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Indiana Sales Tax Guide for Small Businesses

Everything you need to know about sales tax in Indiana — rates, deadlines, exemptions, and how to stay compliant without the headache.

Last updated March 2026

Quick Facts

State Rate

7.00%

Avg. Combined

7.00%

Filing Frequency

Monthly, Quarterly, or Annual

Vendor Discount

Yes

Home Rule

No

Indiana Sales Tax Rates

Indiana's state sales tax rate is 7.00%. Indiana does not levy additional local sales taxes, so the rate is the same statewide.

Filing Deadlines & Frequency

Filing Frequency

Monthly, Quarterly, or Annual — assigned by IN DOR based on tax liability

Due Dates

20th of the month after the reporting period (30th for annual filers)

File Online

Indiana Department of Revenue — INTIME: https://intime.dor.in.gov/

What's Taxable for Restaurants & Food Businesses

Prepared Food

Yes — prepared food and restaurant meals are taxable at the full 7.00% combined rate.

Grocery Food

Exempt from sales tax. Grocery food is exempt. Prepared food, candy, and soft drinks are taxable at the full 7% rate.

Alcohol

Subject to sales tax plus separate excise taxes on beer, wine, and spirits

Vendor Discount

Indiana offers a vendor discount

0.73% of tax due (collection allowance) if filed and paid on time

This is money back in your pocket for filing on time. TaxAside files on time, every time — so you capture this discount automatically.

Penalties for Late Filing

Late Filing Penalty

10% of tax due

Interest

Adjusted rate set by IN DOR, typically federal rate + 3%

Miss a deadline and Indianastarts charging penalties and interest immediately. That adds up fast on a busy restaurant's tax bill.

TaxAside's On-Time Guarantee covers up to $5,000 in penalties if we ever file late.

Calculate Your Indiana Sales Tax

Indiana Sales Tax Calculator
$
State tax (7.00%)$0.00
Est. local tax (0.00%)$0.00

Total tax (7.00%)$0.00
Total with tax$0.00

This calculator uses average combined rates. Your actual rate depends on your exact location.

Get your exact rate →

How TaxAside Helps in Indiana

  • We file on time so you capture Indiana's vendor discount automatically.
  • Daily set-asides mean no tax-day surprises. We pull, calculate, set aside, and file — you do nothing.
  • On-Time Guarantee covers up to $5,000 in penalties if we're ever late filing your Indiana return.
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Tired of worrying about Indiana sales tax?

Let TaxAside handle it. We connect to your POS, set aside the right amount every day, and file your return on time — guaranteed.

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