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21 min read

Indiana 2023 Sales Tax Guide

Indiana 2023 Sales Tax Guide

Indiana Sales Tax in a Word

Hello, fellow adventurers!

Ready to pack your bags and embark on an exciting expedition into the heart of Indiana's sales tax landscape? Brilliant! We’re as excited as you are, and guess what? You don't need to be a seasoned tax expert to navigate these trails. Consider us your enthusiastic guides, here to make this journey not just less daunting but downright enjoyable!

Here at Accountingprose, we're more than just your financial navigators—we're your partners, your supporters, your cheerleaders. Like a trusty compass, we're steadfast in our commitment to your success, ready to assist you at every bend and turn, every uphill climb and downward slope. We’ve got your back, whether you’re a longtime Hoosier business or just getting started. Buckle up, folks! Let's demystify Indiana's sales tax together, making the process as simple, engaging, and downright fun as a Saturday cookout with friends. Onward to our adventure!

 

 

 


Indiana Sales Tax Contacts

Grab your notepads, fellow adventurers, because here's the vital information you need!

Indiana sales tax is managed by the Indiana Department of Revenue (DOR), a steadfast institution committed to serving taxpayers and ensuring that tax laws are implemented correctly.

Should you have any questions, need any guidance, or want to discuss anything regarding your sales tax, don't hesitate! The friendly folks at DOR are more than ready to assist you.

Here's how you can connect with them:

  • Phone: For general questions, you can call the DOR's customer service at (317) 232-2240. They are available Monday through Friday from 8 a.m. to 4:30 p.m. EST.

  • Mail: The DOR's mailing address is Indiana Department of Revenue, P.O. Box 6197, Indianapolis, IN 46206-6197.

  • Website: For online resources, tax forms, and further information, you can visit the DOR's website at www.in.gov/dor/.

Remember, we're all in this together! Whether you're navigating the DOR resources or turning to us for advice, support is always at hand. Your financial journey might be challenging, but with the right partners and a dash of positivity, it's an adventure worth embarking upon!

 

 

Do You Have Nexus in Indiana?

Next, we're diving into a fascinating topic that's pivotal to our tax exploration—nexus. Now, you might be thinking, "Nexus? Sounds like something from a sci-fi movie!" But fret not, intrepid explorers! In the world of sales tax, 'nexus' is far less alien than it sounds. In fact, it's a fundamental concept that helps determine if, and how, you're liable for sales tax in the Hoosier state.

So, let's unravel the mystery together, shall we? In the simplest terms, having 'nexus' in Indiana means that your business has a significant presence or connection within the state. This connection can be anything from a physical location, an employee, a warehouse, to even the presence of affiliate marketers. If your business has nexus in Indiana, then voilà! You're required to collect and remit Indiana sales tax.

But don't worry, we're here with you every step of the way, ready to dive deeper into the world of nexus, making it as engaging and approachable as a summer picnic in an Indiana cornfield. Ready for more? Let's blaze the trail together!

 

What Creates Sales Tax Nexus in Indiana?

We’ve delved into the realm of 'nexus,' unveiling its secret meaning. But now, we're all left wondering, "What exactly creates sales tax nexus in Indiana?" Let's stoke the campfire and shine some light on this topic.

Creating a sales tax nexus in Indiana is all about establishing that tangible connection we talked about earlier. Think of it like setting up a tent in the vast wilderness that is the Indiana business landscape. Once you've put down those pegs and raised your business flag, you've got yourself a nexus!

To be more specific, the state of Indiana considers a few key factors that can establish nexus. These include (but aren't limited to): having a physical location in the state (like an office or store), employing residents of Indiana, storing goods in a warehouse in the state, and, as of recent years, even making a certain amount of sales within Indiana can create what's known as 'economic nexus'.

