Indiana Dropshipping Sales Tax Guide — 2026

Dropshipping into Indiana raises three distinct tax questions. First, you (the retailer) have to collect and remit Indiana sales tax on your retail sales if you exceed $100,000. Second, your dropship supplier may charge YOU sales tax on the wholesale invoice if they have Indiana nexus and you can't present a valid resale certificate. Third, the marketplace (if any) handles its own tax on facilitated transactions.

Indiana applies 7.00% as the base state rate; no local add-ons apply.

• If you have a Indiana sales tax permit, you can usually issue your dropshipper a IN resale certificate to avoid being charged sales tax on the wholesale invoice.
• Some states (notably California, Florida, Massachusetts, Tennessee, and a few others) require the buyer to hold an IN-STATE registration before issuing a resale certificate — a home-state certificate isn't enough.
• Streamlined Sales Tax (SST) states accept the uniform Multistate Certificate; others have their own forms.

• Treating your dropshipper's nexus as if it obligates them to collect from the end customer — no, they invoice you at wholesale; you invoice the customer at retail. Only the retail transaction is subject to collection duty.
• Forgetting that your retail revenue into Indiana still counts toward the economic nexus threshold, independent of the dropshipping arrangement.
• Not keeping resale certificates on file — your supplier will charge you tax (and you'll have already collected from the customer), eroding margin.

Indiana sales tax nexus and economic nexus threshold: more than $100,000 in gross revenue from sales into Indiana in the current or preceding calendar year. Effective January 1, 2024, Indiana removed its prior 200-transaction test; the state now uses a sales-only threshold. Indiana DOR Sales Tax Information Bulletin #89 says the threshold includes tangible personal property delivered into Indiana, products transferred electronically into Indiana, and services delivered in Indiana, including exempt sales and wholesale transactions. Services are sourced to Indiana when the buyer first uses them in Indiana, but a seller that provides only nontaxable services generally is not required to register solely because it crosses the threshold. Marketplace facilitators count both their own Indiana sales and facilitated marketplace sales toward the $100,000 threshold; marketplace sellers generally exclude sales made through registered marketplaces from their own Indiana threshold test unless the marketplace facilitator has not met the threshold. Indiana's statewide sales tax rate is 7%, with no local sales-tax add-on, and remote sellers with less than $1,000 in annual Indiana sales-tax collections generally file annually. Indiana DOR source data last retrieved 2026-06-01.

Read the full Indiana overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

• Indiana · E-commerce
  General e-commerce sales tax rules
• Indiana · Thresholds
  Economic and transaction nexus thresholds
• Indiana · Marketplace Facilitator
  Marketplace facilitator law for the state