Indiana doesn’t have sales tax reciprocity agreements with any other states. This means Indiana residents pay sales tax on purchases made in other states, and residents of other states pay sales tax on purchases made in Indiana. The amount you pay depends on the state’s sales tax rate where you make the purchase.
Understanding Indiana’s Sales Tax
Indiana’s state sales tax rate is 7%, but local governments can add additional taxes, resulting in higher rates in some cities and counties. Keep your receipts to track your purchases and verify the taxes applied. The Indiana Department of Revenue website provides a detailed breakdown of local rates. Businesses in Indiana are responsible for collecting and remitting sales taxes to the state.
Tips for Indiana Shoppers in Other States
Before making a significant purchase in another state, check that state’s sales tax rate. Many online retailers will automatically calculate and include sales tax at checkout based on your shipping address. Be aware that some states have different rules for online sales versus in-person purchases. If you are unsure of the tax implications, contact the retailer or the state’s revenue department for clarification.
