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Learning about US states without sales tax | TaxHero

Have you ever paid more than the actual price of an item when shopping online? If you don’t live in one of the five states with 0% sales tax: Alaska, Delaware, Montana, Oregon, and New Hampshire – chances are, you have. The additional cost consumers pay apart from the item’s price is the sales tax.

Paying sales tax is always hard for consumers, but it is the state’s lifeblood. On the other hand, businesses find sales tax to be both an obligation and a headache. Fortunately, in states without sales tax, purchasers are exempted from paying additional sales tax when buying goods or services.

Before getting into the nitty gritty of states with no sales tax, you should also ensure you understand ecommerce sales tax.

Let’s learn about the US states with no sales tax.

Which States Do Not Have Sales Tax?

Five of the 50 states in the USA do not impose a state sales tax. Four states do not have state or local sales tax, while one has local tax impositions. Here are the details of these states:

1. Alaska

Alaska does not impose a statewide general sales tax on goods and services. However, local governments and municipalities are allowed to levy their own sales taxes, which means the rates vary across cities. Alaska Taxable is an annual publication detailing all municipalities and the specific types of taxes they impose. In addition to the Alaska Taxable publication, an interactive report with select tax and revenue data is also available which can be found here.

The City of Utqiagvik imposes a 10% sales tax. Be aware that the sales tax rates in Seldovia, Sitka, and Skagway can change throughout the year. Utilize Alaska’s Mapping, Analytics, and Data Resources to find detailed information on various local tax rates.

Starting January 1, 2025, the Alaska Remote Seller Sales Tax Commission (ARSSTC) will no longer use transaction counts to determine economic nexus. Businesses will only need to register with the ARSSTC if their gross sales, including marketplace sales, exceed $100,000 in the current or previous calendar year. Sellers with gross sales below $100,000 in 2024 may cancel their registrations after this date, but they must continue collecting and remitting taxes until the cancellation is formally processed. Taxpayers currently registered should review their gross sales and transaction counts to determine eligibility for cancellation, which can be completed using the ARSSTC Remote Seller Account Closure Form.

2. Delaware

Delaware neither imposes state nor local sales tax; therefore, the Delaware sales tax rate is 0%.

While consumers may be exempt from paying sales tax in Delaware, business owners are subject to a gross receipts tax. This tax is levied only on businesses and not consumers. The rate of gross receipts tax varies according to the type of business activity.

3. Montana

Although Montana, known as the “Treasure State,” is subject to various types of taxes, Montana has no state or local government sales tax. However, residents may still have to pay some local option taxes on goods and services. As a popular tourist destination, Montana also imposes resort and property taxes.

4. Oregon

Oregon does not impose sales tax on goods and services. This makes Oregon a no-sales tax state, with Oregon’s sales tax rate at 0%. This means $50 will cost you at most $50 in Oregon (what a treat!). Moreover, there is no local sales tax imposition either.

5. New Hampshire

The New Hampshire state tax rate is 0%, with no sales tax levied by the state or local government. Consumers can purchase without paying the additional cost.

Since there is no sales tax, the government charges a high property tax to compensate for the revenue. The state also has other tax impositions, such as excise, real estate, corporate, and personal state income tax.

States with No Local Sales Tax

Besides Delaware, Montana, New Hampshire, and Oregon, some other states do not levy a local sales tax. However, they have state sales tax requirements. The following is the list of states where the local sales tax rate is 0%.

Connecticut
District of Columbia
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
Rhode Island

States with Low General Sales Tax Rates

Not a resident of the states with zero sales tax? You can still have some edge with low sales tax rates. The following are the top states with the lowest state-wide sales tax rates.

Colorado – 2.9%
Alabama – 4%
Georgia – 4%
Hawaii – 4%
New York – 4%
Wyoming – 4%

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Master Sales Tax With TaxHero Sales Tax Table 2023 | TaxHero

Sales tax can be intricate and ever-changing, making it a complicated landscape. To stay on top of your sales tax obligations, you must stay updated with the constantly evolving tax rules and regulations. Hence, we’ve created a Sales Tax Table for all the states to help provide you with a comprehensive resource of information you need for your sales tax compliance.

Explore our handy go-to sales tax guide summed up in comprehensive sales tax charts. Refer to the sales tax tables to get information about sales tax in each state. Don’t forget to bookmark this blog to stay on top of the latest updates we will make occasionally.

Sales Tax Table Definition of Terms

Economic Nexus – this row indicates whether a state has economic nexus provisions. Economic nexus generally means that if a remote seller passes a state’s economic threshold for total revenue or number of transactions, they are legally obligated to collect and remit sales tax in that state. No physical presence is required.
Marketplace Facilitators – a business that forms contracts with third parties and sells any services or goods.
TPP – stands for Tangible Personal Property. It refers to goods that have a physical existence.
Clothing – as a TPP, sales tax on clothing is more complex than other commodities because it may or may not be exempt.
Digital Products – this row indicates whether sales of digital products transferred electronically, including downloaded music, videos, and books, are subject to tax.
EFT – stands for Electronic Funds Transfer. This allows taxpayers to make Sales, Withholding, and a variety of other tax payments electronically via the ACH network.
SaaS – stands for Software as a Service. This row indicates whether SaaS is subject to sales tax. In the SaaS scenario, the seller owns, operates, and maintains the software application and the server that hosts the software. Customers access the software via the world wide web. The software is not transferred to the customer, and the customer has no right to download, copy, or modify the software. The seller bills customers on a per-use or periodic basis.
Grocery Food – this row sets forth the taxability of non-prepared grocery food. Food prepared by a grocery is taxable in all states as meals. Many states that exempt grocery food exclude certain items such as soft drinks, candy, and confections.
Prepared Food – this row indicates whether sales of prepared food are taxable. Exemptions may apply to sales made to specific purchasers.
Services – these are tasks and activities performed for the benefit of the recipients. Depending on the service category, it may or may not be sales tax-exempt.
Shipping – indicates whether the delivery of goods to the consumer are taxable. This usually depends when shipping fee is billed as a separate item.

Alabama Sales Tax Table

AL Sales Tax Rate	4%
Economic Nexus	Out-of-state sellers are required to register for a license and to collect and remit tax.
Sales Threshold: Value	$250,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes, required for all taxpayers
Electronic Payment	Yes, required for taxpayers making individual payments of $750 or more.
Filing Due Date	20th
Department of Revenue Contact Info	taxpolicy@revenue.alabama.gov 1-334-242-1490
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Taxable. Taxed at a reduced rate of 3% effective September 1, 2023.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Services are generally not taxable
Taxability: Shipping	Exempt

Alaska Sales Tax Table

not applicable
AK’s state-wide sales tax rate is 0%. It is important to note that Alaska has a different effectivity rate date per city within the state with the Remote Seller Sales Tax Code, which only applies to Local municipalities in Alaska that choose to adopt it. For more information, you can visit the Alaska Remote Seller Sales Tax Commission.
Starting January 1, 2025, the Alaska Remote Seller Sales Tax Commission (ARSSTC) will no longer use transaction counts to determine economic nexus. Businesses will only need to register with the ARSSTC if their gross sales, including marketplace sales, exceed $100,000 in the current or previous calendar year. Sellers with gross sales below $100,000 in 2024 may cancel their registrations after this date, but they must continue collecting and remitting taxes until the cancellation is formally processed. Taxpayers currently registered should review their gross sales and transaction counts to determine eligibility for cancellation, which can be completed using the ARSSTC Remote Seller Account Closure Form.

Arizona Sales Tax Table

AZ Sales Tax Rate	5.60%
Economic Nexus	A remote seller, not facilitated by a marketplace facilitator, will be required to pay TPT on retail sales.
Sales Threshold: Value	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes, but amended returns cannot be filed electronically.
Electronic Payment	Yes, required for taxpayers whose tax liability in the prior year was $1 million or more.
Filing Due Date	20th
Department of Revenue Contact Info	602-255-3381
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Arkansas Sales Tax Table

AR Sales Tax Rate	6.50%, Food rate is 0.125%
Economic Nexus	Remote sellers and marketplace facilitators must collect sales tax if they had aggregate sales within the state or deliveries to locations within the state in the previous or current calendar year.
Sales Threshold: Value	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes. Beginning January 1, 2024, required if the average monthly tax liability for the preceding fiscal year is $5,000 or more.
Electronic Payment	Yes. Required if average monthly tax liability for the preceding year exceeded $20,000. Beginning January 1, 2024, required if the average monthly tax liability for the preceding fiscal year is $5,000 or more.
Filing Due Date	20th
Department of Revenue Contact Info	sales.tax@dfa.arkansas.gov 501-682-7104
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt. SaaS is not a taxable service. Software transferred electronically is also not taxable.
Taxability: Grocery Food	Taxable. Food and ingredients are taxed at a reduced state rate of 1.5% plus any applicable local rate.
Taxability: Prepared Food	Taxable. Ineligible for the reduced tax rate on food.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

California Sales Tax Table

CA Sales Tax Rate	7.25%. The 7.25% current total statewide base includes 1% that goes to city and county (local) funds and operations.
Economic Nexus	Retailers outside California (remote sellers) must register with the CDTFA.
Sales Threshold: Value	$500,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. Single-outlet retailer accounts and businesses with only one location that pre-pay quarterly may file electronically. Only Form BOE-401-A (with Schedules A and T only) and Form BOE-401-EZ may be filed electronically.
Electronic Payment	Yes. Required if the estimated monthly tax liability is $10,000 or more.
Filing Due Date	Last day of the month
Department of Revenue Contact Info	https://www.cdtfa.ca.gov/email 1-800-400-7115 / Out-of-state office: 916-227-6600
Taxability: TPP	Taxable
Taxability: Clothing	Taxable. Exemptions allowed for (1) new children’s clothing sold to nonprofit organizations for free distribution to elementary school children and (2) used clothing sold by certain thrift stores benefiting the chronically ill.
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt. Transfers of software or information by electronic means are also not taxable.
Taxability: Grocery Food	Exempt. Certain meals are taxed. Exceptions apply.
Taxability: Prepared Food	Taxable. Taxable sales include: “hot prepared food products” and meals for consumption on or off the seller’s premises; and cold food products “suitable for consumption on the seller’s premises” if the seller meets 80-80 rule.
Taxability: Services in general	Services are generally not taxable.
Taxability: Shipping	Exempt

