Key figures
Indiana receivables
2026, with sources
$100,000, and nothing else
Indiana requires a remote seller to register as a retail merchant and collect once its gross revenue from sales into Indiana exceeds $100,000 in the previous or current calendar year. Since January 1, 2024 that is the only test: the 200-transaction alternative was repealed by Senate Enrolled Act 228. The $100,000 counts tangible goods, digital products and services delivered into Indiana, whether or not they are taxable.
Indiana’s rate is a flat 7% everywhere, with no county or city sales taxes, which makes collection simple once a seller is registered.
SaaS is outside the tax
Indiana’s Sales Tax Information Bulletin #8 draws the line at delivery. Prewritten software sold or licensed for remote access over the internet is not an electronic transfer and not a retail transaction, so it isn’t taxed. Prewritten software that is downloaded or delivered is taxable, and custom software is not.
A SaaS company with a desktop app or plug-in that customers install should look at that component separately; a browser-only product sold to Indiana customers generally carries no Indiana sales tax.
Receipts and income tax
Indiana apportions corporate income by receipts alone, so revenue from Indiana customers drives the IT-20 as well as sales tax. A company whose SaaS revenue crosses $100,000 in Indiana has sales tax nexus; whether it also files an IT-20 depends on whether it is doing business in Indiana with Indiana gross income.
The federal baseline
This page covers what Indiana adds. The federal rules underneath it apply here too.
Common questions
Is our SaaS taxable in Indiana?
No. Indiana’s bulletin on software says prewritten software that is remotely accessed over the internet, without being downloaded, is not an electronic transfer and not a retail transaction, so the subscription isn’t subject to sales or use tax. Downloaded software is a different answer.
Do non-taxable SaaS sales count toward Indiana’s threshold?
Yes, even if none of it is taxable. Indiana’s $100,000 test counts gross revenue from tangible goods, digital products and services delivered into Indiana. A SaaS company with $150,000 of untaxable subscriptions to Indiana customers has crossed the threshold; what it then owes depends on whether it sells anything taxable.
Receivables next door
- ILIllinois receivablesIllinois doesn’t tax remotely accessed SaaS, but Chicago charges 15% on it; state nexus is now $100,000 of Illinois sales with no transaction count.
- KYKentucky receivablesKentucky charges a flat 6% with no local sales tax, taxes SaaS as a prewritten computer software access service, and since August 1, 2026 requires remote sellers to register on $100,000 of gross receipts alone.
- MIMichigan receivablesMichigan charges a flat 6% with no local rates, counts 200 transactions toward nexus, and generally doesn’t tax remotely accessed SaaS.
- OHOhio receivablesOhio taxes SaaS used in business at 5.75% plus local rates, and the 200-transaction test still counts toward nexus.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the Indiana guide
- AccountingAccounting and state tax in IndianaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in IndianaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in IndianaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in IndianaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in IndianaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.