Indiana charges one statewide sales tax rate and the same rate for use tax. Food and food ingredients bought to prepare at home are exempt, while heated food, candy and soft drinks are not, and a local food and beverage tax on restaurant-style sales is the only local add-on the Department of Revenue lists.
State rate
7%
Local add-on
None
Combined
7%
Indiana's Department of Revenue publishes one local layer: a food and beverage tax that some counties and municipalities adopt on food and beverages sold by restaurants and similar sellers, listed at 1% in most places and 2% in Marion County, Shipshewana and one Orange County historic hotel. It is collected in addition to sales tax, so a restaurant bill in an adopting place carries more than the state rate while a store purchase does not.
Work out the tax on a purchase
The calculator applies the state rate. Where local tax applies, add your
local rate to get the figure that will appear on the receipt — the
official lookup below gives the exact rate for an address.
Sales Tax Calculator
On a $100.00 purchase in Indiana, the sales tax is $7.00 at a rate of 7.000%, bringing the total to $107.00.
State-level base rates only. Many states allow cities and counties to add local sales taxes which are not included here. Check your local rate for exact calculations.
Food and food ingredients for human consumption are exempt from sales tax, including food sold unheated by weight or volume as a single item and bakery items. Alcoholic beverages, candy, soft drinks, food sold in a heated state or heated by the seller, food from vending machines, food sold with eating utensils the seller provides, and food the seller mixes from two or more ingredients are not exempt.
Restaurant food and beverage tax
Some counties and municipalities add a food and beverage tax, listed by the Department of Revenue at 1% to 2%. Sellers of food and beverages in those places register for it in addition to sales tax, and caterers collect it for the places they cater into.
Cars and other vehicles
Sales tax is due on the purchase price of a vehicle. An Indiana dealer collects it and gives the buyer an ST108 as proof of payment; on a private purchase the buyer pays it at a BMV branch when applying for the Indiana title. Credit is given for sales tax paid to another state, and a buyer who paid less than Indiana would have charged pays the difference when titling. New residents are not charged sales tax when they transfer a title from their prior state.
Use tax on out-of-state purchases
Use tax is complementary to sales tax and is due on property acquired for use, storage or consumption in Indiana when Indiana sales tax was not paid to the seller. The use tax rate matches the sales tax rate, a buyer who paid less sales tax to another state owes the difference, and an individual can pay it on the annual Indiana income tax return or directly to the Department of Revenue on Form ST-115.
Get the exact rate for an address
A statewide figure is a starting point, not a receipt. For the rate that
actually applies to a specific address, use the state's own lookup —
third-party rate tables disagree with each other and go stale between
rate changes.
Not food bought to prepare at home. Food and food ingredients for human consumption are exempt. Candy, soft drinks, alcoholic beverages, food sold hot or heated by the seller, vending machine food and food sold with eating utensils the seller provides are taxable.
Do Indiana counties and cities add their own sales tax?
Not a general one. The Department of Revenue lists only a food and beverage tax that some counties and municipalities adopt, at 1% in most and 2% in a few. It applies to food and beverage sales such as restaurant meals and is collected on top of sales tax.
How is sales tax paid on a car in Indiana?
From an Indiana dealer, the dealer collects the tax and gives you an ST108 showing it was paid. On a private sale you pay it at a BMV branch when you apply for the title. If you bought in another state you get credit for the tax paid there and owe Indiana only the difference.
Do I owe Indiana use tax on online purchases?
Yes, if the seller did not charge Indiana sales tax. The use tax rate is the same as the sales tax rate, and if you paid a lower sales tax to another state you owe the difference. Individuals can report it on the Indiana income tax return, due April 15, or pay it with Form ST-115.
Whatever your state charges, get a reminder before each federal tax deadline. One email before each quarterly estimated tax payment (Tax Day included), plus one when the
IRS publishes next year's numbers. About five a year; you confirm once and can unsubscribe anytime.
