Indiana Sales Tax Nexus Rules for E-Commerce Sellers (2026)

Indiana sales tax nexus guide

TL;DR: Indiana requires economic nexus registration once your sales to Indiana customers reach $100,000 in the current or previous calendar year. The state uses OR logic (either threshold triggers nexus) and excludes marketplace facilitator sales from the calculation, meaning you only count direct-to-consumer and direct-to-business sales toward your threshold.

Key Facts at a Glance

Detail	Info
Revenue Threshold	$100,000
Transaction Threshold	N/A (removed March 29, 2024)
Threshold Logic	OR — Either the current or previous calendar year triggers nexus
Measurement Period	Calendar year (January 1 – December 31)
Marketplace Sales Count?	No — marketplace facilitator sales are excluded
Registration Deadline	Register immediately upon exceeding the threshold

What Is Economic Nexus in Indiana?

Economic nexus fundamentally changed how e-commerce sellers approach state tax compliance. Instead of requiring a physical presence in a state—like a store, warehouse, or employee—Indiana now bases sales tax obligations on your sales volume alone.

Before 2018, the Supreme Court's Quill Corp. v. North Dakota decision protected online retailers from collecting sales tax in states where they had no physical location. This changed dramatically with South Dakota v. Wayfair, which empowered states to impose sales tax collection obligations based purely on economic activity.

Indiana seized this opportunity and implemented economic nexus rules that apply to remote sellers and marketplace facilitators. For e-commerce businesses selling to Hoosier customers, understanding these rules is critical for compliance and avoiding penalties.

Here's the core principle: Your sales volume to Indiana customers—not your physical location—determines whether you must collect and remit sales tax. This applies regardless of whether you have:

A physical retail store in Indiana
Employees or contractors in Indiana
A warehouse, fulfillment center, or distribution hub in Indiana
Any brick-and-mortar presence whatsoever

If your sales activity in Indiana exceeds Indiana's specific thresholds, you're considered to have economic nexus and must comply with all state sales tax requirements.

Indiana's Nexus Thresholds (2026)

Indiana uses a straightforward threshold system to determine economic nexus. Understanding these thresholds is essential for tracking your compliance obligations accurately.

Revenue Threshold: $100,000

The primary threshold in Indiana is $100,000 in gross revenue from sales to Indiana customers. Once you reach or exceed this amount, you have economic nexus and must register for a sales tax permit.

Important: This threshold applies to sales made in both the current calendar year AND the previous calendar year. Indiana uses OR logic, meaning if you hit $100,000 in either year, you trigger nexus obligations.

What This Means in Practice:

If you accumulated $95,000 in Indiana sales during 2025 and reach $5,000 in sales by January 31, 2026, you now have nexus for 2026
If you hit exactly $100,000 at any point during 2026, you owe nexus for 2026
If you surpassed $100,000 during 2025, you owed nexus for 2025
The threshold is cumulative—it's your total revenue for the calendar year, not a monthly or quarterly calculation

Transaction Threshold: Removed

Indiana previously enforced a 200-transaction threshold as an alternative way to trigger nexus. However, this transaction threshold was eliminated on March 29, 2024. This is significant because it simplifies your compliance burden considerably.

You no longer need to count individual transactions. Only the $100,000 revenue threshold matters now.

Threshold Measurement Period: Calendar Year

Indiana measures these thresholds on a calendar year basis (January 1 through December 31). The state looks at both the current calendar year and the previous calendar year to determine if you've exceeded the threshold.

