Indiana Sales Tax: Rates, Rules & Compliance Guide

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Indiana has one of the most straightforward state sales tax systems in the US. There's a single 7% statewide rate, no additional tax, and a clear registration process through the state's online portal, INTIME. 

But if you sell SaaS or digital products, you may have heard about a period of uncertainty in 2024. A state law that explicitly exempted SaaS from sales tax expired in July 2024, leaving businesses in a gray area for several months. Indiana's Department of Revenue (DOR) resolved that ambiguity in January 2025, confirming that SaaS remains generally non-taxable.

This guide covers everything you need to know: what's taxable in Indiana, how nexus works, how to register, and how to file and remit on time.

Indiana Sales Tax at a Glance

The flat 7% Indiana sales tax rate applies statewide. Unlike most states, Indiana does not allow counties, cities, or other jurisdictions to stack additional local sales tax on top. 

All registration, filing, and remittance happens through the Indiana Taxpayer Information Management Engine (INTIME).

What Is Taxable in Indiana

Tangible Personal Property (TPP)

Physical goods sold at retail are subject to Indiana sales tax. This is the standard rule. If you sell a physical product like electronics, equipment, or other merchandise, you charge 7% at the point of sale. 

Indiana defines taxable tangible personal property broadly. When in doubt about a specific product category, the DOR's guidance documents and INTIME portal are good starting points. For example, prepared foods are taxable while groceries are not.

SaaS and Digital Products

SaaS is not taxable in Indiana. It is not considered tangible personal property, and it is not classified as a taxable service under current Indiana tax law.

Revenue Ruling #2024-04-RST, issued by the Indiana DOR on January 7, 2025, confirmed this position. The ruling clarified that remotely accessed software does not constitute tangible personal property and is therefore outside the scope of Indiana sales tax.

If you sell pre-written software that customers download and install (as opposed to access remotely), the tax treatment may differ. Confirm the specifics with current DOR guidance or a tax advisor if you offer both delivery models.

The 2024 SB 257 Expiry — What Happened

The expiration of temporary statutory language in July 2024 created uncertainty about whether Indiana might revisit its treatment of remotely accessed software, which it had until then treated as non-taxable. In January 2025, the Indiana DOR issued Revenue Ruling #2024-04-RST reaffirming that SaaS remains non-taxable.
Fortunately, on January 7, 2025, the Indiana Department of Revenue (DOR) issued Revenue Ruling #2024-04-RST and confirmed that SaaS remains non-taxable, settling the question.

If your business sold SaaS into Indiana between July 2024 and January 2025 and you're not sure whether you have any exposure from that period, talk to a tax advisor. Most businesses operating in good faith during an ambiguous period have options, and it’s worth getting a professional opinion.

Monitoring Your Indiana Tax Exposure

If you have sales tax nexus in Indiana, you’re required to register for an Indiana sales tax permit and collect from Indiana buyers.

Economic Nexus Threshold

Indiana's economic nexus threshold is $100,000 in gross revenue from Indiana sales, measured in either the current or previous calendar year. Once you cross that threshold, you are required to register and begin collecting Indiana sales tax. That's even if you are a remote seller with no other presence in Indiana. 

It’s important to note that Indiana counts all sales toward the threshold, not just taxable ones. Exempt sales, non-taxable services, and taxable transactions all count together. This catches some businesses off guard, especially those that sell a mix of taxable and non-taxable products. However, note that marketplace sales (like through Amazon or Walmart) are excluded as long as the marketplace facilitator handles the sales tax on your behalf.

Sphere monitors your economic nexus thresholds in real time and alerts you before you hit the registration trigger, so you're never scrambling to catch up.

Physical Nexus

Physical nexus in Indiana works the way it does in most states. Physical presence that creates nexus in Indiana includes:

• Business locations like offices or stores
• Employees, contractors, or salespeople
• Inventory 
• Temporary business in the state such as at a tradeshow

Remote businesses sometimes overlook this when they hire a contractor or bring on a sales rep in a new state. If that person is operating in Indiana, physical nexus is established from day one.

