Indiana Liquor License: Requirements, Types, and Fees

An Indiana liquor license is issued by the state’s Alcohol and Tobacco Commission (ATC), and depending on the permit type and where you want to operate, you should plan on $500 to $40,000 in state fees plus, in most desirable markets, a secondary-market purchase that can run from a few hundred thousand dollars into the millions.¹ Indiana caps the number of permits per city and town based on population, so in much of the state a new license simply isn’t available and you have to buy an existing one. The full process — application, local board hearing, and state approval — typically takes 10 to 12 weeks once your paperwork is complete.²

Which Permit You Actually Need

Indiana splits alcohol permits by where the customer drinks. A retailer permit covers on-premises consumption: bars, restaurants, hotels, and similar venues. A dealer permit covers off-premises sales: package liquor stores, drugstores, and grocery stores.³

Within each category, permits are described by how many “ways” of alcohol they cover:

One-way: beer only.
Two-way: beer and wine.
Three-way: beer, wine, and liquor.

The ATC organizes those categories into dozens of numbered subtypes. A 210 is a three-way retailer license for restaurants and taverns. A 209 is a similar three-way permit historically limited to certain municipalities. Other subtypes cover hotels, social clubs, horse tracks, gaming sites, excursion boats, and civic centers, each with its own fee schedule and conditions.⁴ Most new bars and restaurants end up applying for a 210.

If you’re only running a one-off festival or fundraiser, you don’t need any of these. Indiana offers temporary beer and wine permits (not liquor) that must be filed online at least five full business days before the event, with written approval from local law enforcement first.⁵

Who Can Hold a Permit

Indiana’s eligibility rules eliminate a lot of would-be applicants before they ever get to the fee schedule.

Age and Indiana Residency

You must be at least 21. More importantly, applicants for a retailer, dealer, or wholesaler permit must have been continuous Indiana residents for the five years immediately before applying.⁶ This is a firm statutory rule, and it regularly catches out-of-state investors off guard.

If a corporation or LLC will hold the permit, at least 60% of the ownership interest must belong to people who meet that same five-year residency requirement.⁶ You also file a verified list with the ATC disclosing every person who holds at least a 5% interest in the permit or who has authority to direct operations, and any change to that list has to be reported within ten days.⁷

Criminal History

A felony conviction within the past ten years disqualifies you. That covers federal crimes carrying a sentence of at least one year, Indiana Level 1 through Level 5 felonies, and equivalent felonies from other states. Expunged convictions don’t count.⁸ For corporate entities, officers and directors with control over the permit have to clear the same check.

What It Costs

State Filing Fees

The ATC’s fees are relatively predictable and depend on scope:

Beer-only retailer or dealer: $500
Beer and wine retailer: $750
Three-way retailer (most types): $1,000
Three-way dealer (package store or drugstore): $1,000
Fraternal club (any scope): $250

Specialty permits cost significantly more. A horse track permit runs $4,000, a lakefront or historic district three-way permit has an initial fee of $25,000, and a Hamilton or Boone County three-way permit starts at $40,000.⁴

The Secondary Market

The bigger number is usually the license itself. Indiana caps the number of permits in each city or town based on population, recalculated every ten years after the federal census.⁹ The formula gives smaller towns roughly one permit per 2,000 residents and cities of 80,000 or more about one per 6,000 residents.¹⁰

In most attractive markets, that quota is full. You can’t get a new permit — you have to buy one from an existing holder. According to ATC’s reported transfer prices as of early 2026, a three-way restaurant permit sold in Fort Wayne for $250,000, in Bloomington for $305,000, and in Fishers for $450,000. In Indianapolis, a 209 permit transferred for over $1.1 million, and in Zionsville a 210 permit sold for nearly $2 million.¹ Those numbers are on top of the state filing fee. If you’re planning a new bar or restaurant in a growing suburb, budget for the license purchase as a major capital line item; in many markets it costs more than the buildout.

How the Application Works

The ATC has been moving applications online. Since January 2024, temporary beer and wine permits must be filed through the ATC’s Online Application Portal, and since February 2026 all employee and salesman permit applications must be filed electronically as well. The portal also accepts new facility permit applications and facility renewals.⁵ Check the portal for your specific permit type, since the transition away from paper is ongoing.

