How to Get an Indiana Liquor License

Last updated: September 11, 2026

In Indiana, “liquor license” means two completely different documents — and most people searching for one need the cheap one. If you tend bar, serve drinks, or check IDs, you need an employee permit: $45 for three years, applied for online, and you can work on the payment receipt for up to 90 days while it processes. If you are opening a bar, restaurant, or package store, you need a retailer or dealer permit — and that is a different world: quota-capped by population, and full in most incorporated cities, so the permit usually has to be bought from somebody who already holds one.

The Bartender & Server Permit (What Most People Need)

Indiana requires an employee permit from the Alcohol and Tobacco Commission for anyone at an on-premises establishment who serves or mixes drinks, checks IDs, or delivers alcoholic beverages to customers — and for package liquor store staff who sell alcohol and check IDs. It is the document job postings call a “liquor license” or “bartender license.”

• $45 for three years ($30 restricted permit if you are 18–20, valid two years or until you turn 21).
• Apply online through ATC Online Services; print your receipt — you may work up to 90 days on the payment receipt while the permit processes.
• Certified server training is mandatory. Age 21+: within 120 days of your date of hire. Age 18–20: before applying for the restricted permit. The ATC’s own online training is free, and the commission also approves third-party training providers. Note the wording differs across ATC materials — its server-training page measures the 120 days from date of hire, while its Alcohol Permits 101 deck words it as from the date the permit is issued. Counting from your hire date is the safer reading, and it is the earlier deadline.
• Age rules: bartenders must be 21+; servers can be 18–20 if supervised by a trained 21+ employee; package store staff must be 21+.
• Carry the permit and training certificate while working — excise officers can ask for both, and your employer must keep copies on file.

The Business Permit: What Indiana Actually Requires

Business permits come from the ATC, with the Indiana State Excise Police as the enforcement arm. The type you need depends on what you pour and where you are:

• Three-way retailer permit (beer, wine & liquor by the drink) — Type 210 in incorporated areas, Type 209 in unincorporated areas: $1,000 a year. This is the full-bar permit.
• Beer & wine retailer — restaurant: $750. Beer only: $500.
• Package liquor store dealer: $1,000 (carry-out only; store staff must be 21+ and minors are barred from entering).
• Food service is mandatory for on-premises permits: seating for at least 25 people and food service for 25 — at minimum hot sandwiches and hot soup, plus coffee, milk and soft drinks.
• Food sales targets on top of that, and they are specific. A retailer restaurant permittee in an unincorporated area (Type 209) must sell at least $200,000 in gross food in its first two years of operation, then at least $100,000 each year after. A permittee whose barroom is only partially separated from the dining area must either sell $200,000 in gross food per year or keep food at 60% of combined food and alcohol sales, excluding carry-out and catering.
• Buy only from licensed wholesalers — retail-to-retail purchasing is a violation, and beer is cash-on-delivery by law.
• Managers must file a manager’s questionnaire with the ATC and meet the same qualifications as the permit holder.

What It Costs

Item	Cost	Notes
Employee (bartender/server) permit	$45	Three years; restricted permit (18–20) $30
Certified server training	$0	ATC’s own online course is free; approved third-party courses available
Three-way retailer permit (209/210)	$1,000/yr	Beer, wine & liquor by the drink
Beer & wine retailer — restaurant	$750/yr	Beer only: $500/yr
Package liquor store dealer	$1,000/yr	Carry-out sales
New quota permit at ATC auction	Opens at the permit’s annual fee	$1,000 for a three-way; the winning bid is on top of the first-year permit fee
Economic redevelopment permit at auction	$35,000 minimum bid	A separate permit class only — not the floor for ordinary quota permits
Permit transfer of ownership	$250	$500 if ownership and location transfer together
Temporary beer & wine permit	$50/day	Beer and wine only — no liquor; apply 5+ days ahead
Indiana LLC	$100	Articles of organization, filed through INBiz

The Quota Is Full Where You Want to Open

Indiana caps retailer and dealer permits by population quota under IC 7.1-3-22, recalculated after every census — and in most incorporated cities and towns the quota is already full. The state is not issuing you a fresh three-way permit for $1,000 in downtown Indianapolis, because there are none left to issue.

That leaves two doors. Buy an existing permit from a current holder — a private transaction at market price, often through a broker, plus the ATC’s $250 transfer-of-ownership fee ($500 if the location moves too). Or bid at an ATC auction when the commission auctions permits. Auctions are cheaper to enter than people expect: by rule, the minimum starting bid equals the minimum annual fee for that permit type — so a three-way opens at $1,000, not some five-figure reserve. What you bid is in addition to the first-year permit fee, and the commission is not obliged to accept a bid below the minimum. Where competition is real the final price is set by the room, not by the floor.

One number to keep in its lane: the fee schedule’s $35,000 minimum bid belongs to the economic redevelopment permit class (which renews at $1,350), not to ordinary quota permits. It is easy to read that line as the general auction floor and budget five figures for a permit that opens at four.

Whichever route you take, access to the permit is the real cost — ATC publishes actual transfer sale prices by jurisdiction, and they range from nominal amounts to six figures depending on the town. Check that list for your market before assuming either extreme.

Check availability before you sign a lease: the ATC’s online portal shows quota status by jurisdiction. And note the permit follows the premises process either way — local board hearing, commission approval, excise floor-plan inspection — even when you buy an existing permit.

