Indianapolis, Indiana Sales Tax Rate

Economic Context. State capital and economic engine of Indiana.

The combined sales tax rate in Indianapolis is 7.000%, composed of the Indiana state rate of 7.000% plus a local portion of 0.000%.

Indianapolis is known for Indianapolis 500 (world's largest single-day sporting event), Indy Motor Speedway, state capital, and Eli Lilly. Businesses operating in these sectors should verify product-specific taxability with State of Indiana.

Key industries driving Indianapolis's economy include Life Sciences, Healthcare, Manufacturing, Sports — each may have distinct sales tax treatment under Indiana law.

Visitor note: Indianapolis Motor Speedway (Indy 500), Lucas Oil Stadium (Colts), Gainbridge Fieldhouse (Pacers), Children's Museum (world's largest), IMA.

The formula to calculate sales tax for any purchase:

For a $150.00 purchase in Indianapolis: tax is $10.50 ($150.00 × 0.07000), total is $160.50.

Sales tax in Indianapolis is administered locally by State of Indiana. Uniform 7% - no higher despite being capital and largest city.

Special tax rules specific to Indianapolis:

• State 7% uniform rate - no local add-ons despite being capital.

Indianapolis-specific: Eli Lilly (global pharma), Indy 500 (world's largest single-day event), amateur sports capital (NCAA HQ).

Marion County.

While sales tax is collected by registered vendors at the point of sale, use tax is a self-assessed tax that applies when taxable goods are purchased from a vendor who did not collect sales tax. The rates for both are identical: 7.000%.

If you purchase equipment, software, or supplies from out-of-state merchants and no tax was charged, you are legally obligated to report and pay use tax to Indiana Department of Revenue. Use tax audits are common — failure to accrue on untaxed invoices is a frequent audit finding.

Life Sciences and Healthcare and Manufacturing and Sports companies operating in Indianapolis should maintain rigorous use tax accrual procedures, especially for equipment and specialized software purchased from out-of-state vendors.

Businesses with physical presence or economic nexus in Indiana must register with Indiana Department of Revenue before collecting tax.

Indianapolis's position as a hub for Indianapolis 500 (world's largest single-day sporting event), Indy Motor Speedway, state capital means remote sellers shipping to this city should proactively monitor Indiana's nexus thresholds.

For full registration, filing, exemption certificate, and audit guidance, see the Indiana sales tax guide.

Businesses in Indianapolis must maintain resale certificates and transaction records to comply with Indiana tax audits. If you sell wholesale, obtain a valid resale certificate from the buyer.

Given the concentration of life sciences businesses in Indianapolis, auditors will scrutinize exemption documentation and out-of-state vendor invoices closely. Keep all records for at least the state-mandated retention period.

For detailed guidance, see the Indiana sales tax page.