Indiana is not a dry state. Alcohol is legal statewide and sold under permits issued by the Indiana Alcohol and Tobacco Commission (ATC). What gives Indiana its reputation are a handful of unusual rules — narrow Sunday carryout hours, a cold beer monopoly held by liquor stores, and a long history of conservative alcohol regulation stretching back to before national Prohibition.
Where the Dry-State Reputation Comes From
Indiana went completely dry in April 1918, almost two years before the Eighteenth Amendment took effect nationally. The state later tightened its own rules with the Wright “bone dry” law in 1925, which made it a crime even to buy liquor. After Prohibition was repealed in 1933, Indiana rebuilt its alcohol system but kept a conservative streak that outlasted most other states.
The clearest example: Indiana banned Sunday carryout sales entirely until March 4, 2018, making it the last state in the country to allow seven-day retail alcohol sales.1Constitution Annotated. State Power Over Alcohol and Individual Rights That decades-long Sunday ban, paired with the cold beer rule still on the books, is what fuels the “is Indiana dry” question.
When You Can Buy Alcohol
Hours depend on whether you’re drinking on-site or taking it home.
Bars and Restaurants
On-premise establishments can serve every day of the week, from 7:00 AM to 3:00 AM the following morning.2Indiana General Assembly. Indiana Code 7.1-3-1-14 – Times When Sales Lawful No special Sunday rules, no holiday blackouts. A Sunday dinner with a bottle of wine at a restaurant is routine.
Carryout From Stores
Monday through Saturday, carryout sales run from 7:00 AM to 3:00 AM. Sunday is the tight day: stores can only sell between noon and 8:00 PM.2Indiana General Assembly. Indiana Code 7.1-3-1-14 – Times When Sales Lawful That eight-hour Sunday window is the one most newcomers get caught by.
Holidays
Indiana lifted its ban on Christmas Day alcohol sales in 2015. If a store or restaurant chooses to open on Christmas, it can sell during its normal permitted hours. No other holiday-specific restrictions apply.
Where You Can Buy What
Indiana’s second quirk is that the type of store determines what you can buy, and the differences are sharper than in most states.
Package Liquor Stores
Package liquor stores are the only retailers that can sell the full lineup of beer, wine, and spirits for carryout.3Indiana General Assembly. Indiana Code 7.1-3-10-5 – Package Liquor Stores Permissible Commodities They also hold an exclusive privilege that surprises most visitors: liquor stores are the only places in Indiana permitted to sell cold beer for carryout. The restriction has drawn repeated legislative challenges but remains in place as of 2025.
The ATC also caps liquor store density at one package store permit per 8,000 residents in an incorporated city or town.4Indiana General Assembly. Indiana Code 7.1-3-22-5 – Package Liquor Store Dealers Permit Renewal
Grocery, Convenience Stores, and Pharmacies
These retailers can sell beer and wine for off-premise consumption, but not spirits. And whatever beer they sell has to be room temperature. For a chilled six-pack on short notice, a package liquor store is the only retail option.
Breweries, Wineries, and Distilleries
Indiana’s craft producers — breweries, farm wineries, and artisan distillers — can sell their own products directly to consumers, both for tasting on site and for carryout, with specifics depending on the permit. These producers actually had Sunday sales before the rest of the retail market caught up in 2018.
Can an Indiana County or City Go Dry?
No. Unlike states where counties or towns can vote themselves dry, Indiana regulates alcohol almost entirely at the state level through the ATC.5Indiana Alcohol and Tobacco Commission. Trade Practice Manual No Indiana county, city, or town can ban alcohol sales inside its borders.
Each of the 92 counties has a local alcoholic beverage board that reviews permit applications and sends recommendations to the state.6Justia Law. Indiana Code 7.1-2-4 – Local Boards A local board can flag concerns about a specific applicant, but it cannot deny a permit on its own and it cannot shut off alcohol sales for the county. Every final call rests with the state commission.
One narrow carve-out arrived in 2025. Municipalities can now pass ordinances barring small breweries, farm wineries, and artisan distillers from selling or sampling at farmers’ markets inside the municipality.7Indiana General Assembly. Indiana Code 7.1-3-32-2 – Ordinances Concerning Alcohol at Farmers Markets That authority is specific to farmers’ markets. It does not extend to bars, restaurants, grocery stores, or liquor stores.
The Short Version
Alcohol is legal statewide in Indiana, every day of the week, for drinking out and for taking home. The pieces that catch people off guard are easy to list. Sunday carryout runs only from noon to 8:00 PM. Cold beer for carryout comes only from a package liquor store. Grocery and convenience stores skip spirits entirely. And no city or county can turn itself dry, so wherever you are in the state, the rules above are the rules that apply.