Sales Tax for Indiana (2026)
Indiana (IN) Key Facts
State Sales Tax Rate
7%
Has State Sales Tax
Yes
Local Taxes May Apply
Yes
Tax Type
Sales and use tax
How This Calculator Works in Indiana
This calculator estimates the Indiana sales tax on your purchase amount using the state rate of 7%. Enter your purchase price to see the tax amount and total cost.
Indiana Overview
Indiana imposes a flat 7% state sales tax with no local additions — the second-highest flat state rate in the nation. The simplicity means the rate is identical everywhere in the state. Groceries, prescription drugs, and over-the-counter medications are exempt, but there are no sales tax holidays.
How Indiana Compares
Indiana's sales tax rate of 7% compares to Illinois at 6.25% and Ohio at 5.75%. Combined with local rates, the effective sales tax burden varies by location.
| State | Top Rate | Notes |
|---|---|---|
| Illinois | 6.25% | Illinois has a sales tax rate of 6.25%. |
| Ohio | 5.75% | Ohio has a sales tax rate of 5.75%. |
| Michigan | 6% | Michigan has a sales tax rate of 6%. |
Indiana's sales tax rate of 7% compares to a national average of approximately 5.10%. This is above the national average.
Tips for Indiana Residents
- 1Indiana's 7% state sales tax rate is the second-highest flat state rate in the country, and there are no local add-ons — 7% is what you pay everywhere.
- 2Groceries are exempt from Indiana's sales tax, but prepared food, candy, and soft drinks are taxable.
- 3Indiana does not hold any sales tax holidays.
- 4Prescription and non-prescription drugs are both exempt from Indiana sales tax — a broader medical exemption than most states.
- 5Indiana's 7% rate applies to most services related to tangible personal property, including repair and maintenance services.