Sales Tax Calculator

Indiana Sales Tax
Calculator

Calculate Indiana sales tax instantly for any city. Enter any amount to see the exact tax and total.

State Rate
7.000%
$

About Indiana Sales Tax

State rate: 7.000%
No local or county sales tax
Combined rate in Indianapolis: 7.000%
State Rate
7.000%
Local Tax
No
UEZ Rate
3.5%
Rank
#11

Indiana Sales Tax Rates by City

Indiana maintains a uniform statewide sales tax rate of 7.000%. Unlike most states, there are no county or municipal sales taxes. However, Fort Wayne and Evansville have Urban Enterprise Zones with reduced rates.

Indianapolis

Marion County

7.000%
Standard Rate
874,037

Fort Wayne

Allen County

7.000%
Special District
273,736

Evansville

Vanderburgh County

7.000%
Special District
113,971

Fishers

Hamilton County

7.000%
Standard Rate
107,169

Carmel

Hamilton County

7.000%
Standard Rate
103,890

South Bend

St. Joseph County

7.000%
Standard Rate
103,435

Bloomington

Monroe County

7.000%
Special District
78,682

Noblesville

Hamilton County

7.000%
Standard Rate
76,425

Hammond

Lake County

7.000%
Standard Rate
75,146

Lafayette

Tippecanoe County

7.000%
Special District
71,529

Note: All Indiana cities charge 7.000%, except UEZ-certified businesses in Fort Wayne and Evansville which charge 3.5%.

How to Calculate Sales Tax in Indiana

Sales Tax Calculation
Indiana
Example: Television Purchase
1
Determine the purchase price
Purchase price (before tax) $500.00
2
Multiply by the tax rate
$500.00 × 7.000% (0.07)
Sales tax $35.00
3
Add to the original price
$500.00 + $35.00
TOTAL AMOUNT DUE $535.00
Thank you for your purchase

Reverse Calculation

Know the total? Divide by 1.07 to find the pre-tax price. Example: $107.00 ÷ 1.07 = $100.00

What's Taxed?

Taxable: Clothing, electronics, furniture, retail goods
Exempt: Groceries, prescription drugs

Special Indiana Sales Tax Rules

Urban Enterprise Zones (UEZ)

Indiana has designated Urban Enterprise Zones in Fort Wayne and Evansville where qualified businesses charge half the standard sales tax rate (3.5% instead of 7.000%).

Important: Not all businesses in UEZ cities qualify. Only UEZ-certified retailers can charge the reduced rate, and certification requires meeting specific criteria and maintaining good standing.

Cities with UEZ: Fort Wayne and Evansville have designated areas where qualified businesses offer the 3.5% reduced rate.

How UEZ Works

The Urban Enterprise Zone program encourages economic development in designated areas by allowing certified businesses to collect sales tax at 3.5% instead of the full 7%. This makes purchases more affordable and attracts customers to these areas.

Tax-Exempt Items

Indiana exempts several categories from sales tax

  • Food & Groceries: Unprepared food items for home consumption (prepared foods, candy, and soft drinks are taxable)
  • Prescription Drugs: Medications prescribed by licensed healthcare providers and medical supplies
  • Manufacturing Equipment: Machinery and equipment used directly in production processes
  • Agricultural Supplies: Items used in agricultural production
  • ×
    Clothing is NOT exempt: Unlike some states, Indiana taxes clothing at the full 7% rate

How Indiana Compares to Neighboring States

Here's how Indiana's sales tax stacks up against nearby states

IN
7.000%

Indiana's 7.000% rate is among the highest in the region, but its uniform statewide rate makes it simpler than neighbors with local taxes.

Got Questions?

Frequently Asked Questions

Indiana Sales Tax Rate History

Indiana's sales tax has been 7.000% since April 1, 2008. Here's how the rate has evolved since its adoption:

Effective Date Rate Change Notes
April 1, 2008 7.00% ▲ +1.00% Increased to offset property tax reform revenue losses
2002-2008 6.00% ▲ +1.00% Rate was 6%
1983-2002 5.00% Rate was 5% for nearly 20 years
1963 2.00% Retail sales tax first enacted

Historical note: Indiana enacted its retail sales tax in 1963, starting at 2%. A 1962 constitutional amendment legalized the state sales tax. The early revenue was used largely to fund the creation of Indiana's modern state highway system. The rate has steadily increased over time, with the most recent increase in 2008 tied to statewide property tax reform that shifted funding burdens.

Related Calculators & Resources

Disclaimer: This calculator provides estimates based on current Indiana sales tax rates as of January 2025. Tax rates are subject to change by state legislation. For official tax rates and specific guidance on your situation, please consult the Indiana Department of Revenue or a qualified tax professional.

Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.

Sources: Indiana Department of Revenue, Indiana Code Title 6, Article 2.5 (State Gross Retail and Use Taxes), Urban Enterprise Zone Program

Last updated: October 10, 2025