NSNexus by State

Indiana E-commerce Sales Tax Nexus Guide — 2026

Updated

Reviewed by Nexus by State research team using official state tax sources. Last reviewed .

Guide content last reviewed: 2026-07-20

If your E-commerce business sells $100,000 into Indiana in a calendar year, you have economic nexus and must register, collect, and remit Indiana sales tax.

E-commerce sales tax basics in Indiana

For a direct-to-consumer store (Shopify, WooCommerce, BigCommerce, or custom) shipping to Indiana buyers, the economic nexus trigger is $100,000 in IN-destination revenue (effective 2024-01-01). Crossing that bar obligates registration, collection, and periodic filing.

Once registered, charge 7.00% state tax on most tangible personal property. Digital products, subscriptions, and professional services have different treatment — see the Indiana SaaS page if you sell software or digital goods.

Registration + collection checklist

  1. Register with the Indiana Department of Revenue for a sales tax permit.
  2. Configure your cart platform to collect tax at the destination rate. Enable IN in your tax settings.
  3. As a remote seller, charge the combined state + local rate at the customer's delivery address — interstate sales are sourced to the destination, not to where you ship from.
  4. File returns on the cadence your DOR assigns (monthly, quarterly, or annually).
  5. Track your Indiana-sourced revenue monthly so you know when you're approaching or below threshold for the next period.

Common mistakes e-commerce sellers make in Indiana

  • Using origin-based rates (your HQ state's rate) instead of destination rates. A sale shipped from outside Indiana into Indiana is sourced to the buyer's delivery address, so charge the IN rate, not your home state's. Intrastate sales are a separate question: a minority of US states apply origin sourcing to sales that both begin and end in-state, so if your business is located in Indiana, confirm the intrastate rule with the Indiana Department of Revenue before configuring your cart.
  • Guessing at how marketplace sales count toward the Indiana threshold. States split on this — some let a seller exclude sales a registered marketplace facilitator already collected on, others require those sales to be included in the threshold test even though the marketplace remits the tax. Read Indiana’s own rule on the Indiana marketplace facilitator page before adding or removing them from your nexus-tracking spreadsheet.
  • Waiting until year-end to register. Registration and collection deadlines run from the threshold-crossing date, and the length of that grace period is set by each state — some require collection on the very next transaction, others allow until the first day of a later month. Check Indiana’s deadline with the DOR as soon as you cross $100,000; back-tax exposure accrues for every day you sell unregistered.
  • Forgetting to file zero returns once registered. Missing filings trigger penalties even when you owe no tax.

Indiana nexus note

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.

What to do next

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.

E-commerce sales tax in other states

Compare Indiana's e-commerce rules with nearby and similar states' e-commerce sales tax guides:

Frequently asked questions

What is Indiana's e-commerce sales tax in 2026?
Indiana's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $100,000 in Indiana-destination revenue. As a remote seller, charge the 7.00% state rate plus any applicable local rate at the buyer's ship-to address.
Do I collect sales tax on every Indiana order?
You collect Indiana sales tax once you cross the economic nexus threshold ($100,000). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in Indiana).
What rate do I charge for Indiana e-commerce sales?
For sales shipped into Indiana from out of state, charge the 7.00% state rate plus any applicable local rate at the buyer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable IN in tax settings. Sales that both begin and end inside Indiana can follow a different sourcing rule in a minority of states — check with the Indiana Department of Revenue if you are an in-state seller.
Do I need to collect sales tax on shipping in Indiana?
It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check Indiana's specific policy or use a tax service that encodes the rule.

Sources

date_retrieved: 2026-06-01