Starting a business in Indiana comes with exciting opportunities. But before you make your first sale, there’s a key legal step you need to take: registering for an Indiana sales tax permit.

This permit allows you to legally collect sales tax from customers and stay in good standing with the Indiana Department of Revenue (DOR). Whether you’re a new entrepreneur, expanding into Indiana, or launching an online shop, this 2025 guide will show you exactly how to register, who needs to apply, and what to expect along the way.

Key Takeaways:

  • Who Needs to Register: Any business with a physical presence in Indiana, or remote sellers exceeding $100,000 in annual Indiana sales, must register. Event vendors and providers of taxable services are also required to register.
  • Registration Process is Online via INBiz: Indiana businesses must register for a Retail Merchant Certificate (RMC) through the INBiz portal. 
  • Timely Filing & Zero Returns are Mandatory: After registration, businesses must file regular sales tax returns, even if no sales occur (zero returns).
  • Remote Sellers & Marketplace Sellers Must Comply with Nexus Rules: Remote sellers surpassing Indiana’s economic nexus threshold must register. Marketplace facilitators (e.g., Amazon) collect tax for you, but businesses are still responsible for compliance and proper registration.

What is a Sales Tax Permit in Indiana?

If your business sells goods or tangible personal property in Indiana, you’re required to complete the sales tax registration in Indiana to collect 7% sales tax. This registration is essential for legally conducting retail sales and results in the issuance of a Registered Retail Merchant Certificate (RRMC). If your business operates at multiple retail locations, you must display an RRMC at each site.

Once registered, your RRMC is automatically renewed as long as your business has no unpaid tax liabilities or missing tax returns. If you have an outstanding balance but enter into a payment plan and make the required down payment, your RRMC will still be eligible for automatic renewal.

However, if your business fails to resolve tax liabilities or does not set up a payment plan, your RRMC may be revoked. It can be reinstated once all liabilities are cleared or a payment plan is in place. After resolution, your RRMC will be reissued within seven days.

It’s also important to note:

  • If you’ve previously registered to file withholding, sales, Food And Beverages (FAB), County Innkeeper’s Tax (CIT), or other trust taxes in Indiana, you are still required to file zero-dollar ($0) returns even during periods with no tax revenue or business activity.
  • Failing to maintain compliance after obtaining your sales tax permit in the state of Indiana can result in penalties of up to 20%, with a minimum penalty of $5 for late-filed returns. 

Do You Need to Register for a Sales Tax Permit in Indiana?

A sales tax registration in Indiana is mandatory for various business models. Here’s a checklist to help determine if you need to register:

  • In-State Sellers: Businesses with a physical presence in Indiana, such as a storefront, warehouse, or office, are required to register and collect sales tax.
  • Remote Sellers: Out-of-state businesses without a physical presence must register for a remote seller sales tax registration in Indiana if their gross revenue from sales exceeds $100,000 in the current or previous calendar year.
  • Event Vendors and Seasonal Sellers: Individuals or businesses selling at fairs, flea markets, or seasonal events in Indiana are required to register for a sales tax permit.
  • Service Providers: Businesses offering taxable services, such as certain digital products or utilities, must register to collect sales tax.

Step-by-Step: How to Get a Sales Tax Permit in Indiana?

If you’re wondering how to get a sales tax permit in Indiana, it’s important to follow each step carefully to avoid delays or errors. Whether you’re an in-state retailer or a remote seller meeting Indiana’s economic sales tax nexus threshold, here’s a step-by-step guide to registering with the Indiana Department of Revenue:

Step 1: Determine If You Need to Register

Before anything else, confirm that your business activities require a sales tax permit. This includes both physical nexus (e.g., storefront, warehouse) and economic nexus (over $100,000 in Indiana sales annually).

Step 2: Gather Required Information

Prepare the following details before beginning your application:

  • Legal business name and structure (sole proprietorship, LLC, corporation, etc.)
  • Federal Employer Identification Number (FEIN)
  • Social Security Number (SSN) for sole proprietors
  • Business address and contact information
  • North American Industry Classification System (NAICS) business activity code
  • Projected monthly taxable sales in Indiana
  • Bank account information (for fee payment)

Step 3: Visit the INBiz Portal

Go to Indiana’s official business registration site: INBiz. This portal is used to register new businesses and apply for sales tax and other state tax accounts.