Colorado Sales Tax Table

CO Sales Tax Rate	2.90%. An additional state sales tax rate applies to sales of marijuana and marijuana products.
Economic Nexus	Remote retailers are required to collect Colorado sales tax and must also collect state-collected local sales tax and special district tax.
Sales Threshold: Value	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes.
Electronic Payment	Yes. Required for taxpayers whose sales tax liability for the previous calendar year exceeded $75,000.
Filing Due Date	20th
Department of Revenue Contact Info	https://cdor.colorado.gov/business-tax-webform 303-238-7378
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt.
Taxability: Grocery Food	Exempt. Certain taxable items include carbonated water, chewing gum, seeds, and plants to grow food, prepared salads and salad bars, cold sandwiches, deli trays, candy, soft drinks, and hot/cold beverages served in unsealed cups through a vending machine.
Taxability: Prepared Food	Taxable. Sales tax applies to items excluded from the definition of “food” and food sold by eating establishments.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Connecticut Sales Tax Table

CT Sales Tax Rate	6.35%. 7.75% for jewelry costing more than $5,000, and specific clothing, footwear, and other items that cost more than $1,000.
Economic Nexus	Out-of-state retailers that sell tangible personal property or services from outside Connecticut to a destination within Connecticut must collect and remit sales tax.
Sales Threshold: Value	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required if prior year liability exceeded $10,000 for the 12-month period ending the preceding June 30.
Filing Due Date	Last day of the month
Department of Revenue Contact Info	drs@po.state.ct.us 860-297-5962
Taxability: TPP	Taxable
Taxability: Clothing	Taxable. Clothing and footwear that costs more than $1,000 are subject to the luxury goods tax.
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable. Computer and data processing services are subject to a reduced sales tax rate.
Taxability: Grocery Food	Exempt.
Taxability: Prepared Food	Taxable. The sales tax rate for meals sold by eating establishments, caterers, or grocery stores is 7.35%.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Delaware Sales Tax Table

not applicable
DE neither imposes state nor local sales tax.

District of Columbia Sales Tax Table

DC Sales Tax Rate	6%
Economic Nexus	Remote sellers must collect and remit District sales tax.
Sales Threshold: Value	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required when the payment due for the tax period exceeds $25,000 and for payments made by third-party bulk filers.
Filing Due Date	20th
Department of Revenue Contact Info	https://mytax.dc.gov/ 202-727-4829
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable. Data processing services and software transferred electronically are taxable.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Sales tax applies to “food or drinks prepared for immediate consumption.”
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Florida Sales Tax Table

FL Sales Tax Rate	6%
Economic Nexus	Out-of-state retailers and marketplace providers with no physical presence in Florida are required to collect Florida’s sales and use tax on sales of taxable items delivered to purchasers in Florida if the out-of-state retailer or marketplace provider makes a substantial number of remote sales into Florida.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. The taxpayer must file returns and remit payments electronically when the taxes paid in the prior state fiscal year were $5,000 or more.
Electronic Payment	Yes
Filing Due Date	20th
Department of Revenue Contact Info	emaildor@floridarevenue.com 850-488-6800
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Taxable sales include food sold by eating establishments and food sold for consumption at tables, counters, or parking facilities provided by the seller.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Georgia Sales Tax Table

GA Sales Tax Rate	4%
Economic Nexus	A remote seller is a “dealer“ with nexus if they have in the previous or current calendar year from retail sales of tangible personal property for electronic or physical delivery within Georgia or use, consumption, distribution, or storage in Georgia.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes. Required for taxpayers who are required to pay by EFT (Electronic Fund Transfer). Optional for other taxpayers.
Electronic Payment	Yes. EFT is required for payments exceeding $500.
Filing Due Date	20th
Department of Revenue Contact Info	localgovt.services@dor.ga.gov 877-423-6711
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt. Digital products (i.e., ebooks, downloadable video content, mobile apps) will remain exempt from taxation until the conclusion of 2023. However, following the signing of Georgia Senate Bill 56 on May 2, 2023, digital products, goods, services, and downloaded codes within Georgia will be subject to Georgia sales and use tax as of January 1, 2024.
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt. “Food and food ingredients” does not include prepared food, alcoholic beverages, dietary supplements, over-the-counter drugs, or tobacco.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Hawaii Sales Tax Table

HI Sales Tax Rate	4%. 0.5% rate for wholesalers/manufacturers.
Economic Nexus	A business is required to collect and remit sales tax if the sales threshold is met in the current or immediately preceding calendar year.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required for taxpayers whose annual tax liability exceeds $100,0000 in any taxable year.
Filing Due Date	20th
Department of Revenue Contact Info	taxpayer.services@hawaii.gov 808-587-4242
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable. Software delivered electronically and computer services are taxable.
Taxability: Grocery Food	Taxable. Food purchased with federal food coupons or vouchers is exempted.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Services are taxable unless specifically exempted.
Taxability: Shipping	Taxable

Idaho Sales Tax Table

ID Sales Tax Rate	6%
Economic Nexus	Remote sellers must collect and remit state-level Idaho sales tax.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes. Required when the amount due is $100,0000 or more.
Filing Due Date	20th
Department of Revenue Contact Info	taxrep@tax.idaho.gov 800-972-7660
Taxability: TPP	Taxable
Taxability: Clothing	Taxable. An exemption applies to purchases of clothes and footwear by nonsale clothiers that provide free clothes to the needy.
Taxability: Digital Products	Taxable. Digital products (digital music, digital books, digital videos, and digital games) where the buyer has a permanent right to use these products are considered TPP, and so are taxable. However, leases or rentals of these digital products are not subject to taxation.
Taxability: SaaS	Exempt. Exemptions allowed for remotely accessed (cloud) computer software and purchase of computer time to access or receive services from a computer owned and operated by another.
Taxability: Grocery Food	Taxable
Taxability: Prepared Food	Taxable. All food sales are generally taxable. However, prepared food or beverage supplied by a retailer free of charge to its employees is exempt if the retailer sells prepared food or beverages in its normal course of business.
Taxability: Services in general	Majority of service-based transactions, such as janitorial services and landscaping, are not taxable.
Taxability: Shipping	Exempt

Illinois Sales Tax Table

IL Sales Tax Rate	6.25%. Grocery food, drugs, medical appliances, and modifications to make a motor vehicle usable by a disabled person are taxed at 1%.
Economic Nexus	Remote retailers are required to collect sales tax if either threshold is met for a 12-month period.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required for taxpayers whose state and local sales and use tax liability in the preceding calendar year was at least $200,000. Taxpayers who file electronic returns are also required to make electronic payments.
Filing Due Date	20th
Department of Revenue Contact Info	rev.localtax@illinois.gov 800-732-8866
Taxability: TPP	Taxable. Includes retail leases of certain forms of tangible personal property (TPP). Exemptions are only applicable to retail leases of motor vehicles, watercraft, aircraft, and semitrailers.
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Taxable. Beginning on July 1, 2022, and until July 1, 2023, tax is not imposed on food for human consumption that is to be consumed off the premises where it is sold.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Services are generally not taxable.
Taxability: Shipping	Exempt

Indiana Sales Tax Table

IN Sales Tax Rate	7%
Economic Nexus	Sellers are liable for collecting Indiana sales tax if one of two sales thresholds is met for 12 months.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. New retailers are required to report and remit sales tax using the department’s online filing program.
Electronic Payment	Yes. Required if the taxpayer’s estimated monthly tax liability for the current tax year or the average monthly tax liability for the preceding year exceeds $10,000.
Filing Due Date	20th
Department of Revenue Contact Info	https://www.in.gov/dor/contact-us/contact-us-by-phone-email-or-mail/contact-the-indiana-department-of-revenue/ 317-232-2240
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable. Taxable if the seller grants the end user a right of permanent use that is not conditioned upon continued payment by the purchaser.
Taxability: SaaS	Exempt. Exempt if the customer does not have an ownership interest in the software and does not control or possess the software or the server.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. However, starting January 1, 2025, businesses that receive 75% of their total sales from sales of prepared food can now apply for a 50% sales tax exemption on their electric meter without a need for a utility check.
Taxability: Services in general	Services are generally not taxable.
Taxability: Shipping	Taxable

Iowa Sales Tax Table

IA Sales Tax Rate	6%
Economic Nexus	Retailers are required to collect Iowa sales tax.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	Last day of the month
Department of Revenue Contact Info	https://tax.iowa.gov/iowa-tax-question 800-367-3388
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Kansas Sales Tax Table

KS Sales Tax Rate	6.50%
Economic Nexus	An out-of-state seller from sales to in-state customers, must collect sales tax.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes. Required if total sales tax liability exceeds $45,000 in any calendar year.
Filing Due Date	25th
Department of Revenue Contact Info	kdor_tac@ks.gov 785-368-8222
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt. Local sales tax rates imposed by the city or county are still applicable.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Kentucky Sales Tax Table

KY Sales Tax Rate	6%
Economic Nexus	Remote sellers must collect Kentucky sales tax.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	20th
Department of Revenue Contact Info	https://revenue.ky.gov/Get-Help/Pages/Contact-Us.aspx 502-564-5170
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable with the exception of digital audio-visual work.
Taxability: SaaS	Taxable. Services performed prior to January 1, 2023 are exempt.
Taxability: Grocery Food	Exempt. “Food and food ingredients” does not include “candy,” “tobacco,” “alcoholic beverages,” “soft drinks,” “dietary supplements,” “prepared food,” or food sold through vending machines.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Majority of service-based transactions are taxable.
Taxability: Shipping	Exempt. Separately stated shipping charges to deliver taxable products to the customer are exempt from tax when shipped to a point specified by the customer and delivered by the postal service or common carrier.

