Indiana LLC Sales Tax — 7% Statewide Rate

If your Indiana LLC sells taxable tangible personal property, you must register for a Retail Merchant Certificate under Indiana tax law, collect Indiana's 7% sales tax (Indiana tax law), and remit it to the Indiana Department of Revenue (DOR). Unlike Colorado's complex multi-jurisdiction system, Indiana has a uniform 7% rate statewide — no local additions. For the full tax picture, see our Indiana LLC tax guide. For formation, see how to form an Indiana LLC.

Indiana's Simple Sales Tax System

Indiana's uniform 7% rate is higher than the national average but dramatically simpler to comply with than states with local taxes.

What's Taxable

Taxable at 7%:

• Tangible personal property (physical goods)
• Some digital goods (specified digital products)
• Certain services when tangible property is transferred
• Accommodations (lodging)
• Food and beverage (prepared food)

Exempt:

• Unprepared food and groceries (for home consumption)
• Prescription drugs and medical devices
• Manufacturing equipment (used in production)
• Agricultural supplies
• Sales to exempt organizations (government, nonprofits with exemption certificates)

How to Register (Form BT-1)

1. Go to INTIME (intime.dor.in.gov) — Indiana's Tax Interactive Management Engine
2. Register for a Retail Merchant Certificate using Form BT-1 (Business Tax Application)
3. Provide your LLC's EIN, Articles of Organization details, and business address
4. Receive your Registered Retail Merchant Certificate (RRMC) — display at your place of business as required by Indiana tax law
5. File returns per your assigned schedule (monthly, quarterly, or annually)

Indiana quirk: Unlike most states, Indiana requires you to display your RRMC at each retail location. Failure to display can result in a Class B infraction. The certificate itself is free — no separate fee beyond your initial registration.

Filing and Remittance (Form ST-103)

• Monthly: If collecting $1,000+ per month (Form ST-103 filed monthly)
• Quarterly: If collecting less than $1,000/month (Form ST-103 filed quarterly)
• Annually: Very small volumes (under $1,000/year collected)
• Due: 20th of the month following the reporting period (per Indiana tax law)
• Portal: INTIME at intime.dor.in.gov (replaced INtax in 2022)
• Payment methods: EFT required if annual tax liability exceeds $10,000 (Indiana tax law)

Collection allowance (Indiana tax law): Indiana allows retailers to retain a small percentage of collected tax as compensation: 0.73% of the first $60,000 in tax collected, 0.53% thereafter. This is your compensation for acting as a tax collector for the state.

Economic Nexus

Remote sellers exceeding $100,000 in Indiana sales or 200 transactions must register and collect Indiana sales tax — even without physical presence in Indiana.

FAQ

Is the 7% rate the same everywhere in Indiana?

Yes. Indiana has a uniform 7% sales tax with no local additions. Whether you're selling in Indianapolis, Bloomington, or Gary — it's 7%.

Do services have sales tax in Indiana?

Most services are NOT taxable in Indiana. The tax applies primarily to tangible personal property and specified digital products. However, some mixed transactions (service + property transfer) may be partially taxable.

Do I need a separate license for each location?

You need a Retail Merchant Certificate for each location where you make retail sales. Each certificate is tied to a specific address.