Minimum Sales Rate Tax for 2024
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| Minimum combined sales tax rate value | 7% | Column content | Column content | Column content | Column content |
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| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 200 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th or last day of the month following the reporting period | Column content | Column content | Column content | Column content |
The base state sales tax rate in Indiana is 6%, but since the city-specific tax rate is 0% and the Marion County tax rate is 0%, the minimum sales tax rate for Indianapolis is 6%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Indianapolis, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Indianapolis
The 911 Service Prepaid Wireless Charge adds $1.00 to each sale of prepaid wireless devices, while the Food and Beverage Tax applies to food and drink sales in select jurisdictions. The County Innkeeper’s Tax (CIT) adds a tax on short-term room rentals, like hotel rooms, in addition to state sales tax. For fuel, the Gasoline Use Tax, equivalent to a 7% sales tax, covers gasoline and gasohol sales. Additionally, a 25-cent tire fee applies to each tire sold for self-propelled vehicles, and a 5% Public Safety Fee is added to fireworks sales.
Services
Generally not subject to sales tax
Goods
Mostly taxable. Goods such as appliances, vehicles, furniture, sporting goods, and electronics are subject to sales tax.
Clothing
Typically subject to sales tax
Electronics
Taxable
SaaS
Not taxable
Digital Products
Generally taxable
Software
Pre-written software is taxable
Freight/Shipping
Not taxable unless they are part of a taxable sale.
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