Indiana Liquor License Cost
Fees, license types, and requirements from the Indiana Alcohol and Tobacco Commission (ATC)
How much does a liquor license cost in Indiana?
| Business Type | Scenario | Total Fee | Period | Permits Required |
|---|---|---|---|---|
| Restaurant | Restaurant with full bar (beer, wine & liquor) | $1,000 | per year | RETAILER_3WAY |
| Restaurant | Restaurant with beer and wine only | $750 | per year | RETAILER_BW |
| Bar / Nightclub | Bar with full liquor service | $1,000 | per year | RETAILER_3WAY |
| Brewery / Brewpub | Small craft brewery with taproom | $500 | per year | SMALL_BREWER |
| Winery | Farm winery with tasting room | $500 | per year | FARM_WINERY |
| Distillery | Artisan distillery with tasting room | $250 | per year | ARTISAN_DISTILLERY |
| Convenience Store | Convenience store selling beer and wine | $750 | per year | DEALER_BW |
Indiana's Quota-Limited Permits and the Three-Way Package Store Restriction
Indiana's alcohol regulation is administered by the Alcohol & Tobacco Commission (ATC), a five-member commission appointed by the Governor. The ATC oversees approximately 14,000 active permits statewide. Indiana's licensing system is notable for several unique restrictions, including the three-way permit (package store) quota, the prohibition on cold beer sales at convenience and grocery stores, and Sunday alcohol sales regulations. The ATC operates under Indiana Code Title 7.1 (Alcohol and Tobacco).
Regulatory environment
Indiana has a restrictive licensing environment for certain permit types. The most notable restriction is the three-way permit (retailer's permit allowing carryout sales of beer, wine, and liquor): these are quota-limited to one per 1,500 population in each municipality. This quota creates a secondary market where three-way permits can trade for $20,000-$120,000 depending on location. Indiana is also one of the last states to restrict cold beer sales — until recent legislative changes, only liquor stores with three-way permits could sell cold beer, while convenience stores and grocery stores could only sell beer at room temperature.
License availability
Restaurant permits (beer and wine, or full liquor with 60%+ food sales) are non-quota and available through standard application. Tavern permits (on-premise without food requirement) are also non-quota. The quota constraint primarily affects off-premise retailers seeking to sell packaged liquor. New three-way permits become available only when population growth creates quota room. In Indianapolis (Marion County), most quota permits are already issued, making secondary market purchases the primary path. Processing time for non-quota permits is 30-60 days.
What drives costs
Indiana's state permit fees are moderate: restaurant permits run $1,000/year, tavern permits $1,500/year, and three-way (package store) permits $1,000/year. The quota premium for three-way permits is the major cost driver — permits in Indianapolis trade for $80,000-$120,000, while permits in smaller cities range from $20,000-$50,000. Non-quota restaurant and tavern permits avoid this premium entirely. Local fees add $100-$500 in most jurisdictions. Indiana's effective total cost for on-premise operators is moderate, but off-premise package store operators face quota costs comparable to mid-tier Florida and New Jersey markets.
Application process
Applications are filed with the Indiana Alcohol and Tobacco Commission and require a criminal background check for all owners and officers. Local government approval through a remonstrance hearing process is mandatory — this public hearing allows community members to formally object to the license, and the local government's recommendation carries significant weight with the ATC. Indiana business registration and a surety bond may be required depending on the permit type. All employees who serve alcohol must obtain individual employee permits at $45 for a three-year term. The process typically takes 60 to 90 days for non-quota permits.
Common pitfalls and denial reasons
The remonstrance hearing process is Indiana's most distinctive denial mechanism — unlike most states where public objections are advisory, Indiana's remonstrance system gives community opposition formal legal standing, and sustained remonstrances can block an application outright. Quota permit applicants in saturated markets like Indianapolis face the practical reality that no new permits exist, forcing them into secondary market negotiations with existing holders. Indiana's 93 different permit types create classification confusion, and applicants who file under the wrong permit category waste time and filing fees navigating the correction process.
Local quirks worth knowing
Indiana's cold beer restriction was one of the most peculiar alcohol laws in America — until the 2024 legislative change, convenience stores and grocery stores could sell beer but only at room temperature, while liquor stores with three-way permits had a monopoly on refrigerated beer. This rule generated years of legislative debate and fierce lobbying from both the liquor store and convenience store industries. No alcohol sales on Sundays before noon remains in effect, a holdover from Indiana's historically conservative approach to alcohol regulation that survived even as the state modernized other aspects of its liquor code.
Need help getting started? Read our step-by-step licensing guide, or compare Indiana fees with other states using our comparison tool.
Indiana License Types
RETAILER_3WAY Retailer Permit (Beer, Wine & Liquor) $1,000/yr
Sale of beer, wine, and distilled spirits for on-premise consumption. The standard full-bar permit.
Annual fee is $1,000 for all three beverage types. This is a quota permit in most counties — may need to purchase from existing holder.
RETAILER_BW Retailer Permit (Beer & Wine) $750/yr
Sale of beer and wine for on-premise consumption. No distilled spirits.
Annual fee $750 for beer and wine combined. Non-quota in most areas.
RETAILER_BEER Retailer Permit (Beer Only) $500/yr
Sale of beer/malt beverages for on-premise consumption.
Beer only on-premise permit. $500/year.