Louisiana Sales Tax Table

LA Sales Tax Rate	5.00%
Economic Nexus	Applies to remote dealers with sales into the state in excess of the threshold.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes. Required if the tax due in connection with a return exceeds $5,000.
Filing Due Date	20th
Department of Revenue Contact Info	sales.inquiries@la.gov 855-307-3893
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Starting January 1, 2025, Saas will now be taxable in the state of Louisiana. Additionally, transactions where the customer pays a fee to use a website or software without owning it will also be subject to sales tax.
Taxability: Grocery Food	Exempt. The exemption applies to food sold for preparation and consumption in the home.
Taxability: Prepared Food	Taxable. Taxable sales include food sold by restaurants and other establishments that provide facilities for on-premises consumption; and any food that is not for home consumption or is prepared by the seller.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Maine Sales Tax Table

ME Sales Tax Rate	5.50%
Economic Nexus	Remote sellers must collect sales tax.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	Starting January 1, 2022, Maine will no longer require 200 transactions as part of the state’s economic nexus threshold.
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	15th
Department of Revenue Contact Info	sales.tax@maine.gov 207-624-9693
Taxability: TPP	Exempt. Starting January 1, 2025, lessors or businesses can make tax-exempt purchases of TPP when they present their resale certificate. Lessors are now required to collect sales tax upon every lease or rental payment received. Additionally, sales of TPP to nonprofit organizations can be exempted from sales tax with the use of an exemption certificate from the Maine Revenue Services (MRS.)
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt. Exempt only if the software is not downloaded.
Taxability: Grocery Food	Exempt. The exemption for food products for home consumption is limited to “grocery staples.”
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Maryland Sales Tax Table

MD Sales Tax Rate	6%
Economic Nexus	A remote seller has economic nexus if the seller met the threshold during the current or prior year.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required if a tax of $10,000 or more is due in connection with a return.
Filing Due Date	20th
Department of Revenue Contact Info	taxhelp@comp.state.md.us 800-638-2937
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Taxable
Taxability: Prepared Food	Taxable. An exemption is available for food sales for consumption off the premises by a vendor who operates a substantial grocery or market business at the exact location where the food is sold. Certain food sales by hospitals, religious or educational institutions, and nonprofit organizations may also be exempt.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt. Handling charges are taxable. When shipping and handling charges are combined on a bill, the entire amount becomes taxable.

Massachusetts Sales Tax Table

MA Sales Tax Rate	6.25%
Economic Nexus	Sellers meeting the threshold in the preceding calendar year must register, collect and remit sales tax.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. Required for taxpayers with a combined tax liability in the preceding calendar year of at least $5,000 in sales tax. Businesses and taxpayers with zero tax returns must also file electronically.
Electronic Payment	Yes. Required for taxpayers who are required to file electronic returns.
Filing Due Date	30th. Beginning on May 1, 2023, the due date for sales tax returns changed from the 20th to the 30th day of the month.
Department of Revenue Contact Info	https://wfb.dor.state.ma.us/DORCommon/ContactUs.aspx?grp=dor&type=trusteetax 617-887-6367
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. The exemption is limited to clothing and footwear costing $175 or less. Specific clothing and footwear designed for athletic activity or protective use are taxable.
Taxability: Digital Products	Exempt
Taxability: SaaS	Taxable. Exempt if the object of the transaction is to obtain information or service other than the use of the software.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Sales tax applies to “meals” sold for consumption on or off the premises.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Michigan Sales Tax Table

MI Sales Tax Rate	6%
Economic Nexus	Remote sellers with meeting the threshold in the prior calendar year have nexus.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required if total sales tax liability for the preceding calendar year was at least $720,000.
Filing Due Date	20th
Department of Revenue Contact Info	https://www.michigan.gov/taxes/business-taxes/sales-use-tax 1-517-636-4357
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt. Access to software over the internet without delivering either “the code that enables the program” to operate or a “desktop client” is not taxable.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Minnesota Sales Tax Table

MN Sales Tax Rate	6.88%
Economic Nexus	Remote retailers must collect and remit tax
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Taxpayers with sales tax liability of $10,000 or more during the preceding fiscal year ending June 30 must make all payments for periods in subsequent calendar years by EFT, unless prohibited by religious beliefs.
Filing Due Date	20th
Department of Revenue Contact Info	individual.incometax@state.mn.us 651-296-6181
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. Accessories, most protective equipment, sports and recreational articles, and fur clothing are taxable.
Taxability: Digital Products	Taxable. Students’ digital textbooks and instructional materials are exempt.
Taxability: SaaS	Exempt. Considered a non-taxable service, provided the software is hosted on the service provider’s server. However, the software is taxable if purchased by, leased, or licensed to a customer and stored on a customer’s server in Minnesota.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Mississippi Sales Tax Table

MS Sales Tax Rate	7%
Economic Nexus	A “person doing business in this state,” who is consequently required to collect and remit sales or use tax, includes any marketplace facilitator, marketplace seller, or remote seller with sales meeting the threshold.
Sales Threshold: Amount	$250,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. The Mississippi Department of Revenue uses a Taxpayer Access Point (TAP) for online filing and payment system.
Electronic Payment	Yes. Required for taxpayers owing $20,000 or more in connection with a return and for taxpayers who have received notification from the Tax Commissioner.
Filing Due Date	20th
Department of Revenue Contact Info	https://www.dor.ms.gov/contact-us 601-923-7015
Taxability: TPP	Taxable
Taxability: Clothing	Taxable. Clothing, footwear, and accessories used as wardrobes in the production of motion pictures are exempt.
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt. Exempt if the software is stored on a server located outside the state.
Taxability: Grocery Food	Taxable
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Missouri Sales Tax Table

MO Sales Tax Rate	4.225%. Grocery food is taxed at a reduced rate of 1.225%.
Economic Nexus	Effective January 1, 2023, an economic nexus is adopted. Specifically, the definition of “engaging in business activities within this state” is modified to include vendors selling tangible personal property for delivery into Missouri.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes. All quarter-monthly payers are required to submit their payments electronically.
Filing Due Date	last day of the month
Department of Revenue Contact Info	salesuse@dor.mo.gov 573-751-7200
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Taxable. Taxed at a reduced rate.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Montana Sales Tax Table

not applicable
MT has no state or local government sales tax.

Nebraska Sales Tax Table

NE Sales Tax Rate	5.5%
Economic Nexus	Remote sellers must collect tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes. Amended returns cannot be filed electronically.
Electronic Payment	Yes. Taxpayers are subject to EFT if they have made payments of $5,000 or more in the prior tax year.
Filing Due Date	Last day of the month
Department of Revenue Contact Info	https://revenue.nebraska.gov/mail/ndrmail.html 402‑471‑5729
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt. The service provider is responsible for paying tax on its purchase of software if the software is used in Nebraska.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Nevada Sales Tax Table

NV Sales Tax Rate	6.85%
Economic Nexus	A remote seller has economic nexus if during the current or prior calendar year meets the threshold.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	Last day of the month
Department of Revenue Contact Info	https://tax.nv.gov/Contact/Contact_Us/ 866-962-3707
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

New Hampshire Sales Tax Table

not applicable
NH state tax rate is 0%, with no sales tax levied by the state or local government.

New Jersey Sales Tax Table

NJ Sales Tax Rate	6.625%
Economic Nexus	Sales tax collection is required in New Jersey if a remote seller exceeds the threshold.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required for taxpayers whose tax liability for the prior year was $10,000 or more.
Filing Due Date	20th
Department of Revenue Contact Info	https://www.state.nj.us/treasury/assets/contact/taxation/contact-taxation.shtml 609-292-6400
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. Fur clothing, accessories, sport or recreational or protective equipment are taxable. Protective equipment is only exempt when purchased for the user’s daily work and worn as part of a work uniform or work clothing.
Taxability: Digital Products	Taxable. New Jersey imposes sales tax on specified digital products. “Specified digital product” means an electronically transferred digital audio-visual work, digital audio work, or digital book.
Taxability: SaaS	Exempt. However, SaaS, which meets the definition of an information service, is subject to sales tax.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

New Mexico Sales Tax Table

NM Sales Tax Rate	4.875%. Rate on services and general state rate decreases from 5% to 4.875% on July 1, 2023.
Economic Nexus	A retailer or marketplace provider is doing business in New Mexico if they have gross receipts from sales in New Mexico of $100,0000 or more.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes. Taxpayers whose average tax payment during the previous calendar year was $25,000 or more must pay by EFT or another method specified by statute.
Filing Due Date	25th
Department of Revenue Contact Info	https://tap.state.nm.us/_/ \| https://www.tax.newmexico.gov/send-us-a-message/ 1-505-827-0832
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. The food deduction is limited to “food” as defined for federal food stamp purposes sold by retail food stores.
Taxability: Services in general	Services are taxable unless specifically exempted.
Taxability: Shipping	Taxable

