Are digital goods taxable in Indiana?
Yes, for specified digital products with a permanent right of use: digital audio, audiovisual works and books. Downloaded prewritten software is also taxable.
| Short answer | Taxable (permanent use) |
|---|---|
| Authority | SIB #93 (Apr. 2023); IC 6-2.5-4-16.4 |
| Last reviewed | 2026-09-30 |
Why
Indiana taxes specified digital products (audio, audiovisual works and books) when the buyer receives a permanent right of use, per Sales Tax Information Bulletin #93.
Downloaded prewritten software is taxed as software. Other electronically delivered information, such as database reports, is not.
Business vs. consumer buyers
AgentTax applies the same answer to business and consumer buyers here. Only a few states change the answer by buyer: Iowa and Washington exempt some business purchases by statute, and Maryland and Ohio split the rate or taxability by use.
Where the line is
- Reports and data from an information service are not specified digital products.
How AgentTax classifies digital goods
Downloads the buyer keeps: e-books, music, video, data files and other digital products transferred electronically. AgentTax routes downloads and data purchases to its digital good category.
Run a Indiana sale through the AgentTax engine and get the amount, the rate it used and the statute behind it. No signup needed.
Open the calculatorFrequently asked questions
- Are digital downloads taxable in Indiana?
- Audio, video and books with a permanent right of use are taxable, as is prewritten software. Database reports are not.
Related
- All Indiana digital tax answers
- Are information services taxable in Indiana?
- Digital goods: every state we cover
- Are digital goods taxable in Arkansas?
- Are digital goods taxable in Georgia?
- Are digital goods taxable in Idaho?
- Are digital goods taxable in Iowa?
- Are digital goods taxable in Kansas?
- Are digital goods taxable in Louisiana?
Further reading on the AgentTax blog
Sources
- SIB #93 (Apr. 2023)
- IC 6-2.5-4-16.4
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.