Indiana Sales Tax: the 7% Rate, the RRMC, the $25 Fee and Use Tax

That's the core. The parts people miss are the certificate's two-year renewal, the zero returns you still have to file, and the use tax you owe on things you didn't pay tax on. Everything here comes from the Indiana Department of Revenue's sales tax page and business FAQ, read in October 2026.

Indiana sales tax at a glance

Item	Indiana rule (as of October 2026)
Sales tax rate	7%
Use tax rate	7%
Registration fee for retail merchants	$25 per location, one time
Certificate	Registered Retail Merchant Certificate (RRMC), one per location
Certificate renewal	Every two years, automatic if your account is current
Late return penalty	Up to 20%, with a $5 minimum
Remote seller threshold	More than $100,000 of Indiana sales in the previous or current calendar year

How to register to collect Indiana sales tax

1. Register your business through INBiz, Indiana's business portal, and file the Business Tax Application.
2. Say on the application that you'll collect sales tax. Add withholding tax too if you'll have employees.
3. Pay the $25 registration fee for each retail location, as of October 2026.
4. Wait for your Registered Retail Merchant Certificate and display one at each business address.
5. File and pay returns through INTIME, the Department's online portal.

The Department's own example is a computer shop owner who sells parts and does repairs. She doesn't collect tax on the repair labour, but she does on the parts she sells, so she files the Business Tax Application and opens once her certificate arrives.

The certificate is not a vendor's licence

Here's a point the Department spells out because so many people mix them up. The RRMC is not the same as a vendor's licence. If your county needs a vendor's licence, that comes from your county clerk's office, not the Department of Revenue.

Renewal and what makes it stop

The RRMC must be renewed every two years. If your filings and payments are current, the renewed certificate is sent automatically. If you have missing returns or a balance due, the certificate is held, and if you leave liabilities unpaid without a payment plan it can be revoked. Once you clear the debt or set up a plan and file what's missing, it's reinstated and issued again after seven days.

Filing frequency and zero returns

• Your filing frequency is based on your average monthly liability through the tax year, and you're told about changes before the next year starts.
• You can choose to file more often, but you can't choose to file less often.
• If your average monthly tax is more than $5,000, you must pay by Electronic Funds Transfer, as of October 2026.
• If you're registered, you file a return even for a period with no sales. That's the $0 return.

Skipping a $0 return is the most expensive small mistake on this page. Late returns carry a penalty of up to 20% with a $5 minimum, and missing returns are one of the things that block your certificate renewal.

Use tax: the bill that arrives later

Use tax is the mirror of sales tax. If you buy something for use in Indiana and the seller didn't charge at least 7%, you owe the difference. The Department's examples are clear: a dentist who buys toothbrushes from an unregistered out-of-state supplier to give to patients owes 7% use tax on them. A manufacturer whose furniture was taxed at 6% in another state owes the extra 1% when it brings the furniture into Indiana.

The insight most owners miss is the cost of waiting. If you report use tax yourself, you pay only the tax. If you wait for the Department to bill you, you also pay a 10% penalty plus interest. Registered sellers report it on their next sales tax return, and others can use Form ST-115.

Buying without paying tax

If you buy stock to resell or qualify for another exemption, give the seller Form ST-105, the general exemption certificate. If you paid tax you didn't owe, you claim a refund with Form GA-110L. For a wider view of how exemption paperwork works, see my guide to the resale certificate.

Cash or accrual reporting

Most small sellers report sales tax on a cash basis. You can use the accrual method without asking the Department first, but only if you also use accrual for your adjusted gross income tax. You're allowed to use cash for sales tax and accrual for income tax, and the Department can tell you to stop using accrual at any time.

Consolidated filers and good standing letters

If you consolidate the sales tax filings for several locations, you also file an annual RP-11 return, which is due Jan. 31 and can only be filed online. If you ever need a Letter of Good Standing, allow 20 to 30 business days, and make sure every return is on file and every balance is paid first, because the Department won't approve it otherwise.

Extra registrations you might need

• Selling food and drink
• Renting rooms for less than 30 days
• Renting vehicles under 11,000 lbs
• Selling gasoline, tyres, fireworks or prepaid wireless cards
• Running a platform that sells goods, rooms or prepared food for others

My verdict

Indiana is one of the simplest sales tax states to run: one 7% rate, one certificate per site and a portal for everything. The traps are admin, not maths. File every $0 return, keep the account clean so the certificate renews itself, and self-report use tax before the Department finds it. If you also hire in Indiana, check Indiana's minimum wage rules.

Frequently asked questions

What is the sales tax rate in Indiana?

Indiana's sales tax is 7%, and the use tax rate is also 7%, as of October 2026.

How much does it cost to register for Indiana sales tax?

Retail merchants pay a one-time $25 registration fee per location, as of October 2026.

Is the RRMC the same as a vendor's license?

No. The Department of Revenue issues the RRMC. A vendor's licence comes from your county clerk's office.

Do you have to file an Indiana sales tax return with no sales?

Yes. If you're registered you must still file a $0 return. Late returns can carry a penalty of up to 20%, with a $5 minimum.

When do out-of-state sellers register in Indiana?

When their gross revenue from sales into Indiana is more than $100,000 in the previous or current calendar year.