Remember, fellow trailblazers, knowing whether you have sales tax nexus in Indiana is an essential first step in your financial journey. But no matter how challenging the terrain, we're here as your guides, ready to help you navigate every twist and turn. So, let's forge ahead and dig deeper into what these factors really mean for your business!

Just like in other states, establishing a physical nexus in Indiana is all about making a significant, tangible connection within the state's borders. It's like putting a stake in the ground and saying, "We're here, Indiana!" This could mean having an office, a store, or even a warehouse within the state.

But the plot thickens! In Indiana, you could also establish a physical nexus by having sales representatives or employees based in the state. Even the temporary physical presence of an employee or an independent contractor for purposes such as training, repairs, installations, or other business services could create a physical nexus.

In Indiana, the concept of 'economic nexus' came galloping onto the scene with the landmark Supreme Court decision in South Dakota v. Wayfair, Inc. (2018). The Hoosier State was one of the first to jump on the wagon, swiftly adopting the economic nexus provisions.

But what does it mean for you? Well, even if you don't have a physical presence in Indiana, you might still have to collect and remit sales tax if you've established an economic nexus. This can happen if your business has more than $100,000 in sales or 200 separate transactions in Indiana in a calendar year.

In the vast landscape of Indiana's sales tax laws, 'affiliate nexus' is a concept that connects your business to the state through your affiliates. Think of it like having a buddy—or an 'affiliate'—already set up camp in Indiana. Because of that relationship, you're considered to have a presence, or a 'nexus,' there too.

So, how does one establish an affiliate nexus in Indiana? The specifics can vary, but common scenarios include: having a sister company or subsidiary based in Indiana, or a relationship with a company that uses similar branding, trademarks, or contributes to the sale of the same goods or services. In some cases, even having a link on an Indiana-based website that drives sales to your business (a process known as 'click-through nexus') can establish an affiliate nexus.

In Indiana, click-through nexus can be established when you have a relationship with an affiliate in Indiana who refers potential customers to your business through a link on their website or some other digital platform. In other words, if you have an affiliate in the state who 'clicks' customers through to your business, hence the name, you've got yourself a nexus!

What's even more fascinating is how this type of nexus has evolved with the internet age. As businesses have expanded their digital footprints, so too have the laws and regulations that guide them. And even though this might seem like uncharted territory, it's all part of the thrilling journey towards financial understanding.

In the world of Indiana sales tax, a 'marketplace nexus' can be established when you sell your goods through a third-party marketplace facilitator—think popular online platforms like Amazon, eBay, or Etsy. If your business uses such platforms for sales in Indiana, the platform itself, rather than your business, may be deemed responsible for collecting and remitting the sales tax, thanks to the marketplace nexus rules.

The advent of these rules represents a significant development in the ever-evolving e-commerce space. It's like carving a new path through the sales tax wilderness, adapting the rules to fit the modern, digital world of business.

 

 

Indiana Sales Tax Registration

Now that we’ve navigated through the diverse landscapes of nexus, we've arrived at a critical milestone in our Indiana sales tax journey: "Indiana Sales Tax Registration." You may be thinking, "Wow, that sounds official and a bit daunting!" But hold your horses! With us by your side, we'll demystify this process and turn it into an engaging and straightforward part of your adventure!

In a nutshell, if your business has established a sales tax nexus in Indiana—be it physical, economic, affiliate, click-through, or marketplace—it's time to register for an Indiana sales tax permit. This is like getting your official explorer's badge, granting you the authorization to collect sales tax from your Indiana customers. But worry not! This process is designed to be as navigable as a well-trodden hiking path.

As your financial guides, we're thrilled to share this step-by-step journey with you, offering helpful insights and tips along the way. Remember, the spirit of our adventure lies in making the process feel more like a partnership and less like a formal business undertaking. So, let’s lace up those hiking boots and step confidently into the process of Indiana Sales Tax Registration, shall we? Onward, to our next exciting endeavor!

