Avalara Taxrates > Blog > Sales Tax News > Rounding the Tax in Indiana - Avalara

Rounding the Tax in Indiana

  • Jul 9, 2014 | Gail Cole

 The magic number.

Sellers in Indiana now have the option of rounding the sales tax on an item by item basis. This change, which took effect on July 1, 2014, was instituted so that Indiana would be in compliance with the Streamlined Sales and Use Tax Agreement.

Prior to July 1, sellers could only round the tax on an invoice basis, not on individual items.

Retailers may deduct sales tax on items costing between $.01 and $0.7, when invoiced separately. However, if the "total sale or sales are more than seven cents," items costing up to seven cents are not exempt. Additional information is available on Indiana Department of Revenue Information Bulletin #33.

Managing sales tax manually is complicated. Learn how an automated sales tax solution works.

photo credit: Jeremy Brooks via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.