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Indiana Reverse Sales Tax Calculator.

Pre-loaded with the 2026 Indiana base state sales tax rate of 7%. Adjust sliders below for local county and city taxes.

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+0.00%
5.0%
Pre-Tax Base Price
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Tax / VAT Extracted
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Calculated backwards in real-time

Understanding Sales Tax in Indiana

Indiana has a statewide sales tax rate of 7% with no local add-ons permitted. Like Connecticut, Indiana has uniform sales tax across the entire state — every county, city, and municipality applies the same 7% rate. This simplicity makes Indiana one of the most straightforward states for sales tax compliance.

The 7% rate applies uniformly to all taxable sales in the state, from Indianapolis to Fort Wayne to Evansville. There are no transit district taxes, no county surtaxes, and no city sales taxes layered on top of the state rate. What you see is what you pay.

Indiana exempts several significant categories from its sales tax. Food for home consumption (unprepared groceries) is exempt from Indiana's sales tax. Prescription drugs and most over-the-counter medicines are exempt. Agricultural inputs — seed, fertilizer, chemicals, livestock feed — are exempt as are farm machinery and equipment. Manufacturing equipment used directly in the production process is also exempt.

Indiana's Department of Revenue oversees sales tax administration. The state requires businesses to file monthly returns if their quarterly liability exceeds $1,000, quarterly if it's between $100 and $1,000, and annually if it's under $100 per quarter. Indiana offers a 0.5% discount for timely payment on the first $25 million of taxable sales.

Indiana's economic nexus threshold for remote sellers is $100,000 in annual Indiana sales or 200 separate transactions. Indiana actively works with marketplace facilitators like Amazon and Etsy, which are required to collect and remit Indiana sales tax on behalf of their sellers.

How to Calculate Reverse Sales Tax in Indiana

To find the pre-tax price from a total that includes the Indiana sales tax:

Pre-Tax Price = Total Paid ÷ (1 + Combined Rate ÷ 100)

Example at 7% state rate: If you paid $107.00, divide by 1.0700 = $100.00 pre-tax, with $7.00 tax.

Frequently Asked Questions — Indiana Sales Tax

What is Indiana's sales tax rate?
Indiana's sales tax rate is 7% statewide with no local add-ons. Every location in Indiana has the same 7% combined rate.
Does Indiana have local sales taxes?
No. Indiana prohibits local governments from levying their own sales taxes. The 7% state rate is the only sales tax in Indiana.
Are groceries taxed in Indiana?
No. Food for home consumption (unprepared groceries) is exempt from Indiana's 7% sales tax. Restaurant meals and prepared food are taxable.
What is the sales tax in Indianapolis?
Indianapolis has the same 7% rate as the rest of Indiana. There are no additional city or Marion County sales taxes.

Want to learn more about sales tax?

Read our sales tax guides and articles