 

How to Register for Sales Tax in Indiana

Are you ready to chart a course towards your Indiana Sales Tax Registration? Perfect, because we're just as excited to guide you through this process. Don't forget, we're in this together, every step of the way!

Here's the step-by-step route to your Indiana sales tax registration:

  1. Plot Your Course: First things first, visit Indiana's online tax center, known as INTIME (Indiana Taxpayer Information Management Engine) at intime.dor.in.gov.

  2. Prepare Your Gear: Before you begin the registration process, gather all the necessary information. This includes your Federal Employer Identification Number (EIN), business entity details, personal information, NAICS code, and bank account details.

  3. Start the Journey: Click on "Register New Business" to begin the process.

  4. Fill Your Backpack: Follow the prompts and fill in all the required information. You’ll be asked details about your business entity, its ownership, the nature of your business, and more.

  5. Chart Your Path: You'll need to specify that you'll be collecting sales tax and provide information about when you expect to start making sales in Indiana.

  6. Reach the Summit: Review all the information you've entered. If everything looks good, submit the application. Congratulations, you’ve just submitted your application for an Indiana sales tax permit!

  7. Wait for the Badge: Once the Indiana Department of Revenue has reviewed your application, they'll mail you a Registered Retail Merchant's Certificate. This is your official badge that allows you to collect sales tax!

Remember, while the journey may seem daunting at first, with us as your energetic guides and the tools and resources at your disposal, you'll find the path to sales tax registration as enjoyable as an Indiana sunset. So, let’s embrace the spirit of adventure and partnership, making this financial journey an engaging and rewarding experience! Onwards, fellow trailblazers!

 

How Much Does it Cost to Register for aN Indiana Sales Tax License?

There is a $25 registration fee to apply for a sales tax permit in Indiana. If applying online, there is an additional $1 charge to cover the credit card fee.

To register for a sales tax permit in Indiana, you can do so online or by mail. To register online, you will need to create an account on the Indiana Department of Revenue website. Once you have created an account, you can complete the online application and pay the registration fee. To register by mail, you will need to download and complete the Sales Tax Registration Application form. You can find the form on the Indiana Department of Revenue website. Once you have completed the form, you will need to mail it to the Indiana Department of Revenue along with the $25 registration fee.

Once you have registered for a sales tax permit, you will be issued a Registered Retail Merchant Certificate (RRMC). You will need to display the RRMC at each of your business locations. The RRMC is valid for one year. You will need to renew your RRMC annually.

 

Do I Need a Federal Tax ID Number or EIN to Register for aN Indiana Sales Tax License?

We've reached an important junction in our sales tax registration journey where we need to address the role of a Federal Tax ID Number, also known as an Employer Identification Number (EIN).

So, you might be wondering, "Do I need an EIN to register for an Indiana Sales Tax License?" The answer is yes! An EIN is like your business's social security number—it's a unique identifier used by the IRS for tax purposes. It's crucial to have one because Indiana requires your EIN during the sales tax registration process.

If you don't have an EIN yet, don't fret! Applying for one is as easy as pie, and it's free! You can apply directly through the IRS website, and voilà, you'll have your EIN in no time.

Remember, this journey is all about making the complex world of sales tax an engaging and approachable adventure. And we're right here with you, ready to guide you through every twist and turn. So, let’s tackle these challenges together with the spirit of partnership, and continue our exciting trek through the financial wilderness! Onwards and upwards!

 

Which Agencies in Indiana Might I Need to Register With Additionally?

As we make our way through the business registration terrain in Indiana, we might encounter a few additional agencies that require your attention. Think of it as making new friends along our trail!

While registering for your Indiana Sales Tax License is a significant milestone, depending on your business type and the services or products you offer, you might need to connect with a few other state agencies. Let's shed some light on who these might be:

  1. Indiana Secretary of State: If you're starting a new business entity, such as an LLC or a Corporation, you'll likely need to register with the Indiana Secretary of State.

