--- title: "Indiana marketplace facilitator law and 1099-K rules" description: "Indiana marketplaces are the retail merchant for sellers' sales since July 1, 2019, and collect the 7% tax; marketplace-only sellers needn't register." canonical: https://resellerindex.com/tax/states/indiana/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / Indiana # Selling on eBay, Poshmark or Etsy from Indiana: sales tax and 1099-K rules Since July 1, 2019, a marketplace facilitator with over $100,000 of Indiana sales is the retail merchant for its third-party sellers' sales and collects Indiana's 7% sales tax on them (House Enrolled Act 1001), and the Department of Revenue says a seller who only sells through a marketplace facilitator is not required to register and file Indiana sales tax returns. For Form 1099-K, no Indiana threshold appears on the Department of Revenue pages checked for this page; the federal test is over $20,000 in more than 200 transactions. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## Indiana in short - **General sales tax:** Yes, 7% state rate - **Marketplace facilitator law:** Yes: House Enrolled Act 1001 (2019), as described in DOR Sales Tax Information Bulletin #89, since Jul 1, 2019 - **When a marketplace must collect:** gross revenue from sales into Indiana that exceeds $100,000 in the current or preceding calendar year, counting its own and its sellers' transactions; a second, 200-transaction threshold was removed effective January 1, 2024 - **Form 1099-K:** No state rule stated on the pages checked ## Who collects the tax on a marketplace sale A marketplace facilitator that meets the threshold collects and remits Indiana sales tax on behalf of all of its sellers for sales made into Indiana. The DOR says the facilitator is considered the retail merchant for third-party sellers' sales on its marketplace, and those sales are not legally the seller's sales for Indiana sales tax purposes. ### If you sell only through marketplaces A seller that only makes sales through a marketplace facilitator is not required to register and file Indiana sales tax returns, the DOR says. A seller already registered can keep its account (filing $0 returns if it has no direct sales), change its filing frequency, or close the account on Form BC-100. The seller has no obligation to collect tax on facilitated sales even if the facilitator fails to. Registration, resale certificates and what changes when you also sell direct have their own page: [Indiana: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/indiana/). The law: House Enrolled Act 1001 (2019), as described in DOR Sales Tax Information Bulletin #89, effective Jul 1, 2019. > "A seller that only makes sales through a marketplace facilitator is not required to register and file Indiana sales tax returns." Indiana Department of Revenue, [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/), FAQ > "The marketplace seller has no obligation to collect tax on facilitated sales even if the marketplace facilitator fails to do so." Indiana Department of Revenue, [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/), FAQ Sources: [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/); [Sales Tax Information Bulletin #89: Registration, Collection, and Remittance Requirements for Remote Sellers and Marketplace Facilitators](https://www.in.gov/dor/files/sib89.pdf). ## Indiana's sales tax The Indiana Department of Revenue (DOR) says Indiana's current sales tax rate is 7%. Some marketplace facilitators also collect county innkeeper's tax and food and beverage tax. > "Indiana’s current sales tax rate is 7%." Indiana Department of Revenue, [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/) Sources: [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/). ## Form 1099-K: Indiana and the federal test The DOR pages checked for this page (its marketplace facilitator page and Sales Tax Information Bulletin #89) don't address Form 1099-K, so no Indiana 1099-K rule is stated here. The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/); [Sales Tax Information Bulletin #89: Registration, Collection, and Remittance Requirements for Remote Sellers and Marketplace Facilitators](https://www.in.gov/dor/files/sib89.pdf). ## Worked examples ### A $50 sale to an Indiana buyer The marketplace facilitator, as the retail merchant, collects Indiana's 7% sales tax: $50 x 7% = $3.50, on top of the price. The sale isn't legally yours for Indiana sales tax purposes, so it doesn't go on any Indiana return of yours. ### A registered seller who moved all sales to marketplaces A seller registered for Indiana sales tax who now sells only on marketplaces can keep the account and file $0 returns, adjust its filing frequency based on its remaining direct sales, or close the account on Form BC-100 saying it only sells through marketplaces, the DOR says. ## Edge cases and details - A seller who keeps an Indiana registration because of physical nexus or the remote seller threshold reports marketplace sales as exempt sales on Form ST-103, the DOR says. - If a marketplace facilitator wrongly remits the tax to the seller instead of to the DOR, the DOR says the seller should remit it to the DOR. - A facilitator can issue the seller an ST-105 exemption certificate marked "Marketplace Sales" as documentation that it is collecting. - The DOR removed the 200-transaction economic nexus threshold effective January 1, 2024 (SEA 228); a merchant that met only the 200-transaction test in 2023 may close its sales tax account, according to Bulletin #89. - Marketplace sales don't count toward a seller's own remote seller threshold, the DOR says. ## What to do 1. If you only sell through marketplaces and hold an old Indiana registration, read the DOR's marketplace facilitator FAQ on keeping or closing the account with Form BC-100. 2. Keep each marketplace's ST-105 or other statement that it collects Indiana tax on your sales. 3. Check with a tax professional about Indiana income tax and the federal 1099-K. ## Common questions ### Do I need an Indiana sales tax registration to sell on marketplaces? The DOR says a seller that only makes sales through a marketplace facilitator is not required to register and file Indiana sales tax returns. Direct sales, physical nexus or passing the remote seller threshold can change that. ### What if the marketplace didn't collect Indiana tax on my sale? The DOR says the marketplace seller has no obligation to collect tax on facilitated sales even if the facilitator fails to do so; the purchaser is still liable for the tax. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [Indiana: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/indiana/) - [Illinois: sales tax and 1099-K rules](https://resellerindex.com/tax/states/illinois/) - [Iowa: sales tax and 1099-K rules](https://resellerindex.com/tax/states/iowa/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes Indiana's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - Indiana Department of Revenue: [DOR: Marketplace Facilitators](https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/); read Oct 19, 2026. Facilitator is the retail merchant; marketplace-only sellers needn't register; account options; ST-105; 7% rate. - Indiana Department of Revenue: [Sales Tax Information Bulletin #89: Registration, Collection, and Remittance Requirements for Remote Sellers and Marketplace Facilitators](https://www.in.gov/dor/files/sib89.pdf); read Oct 19, 2026. House Enrolled Act 1001 effective July 1, 2019; $100,000 threshold; 200-transaction threshold removed January 1, 2024. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. Subscribe: https://resellerindex.com/subscribe/ --- The Reseller Index Researched and drafted with AI assistance from each platform's and carrier's own published pages. A full-time reseller runs The Reseller Index and will edit every newsletter issue once the newsletter starts. Every number links to its source and carries the date we checked it. Spot an error? [Tell us](https://resellerindex.com/corrections/) and we'll fix it in the public corrections log. General information, not tax, legal or financial advice. 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