New York Sales Tax Table

NY Sales Tax Rate	4%
Economic Nexus	A business that has no physical presence in New York but meets the threshold requirements immediately in the preceding four sales tax quarters must register and collect/remit sales tax.
Sales Threshold: Amount	$500,000
Sales Threshold: Volume	100
Electronic Filing	Yes. Required for monthly and quarterly sales tax filers who meet these conditions: (1) do not use a tax preparer to prepare the required filings; (2) use a computer to prepare, document, or calculate the required filings or related schedules or is subject to the corporation tax e-file mandate; and (3) have broadband Internet access.
Electronic Payment	Yes
Filing Due Date	20th
Department of Revenue Contact Info	https://www.tax.ny.gov/help/contact/ 518-485-2889
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. Items of clothing and footwear that cost less than $110 per piece or pair are exempt from taxes, while those that cost $110 or more per item or pair are subject to sales tax.
Taxability: Digital Products	Exempt
Taxability: SaaS	Taxable. Access to computing power is a nontaxable service.
Taxability: Grocery Food	Exempt. The exemption does not apply to candy, confectionery, and certain drinks.
Taxability: Prepared Food	Taxable. Sales tax is applicable to all sales, whether on or off premises and if the vendor provides services or after delivery. Sales tax also applies to sales for consumption off premises, unless food or drink is sold unheated and in the same form as commonly used by food stores not primarily selling prepared foods.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

North Carolina Sales Tax Table

NC Sales Tax Rate	4.75%
Economic Nexus	A remote seller must register, collect, and remit North Carolina sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Required for taxpayers whose tax liability was at least $240,000 during a 12-month period.
Filing Due Date	20th
Department of Revenue Contact Info	https://eservices.dor.nc.gov/ncta/nctaForm.jsp 877-252-3052
Taxability: TPP	Taxable
Taxability: Clothing	Taxable. Separately stated alteration charges in connection with the sale of clothing are exempt.
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt. Cloud-based software accessed electronically via an internet connection is not subject to North Carolina sales and use tax. Infrastructure as a Service (Iaas) does not represent sales of tangible personal property, digital property, or taxable services and, therefore, is not subject to North Carolina sales and use tax.
Taxability: Grocery Food	Exempt. Sales of food are subject to local taxes.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

North Dakota Sales Tax Table

ND Sales Tax Rate	5%
Economic Nexus	Out-of-state sellers with no physical presence in North Dakota are subject to sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	Last day of the month
Department of Revenue Contact Info	salestax@nd.gov 701-328-1246
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt. Not taxable if the software is not transferred. Services that require a fee or subscription to access for use are not taxable.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Ohio Sales Tax Table

OH Sales Tax Rate	5.75%
Economic Nexus	A seller or marketplace facilitator is required to collect sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. Taxpayers must use a commissioner-approved electronic method. Certain direct pay permit holders are required to use EFT.
Filing Due Date	23rd
Department of Revenue Contact Info	https://www.tax.state.oh.us/email/TaxMailWeb/global_emailus.html 888-405-4039
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable. Buying music digitally from a jukebox or other commercial music machine that only allows one play at a time is exempted.
Taxability: SaaS	Taxable. If the main purpose of purchasing automatic data processing services is for use in a business, then it is taxable. However, if it is used for personal or professional services where automatic data processing is only incidental, it is not taxable.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Food is taxable if sold for on-premises consumption and exempt if sold for off-premises consumption.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Oklahoma Sales Tax Table

OK Sales Tax Rate	4.5%
Economic Nexus	Remote sellers must file an election with the Oklahoma Tax Commission to collect and remit sales tax due on tangible personal property and obtain a sales tax permit.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. Required for taxpayers who owed an average of $2,500 or more monthly in total sales taxes in the previous fiscal year.
Electronic Payment	Yes. Required for taxpayers who owed an average of $2,500 per month during the previous fiscal year.
Filing Due Date	20th
Department of Revenue Contact Info	help@tax.ok.gov 405-521-3160
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt. Oklahoma has eliminated the state sales tax on food and groceries as of August 29, 2024, but prepared food, dietary supplements, alcohol, and tobacco remain taxed. For details on exemptions, check the list here. Local taxes stay the same, but residents could face higher grocery taxes if local rates increase after July 1, 2025.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Oregon Sales Tax Table

not applicable
OR does not impose sales tax on goods and services.

Pennsylvania Sales Tax Table

PA Sales Tax Rate	6%
Economic Nexus	Remote sellers are required to register for a sales tax license; and collect, report, and remit sales tax
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. A third-party preparer must e-file all sales tax returns for all calendar years following a calendar year in which the preparer files 10 or more sales tax returns.
Electronic Payment	Yes. Required for payments of $1,000 or more.
Filing Due Date	20th
Department of Revenue Contact Info	ra-forms@pa.gov 717-787-1064
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. Accessories, fur articles, ornamental and formal wear, and sports clothing are taxable.
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable. Not taxable if the user is located outside Pennsylvania.
Taxability: Grocery Food	Exempt. Depends upon the type of food and the location from which food is sold.
Taxability: Prepared Food	Taxable. Tax applies to sales by eating establishments and to sales by sellers of selected food and beverage items.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Rhode Island Sales Tax Table

RI Sales Tax Rate	7%
Economic Nexus	Nexus applies to remote dealers with sales into the state in excess of the threshold.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes. Required for taxpayers who are required to pay by EFT.
Electronic Payment	Yes. Required if the seller’s average monthly sales tax liability in the previous calendar year was at least $200.
Filing Due Date	20th
Department of Revenue Contact Info	Tax.Excise@tax.ri.gov 401-574-8955
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. Accessories and special clothing designed primarily for athletic or protective use are taxable. The clothing exemption only applies to $250 of the sales price per item.
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

South Carolina Sales Tax Table

SC Sales Tax Rate	6%
Economic Nexus	Economic nexus occurs when gross sales into South Carolina are more than the threshold in this or the last calendar year.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. Taxpayers owing $15,000 or more per month may be mandated to file electronically.
Electronic Payment	Yes. Taxpayers who paid $15,000 or more for any one filing period during the past year in sales tax can be required to pay by EFT.
Filing Due Date	20th
Department of Revenue Contact Info	SalesTax@dor.sc.gov 803-898-5000
Taxability: TPP	Taxable. Broadcasting software sold to a radio station, television station, or cable television system is exempt.
Taxability: Clothing	Taxable. Certain protective clothing required for working in a clean room environment is exempt.
Taxability: Digital Products	Exempt
Taxability: SaaS	Taxable. Charge to access a website is taxable as a communications service.
Taxability: Grocery Food	Exempt. Unprepared food that can be purchased with federal food stamps is exempt from state sales and use tax, but may be subject to other local sales taxes.
Taxability: Prepared Food	Taxable. This includes meals and food sold at restaurants, meals that are prepared and delivered by meal delivery services, meals sold at congregate meal sites, and meals/food sold at stores that are intended to be eaten at or near the store.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

South Dakota Sales Tax Table

SD Sales Tax Rate	4.50%. From July 1, 2023, through June 30, 2027, the rate is 4.2%. Before July 1, 2023, the rate is 4.5%. Beginning July 1, 2027, the rate reverts back to 4.5%.
Economic Nexus	Effective July 1, 2023, remote retailers must collect South Dakota sales tax if they have $100,0000 or more in annual sales in South Dakota.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200. This threshold will be eliminated by July 1, 2023.
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	20th
Department of Revenue Contact Info	bustax@state.sd.us 800-829-9188
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Taxable
Taxability: Prepared Food	Taxable
Taxability: Services in general	Services are taxable unless specifically exempted.
Taxability: Shipping	Taxable

Tennessee Sales Tax Table

TN Sales Tax Rate	7%. The rate for food is 4% + local sales tax, if any.
Economic Nexus	A dealer with no physical presence in Tennessee must register with the Tennessee Department of Revenue and collect and remit sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. Required if the tax required to be paid in connection with a return is $1,000 or more.
Electronic Payment	Yes.
Filing Due Date	20th
Department of Revenue Contact Info	https://revenue.support.tn.gov/hc/en-us/requests/new?ticket_form_id=92413 615-253-0600
Taxability: TPP	Taxable. Exemptions may apply for the use of software developed and fabricated by an affiliated company or for the fabrication of software by a person for that person’s own use or consumption.
Taxability: Clothing	Taxable. The exemption applies to used clothing sold by certain nonprofit organizations.
Taxability: Digital Products	Taxable. Exempt if the tangible equivalent is exempt.
Taxability: SaaS	Taxable. Taxable use of computer software in Tennessee includes the access and use of software that remains in possession of the seller and is remotely accessed by a customer for use in Tennessee.
Taxability: Grocery Food	Taxable. Food and food ingredients are subject to a reduced sales and use tax rate of 4% plus the applicable local rate.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Texas Sales Tax Table

TX Sales Tax Rate	6.25%
Economic Nexus	Sales tax collection will be required in Texas if, during the preceding 12 calendar months, a remote seller exceeds the threshold.
Sales Threshold: Amount	$500,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. Required for taxpayers who are required to pay by EFT.
Electronic Payment	Yes. Taxpayers who paid $10,000 in a category of payments or taxes in the previous state fiscal year must file if the Comptroller predicts they will pay that amount again in the current fiscal year.
Filing Due Date	20th
Department of Revenue Contact Info	sales.applications@cpa.texas.gov 800-252-5555
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Prepared foods are listed in the definition of “food products.”
Taxability: Services in general	Majority of service-based transactions are subject to sales tax.
Taxability: Shipping	Taxable

Utah Sales Tax Table

UT Sales Tax Rate	4.85%. Food and food ingredients are taxed at a reduced rate of 1.75%.
Economic Nexus	A sales tax collection obligation is imposed on remote sellers.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes
Filing Due Date	Last day of the month
Department of Revenue Contact Info	taxmaster@utah.gov 800-662-4335
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable
Taxability: SaaS	Taxable. Remotely accessed prewritten software is taxable if the purchased software is used in Utah. However, remotely accessed custom software is not taxable.
Taxability: Grocery Food	Taxable. Subject to local taxes. Food and food ingredients are taxed at a reduced rate of 1.75%.
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Vermont Sales Tax Table