Registering for Indiana Sales Tax

How to Register

Register for your registered retail merchant certificate online at INTIME, Indiana’s sales tax portal.

1. Create an account on INTIME (intime.dor.in.gov)
2. Complete the Business Tax Application (BT-1) through your INTIME account
3. Submit

Processing typically takes two to three business days. Once approved, you'll receive your sales tax permit and can begin collecting.

Registration Fees

The state of Indiana charges a $25 fee to register for a sales tax permit. If you’re located in Indiana, you’ll be required to pay $25 per location. Sphere manages the full BT-1 tax registration process on your behalf, including INTIME account setup and all required documentation. 

Calculating Indiana Sales Tax

State Tax Rate

Indiana applies a flat 7% sales tax rate to all taxable transactions. There are no county, city, or special district rates added on top. This makes Indiana one of the simplest states in the US when it comes to collecting sales tax.

If you sell in states with layered local rates (like California or Texas), Indiana will feel refreshingly easy by comparison.

What the Rate Applies To

The 7% rate applies to gross retail sales of taxable tangible personal property and taxable services at the point of transaction. 

Per the January 2025 DOR letter ruling, SaaS and remotely accessed digital services are not taxed. If you sell a mix of taxable and non-taxable products, you only apply the 7% to the taxable portion of each transaction.

Filing Indiana Sales Tax Returns

Filing via INTIME

All Indiana sales tax returns are filed through INTIME. The portal handles direct submission, payment processing, and account management in one place.

Filing Deadlines

Indiana sales tax return due dates depend on your filing status:

• Early filers - Returns are due on the 20th of the month following the filing period
• Regular monthly filers - Returns are due on the 30th of the month following the filing period
• Annual filers - Returns are due by January 31

If a due date falls on a weekend or holiday, it generally moves to the next business day. Always confirm current due dates through INTIME or the DOR website, since these details are subject to change.

Filing Frequency Thresholds

Indiana determines how often you file based on your sales volume. Generally:

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The DOR will assign your initial filing frequency (i.e. reporting period) when you register. As your revenue in Indiana changes, that frequency may be adjusted. Check your current assignment in your INTIME account.

Late Filing Penalties

The penalty for late payment of retail sales tax is 10% of the tax due. You can avoid penalties by automating your sales tax filing and payment with Sphere.

Ready to automate your Indiana sales tax compliance?

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Remitting Indiana Sales Tax

Remittance via INTIME

Remit sales tax collected directly through INTIME using ACH debit from a US bank account. You link your bank details in INTIME, and payments are pulled electronically at the time of filing. Payments tie directly to the relevant filing period, so the records stay organized.

Remittance for Foreign Businesses

If your business is based outside the US and doesn't have a US bank account, standard ACH remittance through INTIME isn't available to you. This is a common sticking point for international companies selling into Indiana.

Sphere's embedded remittance platform handles payment on behalf of foreign businesses, without requiring a US bank account. You don't need to open a US account or wire funds manually.

How Sphere Handles Indiana Sales Tax Compliance

Indiana is one of the simpler states to manage, but "simpler" doesn't mean zero effort. You still need to handle nexus monitoring, registration timing, filing deadlines, and remittance, all on time.

Here's what Sphere handles for Indiana:

• Nexus monitoring - Sphere tracks your Indiana sales in real time and alerts you when you're approaching the $100,000 economic nexus threshold
• Registration - Sphere manages the BT-1 application through INTIME on your behalf, including account setup and documentation
• Tax calculation - Sphere applies the correct 7% rate to taxable transactions at the point of sale, and correctly excludes non-taxable items like SaaS
• Filing - Sphere prepares and files your Indiana sales tax returns on schedule through INTIME
• Remittance - Sphere handles payment electronically, including for foreign businesses that don't have a US bank account
• Exemption certificates - Sphere manages sales tax exemption certificate collection and storage for Indiana-based B2B transactions, so you're covered if a customer claims a tax exemption

Indiana's flat rate and single-portal filing make it one of the lower-effort states to maintain once you're set up. Sphere keeps it that way by running the whole process on autopilot.