Indiana Sales Tax Nexus

If your business sells into Indiana, you may be required to register and collect Indiana sales tax, even if you do not have an office there. Indiana has rules for both physical presence and economic nexus. Indiana also has marketplace facilitator rules, which can change who is responsible for collecting the tax on marketplace sales.

This page gives you a practical overview of when Indiana expects you to register, what counts toward the threshold, and how marketplace sales are treated.

What Creates Sales Tax Nexus in Indiana

Indiana sales tax nexus usually comes from one of two categories: physical nexus or economic nexus. If either applies, you may have a registration and collection obligation.

1) Physical Nexus in Indiana

You typically create physical nexus in Indiana if your business has a real, in-state footprint. Common examples include:

• An office, store, or other business location in Indiana
• Employees, contractors, or sales reps working in Indiana
• Inventory stored in Indiana (including inventory stored in a third-party warehouse or fulfillment center)
• A warehouse, showroom, or other place where you store or distribute product
• Deliveries using your own vehicles into Indiana, depending on the facts

Physical nexus can be triggered quickly, even with low sales volume, because it is based on presence, not a sales threshold.

2) Economic Nexus for Remote Sellers

Even without physical presence, Indiana can require you to register if your sales into the state are high enough.

In general, you must register and collect Indiana sales tax if your gross revenue from sales delivered into Indiana exceeds $100,000 during the current calendar year or the previous calendar year.

A few practical notes:

• The threshold is based on gross revenue, not profit.
• It is typically based on sales into Indiana, even if some of those sales are exempt.
• The way you count sales can get tricky if you sell both direct and through marketplaces, so it helps to separate those buckets.

Marketplace Facilitators and Marketplace Sellers

If you sell through marketplaces (Amazon, Etsy, Walmart, eBay, etc.)

Indiana has “marketplace facilitator” rules. In plain English, this usually means:

• The marketplace is responsible for collecting and remitting Indiana sales tax on sales it facilitates, as long as it is required to collect under Indiana law.
• If you only sell into Indiana through a marketplace that is collecting, you often do not have to register in Indiana just because of those marketplace sales.

Do marketplace sales count toward the $100,000 threshold for the seller?

In many cases, when the marketplace is the one collecting the tax, the seller generally does not count those marketplace-facilitated sales toward the seller’s own remote seller threshold. That said, if you also make direct sales into Indiana (through your own website, invoices, phone orders, or other channels), those direct sales can still create nexus.

When might a marketplace seller still need an Indiana sales tax registration?

You may still need to register if you have something else that creates nexus, such as:

• Physical presence in Indiana (inventory, employees, location, etc.)
• Direct sales into Indiana that push you over the threshold
• A business model where the marketplace is not collecting for some reason (less common, but it happens)

How to Register and Stay Compliant

Once you determine you have nexus, the basic flow usually looks like this:

1. Register for an Indiana Registered Retail Merchant’s Certificate (Indiana sales tax permit).
2. Begin collecting Indiana sales tax on taxable sales shipped or delivered to Indiana customers.
3. File returns and remit tax based on the filing frequency assigned to you by the state.

If you sell in multiple states or have a lot of SKUs, it can also help to confirm taxability and sourcing rules, since that is where mistakes often happen.

Indiana Income Tax Nexus (High-Level)

Separate from sales tax, Indiana can also assert corporate income tax filing obligations based on business activity and “economic presence” in the state. This is a different analysis than sales tax nexus.

Income tax nexus depends on your facts, your type of entity, what you sell, and whether any federal protections apply. If income tax filing exposure matters for your situation, it is worth reviewing separately rather than assuming it matches your sales tax nexus result.

FAQ

Does Indiana have economic nexus for sales tax?

Yes. Indiana can require out-of-state sellers to register and collect sales tax when they exceed the economic nexus threshold, even if they have no physical presence.

What is Indiana’s economic nexus threshold?

In general, it is more than $100,000 in gross revenue from sales into Indiana measured in the current calendar year or the previous calendar year.

Does Indiana still have a 200-transaction threshold?

No. Indiana removed the old transaction-count threshold. The key trigger is the $100,000 gross revenue threshold.

If I only sell on Amazon (or another marketplace), do I need an Indiana sales tax permit?

Often, no, if the marketplace is collecting and remitting Indiana sales tax on your behalf and you have no other nexus. But if you have physical presence in Indiana or you make direct sales into Indiana, you may still need to register.

Do marketplace sales count toward my $100,000 threshold as the seller?

Often they do not when the marketplace facilitator is collecting the tax, but you should track marketplace sales separately from direct sales so you can see where your real exposure is.

What if I have inventory in an Indiana warehouse or fulfillment center?

That can create physical nexus right away, even if your Indiana sales are below $100,000.

When do I need to start collecting Indiana sales tax?

Once you have nexus and are registered, you should begin collecting on taxable Indiana sales. Many businesses treat the “start date” as the next taxable sale after they cross the threshold or establish physical presence.

I’m not sure if my sales are taxable or exempt. Does that matter for the threshold?

It can. Threshold rules often look at gross revenue into the state, and your product taxability affects how much you should actually be collecting. If your catalog includes exempt items, digital products, SaaS, or services, it is smart to confirm the tax treatment.