Indiana Sales Tax Calculator
Uses the Indiana rate of 7%. Replace it with the combined rate on your receipt for an exact check.
State base rates verified September 2026. This is a general estimate, not tax advice. Need more options? Open the full reverse sales tax calculator.
Rates checked November 2026. The Indiana sales tax rate is 7%.
Use this Indiana sales tax calculator to work out the tax on a purchase in Indiana. The rate is 7% everywhere, with no county or city sales tax to add. A $100 taxable purchase costs $107.00 in total. The calculator on this page is preset to 7%.
The Indiana sales tax rate is 7% everywhere
Indiana has one flat sales tax rate. The Department of Revenue states it in plain words on its sales tax page: a business that sells goods must register to collect a seven percent sales tax. Its business FAQ says the same thing: Indiana’s sales tax is 7%.
The state rate and the combined rate are the same number in Indiana. There is no local part to add. That sets Indiana apart from most states, where a city or county can add its own tax on top of the state rate.
These large cities all charge 7%: Indianapolis, Fort Wayne, Evansville, South Bend, Carmel, Fishers, Bloomington, Hammond, Gary, and Lafayette.
There is no Indiana county sales tax
Many people search for Indiana county sales tax rates. The answer is that Indiana has no county sales tax. There is no county rate table to look up and no ZIP code check to run. A purchase in any of Indiana’s 92 counties is taxed at 7%. County income tax is a different tax, on income, not on sales.
How to calculate sales tax in Indiana
Multiply the taxable price by 0.07. Then add the tax to the price.
$100 x 0.07 = $7.00 tax. The total is $107.00.
$500 x 0.07 = $35.00 tax. The total is $535.00.
$1,000 x 0.07 = $70.00 tax. The total is $1,070.00.
To remove the tax from a total that already includes it, divide the total by 1.07. A $107.00 receipt holds $100.00 of price and $7.00 of tax.
To check a figure with a tool, use the main sales tax calculator and enter 7% as the rate. For state by state comparison, see the sales tax rates page.
What is taxed and what is exempt in Indiana
Indiana taxes most retail sales of tangible personal property: physical goods such as clothing, electronics, furniture, and household items. Most services are not taxed. The Department of Revenue gives the case of a computer store: the parts it sells are taxable, but the repair service itself is not.
| Item | Taxed at 7% or exempt |
|---|---|
| Groceries for home use | Exempt |
| Prescription drugs | Exempt |
| Prepared food and restaurant meals | Taxed |
| Candy, soft drinks, alcohol, tobacco | Taxed |
| Clothing and shoes | Taxed |
| Electronics, furniture, household goods | Taxed |
| Goods bought for resale | Exempt with a certificate |
Groceries are exempt only when the food is sold unheated and without eating utensils from the seller. That is the rule in the Department of Revenue’s Sales Tax Information Bulletin #29, published in September 2025. Produce, meat, dairy, bread, cereal, and frozen food for cooking at home are exempt. A hot deli sandwich, a heated meal, or food sold with a fork or plate is prepared food, and prepared food is taxable. Bakery items such as bread, rolls, cakes, cookies, and donuts are not treated as prepared food just because the baker mixed the ingredients. They stay exempt unless the seller gives you eating utensils with them.
Candy, soft drinks, dietary supplements, alcohol, and tobacco are never covered by the food exemption. They are taxed at 7% even in a grocery store. Clothing is taxed at the full 7% rate too. There is no clothing exemption. Goods bought for resale are exempt with a General Sales Tax Exemption Certificate, Form ST-105.
The food and beverage tax is separate from sales tax
Some counties and cities charge a food and beverage tax on prepared food and drinks. The Indiana Department of Revenue collects it and publishes the rate for each place. In most places that have adopted it, the rate is 1%. In Marion County, which is Indianapolis, the rate is 2%. It is also 2% in the Orange County historic hotel district and in Shipshewana.
It is not part of the 7% sales tax. It sits on top of it, only on prepared food and drinks. A $50 restaurant meal in Indianapolis carries $3.50 in state sales tax plus $1.00 in food and beverage tax.
This clears up a wrong figure on one rival calculator page, which says prepared food in Indiana is taxed at a special rate of 9%. Prepared food is taxed at the 7% sales tax rate. In Indianapolis the total on a restaurant bill reaches 9% only because the separate 2% food and beverage tax is added.
No official rate lookup is needed for Indiana
Indiana has no official sales tax lookup by ZIP code or address, because there is nothing to look up: the rate is 7% at every address in the state. The one lookup that does exist is the Department of Revenue’s food and beverage tax table, for the extra 1% or 2% on a restaurant meal.
Indiana has no sales tax holiday
Indiana does not hold a sales tax holiday. The 7% rate applies all year, including on clothing and school supplies. There is no tax-free weekend to wait for.
When the Indiana sales tax rate changed
The 7% rate has been in place since April 1, 2008. The full record from the Department of Revenue:
| Effective date | Rate |
|---|---|
| April 1, 2008 to present | 7.00% |
| Dec. 1, 2002 to March 31, 2008 | 6.00% |
| Jan. 1, 1983 | 5.00% |
| May 1, 1973 | 4.00% |
| Oct. 24, 1963, when the tax was first adopted | 2.00% |
Sales tax on a car in Indiana
Cars are taxed at the same 7% rate as other goods. The rate is the same in every county, and no county or city adds a local sales tax on a car.
