All Online Sales In Indiana Now Being Taxed

Effective October 1, nearly all online sales made by Hoosiers are subject to state sales tax.

(Indianapolis, Ind.) - It now costs Hoosiers more to shop online.

Enforcement of Indiana’s 2017 online sales tax law began Monday, October 1. The change will mean that online shoppers will pay the same seven percent sales tax as shoppers at traditional stores, even if they don’t have a physical location in the state.

Some website, such as Amazon, have long been charging the sales tax, while others are just starting to collect tax for the first time. 

The new sales tax rule will apply to businesses that make more than $100,000 in sales to customers in Indiana, or have more than 200 separate transactions in the state.

The law was challenged in 2017, but was dismissed following the U.S. Supreme Court’s ruling on online sales tax this past June. The ruling from the nation’s highest court allows states to collect sales taxes on every online sale, whether a seller is present in the state or not.

According to the DOR, remote sellers seeking to comply with the laws of multiple states, including Indiana, should register with the Streamlined Sales Tax Registration system at Remote sellers seeking to comply with only Indiana’s economic nexus law should register through the online portal, INBiz, at


Indiana Will Start Online Sales Tax Enforcement Oct. 1

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