How to Get Licensed, In Order

1. Check the quota for your city or town in the ATC online portal before committing to a location.
2. Line up the permit — a new one if quota is open, a private purchase plus the $250 transfer fee if not, or an ATC auction (opening bid equals the permit type’s annual fee, $1,000 for a three-way).
3. Register the entity so the permit application, lease and insurance sit behind a company.
4. File the New or Transfer Permit application with the ATC, then appear before your county’s local alcoholic beverage board, which sends its recommendation to the commission.
5. Pass the Indiana State Excise Police floor-plan inspection — the permit does not become active without it.
6. Meet the food minimums — 25 seats, hot sandwiches and hot soup, coffee, milk and soft drinks.
7. Get every server and bartender their employee permit and training — certificates on file, permits carried while working.
8. Plan 10–12 weeks for processing; the ATC recommends applying at least 90 days before opening day.

Staying Licensed

Business permits renew annually at the fee-schedule rate for your type (a three-way restaurant permit renews at $1,000). Employee permits renew every three years at $45 — past a 120-day lapse the permit must be reinstated, not renewed. Keep wholesaler invoices available for inspection, keep employee permits and training certificates on file, and file any floor-plan change with the commission before you build it.

Frequently Asked Questions

How much does it cost to get your liquor license in Indiana?

It depends on which one you mean. The bartender and server permit — officially an employee permit — is $45 for three years. A business permit runs $500 to $1,000 a year depending on type: a three-way (beer, wine and liquor) restaurant permit is $1,000, beer and wine only is $750, and beer only is $500. But those annual fees are not the real cost for a new bar: quota permits in most incorporated cities are taken, so you either buy one from an existing holder at market price or bid at an ATC auction. Auctions open lower than most people expect — by rule the minimum starting bid equals the permit type’s minimum annual fee, so a three-way opens at $1,000, with your bid payable on top of the first-year permit fee. The $35,000 minimum bid on the fee schedule belongs to the separate economic redevelopment permit class, not to ordinary quota permits.

Do bartenders need a liquor license in Indiana?

Yes — an employee permit from the Alcohol and Tobacco Commission, and this is what most people searching for an Indiana liquor license actually need. It applies to anyone at an on-premises establishment who serves or mixes drinks, checks IDs, or delivers alcohol to customers, and to package store staff who sell alcohol. It costs $45, lasts three years, and you apply through ATC Online Services. You can start working for up to 90 days on your payment receipt while the permit processes.

What certification do I need to serve alcohol in Indiana?

A certified server training course on top of the employee permit. If you are 21 or older, you must complete it within 120 days of your date of hire. If you are 18, 19 or 20, you must complete it before applying for your restricted employee permit. The ATC offers its own online training program free of charge, and it also approves third-party providers. One caution: ATC’s materials word the 120-day clock differently — its server-training page counts from date of hire, its Alcohol Permits 101 deck from the date the permit is issued. Hire date is the earlier deadline and the safer one to work to.

How many liquor licenses can a city in Indiana have?

Retailer and dealer permits are capped by quota under Indiana Code 7.1-3-22, based on each city or town’s population and recalculated after every census. In most incorporated areas the quota is full — which is why new bars typically buy an existing permit rather than get a fresh one from the state.

How long does it take to get a liquor license in Indiana?

The ATC’s published processing time for new permits is 10 to 12 weeks, and the commission itself recommends applying at least 90 days before you intend to open. The application includes a hearing before your county’s local alcoholic beverage board and a final floor-plan inspection by the Indiana State Excise Police before the permit becomes active. Employee permits are faster — you can work on the payment receipt for up to 90 days.

Does an Indiana bar have to serve food?

Yes. A retailer restaurant permit premises must have seating for at least 25 people and food service for at least 25 — at minimum hot sandwiches and hot soup, plus coffee, milk and soft drinks. Restaurants in unincorporated areas (Type 209 permits) also carry gross food sales minimums, and premises with only limited separation between barroom and dining area must either sell $200,000 in food per year or keep food at 60 percent of combined food and alcohol sales.

Forming the company, taxes, insurance, and hiring are covered in our full guide to starting a business in Indiana.

Sources

Source	What It Covers
Indiana ATC — Complete Fee Schedule (2026)	Every 2026 permit fee: $1,000 three-way, $750 beer & wine, $45 employee permit, $250 transfers – and the $35,000 minimum bid listed against the economic redevelopment permit class
905 IAC 1-33.1-1 — Permit auctions	Subsection (f): the minimum starting bid equals the minimum annual fee for the permit type; subsection (g): amounts bid are in addition to the first year permit fee
Indiana ATC — Transfer Sale Price by Jurisdiction	What permits actually sell for in private transfers, by jurisdiction
Indiana ATC — Obtaining an Alcoholic Beverage Permit	Quota under IC 7.1-3-22, auction/purchase routes, local board step, 10–12 week processing
Indiana ATC — License Types	Type 209/210 three-way restaurant, package store and club permit types
Indiana ATC — Alcohol Permits 101	Employee permits, 120-day training deadline, age rules, 25-person food service minimums, food sales tests, wholesaler-only purchasing, floor-plan inspections
Indiana ATC — Certified Server Training	Free ATC online training and the approved third-party trainer list
Indiana ATC — Website FAQ	90-day application recommendation, temporary permits, food service minimums
Indiana SOS — Articles of Organization, Form 49459	$100 LLC filing fee (IC 23-18-2-4)