Indiana sales tax rates (July 1, 2026)
| State rate | 7.00% |
|---|---|
| Average local rate | 0.00% |
| Average combined rate | 7.00% |
| Rank among the 50 states and DC | 25 (tied with 1 other) of 51, where 1 is the highest combined rate |
Indiana has no general local sales taxes, so the 7.00% state rate is the rate you pay on taxable purchases anywhere in the state.
Sales tax on common purchases in Indiana
| Purchase | Tax at 7.00% | 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 | $1,070.00 |
| $5,000 | $350.00 | $5,350.00 |
Worked example: a $250 purchase
Combined rate = 7.00% state + 0.00% average local = 7.00%
Sales tax = $250 × 0.07 = $17.50
Total = $250 + $17.50 = $267.50
To back the tax out of a receipt total, divide by 1 plus the rate: $267.50 ÷ 1.07 ≈ $250.00. The reverse sales tax calculator does this for any rate.
Indiana compared with nearby states
| State | State rate | Avg. local | Combined | Tax on $250 |
|---|---|---|---|---|
| Indiana | 7.00% | 0.00% | 7.00% | $17.50 |
| Illinois | 6.25% | 2.73% | 8.98% | $22.45 |
| Michigan | 6.00% | 0.00% | 6.00% | $15.00 |
| Ohio | 5.75% | 1.54% | 7.29% | $18.23 |
| Kentucky | 6.00% | 0.00% | 6.00% | $15.00 |
Average combined rates are lower in Michigan and Kentucky. Before shopping across the border, note that states with a sales tax also charge use tax on taxable goods bought elsewhere and brought home untaxed, and vehicles are taxed where they are registered.
What's taxed and what's exempt in Indiana
- Indiana's 7% sales tax is among the highest state rates, but there are no local sales taxes and groceries are exempt.
Frequently asked questions
What is the sales tax rate in Indiana in 2026?
The state rate is 7.00%. Indiana has no general local sales taxes, so 7.00% applies statewide.
How much is the sales tax on $100 in Indiana?
About $7.00 at the 7.00% average combined rate, for a total of $107.00.
How does Indiana's sales tax compare with other states?
Indiana ranks 25 (tied with 1 other) of 51 for combined state and average local sales tax, where 1 is the highest. Nearby, Michigan (6.00%) and Kentucky (6.00%) are lower. Illinois (8.98%) and Ohio (7.29%) are higher.
Do I pay Indiana sales tax on online orders?
Yes, in most cases. Larger online sellers and marketplaces collect Indiana sales tax based on the delivery address. If a seller doesn't, Indiana residents owe use tax at the same rate on taxable items, usually reported on the state income tax return.
What else should shoppers know about sales tax in Indiana?
Indiana's 7% sales tax is among the highest state rates, but there are no local sales taxes and groceries are exempt.
Rates are averages for planning — not tax advice. Source: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (rates as of July 1, 2026). Local rates vary by address and can change during the year; the Indiana revenue department publishes the official rate for each location.