Indiana Nexus

A Guide for Businesses Selling in the Hoosier State
(Updated for 2024)

Are you an out-of-state business selling products or services to Indiana? Wondering if you need to collect sales tax?

This comprehensive guide explores Indiana nexus, helping you determine your tax obligations and ensuring smooth sailing in the Hoosier State.

Indiana’s Nexus Standards

Indiana follows an economic nexus standard, meaning physical presence isn’t the sole factor.
Here’s what triggers nexus in Indiana (as of July 18, 2024):

Economic Threshold
Out-of-state sellers exceeding $100,000 in gross revenue from Indiana sales in the preceding calendar year must register, collect, and remit Indiana sales tax. This applies to sales of tangible personal property delivered into Indiana, digital products transferred electronically, and taxable services delivered in the state.

Gone in 2024 – Transaction Threshold
Important note: Indiana’s previous nexus trigger based on the number of transactions within the state has been eliminated as of January 1, 2024. Now, only the $100,000 gross revenue threshold matters.

Beyond the Threshold- Additional Nexus Triggers

Even if your sales fall below the threshold, other activities can establish Indiana nexus:

  • Physical Presence: Having a retail store, warehouse, office, or any place of business in Indiana.
  • Sales Representatives: Employing salespeople or representatives who regularly solicit sales or conduct business within the state.
  • Inventory Storage: Storing inventory in Indiana for fulfillment purposes.
  • Delivery Methods: Delivering goods directly to Indiana customers using company-owned or leased vehicles.
  • Installation or Service: Assembling, installing, servicing, or repairing products in Indiana.

Staying Compliant

If you meet the economic nexus threshold or engage in any of the activities mentioned above, you’ll need to:

  • Register: Apply for a Indiana Registered Retail Merchant’s Certificate with the Indiana Department of Revenue (IDOR)
  • Collect Sales Tax:** Charge the appropriate sales tax rate on taxable sales delivered into Indiana.
  • File and Remit Sales Tax:** File Indiana sales tax returns and remit the collected tax to the IDOR.

Understanding Indiana nexus is crucial for businesses selling in the state. We can help you with thresholds, additional triggers, and compliance requirements. We’ll ensure your business operates smoothly and adheres to Indiana’s sales tax regulations.

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