Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Indiana.
June 16, 2026
Indiana DOR Clarifies Sales Tax Sourcing for Direct Mail Receipts
Authored by: Jessie Racioppi and Katie Nguyen, CPA
On May 26, 2026, the Indiana Department of Revenue issued Revenue Ruling #2026-01-RST, providing sales tax guidance on a variety of transactions.
Notably, receipts from direct mail transactions must generally be sourced to the location where the mail is delivered. However, if the seller obtains one of the following from the purchaser, the receipts are sourced to the location from which the direct mail was shipped:
- Direct pay permit
- Direct mail form
- Exemption certificate
- Documentation listed in IC 6-2.5-13-3(a)
The ruling also clarifies that charges for services and digital products that are part of the process of creating or delivering the tangible personal property are taxable (even if separately stated on the invoice). Separately stated data services that are distinct from production may not be taxable.
If you have questions about sales taxability, please reach out to a member of the Withum SALT Team.
March 25, 2025
Indiana Adopts Market-Based Sourcing Retroactively
Authored by: Breea Boylan, CPA and Courtney Easterday, MSA
Indiana adopts a new regulation under section 45 IAC 3.1-1-55.5 and repeals the old regulation in section 45 IAC 3.1-1-55 concerning the attribution of sales to the state. Effective retroactively to January 1, 2019, the Indiana Department of Revenue implements market-based sourcing for attribution of most receipts from services and intangibles. The prior “costs of performance” sourcing rule has been repealed.
If you have questions about state apportionment and receipts sourcing, please reach out to a member of the Withum SALT Team.
May 8, 2024
Indiana Eliminating the 200-Transaction Threshold From Its Economic Nexus Requirements
Authored by: Brandon Spinella and Katie Nguyen, CPA
Effective January 1, 2024, the state of Indiana will no longer require a remote seller to register for sales and use tax if the company only hits the 200 or more transactions threshold in the state. A remote seller selling to customers within the state will still be required to register for gross retail tax remittance if the $100,000 sales threshold is met in the current or immediately preceding calendar year. If a remote seller hits the 200-transaction threshold in 2023 but not the $100,000 sales threshold, the company can close its sales tax account in 2024 if they do not have $100,000 or more in sales in 2024. The company would still have to file all required sales tax returns for 2024.
See the guidance provided by the state here.
If you have questions about Sales and Use Tax Nexus, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note that this information is readily available at this time and is subject to change, so please consult your Withum tax advisor.
Have Questions or Need Guidance?
For more information on this topic, please contact a member of our team.