Indiana State Tax Updates

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.

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 The prior “costs of performance” sourcing rule has been repealed.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.