VT Sales Tax Rate	6%
Economic Nexus	If an individual who sells physical goods from outside of Vermont delivers those goods to a location within Vermont, they are considered a remote seller or marketplace facilitator with nexus in Vermont, even if they do not have a physical presence within the state.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes
Electronic Payment	Yes. This is required for those who pay federal taxes via EFT or have had two or more protested/unpaid state tax checks in the past two years.
Filing Due Date	25th
Department of Revenue Contact Info	tax.business@vermont.gov 802-828-2551
Taxability: TPP	Taxable
Taxability: Clothing	Exempt. Clothing accessories or equipment, protective equipment, and sports or recreational equipment are taxable.
Taxability: Digital Products	Taxable
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Exempt from sales and use tax but generally subject to meals and rooms tax.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

Virginia Sales Tax Table

VA Sales Tax Rate	4.30%. An additional 1% local rate is imposed in all localities. Several areas have an additional regional or local tax.
Economic Nexus	Remote sellers are required to register, collect and remit retail sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes. To meet this electronic filing requirement, the returns must be filed using eForms, Business iFile or Web Upload.
Electronic Payment	Yes
Filing Due Date	20th
Department of Revenue Contact Info	sales.applications@cpa.texas.gov 1-804-367-8037
Taxability: TPP	Taxable
Taxability: Clothing	Taxable. Exemptions apply to certain protective clothing furnished to employees engaged in research activities, mining, and manufacturing, and foul-weather clothing worn by commercial watermen.
Taxability: Digital Products	Exempt
Taxability: SaaS	Exempt
Taxability: Grocery Food	Taxable. Taxed at a reduced rate of 1% (1% local option tax also applies).
Taxability: Prepared Food	Taxable. Prepared foods include foods that do not fall under the definition of “food purchased for home consumption.”
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Washington Sales Tax Table

WA Sales Tax Rate	6.50%
Economic Nexus	Remote sellers in Washington must register and collect sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes. All monthly and quarterly filers are required to file and pay electronically.
Electronic Payment	Yes. Required for taxpayers filing returns on a monthly or quarterly basis.
Filing Due Date	25th
Department of Revenue Contact Info	https://dor.wa.gov/contact 800-647-7706
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable. Digital goods include photographs transferred electronically to the end user.
Taxability: SaaS	Taxable. Charges for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third party, are taxable.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

West Virginia Sales Tax Table

WV Sales Tax Rate	6%
Economic Nexus	Sales tax collection applies to out-of-state vendors and to sales by marketplace facilitators or referrers. Responsibility for collection and remittance of sales tax will be determined annually each year thereafter.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	200
Electronic Filing	Yes. Required for taxpayers who had a total annual remittance for any single tax type of $25,000.
Electronic Payment	Yes. Required for both county and municipal sales taxes collected within an economic opportunity development district, regardless of amount.
Filing Due Date	20th
Department of Revenue Contact Info	TaxHelp@WV.Gov 800-982-8297
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Exempt
Taxability: SaaS	Taxable. Software delivered electronically and computer services are taxable. Electronic data processing services exemption is limited to services performed for a person who is not a part of the entity performing the services.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Services are taxable unless specifically exempted.
Taxability: Shipping	Taxable

Wisconsin Sales Tax Table

WI Sales Tax Rate	5%
Economic Nexus	Remote retailers must register and collect Wisconsin sales tax.
Sales Threshold: Amount	$100,000
Sales Threshold: Volume	n/a
Electronic Filing	Yes
Electronic Payment	Yes. Required if the aggregate general, county, and stadium sales tax due in the prior calendar year was $300 or more.
Filing Due Date	Last day of the month
Department of Revenue Contact Info	DORSalesandUse@wisconsin.gov 608-266-2776
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable. Sales tax applies to digital audio works, digital audiovisual works, and digital books. It also includes greeting cards, finished artwork, periodicals, video or electronic games, and newspapers or other news or information products.
Taxability: SaaS	Exempt. It may be taxable if the service provider is providing a taxable service.
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Exempt

Wyoming Sales Tax Table

WY Sales Tax Rate	4%
Economic Nexus	Remote sellers exceeding the current or prior calendar year threshold have nexus.
Sales Threshold: Amount	$100,0000
Sales Threshold: Volume	Effective July 1, 2024, Wyoming will no longer require 200 transactions as part of the state’s economic nexus threshold. Remote sellers will now only be required to register and collect the state’s 4% sales tax in the state if they surpass the $100,000 gross sales threshold.
Electronic Filing	Yes. Beginning July 1, 2023, the Department may provide an option for submitting returns electronically.
Electronic Payment	Yes. Beginning July 1, 2023, the Department may provide an option for payments to be submitted electronically.
Filing Due Date	Last day of the month
Department of Revenue Contact Info	dor_taxability@wyo.gov \| dor@wyo.gov 307-777-5200
Taxability: TPP	Taxable
Taxability: Clothing	Taxable
Taxability: Digital Products	Taxable. Taxable when sold to the end user with rights for permanent use.
Taxability: SaaS	Exempt
Taxability: Grocery Food	Exempt
Taxability: Prepared Food	Taxable. Gratuities or tips, whether offered by the customer or invoiced by the seller, are not taxable where meals are regularly served to the public.
Taxability: Services in general	Specified services are taxable.
Taxability: Shipping	Taxable

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Mark your calendars and stay updated on the tax holiday 2025 schedule. Check out our up-to-date tax-free weekend guide.

Customers love sales tax holidays, but for ecommerce businesses, they can pose a challenge. This year, several US states will offer the sales tax holiday 2025. And since each state has its own rules, it’s important to know your obligations during these periods.

Track your sales tax holidays in 2025 better. We created this quick, comprehensive guide for every sales tax holiday in each state this year to help you stay updated and on track.

What is a Sales Tax Holiday?

A sales tax holiday is a period where the state or local government temporarily exempts qualifying items from sales tax to provide relief to customers. The state government announces sales tax holidays to boost economic activities and promote growth in the US.

Since most sales tax holidays are on weekends, they are also known as tax-free weekends. The following are the common types of sales tax holidays across the states.

Back-to-School: To help parents prepare for the beginning of the school year, many states offer sales tax exemptions on specific school-related items such as clothes, shoes, school supplies, and computers in August.
Emergency Preparedness: These holidays are more common in Southern states and allow people to prepare for emergencies during extreme weather conditions.
Energy Star Appliance: This holiday encourages people to reduce their consumption of energy resources by purchasing tax-exempt energy-efficient appliances.

Sales tax collection and remittance can go two ways:

The seller is responsible for the sales tax collection
The buyer is liable to pay the sales tax

During a tax-free weekend, the buyers are not liable for paying sales tax on particular taxable transactions, and the sellers are prohibited from collecting it. Learn more about ecommerce sales tax to understand the compliance requirements during sales tax holidays.

For example, let’s look at how sales tax holidays work for a retail business.

A clothing store in Texas typically collects sales tax from customers and remits it to the state government. The funds collected from sales tax will be used for various public development projects by the state government. Texas has an annual back-to-school holiday around August 8-10. During those days, the company will not collect sales tax on qualifying clothing items costing less than $100.

Sales Tax Holidays 2025 State-By-State Schedule

Besides the five states with no sales tax, around 18 states offer one or more sales tax holidays and tax-free weekends. Below is a state-by-state guide schedule to sales tax holidays in 2025.

Note: Bookmark this blog to help you keep track of the sales tax holidays in 2025. We will update this table throughout the year to include new sales tax holidays announced by states.

