Indiana just announced one of the most generous tax amnesty programs in the country — and the window opens in 16 days.
From July 15, 2026, through September 9, 2026, taxpayers have a limited-time opportunity to pay past-due, eligible taxes and receive a waiver of related penalties, interest, and collection fees.
That's not a reduction in penalties. That's a full waiver — every dollar of accumulated interest, every penalty charge, every collection fee. Gone. If you pay the underlying tax you owe, the rest disappears.
On top of the financial relief, the program also provides lien releases and protection from civil and criminal prosecution for eligible liabilities.
For any business that has been carrying Indiana sales tax exposure — uncollected tax, unfiled returns, underreported periods — this is the most favorable resolution path that will exist in Indiana for years. Possibly decades. Indiana's last amnesty was in 2015. The one before that was 2005.
This window is real. It is limited. And most businesses that could benefit from it don't know it exists.
To understand the value of this program, you need to understand what Indiana's normal penalty structure looks like without it.
Indiana's standard late payment penalties start at 10% of the tax due — immediately. Interest accrues on top of that at the adjusted rate set quarterly by the DOR, currently running at 5% annually. For a liability that has been sitting unresolved for three years — covering tax periods from 2021, 2022, and 2023 — the accumulated interest and penalties can easily exceed the original tax principal.
A business that owes $50,000 in Indiana sales tax from 2021-2023 might be looking at $65,000 to $75,000 in total liability by the time penalties and interest are added. Under Tax Amnesty 2026, that business pays $50,000 — the tax only — and the remaining $15,000 to $25,000 in penalties and interest is wiped out entirely.
DOR is projecting it could collect between $65 million and $145 million through Tax Amnesty 2026. That projection reflects both the volume of outstanding liability in the state and the program's significant financial incentive to come forward.
The eligibility rules are broader than most people assume — and residency is explicitly not a barrier.
Residency is not a requirement — eligibility is determined by liability, not domicile. Any individual or business with eligible Indiana tax liabilities, including non-residents who earned Indiana-source income or conducted taxable sales into Indiana, may participate.
The three core eligibility requirements:
1. You have eligible tax liabilities. Liabilities for all listed taxes managed by DOR owed for tax periods ending prior to January 1, 2024, are eligible. That covers sales and use tax, individual income tax, corporate income tax, financial institutions tax, and other DOR-administered taxes. Motor Carrier Services taxes including IFTA and IRP liabilities are also eligible with direct contact to DOR or UCB.
2. You didn't participate in Indiana's 2005 or 2015 amnesty programs. Individuals and businesses that have participated in either the 2005 or 2015 amnesty programs are not eligible to participate in Tax Amnesty 2026. If you took advantage of either prior program, this one isn't available to you.
3. All your current Indiana returns must be filed. A valid amnesty election requires that all previous and current Indiana tax returns be filed. You can't participate while owing unfiled returns — the DOR requires your filing history to be current before amnesty can be granted. If you have unfiled returns, file them first.
A few categories fall outside the program's scope:
This is the most remarkable feature of Indiana's 2026 amnesty — and the one most businesses with active audits are missing.
Even businesses currently under audit with an assessment may take advantage of the amnesty window and receive the full benefits. This means that even though the Department has begun a formal review, the state believes your company is liable for tax, and took the steps to initiate a proposed assessment — a company may still opt into the amnesty window. The Sales Tax People
In most state amnesty programs, being under audit disqualifies you entirely. The audit has already started; the state found you; you've lost the proactive advantage. Indiana's 2026 program explicitly allows audited businesses to participate — meaning companies that would normally be locked into the full audit process with full penalties can still use the amnesty to settle their liability at the tax-only amount.
The one trade-off: taxpayers that pay their liabilities during the amnesty period waive their right to appeal or protest those amounts. By participating in amnesty, you're accepting the liability and giving up the ability to contest it later. For most businesses with clear-cut exposure, that's an acceptable trade. For businesses with legitimate legal defenses, it's worth evaluating carefully before participating. Taxfyle
Indiana's Tax Amnesty 2026 isn't the only resolution path available. The DOR's Voluntary Disclosure Agreement program — which provides a limited lookback period — is still available simultaneously.
Per BDO communication with the DOR, the voluntary disclosure agreement program is still available to eligible non-filers, even during the amnesty period.
