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L3i
State guide

Indiana sales & use tax.

The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.

State rate
7%
state-level base rate
Economic nexus
$100,000
since October 1, 2018
Marketplace law since
July 1, 2019
facilitators must collect

Indiana: rate, nexus & administration.

State rate
7%
Local rates
No local sales taxes
Economic nexus
$100,000 in sales · effective October 1, 2018The 200-transaction threshold was repealed effective January 1, 2024.Controlling authority: Ind. Code § 6-2.5-2-1(d) (as amended by S.E.A. 228, 2024)
Marketplace facilitator
Yes — effective July 1, 2019
Streamlined (SST)
Full member

What to watch in Indiana

  • One of the highest single-rate states — but with no local layer, compliance is comparatively simple.
  • SaaS is explicitly exempt by statute (since 2018), a clean answer in an area most states leave murky.

Rates, thresholds, and taxability change mid-year — verify against the Indiana Department of Revenue before advising. In L3i, every determination is cited to the controlling authority.

Voluntary disclosure

The Indiana voluntary disclosure agreement.

Behind in Indiana? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:

Lookback period
36 months (3 years)
Penalties
Waived
Interest
Still due
Anonymous approach
Permitted

Administered by the Indiana Department of Revenue. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.

Common questions

Indiana, in brief.

What is the economic nexus threshold in Indiana?

$100,000 in sales, effective October 1, 2018. The 200-transaction threshold was repealed effective January 1, 2024. Once the threshold is crossed, remote sellers must register with the Indiana Department of Revenue and begin collecting.

What is the sales tax rate in Indiana?

The state sales tax rate is 7%. No local sales taxes.

Do marketplace facilitators collect Indiana sales tax?

Yes — marketplace facilitators have been required to collect since July 1, 2019. Direct (non-marketplace) sales remain the seller’s obligation.

How does a remote seller register for Indiana sales tax?

Register with the Indiana Department of Revenue before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 in sales). As a Streamlined Sales Tax member state, Indiana also accepts central registration through the SST system, which covers all member states in one application.

Does Indiana offer a voluntary disclosure agreement (VDA)?

Yes — the Indiana Department of Revenue administers a voluntary disclosure program with a lookback of 36 months (3 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.

A page tells you the rule. The platform applies it — and remembers why.

L3i runs Indiana determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Indiana question starts further ahead.

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