STATE	DATE	TYPE	ELIGIBLE MERCHANDISE
Alabama	February 21 – 23, 2025	Emergency Preparedness	Weather preparedness items, up to $60, including (but not limited to): Batteries Smoke detector Fuel container Fire extinguisher
	July 18 – 20, 2025	Back-to-School	Various school-related items, including: Computers, software, and computer supplies ($750 or less) School supplies (up to $50/item) Books ($30 or less)
Alaska	November 29-30, 2025	Tax-Free Holiday	On those two days, you won’t have to pay taxes on most items, but this doesn’t include fuel, alcohol, tobacco (this includes vapes), or marijuana.
Arizona	Currently NO planned sales tax holiday
Arkansas	August 2-3, 2025	Back-to-School	Various school-related items, including: Clothing and footwear ($100/item or less) Clothing accessories and equipment ($50/item or less) School supplies
California	Currently NO planned sales tax holiday
Colorado	Currently NO planned sales tax holiday
Connecticut	August 17-23, 2025	Back-to-School	Clothing and footwear ( $100 or less) Note: This excludes clothing accessories and protective or athletic clothing
Delaware	Not Applicable
Florida	July 1, 2022- June 30, 2025	Home Hardening	A two-year tax exemption for impact-resistant windows, doors, and garage doors.
	July 1, 2023- June 30, 2025	Energy Star Appliances	Energy Star appliances for non-commercial use: Refrigerators (up to $4,500) Washing machines (up to $1,500) Water heater (up to $1,500) Clothes dryer (up to $1,500)
	January 1-14, 2025	Back-to-School	Various school-related items including: Clothing, wallets, and bags (up to $100) School supplies (up to $50) Learning aids (up to $30) Computers and computer-related accessories (up to $1,500)
	2025 dates to be announced	Disaster Preparedness	Various disaster preparedness-related products up to $3,000, including: Batteries Fuel tanks Fire alarms Portable generators Carbon monoxide detectors
	2025 dates to be announced	Freedom Summer	Various outdoor supplies including: Fishing supplies Camping supplies Pool supplies Children’s athletic equipment
Georgia	Currently NO planned sales tax holiday
Hawaii	Currently NO planned sales tax holiday
Idaho	Currently NO planned sales tax holiday
Illinois	Currently NO planned sales tax holiday
Indiana	Currently NO planned sales tax holiday
Iowa	August 1-2, 2025	Back-to-School	Clothing (less than $100) Footwear (less than $100) Note: This is excluding clothing accessories
Kansas	Currently NO planned sales tax holiday
Kentucky	Currently NO planned sales tax holiday
Louisiana	Currently NO planned sales tax holiday
Maine	Currently NO planned sales tax holiday
Maryland	February 15-17, 2025	Shop Maryland Energy	Various Energy Star appliances including: Standard size refrigerators Air conditioners Boilers Heat pumps Washers and dryers Compact fluorescent light bulbs Dehumidifiers Solar water heaters
	August 10-16, 2025	Back-to-School	Clothing and footwear ($100/item or less) Backpacks (only the first $40)
Massachusetts	2025 dates to be announced	Annual	Tangible Personal Property (up to $2,500)
Michigan	Currently NO planned sales tax holiday
Minnesota	Currently NO planned sales tax holiday
Mississippi	July 11-13, 2025	Back-to-School	Clothing (less than $100) Footwear (less than $100)
	August 29-31, 2025	Second Amendment	Firearms Ammunition Hunting supplies (tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts, and slings.)
Missouri	April 19-25, 2025	Energy Star Holiday	All Energy Star-certified new appliances up to $1,500, including: Air conditioners Washers and dryers Refrigerators Heat pumps Stoves Furnaces
	August 1-3, 2025	Back-to-School	Various school-related items including: Clothing ($100 or less) School supplies ($50 or less) PCs and computer devices ($1,500 or less) Computer software ($350 or less) Graphing calculators ($150 or less per item)
Montana	Not Applicable
Nebraska	Currently NO planned sales tax holiday
Nevada	2025 dates to be announced	National Guard Member Day	Purchases by National Guard Members
New Hampshire	Not Applicable
New Jersey	Currently NO planned sales tax holiday
New Mexico	August 1-3, 2025	Back-to-School	Various school-related items including: Clothing and shoes ($100/unit or less) School supplies Computers and related devices ($1,000 or less) Specific computer-related items – $500 or less per item Book bags, backpacks, maps and globes (less than $100 per item) Handheld calculators (less than $200 per item) NOTE: Retailers are not required to participate.
	2025 dates to be announced	Small Business Saturday Gross Receipts Tax Holiday	Items include those under $500: Clothing, footwear, accessories (including jewelry, handbags, backpacks, luggage, wallets, etc.), sporting goods, and camping equipment. Tools for home improvement, gardening, and automotive maintenance and repair. Books, journals, paper, writing instruments, art supplies, greeting cards, postcards, and various artworks (such as photographs, sculptures, pottery, carvings, textiles, baskets, artifacts, etc.). Floral arrangements and indoor plants. Cosmetics and personal grooming products. Musical instruments. Cookware, small home appliances for residential use, bedding, towels, bath accessories, and furniture. Toys or games designed for children or families, video games, video game consoles, associated accessories for video game consoles, home electronics, tablets, stereo equipment, and related electronics.
New York	Currently NO planned sales tax holiday
North Carolina	Currently NO planned sales tax holiday
North Dakota	Currently NO planned sales tax holiday
Ohio	Currently NO planned sales tax holiday
Oklahoma	August 1-3, 2025	Back-to-School	Clothing (less than $100) Footwear (less than $100) NOTE: This is excluding accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear.
Oregon	Not Applicable
Pennsylvania	Currently NO planned sales tax holiday
Rhode Island	Currently NO planned sales tax holiday
South Carolina	August 1-3, 2025	Back-to-School	Various school-related items including: School supplies Clothing and footwear Computers and software Clothing accessories Specific bed and bath items
South Dakota	Currently NO planned sales tax holiday
Tennessee	July 25-27, 2025	Back-to-School	Various school-related items including: Clothing and shoes ($100/item or less) School supplies ($100/item or less) Computers (up to $1,500)
Texas	April 26-28, 2025	Emergency Preparedness	Various emergency preparedness supplies including: Portable generators (less than $3,000) Emergency ladders and hurricane shutters (less than $300) First aid kits, batteries, axes, fuel containers, and light sources (less than $75)
	May 24-26, 2025	Energy Star Appliance	Various Energy Star appliances including: Air conditioners (up to $6,000) Dishwashers Dehumidifiers Refrigerators (up to $2,000) Ceiling fans
	May 24-26, 2025	Water-Efficiency	Various water-efficient products including: Soakers or drip irrigation hoses. Moisture control systems for sprinkler or irrigation systems. Mulch. Rain collection systems. Soil and compost. Plants, trees, and grasses. Water-saving surfactants. Permeable ground cover surfaces that allow water to reach water collection points.
	August 8-10, 2025	Back-to-School	Clothing and footwear (less than $100). This is excluding accessories, athletic or protective clothing, and rentals of clothing or footwear Backpacks School supplies (less than $100)
Utah	Currently NO planned sales tax holiday
Vermont	Currently NO planned sales tax holiday
Virginia	August 1-3, 2025	Three-Day Sales Tax Holiday	School supplies eligible for savings – priced at $20 or less per item Clothing and footwear qualifying for exemption – priced at $100 or less per item Portable generators available for exemption – priced at $1,000 or less per item Gas-powered chainsaws eligible for savings – priced at $350 or less per item Chainsaw accessories qualifying for exemption – priced at $60 or less per item Other specified hurricane preparedness items available for exemption – priced at $60 or less per item Qualifying Energy Star™ or WaterSense™ products for noncommercial home or personal use – priced at $2,500 or less per item
Washington	Currently NO planned sales tax holiday
West Virginia	August 2-5, 2025	Back-to-School	Various school-related items including: Clothing (less than $125) School supplies (less than $50) Computers and laptops (less than $500) Sports equipment (less than $150) School instruction material (less than $20)
Wisconsin	Currently NO planned sales tax holiday
Wyoming	Currently NO planned sales tax holiday

Sales Tax Holiday 2025 Frequently Asked Questions

What states offer Sales Tax Holidays for specific items only?

In 2025, only a few states with statewide sales tax are offering sales tax holidays for specific items. States like Alabama, Massachusetts, Mississippi, and Missouri are among those that have announced sales tax holidays. These holidays typically cover school supplies, clothing, and emergency preparedness items.

How should ecommerce businesses ensure compliance during Sales Tax Holidays?

To avoid overcharging customers, ecommerce businesses must ensure that sales tax collection is turned off for products eligible for sales tax holidays. If a business fails to turn off sales tax collection during sales tax holidays, they may face legal consequences and penalties.

Instead of managing sales tax manually, businesses can use reliable sales tax solutions like TaxHero to handle tax holidays efficiently and enhance compliance.

What products are included in tax-free weekends?

Every state has its own rules and regulations for declaring tax-exempt products during tax-free weekends. Usually, the products included in sales tax holidays are back-to-school supplies, disaster preparedness-related items, energy-efficient products, and ammunition.

When are tax-free weekends in 2025?

Tax-free weekends are announced in various states at any time throughout the year. Sometimes, the states may expand existing tax-free weekends to benefit citizens. The states may also suspend tax-free weekends when tight on budget. Refer to the schedules we shared above to learn about tax-free weekends occurring in 2025.

Do Sales Tax Holidays have price restrictions?

Yes, sales tax holidays may have some price restrictions, but they are not mandatory. Some states don’t set a price cap on products during sales tax holidays, and others might. Our schedule for sales tax holidays in 2025 includes price restrictions on certain items as announced by each state.

Streamline your holiday sales tax with TaxHero today!

Sales tax rules and regulations change frequently in all states. As an ecommerce business, you must track sales during sales tax holidays to ensure prompt compliance. Automate your sales tax compliance with TaxHero to avoid any legal penalties. Book a call to learn how we can help your business.

Mark your calendars and stay updated on the tax holiday 2024 schedule. Check out our up-to-date tax-free weekend guide.

Customers love sales tax holidays, but for ecommerce businesses, they can pose a challenge. This year, several US states will offer the sales tax holiday 2024. And since each state has its own rules, it’s important to know your obligations during these periods.

Track your sales tax holidays in 2024 better. We created this quick, comprehensive guide for every sales tax holiday in each state this year to help you stay updated and on track.

What is a Sales Tax Holiday?

Since most sales tax holidays are on weekends, they are also known as tax-free weekends. The following are the common types of sales tax holidays across the states.

Back-to-School: To help parents prepare for the beginning of the school year, many states offer sales tax exemptions on specific school-related items such as clothes, shoes, school supplies, and computers in August.
Emergency Preparedness: These holidays are more common in Southern states and allow people to prepare for emergencies during extreme weather conditions.
Energy Star Appliance: This holiday encourages people to reduce their consumption of energy resources by purchasing tax-exempt energy-efficient appliances.

Sales tax collection and remittance can go two ways:

The seller is responsible for the sales tax collection
The buyer is liable to pay the sales tax

For example, let’s look at how sales tax holidays work for a retail business.

A clothing store in Texas typically collects sales tax from customers and remits it to the state government. The funds collected from sales tax will be used for various public development projects by the state government. Texas has an annual back-to-school holiday around August 9-11. During those days, the company will not collect sales tax on qualifying clothing items costing less than $100.

Sales Tax Holidays 2024 State-By-State Schedule

Besides the five states with no sales tax, around 23 states offer one or more sales tax holidays and tax-free weekends. Below is a state-by-state guide schedule to sales tax holidays in 2024.

Note: Bookmark this blog to help you keep track of the sales tax holidays in 2024. We will update this table throughout the year to include new sales tax holidays announced by states.