Step 4: Create an Account or Log In

If you’re a new user, you’ll need to create an INBiz account. Returning users can log in with existing credentials.

Step 5: Start a New Business Tax Application

Choose the option to register a retail merchant certificate, which acts as your Indiana sales tax permit. This certificate allows you to collect the amount and complete the sales tax remittance.

Step 6: Complete the Online Application

Fill out the application carefully, providing all required business and tax-related details. Be sure to select the appropriate tax types (sales tax, use tax, etc.) based on your business model.

Step 7: Pay the Registration Fee

Indiana charges a one-time $26 registration fee for a sales tax permit. This fee is paid during the online application process using a bank account or credit/debit card.

Step 8: Receive Your Sales Tax Permit

Once your application is submitted and approved, you’ll receive your Indiana Retail Merchant Certificate, typically by email and mail. You’re now legally authorized to collect and remit Indiana sales tax.

What Information Do You Need to Register?

Before you begin the application for your Indiana sales tax permit, make the process smoother by gathering all the necessary details in advance. Having this information ready before you start will save you time and help you avoid delays or errors in your registration.

Here’s what you’ll need:

Business Information

  • Legal business name
  • Business structure (e.g., sole proprietorship, LLC, partnership, corporation)
  • “Doing business as” (DBA) name, if applicable
  • Business start date in Indiana
  • Physical business address and mailing address
  • Phone number and email contact

Federal Identification Numbers

  • Employer Identification Number (EIN) from the Internal Revenue Service (IRS)
  • SSN (required for sole proprietors without an EIN)

Responsible Party Details

  • Name and contact info of the business owner or principal officer
  • SSN of the responsible party
  • Driver’s license or state ID number (sometimes required for identity verification)

Tax & Business Details

  • NAICS code that best describes your business activities – Find your code here
  • Estimated monthly gross sales in Indiana
  • Types of products or services you’ll be selling
  • Whether you’ll be making wholesale, retail, or both types of sales

Bank & Payment Information

  • Bank account number and routing number (for fee payment)
  • Credit or debit card (if preferred for paying the registration fee)

How Much Does It Cost to Register for a Sales Tax?

Registering for the state of Indiana sales tax permit comes with a one-time, non-refundable fee of $26. This fee is paid when you apply through the INBiz portal and covers your Retail Merchant Certificate, which authorizes you to collect and remit sales tax in Indiana.

Once you’ve registered, there are no annual renewal fees or recurring maintenance costs for your Indiana sales tax permit. As long as you continue to collect sales tax and file your returns properly, your permit remains active.

Just make sure to file your required sales tax returns on time through Indiana’s INTIME system to keep your permit in good standing.

How Long Does it Take to Get Approved?

When you apply for a sales tax permit in the state of Indiana, the processing time can vary based on the completeness of your application and the DOR’s current workload.

While specific processing times are not explicitly stated on the DOR’s website, it’s advisable to allow up to 10 business days for your application to be reviewed and approved. During peak periods, such as the start of the fiscal year or tax season, processing times may be longer.

Important Tip: The DOR will send confirmation and approval notices to the email address provided in your application. To ensure you don’t miss any critical communications, regularly check your inbox and spam or junk folders for messages.

If you haven’t received any communication within the expected timeframe, consider reaching out to the DOR for assistance.

Common Mistakes to Avoid When Registering

Applying for a sales tax permit in the state of Indiana is a crucial step in staying compliant, but simple oversights can delay your approval or lead to penalties down the road. Here are some of the most common mistakes businesses make during the registration process, and how to avoid them:

  • Submitting Incomplete or Incorrect Information: Make sure all your business details are entered accurately. Mistakes here can delay processing or result in a rejected application. Double-check all entries before submitting your application.
  • Using the Wrong NAICS Code: The NAICS code identifies your business type. Selecting the wrong one may affect your tax responsibilities. 
  • Skipping the Responsible Party Section: Every business must list a “responsible party,” typically the owner or a principal officer. Failing to include or correctly identify this person can invalidate your submission. Be sure to provide their full legal name, SSN, and contact info.
  • Ignoring Economic Nexus Rules: Remote sellers sometimes assume they don’t need to register. However, if you exceed Indiana’s sales tax threshold, registration is required. 
  • Forgetting to Save Login Details: Once registered, you’ll manage filings via the INTIME portal. Losing access to your login credentials can delay reporting and payments. Save your username and password in a secure place.

