In recent legislation, Indiana eliminated the transaction count from its sales tax economic nexus threshold. The change is retroactive to January 1, 2024. The economic nexus threshold in Indiana was $100,000 in gross revenue or 200 or more separate transactions. Going forward, only the $100,000 in sales for a calendar year will create an economic nexus for a seller without a physical presence in Indiana.
Indiana joined a growing number of states (Louisiana, South Dakota, and Wyoming in the last year) eliminating transaction counts from sales tax economic nexus thresholds. The elimination is a positive change for remote sellers of low-value items, such as clothing, that trigger nexus based on their transaction count but who have relatively minimal total sales into a state.
If you have questions on sales tax economic nexus or other SALT matters, please contact the HBK SALT Advisory Group at hbksalt@hbkcpa.com.
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