales tax data before deployment:

• Indiana Department of Revenue — Sales Tax Information
• Indiana Department of Revenue — Sales Tax Exemptions Guide
• Indiana Department of Revenue — Remote Seller Information
• Indiana Department of Revenue — Local Food and Beverage Tax Information
• Indiana INtax System
• Tax Foundation — 2026 State and Local Sales Tax Rates

Last reviewed: June 2026. Rates and rules can change. Verify with the Indiana Department of Revenue and any applicable county food and beverage tax authority before filing, remitting, or making compliance decisions.