STATE	DATE	TYPE	ELIGIBLE MERCHANDISE
Alabama	February 23 – 25, 2024	Emergency Preparedness	Weather preparedness items, up to $60, including (but not limited to): Batteries Smoke detector Fuel container Fire extinguisher
	July 19 – 21, 2024	Back-to-School	Various school-related items, including: Computers, software, and computer supplies ($750 or less) School supplies (up to $50/item) Books ($30 or less)
Alaska	2024 dates to be announced	Tax-Free Holiday	On those two days, you won’t have to pay taxes on most items, but this doesn’t include fuel, alcohol, tobacco (this includes vapes), or marijuana.
Arizona	Currently NO planned sales tax holiday
Arkansas	August 3-4, 2024	Back-to-School	Various school-related items, including: Clothing and footwear ($100/item or less) Clothing accessories and equipment ($50/item or less) School supplies
California	Currently NO planned sales tax holiday
Colorado	Currently NO planned sales tax holiday
Connecticut	August 18-24, 2024	Back-to-School	Clothing and footwear ( $100 or less) Note: This excludes clothing accessories and protective or athletic clothing
Delaware	Not Applicable
Florida	July 1, 2022- June 30, 2024	Home Hardening	A two-year tax exemption for impact-resistant windows, doors, and garage doors.
	July 1, 2023- June 30, 2024	Energy Star Appliances	Energy Star appliances for non-commercial use: Refrigerators (up to $4,500) Washing machines (up to $1,500) Water heater (up to $1,500) Clothes dryer (up to $1,500)
	January 1-14, 2024	Back-to-School	Various school-related items including: Clothing, wallets, and bags (up to $100) School supplies (up to $50) Learning aids (up to $30) Computers and computer-related accessories (up to $1,500)
	2024 dates to be announced	Disaster Preparedness	Various disaster preparedness-related products up to $3,000, including: Batteries Fuel tanks Fire alarms Portable generators Carbon monoxide detectors
	2024 dates to be announced	Freedom Summer	Various outdoor supplies including: Fishing supplies Camping supplies Pool supplies Children’s athletic equipment
Georgia	Currently NO planned sales tax holiday
Hawaii	Currently NO planned sales tax holiday
Idaho	Currently NO planned sales tax holiday
Illinois	2024 dates to be announced	Grocery Tax Suspension	Suspends 1 percent (1%) low rate of sales and use tax on retail sales of groceries normally taxed at this rate
Indiana	Currently NO planned sales tax holiday
Iowa	August 2-3, 2024	Back-to-School	Clothing (less than $100) Footwear (less than $100) Note: This is excluding clothing accessories
Kansas	Currently NO planned sales tax holiday
Kentucky	Currently NO planned sales tax holiday
Louisiana	September 6-8, 2024	Second Amendment Weekend Holiday	Firearms, ammunition, and hunting supplies, including archery items, hunting apparel, accessories, and safety equipment.
Maine	Currently NO planned sales tax holiday
Maryland	February 17-19, 2024	Shop Maryland Energy	Various Energy Star appliances including: Standard size refrigerators Air conditioners Boilers Heat pumps Washers and dryers Compact fluorescent light bulbs Dehumidifiers Solar water heaters
	August 11-17, 2024	Back-to-School	Clothing and footwear ($100/item or less) Backpacks (only the first $40)
Massachusetts	2024 dates to be announced	Annual	Tangible Personal Property (up to $2,500)
Michigan	Currently NO planned sales tax holiday
Minnesota	Currently NO planned sales tax holiday
Mississippi	July 26-27, 2024	Back-to-School	Clothing (less than $100) Footwear (less than $100)
	August 30- September 1, 2024	Second Amendment	Firearms Ammunition Hunting supplies (tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts, and slings.)
Missouri	April 19-25, 2024	Energy Star Holiday	All Energy Star-certified new appliances up to $1,500, including: Air conditioners Washers and dryers Refrigerators Heat pumps Stoves Furnaces
	August 2-4, 2024	Back-to-School	Various school-related items including: Clothing ($100 or less) School supplies ($50 or less) PCs and computer devices ($1,500 or less) Computer software ($350 or less) Graphing calculators ($150 or less per item)
Montana	Not Applicable
Nebraska	Currently NO planned sales tax holiday
Nevada	2024 dates to be announced	National Guard Member Day	Purchases by National Guard Members
New Hampshire	Not Applicable
New Jersey	August 24- September 2, 2024	Back-to-School	Various school-related items including: School instructional material Sports equipment Computers (less than $3,000) School supplies School art supplies School Instructional materials
New Mexico	August 2-4, 2024	Back-to-School	Various school-related items including: Clothing and shoes ($100/unit or less) School supplies Computers and related devices ($1,000 or less) Specific computer-related items – $500 or less per item Book bags, backpacks, maps and globes (less than $100 per item) Handheld calculators (less than $200 per item) NOTE: Retailers are not required to participate.
	November 30, 2024	Small Business Saturday Gross Receipts Tax Holiday	Items include those under $500: Clothing, footwear, accessories (including jewelry, handbags, backpacks, luggage, wallets, etc.), sporting goods, and camping equipment. Tools for home improvement, gardening, and automotive maintenance and repair. Books, journals, paper, writing instruments, art supplies, greeting cards, postcards, and various artworks (such as photographs, sculptures, pottery, carvings, textiles, baskets, artifacts, etc.). Floral arrangements and indoor plants. Cosmetics and personal grooming products. Musical instruments. Cookware, small home appliances for residential use, bedding, towels, bath accessories, and furniture. Toys or games designed for children or families, video games, video game consoles, associated accessories for video game consoles, home electronics, tablets, stereo equipment, and related electronics.
New York	Currently NO planned sales tax holiday
North Carolina	Currently NO planned sales tax holiday
North Dakota	Currently NO planned sales tax holiday
Ohio	August 2-4, 2024	Back-to-School	Various school-related items including: Clothing ($75 or less) Classroom instructional material ($20/item or less) School supplies ($20/item or less)
Oklahoma	August 2-4, 2024	Back-to-School	Clothing (less than $100) Footwear (less than $100) NOTE: This is excluding accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear.
Oregon	Not Applicable
Pennsylvania	Currently NO planned sales tax holiday
Rhode Island	Currently NO planned sales tax holiday
South Carolina	August 2-4, 2024	Back-to-School	Various school-related items including: School supplies Clothing and footwear Computers and software Clothing accessories Specific bed and bath items
South Dakota	Currently NO planned sales tax holiday
Tennessee	July 26-28, 2024	Back-to-School	Various school-related items including: Clothing and shoes ($100/item or less) School supplies ($100/item or less) Computers (up to $1,500)
	2024 dates to be announced	Food and Ingredients	Food and food ingredient items purchased during this period are tax-free except items purchased from a vending machine or micro market.
Texas	April 27-29, 2024	Emergency Preparedness	Various emergency preparedness supplies including: Portable generators (less than $3,000) Emergency ladders and hurricane shutters (less than $300) First aid kits, batteries, axes, fuel containers, and light sources (less than $75)
	May 25-27, 2024	Energy Star Appliance	Various Energy Star appliances including: Air conditioners (up to $6,000) Dishwashers Dehumidifiers Refrigerators (up to $2,000) Ceiling fans
	May 25-27, 2024	Water-Efficiency	Various water-efficient products including: Soakers or drip irrigation hoses. Moisture control systems for sprinkler or irrigation systems. Mulch. Rain collection systems. Soil and compost. Plants, trees, and grasses. Water-saving surfactants. Permeable ground cover surfaces that allow water to reach water collection points.
	August 9-11, 2024	Back-to-School	Clothing and footwear (less than $100). This is excluding accessories, athletic or protective clothing, and rentals of clothing or footwear Backpacks School supplies (less than $100)
Utah	Currently NO planned sales tax holiday
Vermont	Currently NO planned sales tax holiday
Virginia	August 2-4, 2024	Three-Day Sales Tax Holiday	School supplies eligible for savings – priced at $20 or less per item Clothing and footwear qualifying for exemption – priced at $100 or less per item Portable generators available for exemption – priced at $1,000 or less per item Gas-powered chainsaws eligible for savings – priced at $350 or less per item Chainsaw accessories qualifying for exemption – priced at $60 or less per item Other specified hurricane preparedness items available for exemption – priced at $60 or less per item Qualifying Energy Star™ or WaterSense™ products for noncommercial home or personal use – priced at $2,500 or less per item
Washington	Currently NO planned sales tax holiday
West Virginia	August 2-5, 2024	Back-to-School	Various school-related items including: Clothing (less than $125) School supplies (less than $50) Computers and laptops (less than $500) Sports equipment (less than $150) School instruction material (less than $20)
Wisconsin	Currently NO planned sales tax holiday
Wyoming	Currently NO planned sales tax holiday

Sales Tax Holiday 2024 Frequently Asked Questions

What states offer Sales Tax Holidays for specific items only?

In 2024, only a few states with statewide sales tax are offering sales tax holidays for specific items. States like Alabama, Florida, Massachusetts, Mississippi, and Missouri are among those that have announced sales tax holidays. These holidays typically cover items such as school supplies, clothing, and emergency preparedness items.

How should ecommerce businesses ensure compliance during Sales Tax Holidays?

Instead of managing sales tax manually, businesses can opt to use reliable sales tax solutions like TaxHero to handle tax holidays efficiently and enhance compliance.

What products are included in tax-free weekends?

When are tax-free weekends in 2024?

Do Sales Tax Holidays have price restrictions?

Yes, sales tax holidays may have some price restrictions, but they are not mandatory. Some states don’t set a price cap on products during sales tax holidays, and others might. Our schedule for sales tax holidays in 2024 includes price restrictions on certain items as announced by each state.

