The Indiana Sales Tax Bond is required on a case-by-case basis by the Indiana Department of Revenue when a business has a history of late or missed sales tax payments, or when the DOR determines the business poses a collection risk. The bond amount is customized based on the business's typical monthly tax liability (o…
Overview
What it is.
The Indiana Sales Tax Bond is required on a case-by-case basis by the Indiana Department of Revenue when a business has a history of late or missed sales tax payments, or when the DOR determines the business poses a collection risk. The bond amount is customized based on the business's typical monthly tax liability (o…
Who usually needs it
Businesses required by the Indiana Department of Revenue to post security due to poor tax compliance history, repeated sales tax delinquencies, or significant tax exposure. This is not a universal requirement - the DOR imposes it case-by-case when they identify collection risk.
Pricing & timing
What to expect.
Generic pricing
Tax bonds guarantee payment of taxes or compliance with tax regulations. Typical Pricing:. • Standard tax bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Credit check: Required for most tax bonds. Common types include sales tax bonds, fuel tax bonds, and cigarette/tobacco tax bonds. Quick approval is typical for applicants with good credit. Some tax bonds…
Typical timeframe
Credit-based approval — typically 1–2 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateINBond amount$2,000ObligeeIndiana Department of RevenueBond classTax BondCategoryRetail & SalesBondIndiana Sales Tax BondPlain descriptionThe Indiana Sales Tax Bond is required on a case-by-case basis by the Indiana Department of Revenue when a business has a history of late or missed sales tax payments, or when the DOR determines the business poses a col…Who needs this bondBusinesses required by the Indiana Department of Revenue to post security due to poor tax compliance history, repeated sales tax delinquencies, or significant tax exposure. This is not a universal requirement - the DOR …
FAQ
Common questions.
Who needs an Indiana Sales Tax Bond?
The Indiana Sales Tax Bond is not required for all businesses. The Indiana Department of Revenue requires it on a case-by-case basis for businesses with poor tax compliance history, repeated sales tax payment delinquencies, or when the DOR determines there is significant tax exposure or collection risk. If the DOR notifies you that a bond is required, you must obtain it before continuing operations or to resolve your tax compliance issues.
How is the Indiana Sales Tax Bond amount determined?
The bond amount is customized based on your business's specific tax exposure and compliance history. The Indiana Department of Revenue typically calculates it as 2-3 times your average monthly sales tax liability. Common bond amounts range from $2,000 to $50,000, though the DOR may require higher or lower amounts depending on their risk assessment of your business. You'll be notified of the exact amount required when the DOR issues the bond requirement.
What happens if I don't pay my sales taxes after getting bonded in Indiana?
If you fail to remit your sales taxes after being required to obtain a bond, the Indiana Department of Revenue will file a claim against your bond. The surety company will investigate and, if the claim is valid, will pay the DOR up to the full bond amount to cover your unpaid taxes, penalties, and interest. However, you (the business owner) are then legally required to reimburse the surety company for the full amount they paid, plus any legal fees and expenses. This can damage your credit and ability to get bonded in the future.
