I’ve seen both ways suggested by equally credible sources. The wrong way to do this is to manually insert a tab or several spaces at the beginning of each paragraph. If you have questions about punctuation within quotation marks, when to start a new paragraph & how to keep dialogue brief, learn the rules of writing dialogue Some of this is Grammar 101, but you’ve got to master the rules in this section for an editor to take you seriously. from the left margin. You can still use the tab key in your word processor, but that's not the best way to indent a paragraph. Using the tab key inserts an actual invisible tab character into your text, which can mess up the formatting later when your publisher tries to reformat your document for publication.
If a paragraph is preceded by a title or subhead, the indent is superfluous and can therefore be omitted, as it is here. Indent the first line of each paragraph of text 0.5 in.

Do not use the space bar to create indentation. I'm writing a 2-page short story. Or none at all? Indent new paragraphs and each new section of dialogue, with the exception of the opening paragraph of a chapter or scene break. Again, there’s an option to indent the first line of each paragraph automatically in the paragraph formatting options: don’t use the tab key to do it. Don’t do this by hitting the tab key. You indent every paragraph. The correct way to do this is to use a style in your word processor that automatically indents each paragraph half an inch. Indent paragraphs by 1/2 inch, and don’t put an extra space between paragraphs There is some debate about whether the first paragraph of a chapter or section needs to be indented. Leaving a complete blank line between paragraphs is something you’ll see when reading online, including on this site but, has no place in text documents. These will screw up your typesetter’s life, so save him some grief and do it right to begin with. When formatting paragraphs in your manuscript, however, bear in mind that, for technical reasons, most editors and publishers prefer authors not to indent the first line of a paragraph (though if you do indent, use the tab key and not the space bar); and to insert a line spaces between paragraphs – in the same way as this web page is laid out. The function of a paragraph indent is to mark a pause, setting the paragraph apart from what precedes it. Instead, set indentation to 1.25cm in Word through Format->Paragraph->Section. Use the tab key or the automatic paragraph-formatting function of your word-processing program to achieve the indentation (the default setting is likely already 0.5 in.). 2.3.2 In continuous text, mark all paragraphs after the first with an indent … Should I indent on every paragraph, or just the first one?

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