What Happens After You Register?

Once your application for a sales tax permit is approved, there are a few key steps and ongoing responsibilities to keep in mind to ensure your business stays compliant with state tax laws. Here’s what to expect:

Account Setup and Access

After your registration is approved, you will receive your Retail Merchant Certificate via email. You will also need to set up an account on Indiana’s INTIME portal. This portal is where you’ll manage your tax account, file returns, and make payments.

Filing Frequency

Your filing frequency is determined by your average monthly tax liability over the course of the tax year. If the amount of tax you owe increases or decreases significantly, your filing status may be adjusted accordingly. 

You’ll receive a notification of any changes before the start of the next tax year. Additionally, if your average monthly tax liability exceeds $5,000, you must submit payments using Electronic Funds Transfer (EFT).

Collecting and Remitting Sales Tax

Once registered, your main ongoing responsibility is to collect sales tax on taxable goods or services sold in Indiana. Here’s how to stay compliant:

  • Collecting Sales Tax: Add the appropriate Indiana state sales tax rate to your sales prices. Remember, the state base rate is 7%, but certain counties may have additional local taxes.
  • Remitting Sales Tax: You’ll need to remit the collected sales tax to the state according to your filing schedule. This is done through the INTIME portal.

Filing Zero Returns

Even if your business doesn’t have sales tax to report during a given period, you must still file a zero return. This shows the state that you are still in business and maintaining your tax obligations.

  • Zero Return: If you have no taxable sales during a reporting period, go into the INTIME portal and file a zero return. This is necessary to maintain your active status and avoid penalties.

Stay On Top of Deadlines

The DOR will send reminders for your tax filing deadlines, but it’s essential to stay proactive. Set reminders in your calendar for filing and payment dates to avoid any late fees or interest charges.

Special Considerations for Out-of-State or Remote Sellers

If you’re an ecommerce business or remote seller operating outside Indiana, you must pay close attention to out-of-state sales tax rules in Indiana to ensure compliance.

Remote Seller Sales Tax Registration in Indiana

Indiana requires remote sellers (businesses that sell goods or services into Indiana but don’t have a physical presence in the state) to register for a sales tax permit if they meet certain sales thresholds. Specifically, if you:

  • Have more than $100,000 in annual sales into Indiana, or
  • Make 200 or more separate transactions with customers in Indiana annually

Marketplace Facilitator Laws

If you sell on platforms like Amazon, Etsy, or eBay, you must know that Indiana follows marketplace facilitator laws, which means that the platform itself is responsible for collecting and remitting sales tax on your behalf for sales made through their platform.

However, this doesn’t fully relieve you of your sales tax responsibilities:

  • Marketplace Facilitator Tax Collection: If your sales are made through a marketplace facilitator, the platform will collect and remit the tax.
  • Direct Sales Outside Marketplaces: If you sell on your own website or other non-marketplace channels, you must still collect and remit Indiana sales tax if you meet the economic nexus threshold.

Tracking Your Sales: Know Your Thresholds

While Indiana’s economic nexus threshold is $100,000 in sales, many other states have varying requirements. The number of sales or dollar amount can differ, and the best way to stay compliant is to track your sales across all states and determine when you hit those nexus thresholds.

Resources & Where to Register

Getting your Indiana sales tax permit is easier when you have the right resources at your fingertips. Here’s where to go for all the essential forms, guides, and support.

Simplify Sales Tax Compliance with Commenda

Handling Indiana sales tax registration and compliance doesn’t have to be complicated. With Commenda, remote sellers, online businesses, and marketplaces can get compliant fast; no guesswork, no red tape.

Here’s How Commenda Makes It Easy:

  • Automated Sales Tax Registration: Skip the hassle of manually filling out forms. Commenda automates the entire registration process, helping you quickly obtain your Indiana sales tax permit without the paperwork headache.
  • Ongoing Filing Support: Stay compliant year-round with Commenda’s automated filing features. Whether you need to file monthly, quarterly, or annually, Commenda ensures your filings are done on time.
  • Multi-State Compliance: Managing taxes in multiple states? No problem. Commenda handles multi-state compliance, so if you’re a remote seller or marketplace facilitator operating across state lines, Commenda keeps everything streamlined and in order.

Let Commenda, a global sales tax platform, take the complexity out of Indiana sales tax registration and ongoing compliance, so you can get back to what you do best! Book a free demo today to learn more.