Examples of When Nexus IS Triggered:

You sold $102,000 to Indiana customers in 2026: You have nexus for 2026
You sold $95,000 in 2025 and $10,000 in early 2026: You have nexus for 2026 (because 2025 exceeded $100,000 in the previous year)
You sold $50,000 in 2025 and $51,000 in 2026: You have nexus for 2026 (because you exceeded $100,000 in the current year)

Examples of When Nexus IS NOT Triggered:

You sold $75,000 to Indiana customers in 2026 and had no sales in 2025: No nexus (under threshold in both years)
You sold $60,000 in 2025 and $30,000 in 2026: No nexus (under $100,000 in both years)
You're planning to sell $85,000 in 2026: No nexus yet (but monitor carefully as you approach $100,000)

How Indiana Calculates Nexus

Understanding exactly what counts toward your $100,000 threshold is essential for accurate tracking. Indiana's calculation method is relatively straightforward, but knowing what to include and exclude prevents costly mistakes.

What Counts Toward the $100,000 Threshold

Your gross revenue calculation should include:

All taxable tangible personal property sales to Indiana customers
Digital goods and services (when taxable under Indiana law)
Sales you make directly to consumers on your own website or storefront
Business-to-business sales to Indiana customers
Sales from the current calendar year (2026)
Sales from the previous calendar year (2025)
Full selling price, not your profit margin or cost

For example, if you sold a product for $500 and your profit margin was 40%, you count the full $500 toward your threshold, not just your $200 profit.

What Does NOT Count Toward the Threshold

Certain transactions should be excluded from your calculation:

Marketplace facilitator sales (sales made through Amazon, eBay, Shopify marketplace, etc.) are excluded from Indiana's threshold
Sales tax collected separately from customers doesn't count toward revenue
Shipping charges (unless Indiana specifically classifies them as taxable)
Returns and refunds reduce your total—subtract these from your gross revenue
Non-taxable sales (if you sell both taxable and non-taxable products, only count the taxable portion)

Calculating Your Cumulative Revenue

To determine if you've exceeded the threshold, you'll need to maintain accurate sales records throughout the year. Here's the process:

Identify all sales to Indiana customers by zip code, address, or customer location information
Sum the gross selling price of all taxable transactions
Exclude marketplace sales if applicable
Subtract returns and refunds to get your net revenue
Compare to the $100,000 threshold to determine your nexus status

Many e-commerce sellers use accounting software, sales platforms, or tax software to automate this calculation. This reduces manual errors and provides audit-ready documentation.

Do Marketplace Sales Count in Indiana?

This is where Indiana's rules diverge from some other states and create a critical compliance distinction for multi-channel sellers.

Marketplace Facilitator Sales Are Excluded

Indiana has implemented a unique rule: marketplace facilitator sales are excluded from nexus threshold calculations. This means sales you make through major platforms don't count toward your $100,000 threshold.

Which sales are excluded:

Amazon marketplace sales
eBay marketplace sales
Shopify marketplace (if you're using their marketplace features)
Other third-party marketplace platforms where the platform acts as a "marketplace facilitator"

Why this matters: Many e-commerce sellers use multiple sales channels. If you sell 80% of your inventory through Amazon and 20% through your own website, the marketplace exclusion could mean you never trigger Indiana's nexus threshold despite substantial Indiana sales.

Who Is Responsible When Sales Are Excluded

When marketplace sales are excluded from your threshold, the marketplace platform assumes the responsibility for sales tax collection. Here's how it works:

Major platforms like Amazon and eBay are registered as marketplace facilitators in Indiana
These platforms collect and remit sales tax on your behalf
You don't have an individual obligation to collect sales tax on these specific transactions
The platform reports the transactions to Indiana, so the state still receives tax revenue

Important caveat: Just because the platform handles sales tax doesn't mean you're off the hook completely. You should verify:

The platform is actually registered as a marketplace facilitator in Indiana
The platform is correctly classifying your products as taxable or non-taxable
The platform is charging the correct tax rate

Practical Example: Mixed Channel Selling

Let's say you sell through multiple channels in Indiana during 2026:

Scenario 1: Below Threshold

Direct website sales to Indiana: $75,000
Amazon marketplace sales to Indiana: $50,000
eBay marketplace sales to Indiana: $25,000
Total toward nexus threshold: $75,000 (only direct sales count)
Nexus Status: Not triggered (below $100,000)

In this scenario, you don't have to register for Indiana sales tax because your direct sales didn't exceed the threshold. Amazon and eBay handle the tax on their respective sales.