Here's how to think about the choice:
Tax Amnesty 2026 is better if:
Voluntary Disclosure is better if:
Given that the VDA program provides a limited lookback period and includes all past periods including tax periods ended in 2024 and later, but does not waive interest, non-filers eligible to pay taxes under either program should review the impact of each to make the most beneficial choice. Taxfyle
The right answer depends on your specific situation. A business with three years of under-collected Indiana sales tax and no filing history might benefit more from VDA's limited lookback. A business that filed correctly but has open audit periods with significant accrued interest might benefit more from amnesty's full waiver.
Three categories of businesses have the most to gain from Indiana Tax Amnesty 2026 — and all three should be acting now, not waiting until July 15.
Ecommerce sellers who crossed Indiana's nexus threshold:
Indiana's economic nexus threshold is $100,000 in annual sales or 200 transactions. Sellers who crossed that threshold in 2021, 2022, or 2023 and never registered have been accumulating liability ever since. For multi-state retailers navigating complex sourcing rules, marketplace facilitators and third-party sellers, and businesses mistakenly using the wrong exemption or resale certificate — this amnesty is specifically designed for you. The Sales Tax People
Businesses that misclassified products or services:
Indiana has specific rules about what's taxable and what's exempt. SaaS is generally not taxable in Indiana. Certain digital products are. Services that seem like professional services may actually be taxable if they involve tangible personal property. Misclassification errors that have accumulated over multiple years — taxing things that should be exempt, or not taxing things that should be taxed — create liability that amnesty can resolve cleanly.
Businesses with Indiana locations that haven't reviewed their nexus:
A remote employee working from Indiana, a warehouse or fulfillment partner in Indiana, a sales rep making regular Indiana calls — any of these can create physical nexus that triggers sales tax obligations beyond what economic nexus rules would require. Physical nexus exposure that predates 2024 is eligible for amnesty.
The process is straightforward — but it has specific steps and a hard deadline for each.
Step 1: Check your eligibility now.
The tax amnesty tool allows individuals and businesses to check their eligibility to participate in Tax Amnesty 2026. Information about the tool and what to do if your liabilities are amnesty-eligible can be found in the FAQ on the DOR's page. The eligibility tool is available through INTIME.
Visit in.gov/dor/amnesty to access the eligibility tool. If you receive a letter from UCB (United Collection Bureau) or the DOR announcing amnesty eligibility, that's a signal you have identified liabilities in the system — act on it immediately.
Step 2: File any missing Indiana returns.
Before you can participate, all your Indiana returns must be filed and current. If you have unfiled returns from 2021, 2022, or 2023, file them before July 15. Filing now gives you time to review the returns and prepare for amnesty without the pressure of the deadline.
Step 3: Calculate your liability.
Determine exactly what you owe — the tax principal only, for periods ending before January 1, 2024. Penalties and interest will be waived, so you need the clean underlying number. This is also the moment to decide whether amnesty or VDA is the better path for your situation.
Step 4: Act between July 15 and September 9.
To successfully participate, you must do one of the following between July 15 and September 9, 2026: call UCB at 888-782-5985 to arrange to pay liabilities in full or set up a payment plan, or set up an INTIME account to either pay the liabilities in full or set up a payment plan. The Sales Tax People
Step 5: Pay in full or set up a payment plan.
You must pay your liability in full prior to September 9, 2026, or have your amnesty payment plan paid in full by June 7, 2027.
Payment plan minimums: for individuals, eligible liabilities must total at least $100 to qualify for a payment plan. For businesses, eligible liabilities must total at least $500 to qualify for a payment plan.
Important: there are no extensions available for the Tax Amnesty 2026 program. Miss the September 9 deadline and the window closes permanently. The amnesty is gone. The penalties and interest come back. The Sales Tax People
If you have Indiana sales tax exposure from pre-2024 periods and choose not to participate in Tax Amnesty 2026, the options that remain are significantly less favorable.
Indiana's enforcement environment is getting tighter. The state's data matching capabilities have improved. Marketplace facilitator reporting creates a paper trail for sales that previously went undetected. And Indiana's data center disclosure story — $655 million in exemptions, most to Amazon — has raised the state's profile as a jurisdiction that takes tax obligations seriously.
After September 9, businesses with pre-2024 Indiana liability face the full penalty and interest stack with no amnesty relief available. The next program, if Indiana follows its historical pattern, won't come until 2036.
The cost of waiting is real. The cost of acting now is just the tax you owe.
Operating a business that sells into Indiana and want to understand whether you have pre-2024 sales tax exposure that qualifies for Tax Amnesty 2026 — or whether amnesty or voluntary disclosure is the better path for your situation? Book a free consultation with our team at sales.tax. We'll review your Indiana nexus history, calculate your potential liability, and help you navigate the amnesty process before the September 9 window closes.