Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Indiana, sales tax is governed by the Indiana Department of Revenue and is known as the Indiana Sales Tax. It is a tax imposed on the sale of most goods and some services within the state. As of my knowledge cutoff date in 2023, the state sales tax rate in Indiana is 7%. This is a statewide flat rate, and there are no additional local sales taxes imposed on top of the state rate, which makes Indiana's sales tax structure relatively simple compared to states with local sales tax variations. The sales tax applies to the retail sale, lease, and rental of most goods, as well as taxable services. Certain items may be exempt from sales tax, such as groceries, prescription medications, and medical devices. Businesses selling goods or services in Indiana are generally required to register with the Indiana Department of Revenue, collect the appropriate sales tax from customers, and remit it to the state.