Indiana · IN · Money & taxes
Indiana: Are groceries taxed?
Groceries exempt
Indiana exempts food and food ingredients for home consumption from its state sales tax.
Groceries are exempt from Indiana's sales tax (called the gross retail tax). Candy, soft drinks, alcohol, dietary supplements, and prepared food such as food sold hot or with utensils are not covered and remain taxable.
What the law says
Sales of food and food ingredients for human consumption are exempt from the state gross retail tax.
Sources
- Ind. Code § 6-2.5-5-20 (FindLaw) Mirror of official text · codes.findlaw.com
Confirm with the state
- Agency
- Indiana Department of Revenue
- Phone
- 317-232-2240
- Website
- in.gov
How bordering states compare
- Illinois Groceries exemptIllinois ended its 1% state sales tax on groceries on January 1, 2026, though many cities and counties may add 1%.
- Kentucky Groceries exemptKentucky exempts food and food ingredients for home consumption from its 6% sales tax.
- Michigan Groceries exemptMichigan exempts food and food ingredients from its 6% sales tax, except prepared food.
- Ohio Groceries exemptOhio's sales tax does not apply to food bought to eat off the premises where it was sold.