A like-kind trade-in lowers the tax. If you buy a $25,000 car and trade in your old car for $10,000, the tax is charged on $15,000. That is $1,050 of tax instead of $1,750. The trade-in must be the same kind of vehicle, traded as part of the same deal, and titled in your name. A manufacturer rebate does not lower the taxable price.
If you buy from a dealer, the dealer collects the tax and gives you Form ST-108 as proof. If you buy from a private seller, you pay the tax at a Bureau of Motor Vehicles branch when you apply for the title. Buyers who will title and register the car in another state within 30 days pay that state’s rate instead of 7%, and never more than 7% (Sales Tax Information Bulletin #84, May 2026). For a full walk-through, see the car sales tax calculator page.
Enterprise zones do not lower the sales tax
Indiana has Urban Enterprise Zones in Fort Wayne, Evansville, Bloomington, and other cities. They give tax breaks to businesses, such as deductions for new investment and credits for wages paid to zone residents. They do not lower the sales tax a shopper pays at the till.
Some calculator pages say zone businesses in Fort Wayne and Evansville charge 3.5% instead of 7%. No Indiana Department of Revenue page supports that figure. The 3.5% rate is New Jersey’s old Urban Enterprise Zone half-rate, from when New Jersey’s rate was 7%. New Jersey’s current UEZ rate is 3.3125%, half of its 6.625% rate.
Filing and use tax, in short
A business that sells goods in Indiana registers through INBiz and receives a Registered Retail Merchant Certificate. Returns are filed and paid online through INTIME, the Department of Revenue’s portal, on Form ST-103. Monthly returns are due by the 30th day of the month after the reporting period, or by the 20th when average monthly tax is over $1,000. A return is still due even in a month with no sales.
Use tax is the other half of the same 7% tax. If an out-of-state seller does not collect Indiana sales tax, you owe use tax at 7%. Registered merchants report it on Form ST-103. Other buyers report it on Form ST-115. Most large online sellers already collect Indiana tax, because remote sellers with more than $100,000 in gross revenue from Indiana sales must register and collect.
Indiana compared with neighboring states
Indiana’s 7% state rate is higher than the state rate in each neighboring state: Illinois 6.25%, Ohio 5.75%, Kentucky 6%, and Michigan 6%. The combined rate tells a different story, because Illinois and Ohio add local tax. Their average combined rates are 8.96% and 7.29%, above Indiana’s 7%. Kentucky and Michigan average 6%. Tax Foundation figures, January 1, 2026; averages are for comparison only.
See the Illinois sales tax calculator, the Ohio sales tax calculator, the Michigan sales tax calculator, and the Kentucky sales tax calculator pages for each neighbor’s own rules.
What is the sales tax rate in Indiana?
7%. It applies to most retail sales of tangible personal property across the whole state.
Does Indiana have local sales tax?
No. No county, city, or district in Indiana can add a general sales tax. The only local add-on shoppers may see is the food and beverage tax of 1% or 2% on prepared food and drinks in some places.
Are groceries taxed in Indiana?
No. Food for home use is exempt when sold unheated and without utensils from the seller. Candy, soft drinks, supplements, alcohol, tobacco, and prepared food are taxable at 7%.
Is clothing taxed in Indiana?
Yes, at the full 7% rate. Indiana has no clothing exemption and no sales tax holiday.
How do I calculate sales tax in Indiana?
Multiply the taxable price by 0.07. A $100 purchase has $7.00 of tax and a $107.00 total. A $500 purchase has $35.00 of tax and a $535.00 total.
How do I remove Indiana sales tax from a total?
Divide the total by 1.07. For a $107.00 receipt, $107.00 divided by 1.07 is $100.00, so the tax was $7.00.
How much is sales tax on a $25,000 car in Indiana?
$1,750 at 7% before any trade-in. A $10,000 like-kind trade-in leaves $15,000 taxable, so the tax is $1,050.
Sources
- Indiana Department of Revenue, Sales Tax page. States the seven percent sales tax and registration for a Registered Retail Merchant Certificate through INBiz.
- Indiana Department of Revenue, Business FAQ. States Indiana’s sales tax is 7% and that sales and withholding taxes must be filed and paid electronically through INTIME.
- Indiana Department of Revenue, Corporate and Sales Tax History. Sales tax rate history, with 7.00% from April 1, 2008 to the present.
- Indiana Department of Revenue, Sales Tax Information Bulletin #29, Sales of Food, September 2025. Grocery food exempt when sold unheated and without eating utensils; candy, soft drinks, dietary supplements, alcohol, and tobacco excluded; prepared food taxable.
- Indiana Department of Revenue, Food and Beverage Tax page. Rate table by county and city, with 1% in most adopting places and 2% in Marion County, the Orange County historic hotel district, and Shipshewana.
- Indiana Department of Revenue, Sales Tax Information Bulletin #84, Sales Tax Collection on Sales of Motor Vehicles, May 2026. General rate 7% on retail transactions; special rate for vehicles titled and registered in another state within 30 days, capped at 7%.
- Indiana Department of Revenue, Sales and Use Tax Refunds. Drugs and medical supplies purchased with a prescription from a licensed practitioner are exempt.
