Indiana Contractor Sales Tax 2026

Indiana sales tax for contractors 2026. Labor taxable? Materials? Real rules from state revenue department.

Indiana sales tax rate for contractors

  • Combined rate: 7% (no local on most categories)
  • Construction labor taxable: NO - real property labor is exempt
  • Tax authority: Indiana Department of Revenue

How Indiana treats contractor labor

Real property labor exempt. Contractor pays sales tax on materials at purchase.

Indiana-specific rules

No statewide general contractor license. Plumbing and HVAC require state license. Pre-lien notice within 60 days is required on residential.

Indiana mechanics lien rights

Beyond sales tax, Indiana contractor billing must respect the mechanics lien deadline of 90 days from last work (60 days for owner-occupied residential). Preliminary notice: Pre-lien notice required for owner-occupied residential within 60 days of starting.

Indiana contractor licensing

No statewide GC license; municipal (Indianapolis, Fort Wayne, etc.) require local license. Board: https://www.in.gov/pla.

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Indiana contractor resources by trade