State Guides

California's partial exemption for R&D and manufacturing — the 3.9375% rate

California offers a partial sales and use tax exemption for equipment and machinery used primarily in qualifying manufacturing or R&D operations. The partial exemption reduces the state tax rate by approximately 3.9375%, leaving only the local and district tax portions as taxable. This applies to tangible personal property used in production and R&D under California R&TC §6377.1.

Colorado home rule cities — what they are and how they affect filing

Colorado has over 70 'home rule' municipalities that administer their own sales tax independently of the state, with their own rates, forms, filing deadlines, and audit authority. Sellers with Colorado sales must file separately with each home rule city where they have nexus, in addition to filing the state return. This is why Colorado is considered the most complex sales tax state for remote sellers.

Louisiana parish-level sales tax filing — what every ecommerce seller needs to know

Louisiana has 64 parishes (counties), most of which independently administer their own sales taxes. Remote sellers use the Louisiana Remote Sellers Commission (LARC) portal to file a single consolidated return covering all parish sales. LARC does not cover Orleans Parish (New Orleans), which requires a separate filing. Louisiana's combined rates vary significantly by parish.

Sales Tax in Alabama: A Complete Guide for Ecommerce Sellers

Alabama sales tax: $250,000 threshold (higher than the standard $100K), 4% state rate plus county and city additions (combined up to 12%+ in some areas). Alabama offers the Simplified Sellers Use Tax (SSUT) program: a flat 8% rate that covers all jurisdictions. Not an SST state.

Sales tax in Alaska — no state tax, local taxes apply

Alaska has no state sales tax, but many Alaskan municipalities impose local sales taxes of 0–7.5%. Remote sellers with economic nexus in Alaska may owe local taxes through the Alaska Remote Seller Sales Tax Commission (ARSSTC). Alaska is unique among no-state-tax states in that local sales taxes are significant and enforced for remote sellers.

Sales Tax in Arizona: A Complete Guide for Ecommerce Sellers

Arizona Transaction Privilege Tax (TPT): $100,000 threshold (no transaction count), 5.6% state rate plus city and county additions (Phoenix 8.6%, Scottsdale 8.05%), not an SST state. Arizona's TPT is a tax on the seller, not the buyer, structurally different from most states.

Sales Tax in Arkansas: A Complete Guide for Ecommerce Sellers

Arkansas sales tax: $100,000 or 200 transactions threshold, 6.5% state rate plus county and city additions (combined up to 11%+), SST member state. Arkansas taxes food at a near-zero state rate (0.125%) effective 2023, though local taxes still apply. Combined rates vary significantly by city.

Sales Tax in California: A Complete Guide for Ecommerce Sellers

California sales tax: $500,000 economic nexus threshold, 7.25% state rate with local additions up to 10.75%, not an SST state. Remote sellers must register with the CDTFA. California has a notable third-party access PIN-by-mail process that delays account setup by weeks.

Sales Tax in Colorado: A Complete Guide for Ecommerce Sellers

Colorado sales tax: $100,000 threshold (no transaction count), 2.9% state rate plus local additions reaching 10%+ in some areas, not an SST state. Colorado home rule cities administer their own independent sales tax, sellers may need to register separately with Denver, Boulder, and other home rule cities.

Sales Tax in Connecticut: A Complete Guide for Ecommerce Sellers

Connecticut sales tax: $100,000 or 200 transactions threshold, 6.35% flat statewide rate with no local additions, not an SST state. Connecticut exempts clothing and footwear under $50 per item. A 7.75% luxury rate applies to certain high-value items.

Sales tax in Delaware — no sales tax state guide

Delaware has no state or local sales tax. Online sellers shipping to Delaware customers do not collect sales tax. Delaware instead imposes a gross receipts tax on businesses with revenue from Delaware sales, but this is a business activity tax, not a transactional consumer sales tax.

Sales Tax in Florida: A Complete Guide for Ecommerce Sellers

Florida sales tax: $100,000 economic nexus threshold, 6% state rate plus discretionary county surtax (combined typically 7%–7.5%), not an SST state. Florida requires annual renewal of resale certificates, which is a commonly missed obligation for B2B sellers.

Sales Tax in Georgia: A Complete Guide for Ecommerce Sellers

Georgia sales tax: $100,000 or 200 transactions threshold, 4% state rate plus county LOST and city additions (combined 7%–9%), SST member state. Georgia exempts unprepared food at the state level but counties still tax it. Amazon has major fulfillment presence in Georgia.

Sales Tax in Hawaii: A Complete Guide for Ecommerce Sellers

Hawaii General Excise Tax (GET): $100,000 or 200 transactions threshold, 4% statewide rate (4.5% on Oahu), not an SST state. Hawaii's GET is structurally different from a traditional sales tax, it's a tax on the seller's gross receipts and applies to virtually all business activity including services. Sellers may pass the GET to customers but are not required to.

