Indiana Sales Tax Guide for SaaS and E-Commerce Businesses 2025
Indiana imposes a flat 7% statewide sales tax with no local add-ons. Tangible goods and many digital products are taxable. SaaS that is only accessed remotely is not taxable under Sales Tax Information Bulletin 8.
This guide explains how SaaS companies and e-commerce sellers are taxed in Indiana, including nexus rules, marketplace facilitator obligations, filing deadlines, and exemptions.
Last updated: October 2025
Quick Reference: Indiana Sales & Use Tax 2025
| Topic | Details |
|---|---|
| Statewide sales tax rate | 7% (Indiana DOR sales tax) |
| Local rates | None (state rate only) |
| Economic nexus threshold | $100,000 in sales into Indiana (Remote sellers) |
| Is SaaS taxable? | No. Remotely accessed software is not a retail transaction (Sales Tax Information Bulletin 8) |
| Filing due date | 20th or 30th of the month following the period, depending on filing status (Sales Tax Information Bulletin 70) |
| Registration portal | INTIME |
| Tax agency | Indiana Department of Revenue |
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SaaS & Digital Products in Indiana
Indiana taxes software and digital products based on delivery and rights transferred.
Key SaaS & software rules
- Not taxable: SaaS when the software is stored on the vendor’s server and only accessed remotely (Sales Tax Information Bulletin 8)
- Taxable: Prewritten software that is downloaded or provided on physical media
- Taxable: Many specified digital products when the purchaser gets permanent rights (Sales Tax Information Bulletin 93)
- Exempt: Custom software developed or substantially modified for one purchaser
- Bundled sales: If exempt SaaS is bundled with taxable items and charges are not separately stated, the taxable portion may apply
E-Commerce & Tangible Goods in Indiana
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Most tangible personal property is taxable unless exempt |
| SaaS (remote access only) | No | Not a retail transaction when only remotely accessed |
| Prewritten software | Yes | Taxable if downloaded or on media |
| Custom software | No | Exempt when built or substantially modified for one customer |
| Digital products | Yes | Specified digital products may be taxable when permanent rights are granted |
Indiana uses destination-based sourcing for retail transactions (see Sales Tax Information Bulletin 8).
Economic Nexus: Remote Seller Rules
Remote sellers must register and collect Indiana sales tax if, in the current or prior year, they have more than $100,000 in sales delivered into Indiana. Indiana removed the 200 transactions test effective January 1, 2024 (Remote sellers).
Marketplace Facilitator Rules
Marketplace facilitators must collect and remit Indiana sales tax when they exceed the same $100,000 threshold (Marketplace facilitators).
Filing & Due Dates
- File in INTIME
- Filing frequency: monthly, quarterly, or annually based on assignment
- Due date: 20th or 30th of the month following the period, depending on filing status (Sales Tax Information Bulletin 70)
- File zero returns if registered and no activity
Penalties & Compliance Notes
- Late filing and late payment can trigger penalties and interest
- Keep invoices, contracts, and exemption certificates
- Separate charges for exempt SaaS and taxable items to avoid taxing the whole bundle
FAQs: Indiana Sales Tax for SaaS & E-Commerce
Is SaaS taxable in Indiana?
No. SaaS that is only accessed remotely is not taxable (see Sales Tax Information Bulletin 8).
Is prewritten software taxable if downloaded?
Yes. Prewritten software is taxable when downloaded or delivered on media.
Are digital goods like e-books and music taxable?
Often yes when permanent rights are granted (see Sales Tax Information Bulletin 93).
What is the economic nexus threshold?
$100,000 in sales delivered into Indiana (Remote sellers).
Do marketplace facilitators have to collect?
Yes, if they meet the $100,000 threshold (Marketplace facilitators).
Does Indiana have local sales tax?
No. Indiana uses a single statewide rate of 7%.
Official Indiana Resources
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