  2. Indiana Department of Workforce Development (DWD): Planning on having employees? If so, you'll need to register with DWD for unemployment insurance tax.

  3. Indiana Professional Licensing Agency: Depending on your line of business, you might need to obtain professional or occupational licenses.

  4. Indiana Alcoholic Beverage Commission: If your business involves selling or manufacturing alcoholic beverages, you'll need to hop on over here for an additional permit.

Remember, each of these agencies is like a checkpoint along your business journey, and registering with them ensures you're on the right path. And with us as your enthusiastic guides, every step of the way becomes an exciting part of our shared adventure. So, let's tackle this together, celebrating every milestone we achieve! Let's move onward and upward, ever ready for the next challenge!

 

Collecting Sales Tax in Indiana

We've registered for our Indiana Sales Tax License, we've met some additional state agencies, and now we're ready to embark on the next exciting leg of our journey: "Collecting Sales Tax in Indiana." This might sound like a challenging climb, but remember, we're in this together, turning the steep slopes into a scenic hike!

Collecting sales tax is essentially like being the state's trusted messenger. Once you're armed with your Indiana Sales Tax License, your business collects the sales tax from your customers at the point of sale, and then you pass it along to the state. It's important to note that the tax isn't an extra charge you're adding, but rather, it's part of the total payment from your customers that you're holding in trust for Indiana.

But how much should you collect, you ask? Great question! Indiana has a statewide sales tax rate of 7%, which means it's the same rate no matter where you are in the state. However, it's always wise to confirm the current rate with the Indiana Department of Revenue or a reliable sales tax tool.

 

Is Indiana an Origin or Destination Sales Tax State? 

As we trek through the landscape of Indiana's sales tax, we've reached a crossroad that needs our attention: is Indiana an origin-based or destination-based sales tax state? This might sound like a riddle from an ancient treasure map, but don't worry—we've got the answer right here!

Indiana, my friends, is a destination-based sales tax state. What does this mean for your journey? It means that the sales tax rate is determined by the location of the buyer, not the seller. So, if you're selling a product to a customer in Indiana, you should charge the sales tax rate applicable at the customer's address.

It's essential to remember this while collecting sales tax, as it ensures you're on the right track, following the route Indiana has set. Understanding this distinction is a key part of navigating the sales tax landscape successfully.

 

What Sales are Subject to Sales Tax in Indiana?

In Indiana, sales tax generally applies to the retail sale, lease, or rental of most tangible personal property and some services. Here's a quick rundown:

  1. Tangible Personal Property: If you're selling physical goods like furniture, appliances, or clothing, these sales are typically subject to sales tax in Indiana.

  2. Certain Services: Indiana also applies sales tax to certain services, such as utility services, hotels and accommodations, and certain professional services. It's important to check with the Indiana Department of Revenue or a trusted tax professional to know if your service is taxable.

  3. Prepared Food and Beverages: If you're in the food business, keep in mind that prepared food and beverages are generally taxable.

  4. Rentals and Leases: The rental or lease of tangible personal property, such as machinery or equipment, is usually taxable.

But remember, as with any great adventure, there are exceptions and special rules, so it's crucial to check the Indiana Department of Revenue's guidelines or seek professional advice to be certain of what applies to your business.

 

Is Software as a Service (SaaS) taxed in Indiana?

No, software as a service (SaaS) is not taxed in Indiana. Senate Bill 257, which was signed into law in March 2018, exempts remotely accessed, electronically delivered, pre-written computer software — also known as SaaS — from Indiana's 7% sales tax. This exemption applies to all SaaS transactions, regardless of whether the customer is a business or a consumer.

There are a few exceptions to this exemption. For example, SaaS that is used for gaming or gambling is not exempt. Additionally, SaaS that is used for the sale of tangible personal property is subject to sales tax. For example, if a SaaS provider sells a product through its platform, the sale of the product would be subject to sales tax.