DEALER_3WAY Dealer Permit (Beer, Wine & Liquor) $1,000/yr
Sale of beer, wine, and liquor in original sealed packages for off-premise consumption. Package store/liquor store permit.
Quota permit. Package liquor store license. Transfer prices can be $50,000-$200,000+ in high-demand areas.
DEALER_BW Dealer Permit (Beer & Wine) $750/yr
Sale of beer and wine in original packages for off-premise consumption.
Beer and wine package sales. Common for grocery and convenience stores.
BREWER Brewer Permit $2,000/yr
Manufacture of beer and malt beverages. Includes taproom privileges.
Full brewery permit. Small brewer permit available at $500/year for qualifying smaller operations.
SMALL_BREWER Small Brewer Permit $500/yr
Manufacture of beer for smaller craft breweries. Includes taproom and limited self-distribution.
For craft breweries producing under 30,000 barrels/year. Includes taproom sales.
FARM_WINERY Farm Winery Permit $500/yr
Manufacture of wine from Indiana-grown products. Includes tasting room and direct sales.
Must use Indiana-grown agricultural products. May sell at farmers markets and tasting room.
WINE_VINTNER Wine Vintner Permit $2,000/yr
Manufacture and wholesale of wine. Commercial winery license.
Full commercial winery permit. Allows wholesale distribution.
ARTISAN_DISTILLERY Artisan Distillery Permit $250/yr
Manufacture of distilled spirits for small craft distilleries. Includes tasting room privileges.
For small craft distilleries. Lower fee than full distiller permit. Includes on-site tasting and sales.
CATERER Caterer Permit $500/yr
Service of alcoholic beverages at catered events at off-site locations.
Annual permit for catering operations. Must maintain records of all events.
Requirements
General Requirements
- Must be at least 21 years old
- Criminal background check required
- Local government approval (remonstrance hearing process)
- Indiana business registration required
- Surety bond may be required depending on permit type
- Federal TTB permit required for manufacturers
- Employee permits required for all staff serving alcohol ($45 for 3 years)
Notable Restrictions
- Indiana uses a quota system for many retail liquor licenses — limited number per county
- Quota licenses can be transferred/sold, often for $50,000-$200,000+ in high-demand areas
- No alcohol sales on Sundays before 12:00 PM (noon)
- Cold beer sales at convenience/grocery stores became legal in 2024
- Package stores (liquor stores) have specific operating hour restrictions
- 93 different permit types exist — one of the most complex systems in the US
Frequently Asked Questions
How does Indiana's quota permit system work?
Indiana limits the number of full liquor (3-way) retailer permits available in each county based on population. When a county has issued all available quota permits, new applicants cannot get one from the state — they must purchase or lease an existing permit from a current holder. Permit transfer prices in high-demand areas like Indianapolis and its suburbs can reach $50,000-$200,000+. Beer-and-wine (2-way) permits are generally not quota-limited in most counties, making them significantly easier to obtain if you don't need spirits. Check with the Indiana ATC for current quota availability in your county before budgeting for your application.
Can I sell cold beer at a convenience store in Indiana?
Yes, as of 2024. Indiana's legislature approved cold beer sales at convenience and grocery stores after years of restriction (previously only package liquor stores could sell cold beer). A standard Dealer Beer and Wine permit ($750/year) now allows convenience and grocery stores to sell cold beer alongside warm beer. Package liquor stores previously held an exclusive on cold beer sales — that exclusivity ended with the 2024 law change. Full liquor stores still sell a wider selection including spirits, but the cold beer monopoly is gone.
Can I sell alcohol on Sundays in Indiana?
Yes, but not before noon. Indiana allows alcohol sales on Sundays starting at 12:00 PM (noon). Before 2018, Sunday carry-out sales were banned entirely; the legislature authorized them starting in 2018. On-premise consumption (bars and restaurants) is permitted on Sundays starting at noon as well. Some local ordinances may be more restrictive, so confirm with your municipality. There is no Sunday sales premium or special license required — your standard retailer permit covers Sundays as long as you observe the noon start time.
Can I transfer an Indiana liquor permit?
Yes — quota permits in Indiana can be transferred between parties, which is why they have market value. A permit transfer requires Indiana ATC approval and typically goes through a formal application process including background checks on the buyer. The state fee for the transfer itself is modest, but the cost of acquiring the permit from the seller is where the real expense lies ($50,000-$200,000+ for 3-way permits in competitive counties). Non-quota permits (such as beer-and-wine retailer permits) have no secondary market because a new one can be obtained directly from the ATC. Transfers of quota permits must be reported to the ATC and are subject to the same public remonstrance process as new applications.
What's the cheapest type of liquor license in Indiana?
The cheapest Indiana ATC permit is the Artisan Distillery Permit at $250/year, but that's only for operating a craft distillery with an on-site tasting room. For food service, a Beer Only Retailer Permit runs $500/year — the entry-level option if you only want to serve beer on-premise. A Beer and Wine Retailer Permit is $750/year and covers both beer and wine without spirits. The full 3-way Retailer Permit (beer, wine, and spirits) is $1,000/year in state fees, but the bigger cost is acquiring the quota permit in counties where none are available. If you're in an area with quota availability, $1,000/year is all you pay the state — the quota purchase cost only applies when buying from an existing holder.
Sources
Data sourced from the Indiana Alcohol and Tobacco Commission (ATC). Last verified 2026-03-26.