Scenario 2: At Threshold

Direct website sales to Indiana: $100,000
Amazon marketplace sales to Indiana: $50,000
eBay marketplace sales to Indiana: $25,000
Total toward nexus threshold: $100,000 (only direct sales count)
Nexus Status: Triggered (you must register)

In this scenario, despite your marketplace sales, your direct sales alone triggered the threshold. You must register for Indiana sales tax and collect it on all future direct sales (though the marketplace platforms continue handling their own transactions).

Scenario 3: Well Above Threshold

Direct website sales to Indiana: $120,000
Amazon marketplace sales to Indiana: $80,000
Shopify marketplace sales to Indiana: $40,000
Total toward nexus threshold: $120,000 (only direct sales count)
Nexus Status: Triggered (you must register)

Even with substantial marketplace sales, your direct channel triggered the threshold. You've had to register for Indiana sales tax on direct transactions.

Tracking Direct vs. Marketplace Sales

Accurately separating your direct sales from marketplace sales is critical. Use these methods to track correctly:

Use separate accounting codes for each sales channel in your accounting software
Tag transactions by platform when importing sales data
Review platform reports to confirm which sales are being handled by the marketplace facilitator
Maintain monthly records so you can quickly identify when you approach the threshold

What Happens When You Exceed the Threshold

Exceeding Indiana's nexus threshold triggers several immediate and ongoing obligations. Understanding these requirements ensures you stay compliant and avoid penalties.

Registration Requirement

Once you've hit or exceeded the $100,000 threshold, you must register for an Indiana sales tax permit immediately. There is no grace period, and delaying registration can result in penalties, interest charges, and back tax assessments.

Critical timing: Some sellers discover they've exceeded the threshold weeks or even months after it actually happened. Once you realize you should have registered, register immediately. The sooner you come into compliance, the better your position with the state.

Retroactive obligation: If you exceeded the threshold partway through the year but didn't register until months later, you may owe sales taxes on sales made between when you triggered the threshold and when you registered. This is why proactive tracking prevents costly surprises.

Collection Obligation

Upon registration, you become responsible for collecting sales tax on all applicable sales to Indiana customers. This applies to:

All direct sales on your own website or storefront
Sales made through your own sales channels
Sales to Indiana customers regardless of transaction size

State and local rates: Indiana has a statewide sales tax rate, but you must also account for local rates. Many Indiana counties and municipalities impose additional sales taxes on top of the state rate. Your tax obligation is the combined state + local rate for each customer's location.

Your e-commerce platform or point-of-sale system should be configured to automatically calculate and collect the correct rate based on customer zip codes or addresses.

Filing and Remittance Schedule

After registering, you'll be assigned a sales tax permit and added to Indiana's filing schedule. Your obligations include:

Sales tax returns filed on a regular schedule (frequency depends on your sales volume)
Timely remittance of collected sales taxes to the Indiana Department of Revenue
Detailed records documenting all Indiana sales, taxes collected, and exemptions claimed
Quarterly or annual adjustments if your circumstances change

Most e-commerce sellers file monthly or quarterly. The state will inform you of your specific filing frequency based on your sales volume and business type.

Penalties for Non-Compliance

Failing to register, collect, file, or remit sales taxes in Indiana can result in serious consequences:

Interest charges on any unpaid sales tax (accrues continuously)
Penalty assessments for late filing, late payment, or failure to register
Compounding liability that grows over time if left unaddressed
Legal action by the Indiana Department of Revenue
Account suspension or business license revocation in severe cases

The financial and operational impact of non-compliance far exceeds the burden of staying compliant from the start. It's far better to register voluntarily and maintain compliance than to face enforcement action later.

How to Register for Sales Tax in Indiana

Once you've determined that you have economic nexus in Indiana, registration is straightforward and can typically be completed online in minutes.