If you are a business that sells SaaS, you should monitor the situation closely and consult with a tax advisor if you have any questions. 

 

What is Exempt from Indiana Sales Tax?

The following items are exempt from Indiana sales tax: 

  1. Prescription Drugs and Insulin: Prescriptions filled by a licensed pharmacist and insulin dispensed via a prescription are exempt from sales tax in Indiana.

  2. Certain Foods and Food Ingredients: Generally, unprepared food that a person might buy at a grocery store for preparation and consumption at home is exempt from sales tax. But remember, this doesn't apply to all food products.

  3. Certain Medical Equipment: Durable medical equipment, prosthetic devices, and mobility enhancing equipment prescribed by a practitioner are generally exempt.

  4. Manufacturing Equipment: Machinery, tools, or equipment directly used in the direct production of tangible personal property are typically exempt.

  5. Certain Agricultural Items: Feed for livestock or poultry, seeds, and fertilizers for use in direct agricultural production are often exempt.

  6. Newspapers and Magazines: Regularly scheduled newspapers and subscription magazines are generally not subject to sales tax.

While we've uncovered a few exemptions, keep in mind that there are more, and the rules can sometimes change. Always make sure to check with the Indiana Department of Revenue or a trusted tax professional to understand what applies to your business.

 

Who is Eligible for Indiana Sales Tax Exemptions?

In Indiana, sales tax exemptions are typically granted to certain types of buyers and for specific types of products or services. Let's delve into who might be eligible:

  1. Nonprofit Organizations: Charitable, religious, or educational organizations that have been granted exempt status by the state are usually eligible for sales tax exemptions on purchases related to their exempt function.

  2. Government Agencies: Local, state, and federal government entities are often exempt from paying sales tax on their purchases.

  3. Resale Businesses: If you're buying products with the intent to resell them, you're usually exempt from sales tax on those purchases. This is where your resale certificate comes into play.

  4. Manufacturers: Purchases of machinery, tools, or equipment directly used in direct production are often exempt from sales tax.

  5. Farmers and Agricultural Producers: If you're involved in agricultural production, you may be eligible for exemptions on items like livestock feed and certain types of farming equipment.

 

What Should I Do If My Customer is Exempt from Sales Tax in Indiana?

If you have a customer who is exempt from sales tax in Indiana—maybe they're a nonprofit, government agency, or another seller—you won't need to collect sales tax from them. But wait, there's an important step to remember before you can skip the sales tax: they need to provide you with a valid exemption certificate.

This certificate is like a golden ticket for your customer—it's their proof of exemption. As a seller, it's your job to keep this certificate on file. Why? Well, if the Indiana Department of Revenue ever wants to take a peek at your records, you'll need to show them why you didn't collect sales tax from that customer.

And there you have it, fellow trailblazers! We've tackled another part of our sales tax journey together. As we continue to traverse the exciting world of Indiana sales tax, remember, we're here to guide you every step of the way, making the complex feel approachable and engaging. Let's keep adventuring onward together!

 

What Happens If I Lose aN Indiana Sales Tax Exemption Certificate?

Don't worry, though! Every challenge is just another opportunity for us to navigate together, turning storms into clear skies!

First off, don't panic. Losing an exemption certificate can feel like losing your compass on a hike, but it's an issue we can handle. If you find yourself without the certificate, reach out to your customer who provided it. Explain the situation and ask them kindly to provide a new copy. Most customers will understand and be willing to assist, as maintaining their exempt status is beneficial to them as well.

If for any reason you can't obtain a new copy and the Indiana Department of Revenue audits your business, without the certificate, sales to that customer could be deemed taxable. The Department may require you to pay the sales tax you didn't collect, plus potential penalties and interest.

 

So, consider this another lesson on our shared journey—keep those exemption certificates safe, as if they were treasure maps leading to hidden gold! It's all part of the adventure, and we're here to ensure you feel supported and ready to tackle whatever comes your way. Now, let's continue our voyage, fellow adventurers! Onward and upward!