Whatever the format, your application package needs to include details about the business entity, all officers and stakeholders, a legal description of the premises, a floor plan showing service and storage areas, and proof of property control such as a lease or deed. Corporate applicants must maintain an active registration with the Indiana Secretary of State. Incomplete applications get returned, and the clock doesn’t start until everything is in order.

After ATC’s administrative review, your application goes to a local board hearing. These hearings returned to in-person format in July 2021, and the ATC publishes schedules by county on its website.¹¹ You’ll need to attend and answer questions about your business plan and qualifications, and community members can raise concerns. The local board sends its recommendation to the state commission, which makes the final call.

For transfers and new applications, the ATC estimates the full process at 10 to 12 weeks from the submission of a complete application. Renewals typically run 8 to 10 weeks.² Once approved, the permit has to be displayed in a conspicuous place at the licensed premises before you can legally begin operations.

Check the Location Before You Sign a Lease

Indiana generally prohibits the ATC from issuing a permit for a premises within 200 feet of a school or church wall, measured wall to wall rather than property line to property line. Grocery stores, drugstores, restaurants, hotels, and catering halls can get a waiver if the church or school submits a written no-objection statement. The commission may also still issue a permit where the premises and the church are separated by at least 85 feet including a two-lane road at least 30 feet wide.¹² Measure before you sign anything.

Liquor Liability Insurance

Since July 1, 2024, every retailer and craft manufacturer holding an Indiana alcohol permit must carry at least $500,000 in liquor liability insurance. That can be a standalone liquor liability policy or a liquor liability endorsement on a general liability policy. Failing to maintain the coverage can result in suspension or revocation of your permit.¹³

Employee Permits and Server Training

Your business permit isn’t the whole picture. Every bartender, server, and clerk who handles alcohol sales must hold an individual employee permit from the ATC.¹⁴ The standard unrestricted employee permit requires the holder to be at least 21 and costs $45 for a three-year term.¹⁵

A restricted employee permit is available for workers aged 18 through 20, but only for serving alcohol in the dining room of a restaurant or hotel, not bartending or working in a bar area. When a restricted permit holder turns 21, they have to surrender it and get the unrestricted version to keep working.¹⁵

Every employee permit holder also has to complete a certified server training program within 120 days of being hired at an alcohol establishment. The ATC offers a free online course that satisfies the requirement, and several approved third-party providers offer alternatives.¹⁶

Renewal Deadline

Your renewal application has to reach the ATC at least 77 days (11 weeks) before the permit expires. Renewal fees are lower than initial fees for most types: $250 for a one-way, $500 for a two-way, and $750 for a three-way. Specialty permits with high initial fees, like the $25,000 lakefront or historic district permits, typically renew at $1,000.⁴ If your permit expires, you cannot legally sell alcohol, and the ATC cannot issue the renewal until the process is complete and approved.¹⁷

1
Indiana Alcohol and Tobacco Commission. Transfer Sale Price by Jurisdiction
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Indiana Alcohol and Tobacco Commission. Indiana Alcoholic Beverage Permit Process
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Indiana General Assembly. Indiana Code Title 7.1 Alcohol and Tobacco 7.1-3-10-7
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Indiana Alcohol and Tobacco Commission. Complete ATC Fee Schedule
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Indiana Alcohol and Tobacco Commission. Alcohol Permit Applications and Forms
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Justia. Indiana Code Title 7.1, Article 3, Chapter 21 – Restrictions on Issuance of Permits
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Indiana General Assembly. Indiana Code 7.1-3-21-8 – Disclosure of Interested Parties
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Indiana General Assembly. Indiana Code Title 7.1 Alcohol and Tobacco 7.1-3-4-2
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Indiana Alcohol and Tobacco Commission. Obtaining an Alcohol Permit
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Indiana General Assembly. Indiana Code Title 7.1 Alcohol and Tobacco 7.1-3-22-4
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Indiana Alcohol and Tobacco Commission. Local Board Hearings
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Indiana General Assembly. Indiana Code 7.1-3-21-11 – Premises Near Wall of School or Church
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Indiana Alcohol and Tobacco Commission. ATC Notice – Liquor Liability Insurance
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Indiana Alcohol and Tobacco Commission. About the Indiana Alcohol and Tobacco Commission
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Indiana Alcohol and Tobacco Commission. Restricted Employee Permit Laws
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Indiana Alcohol and Tobacco Commission. Server Training Classes
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Indiana Alcohol and Tobacco Commission. Frequently Asked Questions