Indiana Resale Certificate Guide 2026: How to Get Yours

Indiana sits at the crossroads of the Midwest, with a strong manufacturing sector, a growing tech industry, and a central location that makes it a distribution and logistics hub for the entire region. The state imposes a flat 7% sales tax with no local add-ons, giving Indiana one of the highest flat sales tax rates in the country. For businesses buying inventory for resale, a properly completed Form ST-105 (General Sales Tax Exemption Certificate) saves 7 cents on every dollar. This guide covers everything you need to know for 2026.

Indiana Sales Tax Basics

State Rate

The Indiana state sales tax rate is 7%. This is a flat rate that applies uniformly across the entire state. Indiana does not allow any local jurisdictions to impose additional sales taxes.

At 7%, Indiana has one of the highest flat (no-local-add-on) sales tax rates in the nation. Only a handful of states have higher base rates.

What Is Taxable in Indiana?

Indiana taxes most tangible personal property and some services:

• Most physical goods are taxable
• Groceries (food for home consumption) are exempt
• Prescription drugs are exempt
• Non-prescription drugs and medical devices are exempt
• Clothing is fully taxable (no clothing exemption)
• Most services are not taxable, but some are, including utility services, telecommunications, and lodging
• Digital products (specified digital goods like e-books, music, videos) are taxable in Indiana
• Prepared food (restaurants, takeout) is taxable at 7%

Food and Beverage Tax

Some Indiana counties impose an additional food and beverage tax (typically 1% to 2%) on prepared food and drinks served by restaurants, bars, and similar establishments. This is separate from the state sales tax and applies only to specific counties that have adopted it. Marion County (Indianapolis), for example, imposes a 2% food and beverage tax.

What Form Do You Need?

Indiana uses Form ST-105, the General Sales Tax Exemption Certificate, issued by the Indiana Department of Revenue (DOR).

About Form ST-105

The ST-105 is a multi-purpose exemption certificate that covers resale exemptions, manufacturing exemptions, agricultural exemptions, and other qualifying exemptions. When claiming a resale exemption, the buyer selects "Purchasing for resale" on the form.

Key fields include:

• Purchaser's name, address, and phone number
• Indiana Taxpayer Identification Number (TID) or out-of-state registration number
• Type of exemption claimed
• Description of items to be purchased
• Purchaser's signature and date

Where to Get the Form

Form ST-105 is available as a free PDF download from the Indiana Department of Revenue website. No special request or approval is needed.

Who Needs an Indiana Resale Certificate?

Any business purchasing tangible personal property for the purpose of reselling it in Indiana needs a resale certificate. This includes:

Retailers buying inventory to sell through physical stores, online platforms, farmers markets, or trade shows.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution.

Online sellers registered with the Indiana DOR who buy inventory for resale on Amazon, eBay, Shopify, Etsy, or any other platform.

Manufacturers buying raw materials and components that become part of a manufactured product for sale.

Restaurants and food businesses purchasing food ingredients for preparation and resale as meals.

Who Does NOT Qualify

• Consumers purchasing for personal use
• Businesses buying equipment, supplies, or fixtures for internal operations
• Contractors purchasing materials for installation into real property (generally treated as end consumers in Indiana)

How to Apply for an Indiana Resale Certificate

Step 1: Register for an Indiana Sales Tax Account

You must register with the Indiana Department of Revenue before you can issue a valid ST-105 for resale.

What you need to register:

• Federal EIN or SSN
• Business legal name and trade name (DBA)
• Business address
• Type of entity
• Description of products sold
• Expected start date of taxable sales
• Estimated monthly sales

Registration is free. Apply online through INtax, Indiana's online tax management system, or through the Indiana Business One Stop portal.

Processing time: Typically 5 to 7 business days.

Step 2: Complete Form ST-105

Download the form and fill in your business information. Select "Purchasing for resale" as the exemption type. Enter your Indiana Taxpayer Identification Number and describe the products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give a completed ST-105 to each vendor. The vendor keeps the certificate on file and does not charge sales tax on qualifying purchases. You can issue a blanket certificate covering all purchases of a specific type from a vendor, or you can issue one per transaction.

Need help getting started? We handle the entire registration and certificate process.

Get Your Resale Certificate -->

Multi-State Considerations

Indiana's SST membership provides significant benefits for multi-state businesses.

SST Membership

Indiana is a full member of the Streamlined Sales Tax (SST) agreement. This means:

• Indiana accepts the SST Certificate of Exemption (SSTGB Form F0003) as an alternative to the state-specific ST-105
• Out-of-state businesses registered through the SST system can use the SST certificate for purchases in Indiana
• Indiana businesses can use the same SST certificate format when purchasing in other SST member states

Out-of-State Sellers

Indiana's economic nexus threshold is $100,000 in sales or 200 transactions with Indiana customers in the current or prior calendar year. If you exceed either threshold, you must register, collect, and remit Indiana sales tax.

