Indiana: Sales Tax Handbook
How to file your sales taxes in Indiana
Once your business has an Indiana sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Indiana government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Indiana
Indiana is an easy state in which to collect sales tax. Indiana has a statewide rate of 7%, so despite where you live, you just collect 7% for tax in Indiana.
Sales Tax Collection Discounts In Indiana
Indiana allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Indiana sales tax regulations
The collection discount is 0.73% of the total annual sales tax collected, and if the complete amount is less than sixty thousand dollars; 0.53% if the cp=omplete ammount is between sixty thousand and six hundred thousand; and 0.26% if the complete ammount is greater than six hundred thousand.
Your Indiana Sales Tax Filing Requirements
If you have to file a sales tax return in Indiana, you have two choices for how to file. You can file by mail using Form ST-103. You can locate, download, and print Form ST-103 at http://www.in.gov/dor/files/st-103inst.pdf. If you prefer to file online to expedite the process, you can do so at the Indiana Department of Revenue's website located at https://www.intax.in.gov/login. Keep in mind, in order to file online, you must first register and create an account.
If your business did not generate any money during the tax period, you are still obligated to file a return. This is called a Zero Return, and you can file it the same way you would if your business had generated funds.
Penalties will accrue for any business that fails to pay taxes or for a business that commits fraud. The penalties are calculated using a complex formula that encompasses factors relating to interest rates and investment yields on the state general fund. The penalty information can be found in Section IC 6-8.1-10-1 of the Indiana Tax Code.
Payments for monthly taxes are due on the 20th day of the month following the close of sales. For example, January's receipts must be calculated and paid by February 20th.
If you file quarterly, your payment schedule is as follows:
* Quarter 1 (Jan.-Mar.) due Apr. 20
* Quarter 2 (Apr.-Jun.) due Jul. 20
* Quarter 3 (Jul.-Sept.) due Oct. 20
* Quarter 4 (Oct.-Dec.) due Jan. 20
Annual taxes are due on the 31st of January if you file only once per year.
Indiana also offers discounts for those who pay their taxes early. The discount schedule is based on how much money is earned annually.
* Less than $60,000 earns a .083% discount
* Between $60,000 and $600,000 earns a 0.6% discount
* Over $600,000 earns a 0.3% discount
Your Indiana Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period (1) for monthly filers if average monthly sales and use tax liability in preceding year exceeded $1,000, or if filing combined sales/withholding tax return and withholding tax return is due by 20th; (2) 30th of the month following reporting period if average monthly sales and use liability in preceding year did not exceed $1,000. Annual filers will file on the last day of the month following reporting period. For a list of this year's actual due dates, see our calendar of Indiana sales tax filing due dates.
Where To File Your Indiana Sales Tax Return:
Filing Your Indiana Sales Tax Returns Online
Indiana supports electronic filing of sales tax returns, which is often much faster than filing via mail.All retail merchants who registered for a sales tax permit in 2010 or later are required to filetheir sales tax returns online.
Indiana allows businesses to make sales tax payments electronically via the internet.Electronic payments are required if taxpayer's estimated monthly tax liability for present tax year or the average monthly tax liability for the prior year is greater than ten thousand dollars. Starting on January first, 2010, the department might require any individual who is paying their outstanding tax by using periodic payments to make the payments using their electronic funds transferred using an automatic withdrawal from the individual's account at any sort of financial institution.
You can process your required sales tax filings and payments online using the official INTax website, which can be found here . You should have received credentials to access your INTax account when you applied for your Indiana sales tax license.
Simplify Indiana sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
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