Credit card processing and merchant services in Evansville, IN
Evansville restaurants charge 8% on taxable food and drink: Indiana's 7% plus Vanderburgh County's 1% food and beverage tax. A location across the river in Kentucky charges that state's 6%.
Most taxable sales in Evansville carry Indiana's 7% sales tax and nothing else. Food and drink get one more point. The Indiana Department of Revenue lists Vanderburgh County's food and beverage tax at 1%, in effect since August 1, 1985, so a taxable restaurant sale comes to 8%.
A mixed ticket is the quickest test of your setup. Ring up a $25 meal and a $15 T-shirt together: the meal should carry $2.00 in tax and the shirt $1.05, for $3.05 in all. If your POS shows $2.80 or $3.20, one of the two tax categories is wrong. Fix it before the next busy weekend, because the same error lands on every ticket.
The Ohio River is also a state line. Kentucky's sales tax is 6%, and the Kentucky Department of Revenue says the state has no local sales and use taxes. A business with locations on both banks programs its Kentucky terminals at 6% and its Indiana ones at 7%, or 8% for food and drink, and each state's tax goes to that state. Our Cincinnati page covers the same river border from Ohio.
Card fees work the same on both banks. We found no surcharge statute in Indiana or Kentucky, which leaves the card networks in charge: a credit-only fee, capped at 3% for Visa, 4% for Mastercard and your actual cost either way. The Indiana page and the Kentucky page cite the sources.
The Census Bureau's July 1, 2025 estimate puts Evansville at 116,176 people, 0.9% fewer than in April 2020. We serve Evansville restaurants and retailers remotely, on interchange-plus pricing with no long-term contract, and a free statement review shows where your current rate stands.
Payment services we provide
Guides worth reading next
All guidesIndustries
Hotel credit card processing: holds, no-shows, fees
Hotel credit card processing explained: check-in holds, incremental authorizations, no-show charges, deposits, late charges, and the FTC total price rule.
Hardware and POS
Store and forward: taking card payments offline
Store and forward lets a card terminal save payments offline and send them later. How it works, the risk of declines after the fact, and the limits to set.
Fees and pricing
Amex OptBlue: what it is and how its pricing works
Amex OptBlue lets your payment provider sign you up for American Express and set your Amex rate. Who qualifies, how pricing works, and what to ask first.
Common questions
How much tax goes on a restaurant meal in Evansville?
8% on taxable food and drink: Indiana's 7% sales tax plus Vanderburgh County's 1% food and beverage tax, which the Department of Revenue lists as effective August 1, 1985. Merchandise sold on the same ticket stays at 7%, so give food and drink their own tax category on your POS terminals.
Is Vanderburgh County's food tax the same as Indianapolis'?
No. The Department of Revenue lists Vanderburgh County at 1% and Marion County, home of Indianapolis, at 2%. Allen County, home of Fort Wayne, is at 1% like Vanderburgh. A restaurant group in more than one county needs a food tax setting for each; see our Indianapolis and Fort Wayne pages.
What sales tax does a Kentucky location near Evansville charge?
Kentucky's 6%. The Kentucky Department of Revenue says the state has no local sales and use taxes, so the same rate applies at every Kentucky location. Keep those terminals on a separate setting from your Indiana stores, which charge 7%, or 8% on food and drink in Vanderburgh County.
Can an Evansville business charge a fee for card payments?
On credit cards, yes. Indiana has no surcharge statute, so Visa and Mastercard set the terms: at most 3% on Visa or 4% on Mastercard, never more than your cost, and a notice at the door and register before the sale. Debit and prepaid cards can't carry one. A cash discount is the other route; see dual pricing vs. surcharging.
More Indiana cities besides Evansville
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
Let's talk about your payments
Tell us about your business and how you take payments now, and a Clearo rep will reach out within one business day.