Sales Tax in Idaho: A Complete Guide for Ecommerce Sellers

Idaho sales tax: $100,000 or 200 transactions threshold, 6% state rate plus city additions in resort cities (Sun Valley, McCall up to 9%), SST member state. Most Idaho addresses are at the 6% flat state rate, city additions are limited to a small number of resort communities.

Sales Tax in Illinois: A Complete Guide for Ecommerce Sellers

Illinois sales tax: $100,000 or 200 transactions threshold, 6.25% state rate for general merchandise (1% for food/drugs), not an SST state. Illinois has home rule municipalities that can set their own rates and levy additional taxes outside the state system.

Sales Tax in Indiana: A Complete Guide for Ecommerce Sellers

Indiana sales tax: $100,000 or 200 transactions threshold, 7% flat statewide rate with no local additions, SST member state. Indiana's single flat rate and SST membership make it one of the most straightforward states to add to a multi-state compliance program.

Sales Tax in Iowa: A Complete Guide for Ecommerce Sellers

Iowa sales tax: $100,000 or 200 transactions threshold, 6% state rate plus 1% local option sales tax in most jurisdictions (combined 7% in most of Iowa), SST member state. Iowa's local option sales tax applies statewide in the vast majority of jurisdictions.

Sales Tax in Kansas: A Complete Guide for Ecommerce Sellers

Kansas sales tax: $100,000 or 200 transactions threshold, 6.5% state rate plus county and city additions (Wichita 7.5%, Kansas City area higher), SST member state. Kansas eliminated its state sales tax on food effective January 1, 2025: a significant change for food sellers.

Sales Tax in Kentucky: A Complete Guide for Ecommerce Sellers

Kentucky sales tax: $100,000 or 200 transactions threshold, 6% flat statewide rate with no local additions, SST member state. Kentucky significantly expanded its list of taxable services in 2023, including SaaS and many digital services. Simple rate structure.

Sales Tax in Louisiana: A Complete Guide for Ecommerce Sellers

Louisiana sales tax: $100,000 or 200 transactions threshold, 4.45% state rate plus parish and local additions (combined 9%–12% in New Orleans and Baton Rouge). Louisiana parishes independently administer their own sales taxes, among the most complex local systems in the US. Not an SST state.

Sales tax in Maine — rates, nexus, and filing

Maine has a 5.5% state sales tax with no local sales taxes. The economic nexus threshold is $100,000 or 200 transactions. Maine is not an SST member state. Prepared food is taxed at 8%, and lodging at 9%. Digital goods treatment is mixed, downloaded software is taxable but SaaS is generally not.

Sales Tax in Maryland: A Complete Guide for Ecommerce Sellers

Maryland sales tax: $100,000 or 200 transactions threshold, 6% flat statewide rate with no local additions, not an SST state. Maryland taxes digital products and has one of the broadest digital product tax bases among US states. Simple rate structure, one rate applies statewide.

Sales Tax in Massachusetts: A Complete Guide for Ecommerce Sellers

Massachusetts sales tax: $100,000 threshold (no transaction count), 6.25% flat statewide rate with no local additions, not an SST state. Massachusetts exempts clothing items under $175 each. Shipping is generally not taxable when separately stated.

Sales Tax in Michigan: A Complete Guide for Ecommerce Sellers

Michigan sales tax: $100,000 or 200 transactions threshold, 6% flat state rate with no local additions, SST member state. Michigan is one of the simplest rate structures of any major state, one rate applies statewide with no county or city variations.

Sales Tax in Minnesota: A Complete Guide for Ecommerce Sellers

Minnesota sales tax: $100,000 or 200 transactions threshold, 6.875% state rate plus local additions (Minneapolis 8.025%), SST member state. Minnesota broadly exempts clothing, any clothing item regardless of price is exempt, unlike New York's $110 threshold.

Sales Tax in Mississippi: A Complete Guide for Ecommerce Sellers

Mississippi sales tax: $250,000 threshold (higher than standard $100K), 7% state rate for most goods with no county additions, not an SST state. Mississippi has one of the highest base state rates in the US and a higher-than-standard economic nexus threshold.

Sales Tax in Missouri: A Complete Guide for Ecommerce Sellers

Missouri sales tax: $100,000 or 200 transactions threshold effective January 1, 2023, one of the last states to enact economic nexus. 4.225% state rate plus county, city, and special district additions (combined rates up to 10%+ in Kansas City and St. Louis). Not an SST state. Shipping generally not taxable when separately stated.