 

 

Filing and Paying Sales Taxes in Indiana

We've hiked some pretty exciting trails together—from understanding nexus and registering for a sales tax permit to discovering what's taxable and navigating the landscape of exemptions. Now, we're on to a truly thrilling part of our journey: "Filing and Paying Sales Taxes in Indiana." This part may feel like reaching the summit of a daunting mountain, but never fear! With us as your trusty guides, we'll turn it into an exhilarating climb!

Filing and paying your sales taxes is the final piece of the sales tax puzzle, a crucial step that ties all of your hard work together. Think of it as the final flourish on a masterpiece painting. You've been diligent in collecting sales tax from your Indiana customers, and now it's time to file your sales tax return and remit those funds to the state. This ensures that you're keeping the trust you've built with Indiana, and it marks a successful end to this part of your sales tax adventure.

But worry not! This process is more straightforward than you might think, and we're right here with you, ready to illuminate the path and instill a sense of confidence in every step. We're all set to explore this exciting part of the journey. So, grab your gear and let's dive right in— Onwards, Indiana trailblazers!

 

When to File and Pay Sales Tax in Indiana

In Indiana, the timing of filing and paying sales taxes depends on the frequency of your business activities. For most businesses, sales tax returns are due on a monthly basis, with the return and payment typically due on the last day of the following month. So, if you're collecting sales tax in June, for example, your return and payment for that period are usually due by the end of July. It's essential to mark these dates on your calendar and make them a priority.

However, if your sales tax liability is relatively low, the Indiana Department of Revenue may allow you to file and pay on a quarterly or annual basis. This means you'll have more time between each filing period, which can provide some breathing room.

If your average monthly sales tax liability is $1,000 or more, you must file your sales tax return monthly.

If your average monthly sales tax liability is less than $1,000, you may file your sales tax return quarterly.

If your average monthly sales tax liability is less than $1,000 and you have not filed any late returns or failed to pay any sales tax, you may file your sales tax return annually.

The Indiana Department of Revenue will determine your filing frequency based on your average monthly sales tax liability. If your average monthly sales tax liability changes, you will need to notify the Indiana Department of Revenue and they will adjust your filing frequency accordingly.

 

What If aN Indiana Sales Tax Filing Date Falls on a Weekend or Holiday?

In Indiana, if a sales tax filing due date falls on a weekend or a legal holiday recognized by the state, the due date is typically extended to the next business day. This extension allows you the opportunity to fulfill your filing and payment obligations without any undue pressure.

It's crucial to keep track of these exceptions and make note of any changes to the regular due dates. This way, you can stay ahead of the game and ensure you're always compliant with Indiana's sales tax laws. Mark your calendars accordingly and adjust your plans if necessary, so you can confidently meet your obligations when a weekend or holiday comes into play.

Remember, we're here to guide you through every twist and turn of your sales tax journey, ensuring you have the knowledge and confidence to tackle any obstacle. So, onward we go, ready to conquer the sales tax landscape, even when faced with a detour caused by weekends and holidays. Together, we'll navigate this adventure with ease!

 

How Do I File aN Indiana Sales Tax Return?

Now that we've reached the chapter on filing Indiana sales tax returns, it's time to equip ourselves with the knowledge of how to navigate this important process. Fear not, for we're here to be your trusty guides, leading you through each step of the way!

To file your Indiana sales tax return, follow these steps:

  1. Gather Your Data: Collect all the necessary sales and sales tax information for the filing period. This includes the total sales you made and the amount of sales tax you collected.

  2. Access INTIME: Head over to INTIME, the Indiana Taxpayer Information Management Engine, at intime.dor.in.gov. This is the online portal where you'll file your sales tax return.

  3. Login or Create an Account: If you're a new user, create an account by providing the required information. If you already have an account, simply log in using your credentials.

