Credit card processing and merchant services in Indianapolis, IN
Indianapolis restaurants collect Marion County's 2% food and beverage tax on top of Indiana's 7% sales tax. Set both up correctly, then make sure your processing rate isn't eating the margin.
Indianapolis is a 901,116-person city by the Census Bureau's July 2025 estimate, 1.5% bigger than in 2020. Its retailers rang up $26.0 billion in sales in 2022, the most recent Economic Census, and for most of what they sell there are two tax rates to get right.
Most taxable goods carry Indiana's 7% sales tax. Food and beverage sales also carry Marion County's 2% food and beverage tax, which the Indiana Department of Revenue administers and which has been in place since July 1, 2005. A lunch counter that also sells merchandise needs both rates programmed, 9% for the food and 7% for the T-shirts, so set up separate tax categories before your first sale.
Health care comes next: providers in the city reported $16.8 billion in health care and social assistance revenue in 2022. Practices often collect after the visit, by phone or once an insurance claim settles. The virtual terminal is built for that kind of billing, with keyed phone payments, emailed invoices, payment links and recurring charges for payment plans. Our medical and dental page has more.
Card rules follow Indiana's: there's no state surcharge statute, so the Visa and Mastercard caps and the ban on surcharging debit cards apply. Details and sources are on the Indiana page.
Every Clearo account gets a dedicated rep and interchange-plus pricing, with no long-term contract. Send one recent statement for a free statement review and you'll see your effective rate in plain numbers.
Rules that matter in Indianapolis
Marion County food and beverage tax
Food and beverage sales in Marion County carry a 2% county food and beverage tax on top of Indiana's 7% sales tax. The Indiana Department of Revenue administers it and lists the rate, in effect since July 1, 2005, in its food and beverage tax guide; check that guide for which sales it covers.
Sources: Indiana Department of Revenue, Food and beverage tax; Indiana Department of Revenue, Tax types
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Common questions
What sales tax does an Indianapolis restaurant charge?
Indiana's 7% sales tax plus Marion County's 2% food and beverage tax, so 9% on taxable food and drink. Retail items you sell alongside, like merchandise, stay at 7%. Program separate tax categories on your POS terminals so each item gets the right rate.
Does every Indiana county charge a 2% food and beverage tax?
No. Food and beverage taxes are set by area, and the Department of Revenue publishes each area's rate. Marion County and the Orange County Historic Hotel area are at 2%. If you have restaurants in more than one county, check the DOR's table for each location.
Can an Indianapolis medical practice take payments by phone?
Yes. With a virtual terminal, your front desk keys in a card over the phone, and the same tool sends email invoices and payment links and runs recurring billing for payment plans. Indiana has no surcharge statute, but if you add one, card network rules cap it and bar it on debit cards.
Can Indianapolis businesses surcharge credit cards?
Yes, within the card networks' limits, since Indiana has no surcharge law. For an Indianapolis restaurant that means a credit-only fee of up to 3% on Visa or 4% on Mastercard and no higher than your cost, disclosed at the door, at the register and on the receipt, with 30 days' written notice to your acquirer first.
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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.
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