Step 1: Access the Indiana Online Registration System

Navigate to the Indiana Department of Revenue's Business Online Services (BOS) portal:

https://inbiz.in.gov/BOS/Home/Index

This system is Indiana's centralized platform for business registration, including sales tax permits.

Step 2: Create Your Account

Click "Register as a New Business" or similar option
Provide your email address and create a secure password
Confirm your email to activate your account

Step 3: Gather Required Information

Before you begin the registration form, have these documents and information ready:

Your Social Security Number (SSN) or Federal Employer Identification Number (EIN)
Your business name exactly as it appears on your official business documents
Your business address (this is where Indiana will send official correspondence)
Your expected monthly or annual sales volume to Indiana customers
Descriptions of the products or services you sell
Information about your business structure (sole proprietorship, LLC, S-Corp, C-Corp, etc.)
Your business start date
Whether you have any nexus in other states

Step 4: Complete the Registration Form

Fill out all required fields in the BOS system:

Business identification information
Contact information for the business owner/manager
Sales activity details
Product/service classifications
Banking information (for future tax payments, if required)

Indiana's form is designed to be user-friendly, with dropdown menus and clear instructions for most fields.

Step 5: Submit and Receive Confirmation

After submitting:

You'll receive a confirmation number
Indiana will review your application (usually within 1-3 business days)
You'll receive an email with your Indiana Sales Tax Permit Number
You can immediately begin collecting sales tax with this permit number

Step 6: Configure Your E-Commerce Platform

Once you have your permit number:

Update your website to collect sales tax on Indiana sales
Configure your e-commerce platform (Shopify, WooCommerce, etc.) to calculate and collect Indiana sales tax
Set up tax tables with correct state and local rates for Indiana counties
Test the tax calculation before going live to ensure accuracy

Getting Help with Registration

If you encounter issues during registration or have questions:

Contact the Indiana Department of Revenue through their website for support
Call their helpline for real-time assistance (hours listed on their website)
Consult a tax professional if you need guidance specific to your business
Use Indiana's online resources and FAQs for common registration questions

How NexusMonitor Helps Track Your Indiana Nexus Status

Tracking economic nexus obligations across multiple states—especially when each state has different thresholds, measurement periods, and unique rules—is complex and error-prone. This is where specialized nexus monitoring platforms become invaluable for e-commerce sellers.

Real-Time Sales Tracking and Threshold Alerts

NexusMonitor tracks your Indiana sales in real-time throughout the calendar year, automatically calculating your cumulative revenue toward the $100,000 threshold. The platform integrates with your major e-commerce platforms and accounting software to pull sales data continuously, eliminating manual data entry and calculation errors.

More importantly, NexusMonitor sends automated alerts as you approach your thresholds. If you're at $85,000 in Indiana sales in September, you'll receive a notification that you're approaching the $100,000 threshold. This gives you time to prepare for registration, update your e-commerce platform's tax settings, and plan your compliance strategy before you actually trigger the obligation.

Indiana-Specific Logic and Marketplace Exclusions

NexusMonitor understands Indiana's unique rules and automatically accounts for them. The platform knows that:

Indiana excludes marketplace facilitator sales from threshold calculations
Indiana uses OR logic (either current or previous year triggers nexus)
The threshold is measured on a calendar year basis
The transaction threshold was removed in March 2024

This means the platform only counts your direct sales toward the threshold, not sales made through Amazon, eBay, or other marketplaces where the platform acts as the marketplace facilitator. This accuracy prevents both false positives (registering when you shouldn't) and false negatives (missing a registration deadline).

Multi-State Tracking and Consolidated Dashboard

If you sell to customers in multiple states, tracking nexus obligations becomes exponentially more complex. Each state has different thresholds, measurement periods, and rules. NexusMonitor consolidates all of this into a single dashboard where you can see:

Your nexus status in all 50 states
Which states require registration based on your current sales
Your current position relative to each state's threshold
Upcoming registration deadlines
Compliance status for each jurisdiction

This multi-state view prevents the critical oversight of missing a registration deadline in one state while you're focused on another. For sellers with significant multi-state presence, this feature alone typically pays for the tool many times over through prevented penalties.

