Disclaimer: All rates and figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Sales tax rates change and vary by city, county, and the type of item purchased. Verify current rates with the Indiana Department of Revenue before relying on these figures, and consult a qualified tax professional for specific guidance.
Calculate sales tax on any purchase in Indiana. The state sales tax rate is 7%, and when combined with the average local rate of 0%, the total average in Indiana comes to 7.00%. Actual rates vary by city and county.
Indiana Sales Tax Rates
- State Rate
- 7%
- Avg Local Rate
- 0%
- Combined Average
- 7.00%
Quick Reference
Indiana's flat state income tax fell to 2.95% for 2026, and all 92 Indiana counties levy their own local income tax on top of it.
State income tax: 2.95% top rate
How Indiana's Sales Tax Stacks Up
At 7% combined (state plus average local), Indiana's sales tax ranks 25th-highest nationally — right at the national median of 7%.
Indiana adds no local sales taxes, so the 7% state rate is exactly what you pay at the register everywhere in Indiana.
Combined state-plus-local averages nearby: Illinois (8.98%); Kentucky (6%); Michigan (6%); Ohio (7.29%). Kentucky has the lowest nearby rate at 6%.
Indiana Sales Tax Table
Quick reference for common purchase amounts at the 7.00% combined average rate:
| Purchase Price | Sales Tax | Total |
|---|---|---|
| $10 | $0.70 | $10.70 |
| $25 | $1.75 | $26.75 |
| $50 | $3.50 | $53.50 |
| $100 | $7.00 | $107.00 |
| $250 | $17.50 | $267.50 |
| $500 | $35.00 | $535.00 |
| $1,000 | $70.00 | $1070.00 |
| $2,500 | $175.00 | $2675.00 |
| $5,000 | $350.00 | $5350.00 |
Understanding Indiana Sales Tax
Sales tax in Indiana is collected at the point of sale on most tangible goods and some services. The state portion of 7% is uniform statewide, while local jurisdictions may add their own rates, averaging 0% across the state. Certain items like groceries and prescription medications may be exempt or taxed at reduced rates.
When budgeting in Indiana, remember that sales tax affects your purchasing power. With a median home value of $197,200 and a property tax rate of 0.83%, understanding all taxes helps you make informed financial decisions.
What Is and Is Not Taxed in Indiana
Unprepared groceries are exempt from Indiana state sales tax — candy, soft drinks and prepared food remain taxable.
Prescription medicines are exempt in Indiana, as they are in every state that levies a sales tax; over-the-counter drugs and most medical supplies are treated separately and are frequently taxable.
Out-of-state sellers must register and collect Indiana tax once they cross the state's economic nexus threshold, a rule that follows from the 2018 Supreme Court decision in South Dakota v. Wayfair. Below that threshold, the buyer technically owes use tax instead.