Is there sales tax on groceries in Indiana?
Quick answer
No. Groceries bought for home preparation are exempt from Indiana state sales tax. Prepared and restaurant food is still taxable.
Unprepared food is exempt. Candy, soft drinks and prepared food are taxable at 7%.
Rule summary
How Indiana treats each category.
| Grocery food (home consumption) | Exempt from state sales tax |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (7%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: Indiana Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Indiana Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Indiana
What a taxable purchase actually costs in Indiana.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in Indiana?
- No. Groceries bought for home preparation are exempt from Indiana state sales tax. Prepared and restaurant food is still taxable.
- Is prepared food taxed differently than groceries in Indiana?
- Yes. Indiana treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in Indiana?
- No. Prescription medicine is exempt from sales tax in Indiana.
More Indiana guides
Other Indiana rules that change the total.