Indiana Food and Beverage Tax and Innkeeper's Tax: Where They Apply
Indiana Food and Beverage Tax and Innkeeper's Tax: Where They Apply
If you run a restaurant, bar, caterer, food truck, hotel, or short-term rental in Indiana, two local taxes may apply on top of the state sales tax: the indiana food and beverage tax and the indiana innkeepers tax, which many people also search for as the indiana lodging tax. Neither one applies everywhere. Each is set at the local level, so the answer depends on the exact city, town, or county where you sell food and drink or where your guests stay.
This guide explains where each tax applies, how to check your location, what registration and filing involve, and which figures you still need to confirm with the right agency. This is informational content, not legal or tax advice. Talk with a CPA or tax attorney before you set prices, file returns, or make decisions based on these rules.
What the Indiana food and beverage tax is
The indiana food and beverage tax is a local-option tax. Counties and municipalities decide whether to adopt it, and it applies to food and beverages sold in the places that have adopted it. It is collected in addition to sales tax, not in place of it.
You register and file for this tax with the Indiana Department of Revenue (DOR) through INTIME, the DOR's online tax system. Registration is separate for each adopting jurisdiction, so a business that operates in two cities may need two registrations.
How to check the DOR rate table
The DOR publishes a rate table that lists each jurisdiction that has adopted the tax, its rate, and the effective date shown in the table. Start there for any location you are researching. The entries below are the ones most often asked about:
| Jurisdiction (as listed by DOR) | Rate | Effective date shown |
|---|---|---|
| Marion County | 2% | 7/1/05 |
| Shipshewana | 2% | 1/1/26 |
| Orange County Historic Hotel | 2% | 7/1/15 |
| Orange County | 1% | 5/1/25 |
| Hammond | 1% | 8/1/24 |
| Merrillville | 1% | 2/1/24 |
The 1% rate also appears for these counties in the table: Allen, Boone, Delaware, Hamilton, Hancock, Hendricks, Henry, Johnson, Madison, Monroe, Shelby, Vanderburgh, and Vigo. The table also includes many cities and towns beyond the examples above. If your location is not on the table, do not assume it has no tax. Confirm it with the county auditor or the DOR.
Counties with no county-wide entry
Lake, St. Joseph, Elkhart, and Tippecanoe Counties do not appear as county-wide entries in the DOR table. Some cities inside those counties do appear, though, so a business in one of them still needs to check its exact municipality.
Do not read the absence of a county-wide entry as proof that no tax applies. The table can change, and the county auditor is the one who confirms whether a tax applies in a given area. Ask the auditor in writing if your location is in one of these counties and you need a definite answer for your records.
2026 rate changes to watch
Several rates take effect in 2026 according to the DOR table:
- Madison: effective 1/1/26
- Richmond: effective 3/1/26
- Lagro: effective 9/1/26
- Greendale: effective 11/1/26
The table also carries a footnote that Johnson County's tax was collected at the county level before July 1, 2026. Because the collection method changed around that date, confirm with the DOR how the tax should be handled for any sales that fall on either side of it.
Caterers and businesses that facilitate sales
Caterers have a multi-location rule. A caterer must register to collect the tax in each adopting jurisdiction where it caters. A caterer based in a county with no tax may still owe registration in a neighboring jurisdiction if it serves events there, so track the locations of your jobs, not just your home base.
Businesses that facilitate sales, such as an online marketplace or a delivery platform that handles the transaction, register for each jurisdiction from which they pick up orders. The registration follows the pickup location, which may differ from where the customer lives.
Registration, filing, and the $0 return
Once you are registered for a trust tax, you must keep filing. That includes periods when you had no activity. Businesses registered for these taxes file a $0 return for each period with no sales. Skipping the return is not the same as having nothing to report.
Late returns can carry a penalty of up to 20%, with a $5 minimum. A missed $0 return can trigger that penalty, so set a calendar reminder for each filing period on your account.
For registration questions or filing problems, contact the Department of Revenue business tax compliance team at 317-232-3425, option 5. You can find general DOR information at https://www.in.gov/dor/.
Innkeeper's tax (indiana lodging tax)
The innkeeper's tax is a separate county tax on lodging. It is not the same tax as the food and beverage tax, and it is not set by the state. Hotels, motels, bed-and-breakfasts, and short-term rentals should check whether their county imposes it, because the rules are county-specific.
Some county government pages list a 5% county rate. That figure is not a rate we have confirmed for any specific county, so do not use it in your pricing or your tax reporting until the county confirms it.
Two 2026 bills, HEA 1210 and HEA 1406, may affect lodging taxes. We could not confirm from an enacted-law source what either bill changes or whether either one is in effect. Treat the lodging tax rate as unverified until you hear from the county auditor or the DOR.
Step-by-step checklist
- Identify the exact city, town, and county of every location where you sell food or beverages, or where guests stay.
- Look up each location in the DOR rate table, and note the rate and effective date.
- If your location is in Lake, St. Joseph, Elkhart, or Tippecanoe County, or is not on the table, ask the county auditor whether a tax applies.
- Register in INTIME for each jurisdiction that applies to you. Caterers and facilitators should register per jurisdiction where they operate or pick up orders.
- File a $0 return for every period with no activity, and keep the filing calendar current.
- For lodging, confirm the county innkeeper's tax rate with the county auditor or the DOR before you set rates.
- Have a CPA review your setup, especially if you operate in several jurisdictions or use a third-party platform.
Who to contact
- Indiana Department of Revenue, business tax compliance: 317-232-3425, option 5. Website: https://www.in.gov/dor/
- County auditor: the auditor's office for the county where the business or property is located. Use the county government website to find the current contact details.
- Indiana Small Business Development Center: https://isbdc.org/. Useful for general small business questions. It does not replace a tax professional.
Before you rely on this guide
Local tax rates, adoption status, and effective dates change. The figures in this guide reflect the DOR rate table and related sources as researched on 2026-10-14. Confirm the current rate for your exact location before you register, price your products or rooms, or file a return.
Disclaimer: This article is informational content, not legal or tax advice. It does not create an attorney-client or accountant-client relationship. For decisions about entity structure, tax registration, lodging taxes, or filing obligations, consult a qualified CPA or attorney who can review your specific facts.