Sales tax in Montana — no sales tax state guide

Montana has no state or local sales tax. Online sellers shipping to Montana customers do not collect sales tax on those orders. Montana is one of five states with no sales tax, alongside Oregon, New Hampshire, Delaware, and Alaska (which allows local-only taxes).

Sales Tax in Nebraska: A Complete Guide for Ecommerce Sellers

Nebraska sales tax: $100,000 or 200 transactions threshold, 5.5% state rate plus city additions up to 2% (Omaha and Lincoln 7%), SST member state. Simple rate structure, county-level additions are not used; only state and city rates apply.

Sales Tax in Nevada: A Complete Guide for Ecommerce Sellers

Nevada sales tax: $100,000 or 200 transactions threshold, 6.85% state rate plus county additions (Clark County/Las Vegas is 8.375%), SST member state. Nevada has relatively simple local rate structure with county-only additions and no city-level sales taxes.

Sales tax in New Hampshire — no sales tax state guide

New Hampshire has no state or local general sales tax. Online sellers shipping to New Hampshire customers do not collect sales tax. New Hampshire does impose a Meals and Rentals Tax on prepared food, hotel stays, and car rentals, but this does not apply to general ecommerce product sales.

Sales Tax in New Jersey: A Complete Guide for Ecommerce Sellers

New Jersey sales tax: $100,000 or 200 transactions threshold, 6.625% flat statewide rate with no local additions, not an SST state. New Jersey broadly exempts clothing with no dollar cap. Shipping is generally not taxable when separately stated. Urban Enterprise Zones have a reduced 3.3125% rate.

Sales Tax in New Mexico: A Complete Guide for Ecommerce Sellers

New Mexico Gross Receipts Tax (GRT): $100,000 or 200 transactions threshold, combined rates typically 5%–9% depending on location, not an SST state. New Mexico's GRT is structurally different, it's a tax on the seller's gross receipts, not a traditional sales tax. GRT applies to services and digital products broadly.

Sales Tax in New York: A Complete Guide for Ecommerce Sellers

New York sales tax: $500,000 AND 100 transactions threshold, 4% state rate plus local additions (8.875% in NYC), not an SST state. Clothing under $110 per item is generally exempt. New York City has a complex multi-layer rate structure.

Sales Tax in North Carolina: A Complete Guide for Ecommerce Sellers

North Carolina sales tax: $100,000 or 200 transactions threshold, 4.75% state rate plus county additions (combined 6.75%–7.5%), SST member state. North Carolina taxes digital products and SaaS. All 100 counties levy a local rate, but there are no city-level additions.

Sales tax in North Dakota — rates, nexus, and filing

North Dakota has a 5% state sales tax plus local taxes that can bring combined rates to 8%+. The economic nexus threshold is $100,000 with no transaction count. North Dakota is an SST member state. Food is generally exempt; clothing is taxable.

Sales Tax in Ohio: A Complete Guide for Ecommerce Sellers

Ohio sales tax: $100,000 or 200 transactions threshold, 5.75% state rate plus county additions (combined 6.5%–8%), SST member state. Ohio registration is simplified through the SST program and counties levy additional rates that vary significantly across the state.

Sales Tax in Oklahoma: A Complete Guide for Ecommerce Sellers

Oklahoma sales tax: $100,000 or 200 transactions threshold, 4.5% state rate plus county and city additions (Oklahoma City 8.625%, Tulsa 8.517%), not an SST state. Shipping is generally not taxable when separately stated. Oklahoma's local rate structure is complex with hundreds of city and county jurisdictions.

Sales Tax in Oregon: A Complete Guide for Ecommerce Sellers

Oregon has no sales tax, no state sales tax, no county or city sales tax. Oregon is one of five states with no sales tax. Sellers shipping to Oregon addresses owe no sales tax on those transactions, and Oregon customers cannot be charged sales tax.

Sales Tax in Pennsylvania: A Complete Guide for Ecommerce Sellers

Pennsylvania sales tax: $100,000 or 200 transactions threshold, 6% state rate (8% in Philadelphia, 7% in Allegheny County), not an SST state. Clothing is generally exempt in Pennsylvania. Shipping is generally not taxable when separately stated, one of the few major states with this rule.

Sales tax in Rhode Island — rates, nexus, and filing

Rhode Island has a flat 7% state sales tax with no local taxes. The economic nexus threshold is $100,000 or 200 transactions. Rhode Island is an SST member state and taxes digital goods and SaaS. Marketplace facilitators collect on behalf of sellers on most platforms.

Sales Tax in South Carolina: A Complete Guide for Ecommerce Sellers

South Carolina sales tax: $100,000 threshold (no transaction count), 6% state rate plus county and local additions (combined 7%–9%), SST member state. Shipping is generally not taxable when separately stated in South Carolina.

