Indiana sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 7% |
| Local rates | None: one rate statewide |
| Average combined rate | 7.00% |
| Groceries | ExemptFood and food ingredients are exempt. Candy, soft drinks, dietary supplements and prepared food are taxable. |
| Prescription drugs | ExemptPrescription drugs are exempt from Indiana sales tax. |
| Clothing | TaxedClothing is taxed at 7%. Indiana has no sales tax holiday. |
Official rates: Indiana Department of Revenue: Sales tax.
Worked examples
A $1,000 laptop anywhere in Indiana (7%)
| Rate | 7% |
|---|---|
| Price before tax | $1,000.00 |
| Sales tax | $70.00 |
| Total | $1,070.00 |
Working: $1,000.00 × 7% = $70.00. With no local sales taxes, the tax is the same in every town. The only variation is on restaurant food, which can carry a food and beverage tax.
Working back from a $53.50 receipt at 7%
| Rate | 7% |
|---|---|
| Price before tax | $50.00 |
| Sales tax | $3.50 |
| Total | $53.50 |
Working back: $53.50 ÷ 1.07 = $50.00, so the tax was $3.50. Divide by 1.07 to find the price before tax. For a restaurant bill in Indianapolis, the 2% food and beverage tax makes the divisor 1.09 instead.
One rate statewide
Indiana is one of a small group of states with a single statewide sales tax rate and no county or city sales taxes. Every taxable purchase delivered in Indiana is taxed at 7%, whether you buy in a store or online. Counties raise local revenue mainly through local income taxes, which come out of paychecks, rather than through sales tax. That makes checkout totals easy to predict: 7% of the taxable price, rounded to the cent.
Food and beverage taxes on meals
Many Indiana counties and cities levy a food and beverage tax on prepared food and drinks sold by restaurants and similar sellers, usually 1%, or 2% in Marion County (Indianapolis) and a few other places. Where a county and a city both levy one, they can stack to 2%. This tax applies on top of the 7% sales tax, so a restaurant meal in Indianapolis is taxed at 9%. Groceries bought to cook at home are exempt from both.
Indiana vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Indiana | 7% | 7.00% | Exempt |
| Illinois | 6.25% | 8.98% | No state tax; local 1% may apply |
| Michigan | 6% | 6.00% | Exempt |
| Ohio | 5.75% | 7.29% | Exempt |
| Kentucky | 6% | 6.00% | Exempt |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.