If you were an Indiana resident and bought items online, through the mail, or from an out-of-state seller without paying Indiana sales tax, you may owe Indiana Use Tax.
What Is the Indiana Use Tax Rate?
Indiana Use Tax is 7% of the purchase price of taxable items or services when sales tax was not paid at the time of purchase.
Where Do I Enter Indiana Use Tax?
- Open your Indiana state return.
- Select Edit (three dots) next to the Indiana return.
- Select Tax.
- Enter the Total purchase price of property subject to the sales/use tax.
Additional Information
Indiana IT-40 Instructions.