Sales tax in South Dakota — rates, nexus, and filing

South Dakota has a 4.5% state sales tax plus local taxes reaching 6%+. South Dakota is the state that won South Dakota v. Wayfair (2018), establishing economic nexus nationally. The threshold is $100,000 or 200 transactions. South Dakota is an SST member, taxes services broadly, and has no income tax.

Sales Tax in Tennessee: A Complete Guide for Ecommerce Sellers

Tennessee sales tax: $100,000 threshold (no transaction count), 7% state rate plus local additions up to 2.75% (combined up to 9.75%), SST member state. Tennessee has one of the highest combined sales tax rates in the US. Food is taxed at a reduced 4% state rate.

Sales Tax in Texas: A Complete Guide for Ecommerce Sellers

Texas sales tax: $500,000 economic nexus threshold, 6.25% state rate plus local up to 2% (8.25% max combined), not an SST state. Remote sellers register with the Texas Comptroller. Texas requires Texas-issued resale certificates and has strong audit enforcement.

Sales Tax in Utah: A Complete Guide for Ecommerce Sellers

Utah sales tax: $100,000 or 200 transactions threshold, 4.85% state rate plus county, city, and transit additions (Salt Lake County 7.25%, some areas higher), SST member state. Utah's local rate structure includes county, city, and transit district layers.

Sales tax in Vermont — rates, nexus, and filing

Vermont has a 6% state sales tax. Some municipalities add a 1% local option tax, bringing the combined rate to 7% in those areas. The economic nexus threshold is $100,000 or 200 transactions. Vermont is an SST member and taxes digital goods. Prepared food is taxed at 9%.

Sales Tax in Virginia: A Complete Guide for Ecommerce Sellers

Virginia sales tax: $100,000 or 200 transactions threshold, 5.3% standard combined rate (6% in Northern Virginia and Hampton Roads), SST member state since 2022. Virginia food tax reduced to 1% for qualifying groceries.

Sales tax in Washington DC — rates, nexus, and filing

Washington DC has a 6% general sales tax rate. DC has no additional local taxes, it functions as a single jurisdiction. The economic nexus threshold is $100,000 or 200 transactions. DC taxes digital goods and streaming services and has elevated rates on restaurant meals (10%) and alcohol (10.25%).

Sales Tax in Washington: A Complete Guide for Ecommerce Sellers

Washington sales tax: $100,000 economic nexus threshold, 6.5% state rate plus local additions (combined rates up to 10.4%), SST member state. Washington also has a Business & Occupation (B&O) tax separate from sales tax that applies to gross receipts: a distinct obligation remote sellers often miss.

Sales Tax in West Virginia: A Complete Guide for Ecommerce Sellers

West Virginia sales tax: $100,000 or 200 transactions threshold, 6% state rate plus municipal additions in some cities (Charleston 7%), SST member state. Simple rate structure, counties do not levy sales taxes; only a small number of municipalities add to the state rate.

Sales Tax in Wisconsin: A Complete Guide for Ecommerce Sellers

Wisconsin sales tax: $100,000 or 200 transactions threshold, 5% state rate plus 0.5% county rate (combined 5.5% in most counties; Milwaukee County 5.6%), SST member state. Wisconsin broadly exempts clothing. Simple rate structure with only county-level local additions.

Sales tax in Wyoming — rates, nexus, and filing

Wyoming has a 4% state sales tax plus local taxes that can bring combined rates to 6%. The economic nexus threshold is $100,000 or 200 transactions. Wyoming is an SST member state. Food is generally exempt and clothing is taxable.

Texas resale exemption and the cost-of-goods deduction for manufacturers

Texas allows resellers to purchase goods exempt from sales tax by providing a Texas resale certificate (Form 01-339). Texas also allows manufacturers to take a cost-of-goods-sold deduction on the Texas Franchise Tax: a separate incentive. For sales tax purposes, Texas's data processing services tax has a 20% exemption, meaning only 80% of the charge is taxable.

What is Washington's B&O tax and how is it different from sales tax?

Washington's Business and Occupation (B&O) tax is a gross receipts tax on the privilege of doing business in Washington, separate from sales tax. Unlike sales tax, B&O is paid by the business on its gross revenue, not collected from customers. Remote sellers with economic nexus in Washington may owe both sales tax and B&O tax.

Why does Colorado charge a 7% credit card fee on sales tax payments?

Colorado charges a service fee on credit card payments for sales tax, currently set by the state's payment processor and typically around 2-3%. The 7% figure sellers sometimes encounter is a combination of the credit card service fee and Colorado's vendor fee (an allowance for sellers who file on time). Understanding the offset is essential for accurate net remittance.