Free Indiana Sales Tax Calculator
Indiana Sales Tax Calculator
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How to Use the Indiana Sales Tax Calculator
Our Indiana Sales Tax Calculator is designed to be simple and intuitive. Just follow these easy steps:
Choose your input method:
- By ZIP Code: Select your ZIP code from the dropdown menu.
- By Tax Region: If you know the specific tax region name, select it from the dropdown menu.
Enter purchase amount: Enter the total amount of your purchase in the designated field.
Calculate: Click the “Calculate Tax” button.
View results: The calculator will display the following details:
- Purchase amount
- State tax rate and amount
- Local tax rate and amount
- Total sales tax rate and amount
- Total amount (including tax)
Tips for Using the Calculator:
- Make sure to select either a ZIP code or a tax region before calculating.
- The calculator uses the most up-to-date tax rates available.
- If you’re unsure about which tax region to choose, use the ZIP code option.
- Remember that this calculator is for informational purposes only and should not be taken as legal or financial advice.
Indiana Sales Tax for Businesses
If you’re a business owner in Indiana selling goods or tangible personal property, you’re required to collect a 7% state sales tax. This applies to physical products sold at retail, but not services.
Here's a breakdown of the key things you need to know
- Registration: You must register with the Indiana Department of Revenue to collect sales tax. This can be done online through the InBiz portal.
- Registered Retail Merchant Certificate (RRMC): Once registered, you’ll receive an RRMC, which must be displayed at each of your business locations.
- RRMC Renewal: The RRMC automatically updates, so you don’t need to worry about renewal fees. However, it will expire if you fail to pay your sales tax liability.
- Additional Tax Registration: You might need to register for additional taxes if your business involves:
- Selling food and beverages
- Providing accommodations for less than 30 days
- Renting motor vehicles under 11,000 lbs
- Selling gasoline, tires, fireworks, or prepaid wireless cards
- Facilitating sales of tangible personal property, accommodations, or prepared food and beverages
Important Notes
- Even if you have no sales tax to report, you must file a $0 return to avoid penalties.
- Late filing penalties can be up to 20% with a minimum of $5.
- Consolidated accounts need to file an Annual RP-11 return.
Example
Let’s say you own a bookstore. You’ll need to collect sales tax on all the books you sell. However, if you offer book repair services, you won’t collect sales tax on those services.
Need more information?
- You can find additional resources on the Indiana Department of Revenue website, including FAQs and sales tax rates.
- You can also call the sales tax information line at 317-232-2240.
Other Indiana Taxes
In addition to the 7% state sales tax, Indiana businesses may need to collect and remit other taxes, depending on the specific goods or services they offer. Here’s a summary of some of these taxes:
Food & Beverage Tax
- In some counties and municipalities, businesses selling prepared food and beverages must collect an additional food and beverage tax.
- Rates vary by location. You can find the rates on the Indiana Department of Revenue (DOR) website or by contacting your county auditor.
- Businesses that cater or facilitate the sale of food and beverages may also be required to collect this tax.
- File and pay food and beverage taxes online through INTIME.
County Innkeeper's Tax
- This tax applies to businesses that rent rooms or accommodations for less than 30 days in counties that have adopted the tax.
- The tax applies to various types of lodging, including hotels, motels, bed and breakfasts, and even campgrounds.
- Contact your county auditor to see if this tax applies to your business.
- File and pay this tax online through INTIME.
Motor Vehicle Rental Tax
- Businesses that rent motor vehicles weighing less than 11,000 lbs must collect and remit this tax.
- File and pay this tax online through INTIME.
- More information is available in Information Bulletin #47 on the DOR website.
Gasoline Use Tax
- This tax is collected on gasoline and gasohol fuels and is equivalent to the 7% sales tax.
- It replaces the obligation of the retail merchant to collect sales tax on gasoline sales.
- More information is available in Indiana Code (IC) 6-2.5-3.5.
Tire Fee
- Businesses selling tires for self-propelled vehicles must collect a tire fee of $0.25 per tire.
- This fee applies to most tires, including those for cars, trucks, and farm equipment, but excludes tires for garden tractors with less than 25 horsepower motors.
Fireworks Public Safety Fee
- A 5% public safety fee applies to all fireworks sales in addition to the 7% sales tax.
- Businesses selling fireworks must obtain a permit from the Indiana Department of Homeland Security.
- File and pay this fee online through INTIME.
Prepaid Wireless Service Charge
- Sellers of prepaid wireless devices must collect a $1.00 911 service charge per transaction.
- This charge should be clearly communicated to the consumer.
- File and pay this charge online through INTIME.
Important Notes
- Remember to file $0 returns even if you have no activity for a given tax period to avoid penalties.
- Late filing penalties can be up to 20% with a minimum of $5.
Indiana Sales Tax FAQs
Q: How much is Indiana's sales tax?
A: Indiana’s state sales tax rate is 7%.
Q: Is a Registered Retail Merchant Certificate (RRMC) the same as a vendor's license?
A: No. An RRMC allows you to collect sales tax, while a vendor’s license allows you to operate a business. Contact your county clerk’s office for a vendor’s license.
Q: Am I required to renew my RRMC?
A: Yes. The RRMC must be renewed every two years. If your tax filings and payments are current, renewal is automatic.
Q: How do I make sales tax-exempt purchases?
A: If you qualify for a sales tax exemption, you’ll need to provide the seller with Form NP-1, which can be filed online at intime.dor.in.gov. This form has replaced Form ST-105.
Q: What if I'm entitled to an exemption but don't have an Indiana taxpayer identification number?
A: You have three options:
- Follow the instructions on Form ST-105 to provide alternative documentation.
- Register with Indiana through InBiz to obtain a taxpayer identification number.
- Pay the sales tax and file for a refund using Form GA-110L.
Q: What is Use Tax?
A: Use tax is similar to sales tax and applies to purchases made outside of Indiana for use within the state, where sales tax wasn’t collected at the time of purchase.
Q: What's the difference between use tax and sales tax?
A: These taxes are complementary. Sales tax is collected at the point of sale, while use tax is self-reported and paid by the purchaser if sales tax wasn’t collected.
Q: Do I have to file a return if I had no taxable activity?
A: Yes. Even with no activity, you must file a $0 return to avoid penalties.
Q: When is the RP-11 due?
A: The RP-11 is due January 31st and must be filed online. This applies to consolidated sales tax filers.
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
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