Frequently Asked Questions

What is the sales tax rate in Indiana?

Indiana's statewide sales tax rate is 7%. However, many Indiana counties and municipalities impose additional local sales taxes on top of the state rate. Your effective tax rate depends on the customer's location within Indiana.

For example, Marion County (which includes Indianapolis) may have a different combined rate than a rural county. When you register for sales tax, you'll receive guidance on the applicable rates for different regions. Your e-commerce platform should be configured to calculate the correct combined rate based on each customer's address.

Always verify the current rates with the Indiana Department of Revenue or through your tax software, as local rates can change.

Does Indiana use AND or OR logic for nexus thresholds?

Indiana uses OR logic. This means that if you exceed the $100,000 threshold in either the current calendar year OR the previous calendar year, you have economic nexus and must register.

This OR logic is important for sellers whose sales fluctuate. If you had a strong 2025 with $102,000 in Indiana sales and a slower 2026 with only $30,000 in sales, you still have nexus for 2026 because you exceeded the threshold in the previous year (2025).

When do I need to start collecting sales tax in Indiana?

You need to start collecting sales tax immediately upon exceeding the $100,000 threshold. There is no grace period, and retroactive obligations may apply.

If you exceed the threshold partway through the year but don't register until months later, you may owe back taxes on the sales made between when you triggered the threshold and when you registered. This is why proactive monitoring and immediate registration are critical.

Upon registration, you should configure your e-commerce platform to begin collecting sales tax on all Indiana sales going forward.

Do Amazon/marketplace sales count toward my Indiana nexus?

No. Amazon, eBay, and other marketplace facilitator sales are excluded from Indiana's $100,000 nexus threshold. Only your direct sales count.

If you sell $150,000 on Amazon and $40,000 direct to customers on your own website, only the $40,000 counts toward your threshold. You don't have nexus (assuming no other sales channels). However, if you sell $100,000 direct to customers and $150,000 on Amazon, the direct sales alone trigger your nexus obligation, and you must register.

The marketplace platforms handle sales tax collection and remittance for their transactions, so you're not responsible for those sales—at least not for the nexus threshold or initial collection. However, you should monitor the marketplace platform to ensure it's correctly classifying and taxing your products.

Can I deregister if my sales drop below the threshold?

This depends on Indiana's specific policies, which can change. Generally, once you register for sales tax in a state, you remain registered even if your sales drop below the threshold.

You typically cannot simply deregister because your sales fluctuate. However, if your sales remain consistently below the threshold for a full calendar year, you may be able to request deregistration or place your permit on inactive status.

Contact the Indiana Department of Revenue to inquire about deregistration procedures if your sales drop significantly. Attempting to deregister without authorization could cause compliance issues.

What if I don't know whether I've exceeded the threshold?

If you're uncertain about your sales to Indiana customers, do a comprehensive audit immediately. Review all your sales records from the current and previous calendar years and calculate your total revenue to Indiana customers (excluding marketplace sales).

If you're close to or above the $100,000 threshold and haven't registered, register right away. It's far better to register in good faith and come into compliance than to face penalties later if Indiana determines you should have registered months ago.

Are there any exemptions to Indiana's economic nexus requirement?

Economic nexus generally applies to all sellers making taxable sales to Indiana customers, regardless of business size or type. However, certain types of transactions may be exempt from sales tax (like certain services or items), even though they might count toward your economic nexus threshold.

For specific exemptions or questions about whether your particular products are taxable in Indiana, consult the Indiana Department of Revenue or a qualified tax professional.

Disclaimer: This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional, CPA, or the Indiana Department of Revenue regarding your specific sales tax obligations in Indiana. Sales tax laws are complex and change frequently; always verify current requirements with official state resources before taking action.