  4. Navigate to Sales Tax Filing: Once logged in, find the section for sales tax filing or sales tax returns. It may be under the "Manage Tax Types" or a similar menu.

  5. Enter Your Sales and Tax Data: Follow the prompts to enter your sales and sales tax information for the filing period. Double-check all the data for accuracy.

  6. Submit Your Return: After completing the necessary information, review everything once more. If everything looks good, submit your sales tax return electronically through the INTIME portal.

  7. Make Payment: If you owe sales tax for the filing period, make the payment electronically through INTIME using the available payment options.

Remember, filing your sales tax return accurately and on time is essential for staying compliant with Indiana's tax regulations. Keep in mind that the filing frequency (monthly or quarterly) may affect how often you file. Always consult the Indiana Department of Revenue or a trusted tax professional for specific instructions and to stay up to date with any changes.

You're now equipped with the knowledge to conquer the filing process with confidence. Let's forge ahead on this financial expedition, making each step an engaging and successful part of our journey! Onwards, fellow adventurers! Also, no matter where you are in your tax journey, remember, we're here to support you!

 

Late Filing Penalty

A late filing penalty is assessed if a taxpayer fails to file a sales tax return by the due date. The penalty is 5% of the unpaid tax, up to a maximum of $250.

 

Failure to file Penalty

 A failure to pay penalty is assessed if a taxpayer fails to pay the full amount of sales tax due by the due date. The penalty is 10% of the unpaid tax, up to a maximum of $500.

 

Interest

Interest is assessed on unpaid sales tax from the due date until the tax is paid in full. The interest rate is currently 5%.

 

Indiana Sales Tax Discounts

Yes, Indiana offers a few incentives for filing or paying sales tax on time. These incentives include:

  • Late payment penalty waiver: If you file your sales tax return within 60 days of the due date, and pay the full amount due, you may be eligible to have the late payment penalty waived.

  • Early payment discount: If you pay your sales tax return in full by the due date, you may be eligible for a 2% early payment discount.

  • Payment plan: If you are unable to pay your sales tax in full by the due date, you may be able to set up a payment plan with the Indiana Department of Revenue.

To learn more about these incentives, or to apply for a payment plan, you can contact the Indiana Department of Revenue at 1-800-792-1090.

 

Indiana Sales Tax Holidays

No, Indiana does not have a sales tax holiday. However, some neighboring states do, such as Ohio, Kentucky, and Illinois. During a sales tax holiday, certain items are exempt from sales tax. This can be a great opportunity to save money on back-to-school supplies, clothing, or other items.

Here are the sales tax holidays for neighboring states of Indiana:

  • Ohio: Ohio has a sales tax holiday on the first weekend of August each year. This year, the holiday will be August 5-7, 2023. During this holiday, clothing and school supplies costing less than $20 are exempt from sales tax.

  • Kentucky: Kentucky has a sales tax holiday on the first weekend of September each year. This year, the holiday will be September 2-4, 2023. During this holiday, clothing and school supplies costing less than $60 are exempt from sales tax.

  • Illinois: Illinois has a sales tax holiday on the first weekend of November each year. This year, the holiday will be November 4-5, 2023. During this holiday, energy-efficient appliances, computers, and children's car seats are exempt from sales tax.

 

5 Tips to Avoid Common Mistakes When Filing Indiana Sales Tax Returns

Here are 5 tips to help you steer clear of common mistakes when filing Indiana sales tax returns:

  1. Maintain Accurate Records: Keeping detailed and organized records is crucial. Ensure that your sales and sales tax data is accurate, complete, and up to date. Double-check all figures before filing to avoid errors that could lead to penalties or audits.

  2. Know the Filing Frequency: Be aware of your assigned filing frequency—whether it's monthly or quarterly—and stay on top of the deadlines. Set reminders and mark important dates on your calendar to ensure timely filing. Remember, being punctual is key to maintaining compliance.

