Realize online business Project Indiana sales tax rate will increase to 10% on Wednesday, governor says

Indiana sales tax rate will increase to 10% on Wednesday, governor says

The state’s new 7.5% tax on sales of everything from clothes to appliances will be introduced Wednesday and will be collected on July 1, Governor Joe Donnelly announced Thursday.

The tax, which takes effect Jan. 1, applies to any goods sold in Indiana or to products sold in the state, including liquor, cigarettes, firearms and food, Donnelly said in a statement.

The state tax is expected to generate about $7 billion in annual revenue.

In 2017, Indiana imposed a 7% sales tax on alcohol.

The Indiana State Budget and Control Board said Wednesday that the new tax will cost $1.1 billion, and that it will raise $5.6 billion annually.