This is general information, not legal or tax advice. Permit and tax rules change, and your situation may differ. Always confirm current requirements with the official state agency linked in this guide, and consult a licensed attorney or tax professional for advice about your specific business.Last verified against official state sources: 2026-06-11
Anyone selling handmade goods like candles, potholders, or birdhouses in Indiana is a retail merchant who must register with the DOR and collect 7 percent sales tax, even selling only at farmers markets, city markets, or craft fairs. DOR Sales Tax Information Bulletin #70 specifically lists arts, crafts, and candles as taxable items requiring registration before selling.
Register through INBiz; the RRMC is issued once the Business Tax Application processes. Mailed paper applications (Form BT-1) take 4 to 6 weeks; online is faster.
Indiana has no separate temporary or event-only permit; craft show vendors, including out-of-state transient merchants, get the same RRMC. Vendors selling only certain months can request seasonal filing status to limit returns to active months, and vendors collecting under $1,000 a year can file annually. A county Transient Merchant License from the county auditor applies only where a county mandates it (as of DOR's 2023 bulletin, only Parke County did).
Indiana exempts casual sales like garage sales only when the seller is not in the business of selling and already paid tax on the item originally. Making goods to sell fails both conditions; per Bulletin #70, even occasional market sales of crafts make you a retail merchant who must register.
A single statewide rate of 7 percent with no local general sales taxes, so you charge the same rate at every Indiana event. County food and beverage taxes apply to prepared food, not handmade goods.
Indiana has no general statewide business license; the RRMC is the key state credential. DOR Bulletin #102 warns that some cities and towns have their own merchant licensing rules, so check with local officials before selling in a new location.
Making retail sales without an RRMC, or with a revoked or suspended one, is a Class A misdemeanor.
Anyone selling handmade goods like candles, potholders, or birdhouses in Indiana is a retail merchant who must register with the DOR and collect 7 percent sales tax, even selling only at farmers markets, city markets, or craft fairs. DOR Sales Tax Information Bulletin #70 specifically lists arts, crafts, and candles as taxable items requiring registration before selling.
Registered Retail Merchant Certificate (RRMC), issued by the Indiana Department of Revenue (DOR). Cost: $25 one-time, nonrefundable fee per business location. Register through INBiz; the RRMC is issued once the Business Tax Application processes. Mailed paper applications (Form BT-1) take 4 to 6 weeks; online is faster.
Indiana exempts casual sales like garage sales only when the seller is not in the business of selling and already paid tax on the item originally. Making goods to sell fails both conditions; per Bulletin #70, even occasional market sales of crafts make you a retail merchant who must register.
A single statewide rate of 7 percent with no local general sales taxes, so you charge the same rate at every Indiana event. County food and beverage taxes apply to prepared food, not handmade goods.
Indiana has no general statewide business license; the RRMC is the key state credential. DOR Bulletin #102 warns that some cities and towns have their own merchant licensing rules, so check with local officials before selling in a new location.
Browse upcoming craft fairs in Indiana with booth fees and application deadlines, read our picks for the best Indiana craft fairs, and use the booth ROI calculator to plan your season.
Last verified: 2026-06-11. Spotted something out of date? Let us know.