  3. Use Technology to Your Advantage: Leverage technology and utilize accounting software or sales tax automation tools to streamline your sales tax processes. These tools can help you calculate accurate sales tax amounts, track sales data, and simplify the filing process.

  4. Review State Guidelines: Familiarize yourself with Indiana's sales tax laws, rules, and guidelines. The Indiana Department of Revenue provides helpful resources on their website. Staying informed about any updates or changes can prevent mistakes caused by outdated information.

  5. Seek Professional Assistance: When in doubt, don't hesitate to consult with a tax professional or accountant who specializes in sales tax. They can provide expert guidance, ensure compliance, and help you navigate complex tax matters. Their knowledge and expertise can be invaluable in avoiding costly errors.

 

By following these tips, you'll be well-prepared to file your Indiana sales tax returns accurately and avoid common pitfalls along the way. Remember, we're here as your enthusiastic guides, supporting you throughout your financial journey. Together, let's navigate the sales tax landscape with confidence and success! And remember, we're right here with you, every step of the way!

 

 


 

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Have sales tax in more than one state?

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Alaska Sales Tax Guide (N/A)

Idaho Sales Tax Guide

Michigan Sales Tax Guide

New York Sales Tax Guide

Tennessee Sales Tax Guide

Arizona Sales Tax Guide

Illinois Sales Tax Guide

Minnesota Sales Tax Guide

North Carolina Sales Tax Guide

Texas Sales Tax Guide

Arkansas Sales Tax Guide

Indiana Sales Tax Guide

Mississippi Sales Tax Guide

North Dakota Sales Tax Guide

Utah Sales Tax Guide

California Sales Tax Guide

Iowa Sales Tax Guide

Missouri Sales Tax Guide

Ohio Sales Tax Guide

Vermont Sales Tax Guide

Colorado Sales Tax Guide

Kansas Sales Tax Guide

Montana Sales Tax Guide (NA)

Oklahoma Sales Tax Guide

Virginia Sales Tax Guide

Connecticut Sales Tax Guide

Kentucky Sales Tax Guide

Nebraska Sales Tax Guide

Oregon Sales Tax Guide (N/A)

Washington Sales Tax Guide

Delaware Sales Tax Guide (N/A)

Louisiana Sales Tax Guide

Nevada Sales Tax Guide

Pennsylvania Sales Tax Guide

West Virginia Sales Tax Guide

Florida Sales Tax Guide

Maine Sales Tax Guide

New Hampshire Sales Tax Guide (NA)

Rhode Island Sales Tax Guide

Wisconsin Sales Tax Guide

Georgia Sales Tax Guide

Maryland Sales Tax Guide

New Jersey Sales Tax Guide

South Carolina Sales Tax Guide

Wyoming Sales Tax Guide

 

And don't forget to check out our blog about Economic Nexus, which serves as an invaluable resource for businesses who have sales that are subject to sales tax. 

 

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This blog is for informational purposes only and the information is accurate as of 2023-06-19. If you want legal advice on sales tax law for your business, please contact a State and Local Tax (SALT) professional. Keep in mind that sales tax regulations and laws are subject to change at any time. While we strive to keep our blog current, this blog possibly may be out of date by the time you review it.

North 2023 Dakota Sales Tax Guide

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North 2023 Dakota Sales Tax Guide

North Dakota Sales Tax in a Word Embarking on the journey of running a small business in North Dakota is an exciting adventure filled with...

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South Carolina 2023 Sales Tax Guide

27 min read

South Carolina 2023 Sales Tax Guide

South Carolina Sales Tax in a Word Welcome, fellow adventurers! Are you ready to navigate the exciting waters of South Carolina sales tax? I...

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West Virginia 2023 Sales Tax Guide

26 min read

West Virginia 2023 Sales Tax Guide

West Virginia Sales Tax in a Word Welcome to the wild and wonderful world of West Virginia sales tax! Like navigating the state's...

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