Indiana sales tax at a glance
Indiana's typical combined rate of 7% ranks 25th highest among the 50 states. Indiana has one statewide 7% rate with no local sales taxes.
What sales tax adds at the register
At the average combined rate of 7%:
| Price | Sales tax | Total |
|---|---|---|
| $25 | $1.75 | $26.75 |
| $100 | $7.00 | $107.00 |
| $500 | $35.00 | $535.00 |
| $2,000 | $140.00 | $2,140.00 |
Indiana vs. the national average and its neighbors
The average combined state-and-local sales tax across the 50 states is about 6.66%. Indiana's 7% is 0.34 points above that — on a $30,000 car, about $102 more than the national average buyer pays. Combined with a 2.95% flat income tax, that shapes how Indiana funds itself — see the Indiana paycheck calculator for the payroll side.
Border shopping is real: here's what the same purchases cost across state lines, at each state's average combined rate.
| State | Combined rate | Tax on $250 | Tax on $30,000 |
|---|---|---|---|
| Indiana | 7% | $17.50 | $2,100 |
| Michigan | 6% | $15.00 | $1,800 |
| Kentucky | 6% | $15.00 | $1,800 |
| Ohio | 7.29% | $18.23 | $2,187 |
| Illinois | 8.98% | $22.45 | $2,694 |
Vehicle purchases are usually taxed by the state where the car is registered, not where it's bought — so the car column shows the rate you'd owe as a resident, not a border-shopping opportunity.
Reading a Indiana receipt
A Indiana receipt typically shows tax as a single line at the combined rate, even though it all goes to the state. To check a receipt: multiply the taxable subtotal by 0.0700 (the 7% average) — if the tax line is meaningfully higher, you're in a locality above the average; if lower, some items were exempt (groceries and prescriptions are exempt or reduced in most states). The reverse mode on the calculator above recovers the pre-tax price from any total.
Frequently asked questions
+What is the sales tax in Indiana in 2026?
Indiana charges a single statewide rate of 7% with no local sales taxes, so every purchase in the state is taxed the same. Indiana has one statewide 7% rate with no local sales taxes.
+How do I calculate Indiana sales tax backwards from a total?
Divide the total by 1 plus the rate as a decimal. At 7%, a $107.00 total means a $100.00 price and $7.00 tax. Choose "Total after tax (reverse)" above to do it automatically.
+Do online orders charge Indiana sales tax?
Yes. Since the Wayfair decision, large online sellers must collect Indiana sales tax based on your delivery address — the same state rate you'd pay in a store.
+How much is sales tax on a $30,000 car in Indiana?
About $2,100 at the 7% average combined rate ($2,100 at the 7% state rate alone). Vehicle tax is generally assessed by your state of registration and collected when you title the car; some states cap or exempt private-party sales.
+How does Indiana's sales tax compare nationally?
Indiana's 7% average combined rate ranks 25th highest of the 50 states, versus a national average of about 6.66%.
+Is the rate the same everywhere in Indiana?
Yes — Indiana is one of the states with a uniform statewide rate and no local add-ons.
Rates as of July 1, 2026, from state revenue departments compiled by the Tax Foundation; local averages are population-weighted. Product exemptions (groceries, clothing, medicine) vary by state. Estimates only — see our terms.