Indiana imposes a flat 7% state sales tax that applies uniformly across all 92 counties and every city in the state. What makes Indiana distinctive among US states is that counties and municipalities have no authority to levy an additional local general sales tax — the combined rate you pay in Indianapolis is identical to the rate in Fort Wayne, Bloomington, Evansville, or any rural township. This calculator uses the real 7% state rate as a locked preset and works in both directions: Add mode (pre-tax price to total) and Remove mode (tax-inclusive total back to pre-tax price).
How it works
The calculator runs two formulas entirely in your browser — no data is ever sent to a server.
Add mode — you enter a pre-tax price and the tool applies the state rate:
Total tax = Pre-tax price x 0.07 Total = Pre-tax price + Total tax
Remove (reverse) mode — you enter a tax-inclusive total and the tool extracts the pre-tax component:
Pre-tax = Total / 1.07 Tax already included = Total - Pre-tax
Because Indiana has no local sales tax, the combined rate always equals the state rate of 7%. The local rate field defaults to 0% and can be left as-is for any standard Indiana purchase. If you need to model a special situation — such as a future legislative change or an unusual district rate — you can override it manually.
Indiana sales tax explained
The Indiana sales tax is administered by the Indiana Department of Revenue (IDOR) under Indiana Code Title 6, Article 2.5. Key facts for 2025:
- State rate: 7.0% — flat and uniform statewide
- Local rate: 0% — Indiana law does not permit county or city general sales taxes
- Combined rate: 7.0% everywhere in the state
- Food exemption: unprepared groceries are exempt (IC 6-2.5-5-20)
- Drug exemption: prescription drugs and most OTC medicines for humans are exempt
- Manufacturing exemption: equipment directly used in production is exempt
Indiana’s 7% rate was established in 2002 when the legislature raised it from 5% as part of a broader property-tax restructuring. It has remained at 7% ever since, making it one of the longer-standing flat rates in the country. Compared with states that layer city and county taxes on top — Illinois averages a combined 8.86%, Arizona averages 8.37% — Indiana’s single-rate approach makes compliance straightforward for both businesses and consumers.
Worked example
A customer buys a laptop for $899 at a retailer in Indianapolis:
- State sales tax: $899 x 0.07 = $62.93
- Local tax: $0.00 (no local sales tax in Indiana)
- Total tax: $62.93
- Total paid: $961.93
Now reverse it: the receipt shows $961.93 and you need to confirm the pre-tax price for an expense report:
$961.93 / 1.07 = $899.00 pre-tax
| Item | Pre-tax price | Indiana tax (7%) | Total |
|---|---|---|---|
| Clothing | $75.00 | $5.25 | $80.25 |
| Electronics | $500.00 | $35.00 | $535.00 |
| Restaurant meal | $45.00 | $3.15 | $48.15 |
| Prescription drug | $30.00 | $0.00 (exempt) | $30.00 |
| Groceries (unprepared) | $120.00 | $0.00 (exempt) | $120.00 |
Every figure in this calculator is computed in your browser. Nothing is uploaded or stored.
Note: unprepared food and prescription drugs are exempt from Indiana sales tax. This calculator covers standard taxable retail transactions. For a full list of exemptions and the latest rule changes, visit in.gov/dor.