Marketplace Facilitators

Indiana requires marketplace facilitators (Amazon, eBay, Walmart, Etsy) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through a marketplace, the marketplace handles your Indiana sales tax. If you also sell directly, you need your own Indiana sales tax registration.

Use Tax

If you purchase goods from an out-of-state vendor who does not collect Indiana sales tax, you owe Indiana use tax at 7% on those purchases unless they are for resale.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with Indiana Resale Certificates

Mistake 1: Using the Certificate for Equipment and Supplies

At 7%, the temptation to use a resale certificate for business equipment, furniture, or supplies is real. Resist it. The Indiana DOR audits for non-resale purchases and imposes back taxes plus 10% negligence penalties and interest.

Mistake 2: Not Including a Valid TID Number

Your Indiana Taxpayer Identification Number (TID) must appear on the ST-105. Using your federal EIN instead of the Indiana-specific TID is a common error. Vendors can verify TID numbers through the DOR's online system, and invalid numbers will be flagged.

Mistake 3: Selecting the Wrong Exemption Category

Because the ST-105 covers multiple exemption types (resale, manufacturing, agriculture, nonprofit, etc.), selecting the wrong category can create confusion during an audit. Make sure you check "Purchasing for resale" when buying inventory for resale.

Mistake 4: Not Providing Certificates to All Vendors

Some businesses provide resale certificates to their primary suppliers but forget about smaller or less frequent vendors. Every tax-exempt purchase needs a valid certificate on file with the seller. If you buy from a vendor once a year, that vendor still needs your ST-105.

Indiana-Specific Rules You Should Know

One of the Highest Flat Rates in the Country

Indiana's 7% flat rate (with no additional local sales taxes) is one of the highest single-rate systems in the nation. This makes proper use of resale certificates especially valuable. On $200,000 in annual inventory purchases, you save $14,000.

Manufacturing Exemptions

Indiana provides exemptions for equipment used directly in the direct production of tangible personal property for sale. This includes manufacturing machinery, molds, dies, and directly used tools. The exemption is claimed on the same ST-105 form, but with the manufacturing exemption category selected.

Indiana also has a research and development equipment exemption for qualifying businesses.

Utility Exemptions for Manufacturing

Indiana exempts utilities (electricity, natural gas, water) used predominantly (more than 50%) in direct manufacturing, mining, or agriculture. If your manufacturing facility qualifies, this can be a significant additional savings.

Food and Beverage Tax

As mentioned earlier, certain Indiana counties impose a food and beverage tax on prepared food. This local tax is separate from the state sales tax and is not affected by a resale certificate. If you operate a restaurant in a county with a food and beverage tax, you must collect and remit it separately.

Contractor Rules

Indiana treats contractors as the end consumers of materials they purchase and incorporate into real property. Contractors cannot use a resale certificate for construction materials that become part of a building or structure. For more on this topic, see our contractor resale certificate guide.

Record Retention

Indiana requires sellers to keep exemption certificates on file for at least 3 years after the last sale covered by the certificate. The DOR can audit up to 3 years back from the filing date, and further if fraud is suspected.

How Much Can You Save?

At Indiana's flat 7%, the savings are substantial and easy to calculate.

Use our savings calculator to calculate your exact savings.

Indiana Resale Certificate FAQs

Q: Does the Indiana ST-105 expire? A: Indiana does not print an expiration date on the ST-105. The certificate remains valid as long as the buyer's Indiana sales tax registration is active and the information is accurate.

Q: Can I use the SST certificate instead of the ST-105? A: Yes. Indiana is an SST member and accepts the SST Certificate of Exemption as an alternative to the Indiana-specific ST-105.

Q: Is there a fee for Indiana sales tax registration? A: No. Indiana does not charge a fee for sales tax registration.

Q: Does Indiana have local sales taxes? A: No. Indiana has a flat 7% state rate with no local sales tax add-ons. Some counties do impose a food and beverage tax on prepared food, but this is separate from the general sales tax.

Q: What is the penalty for misusing a resale certificate? A: The DOR can assess back taxes, a 10% negligence penalty, and interest on underpaid tax. Willful fraud can result in additional penalties and criminal prosecution.

Get Started with Your Indiana Resale Certificate

Indiana's flat 7% rate makes resale certificates especially valuable. No local tax variations to worry about, one rate statewide, and SST membership for easy multi-state compliance.

• Fast online registration through INtax
• Help completing the ST-105 or SST certificate
• Full compliance support

Get Your Resale Certificate -->

For more details on Indiana's requirements, visit our Indiana state page.

Indiana's 7% flat rate means every dollar of inventory you buy without a resale certificate costs you 7 cents in unnecessary tax. Get registered, complete the ST-105, and start saving from your very first purchase.

Related Articles

• What Is a Resale Certificate? - Start with the basics if you are new to resale certificates.
• Resale Certificate for Amazon Sellers - Indiana Amazon sellers can use resale certificates for inventory purchases.
• Common Resale Certificate Mistakes That Trigger Audits - Avoid the errors that put you on the Indiana DOR's radar.