Streamline your holiday sales tax with TaxHero today!

Sales Tax Holiday 2023 Schedule | TaxHero

Customers love sales tax holidays, but for ecommerce businesses, they can pose a challenge. This year, the sales tax holiday 2023 will be offered by several US states, and since each state has its own rules, it’s essential to know your obligations during these periods.

To help you track sales tax holidays in 2023, we have prepared a comprehensive guide for every sales tax holiday in each state.

What is a Sales Tax Holiday?

A sales tax holiday is a period of time when the state or local government temporarily exempts qualifying items from sales tax to provide relief to customers. The state government announces sales tax holidays to boost economic activities and promote growth in the US.

Since most sales tax holidays are on weekends, they are also known as tax-free weekends. The following are the common types of sales tax holidays across the states.

Back to school: To help parents prepare for the beginning of the school year, many states offer sales tax exemptions on specific school-related items such as clothes, shoes, school supplies, and computers in August.
Severe weather preparedness: These holidays are more common in Southern states and allow people to prepare for emergencies during extreme weather conditions.
Energy Star appliance: This holiday encourages people to reduce their consumption of energy resources by purchasing tax-exempt energy-efficient appliances.

Usually, sales tax collection and remittance go two ways; the seller is responsible for sales tax collection, while the buyer is liable to pay sales tax. During a tax-free weekend, the buyers are not liable for paying sales tax on certain taxable transactions, and the sellers are prohibited from collecting it. Learn more about ecommerce sales tax to understand the compliance requirements.

Example

Let’s look at an example of how sales tax holidays work for a retail business.

For instance, a clothing store in Texas typically collects sales tax from customers and remits it to the government. This sales tax funds various public development projects by the state government. Texas has an annual back to school holiday around August 11-13. During those days, the company will not collect sales tax on qualifying clothing items costing less than $100.

Sales Tax Holidays 2023 State-By-State Schedule

Besides the five states with no sales tax, around 18 states offer one or more sales tax holidays and tax-free weekends. Below is a state-by-state guide of sales tax holidays 2023.

Note: Bookmark this blog to check in for sales tax holidays in 2023 periodically. We will update this table throughout the year to include new sales tax holidays announced by states.

STATE	DATE	TYPE	ELIGIBLE MERCHANDISE
Alabama	February 24 – 26, 2023	Severe Weather Preparedness	Weather preparedness items, up to $60, including (but not limited to): Batteries Smoke detector Fuel container Fire extinguisher
	July 21 – 23, 2023	Back-to-School	Various school-related items including: Computers, software, and computer supplies ($750 or below) School supplies (up to $50/item) Books ($30 or less)
Alaska	Not applicable
Arizona	Currently NO planned sales tax holiday
Arkansas	August 5 – 6, 2023	Back-to-School	Clothing ($100/item or less) Clothing accessories ($50/item or less)
California	Currently NO planned sales tax holiday
Colorado	Currently NO planned sales tax holiday
Connecticut	August 20 – 26, 2023	Back-to-School	Clothing (less than $100) Footwear (less than $100)
Delaware	Not applicable
Florida	July 1, 2022 – June 30, 2023	Children’s Diapers	Children’s diapers Baby clothes Baby footwear
	July 1, 2022 – June 30, 2024	Home Hardening	A two-year tax exemption for impact-resistant windows, doors, and garage doors.
	May 27 – June 9, 2023, and August 26 – September 8, 2023	Disaster Preparedness	Various disaster preparedness-related products up to $3,000, including: Batteries Fuel tanks Fire alarms Portable generators Carbon monoxide detectors
	May 29 – September 24, 2023	Freedom Summer	Various outdoor supplies including: Fishing supplies Camping supplies Pool supplies Children’s athletic equipment
	July 1, 2023 – June 30, 2024	Energy Star Appliances	Energy Star appliances for non-commercial use: Refrigerators (up to $4,500) Washing machines (up to $1,500) Water heater (up to $1,500) Clothes dryer (up to $1,500)
	July 24 – August 6, 2023	Back-to-School	Various school-related items including: Clothing, wallets, and bags (up to $100) School supplies (up to $50) Learning aids (up to $30) Computers and computer-related accessories (up to $1,500)
	September 2 – 8, 2023	Tool Time Holiday	Specific tools and equipment commonly used by skilled trade workers
Georgia	Currently NO planned sales tax holiday
Hawaii	Currently NO planned sales tax holiday
Idaho	Currently NO planned sales tax holiday
Illinois	Currently NO planned sales tax holiday
Indiana	Currently NO planned sales tax holiday
Iowa	August 4 – 5, 2023	Back-to-School	Clothing (less than $100) Footwear (less than $100)
Kansas	Currently NO planned sales tax holiday
Kentucky	Currently NO planned sales tax holiday
Louisiana	Currently NO planned sales tax holiday
Maine	Currently NO planned sales tax holiday
Maryland	February 18 – 20, 2023	Shop Maryland Energy	Various Energy Star appliances including: Standard size refrigerators Air conditioners Boilers Heat pumps Washers and dryers Dehumidifiers
	August 13 – 19, 2023	Back-to-School	Clothing and footwear ($100/item or less) Backpacks (only the first $40)
Massachusetts	August 12 – 13, 2023	Annual	Tangible Personal Property (up to $2,500)
Michigan	Currently NO planned sales tax holiday
Minnesota	Currently NO planned sales tax holiday
Mississippi	July 28 – 29, 2023	Back-to-School	Clothing (less than $100) Footwear (less than $100)
	August 26 – 28, 2023	Second Amendment	Firearms Ammunition Hunting supplies
Missouri	April 19 – 25, 2023	Annual Energy Star Holiday	All Energy Star-certified new appliances up to $1,500, including: Air conditioners Washers and dryers Refrigerators Heat pumps Stoves Furnaces
	August 4 – 6, 2023	Back-to-School	Various school-related items including: Clothing ($100 or less) School supplies ($50 or less) PCs and computer devices ($1,500 or less) Computer software ($350 or less)
Montana	Not applicable
Nebraska	Currently NO planned sales tax holiday
Nevada	October 27 – 29, 2023	Nevada Day	TPP sold to active duty national guard residing in Nevada
New Hampshire	Not applicable
New Jersey	August 26 – September 4, 2023	Back-to-School	Various school-related items including: School instructional material Sports equipment Computers (less than $3,000) School supplies
New Mexico	August 4 – 6, 2023	Back-to-School	Various school-related items including: Clothing and shoes ($100/unit or less) School supplies Computers and related devices ($1,000 or less)
New York	Currently NO planned sales tax holiday
North Carolina	Currently NO planned sales tax holiday
North Dakota	Currently NO planned sales tax holiday
Ohio	August 4-6, 2023	Back-to-School	Various school-related items including: Clothing ($75 or less) Classroom instructional material ($20/item or less) School supplies ($20/item or less)
Oklahoma	August 4-6, 2023	Back-to-School	Clothing (less than $100) Footwear (less than $100)
Oregon	Not applicable
Pennsylvania	Currently NO planned sales tax holiday
Rhode Island	Currently NO planned sales tax holiday
South Carolina	August 4-6, 2023	Back-to-School	Various school-related items including: School supplies Clothing and footwear Computers and software Clothing accessories
South Dakota			Currently NO planned sales tax holiday
Tennessee	July 1, 2021 – June 30, 2023	Gun Safety	Gun safes and safety devices
	July 28 – 30, 2023	Back-to-School	Various school-related items including: Clothing and shoes ($100/item or less) School supplies ($100/item or less) Computers (up to $1,500)
	August 1, 2023	Food	Food and food ingredients.
Texas	April 22 – 24, 2023	Emergency Preparedness	Various emergency preparedness supplies including: Portable generators (less than $3,000) Emergency ladders and hurricane shutters (less than $300) First aid kits, batteries, axes, fuel containers, and light sources (less than $75)
	May 27 – 29, 2023	Energy Star	Various Energy Star appliances including: Air conditioners (up to $6,000) Dishwashers Dehumidifiers Refrigerators (up to $2,000) Ceiling fans
	May 27 – 29, 2023	Water-Efficieny	Various water-efficient products including: Drip irrigation hose Rain and moisture collection system Soil Plants and grass Any other item with WaterSense logo
	August 11 – 13, 2023	Back-to-School	All items for less than $100: Clothing Footwear Backpacks School supplies
Utah	Currently NO planned sales tax holiday
Vermont	Currently NO planned sales tax holiday
Virginia	Currently NO planned sales tax holiday
Washington	Currently NO planned sales tax holiday
West Virginia	August 4 – 7, 2023	Back-to-School	Various school-related items including: Clothing (less than $125) School supplies (less than $50) Computers and laptops (less than $500) Sports equipment (less than $150) School instruction material (less than $20)
Wisconsin	Currently NO planned sales tax holiday
Wyoming	Currently NO planned sales tax holiday

Sales Tax Holiday 2023 Frequently Asked Questions

Do all states have a sales tax holiday this year?

No, not all states have a sales tax holiday. Among 45 states that impose statewide sales tax, around 18 states announce sales tax holidays at different times of the year. Some states have annually recurring sales tax holidays, while others announce them each year depending on the budget and other factors.

How should online businesses ensure compliance during sales tax holidays?

Online businesses must ensure to turn off sales tax collection for the products eligible for sales tax holidays to avoid overcharging customers. If a business fails to turn off sales tax collection during sales tax holidays, they may face legal consequences and penalties.

Instead of managing sales tax manually, businesses can opt for a reliable sales tax solution to handle tax holidays efficiently and enhance compliance.

What products are included in tax free weekends?

Every state has its rules and regulations for declaring tax-exempt products during tax-free weekends. Usually, the products included in sales tax holidays are back-to-school supplies, disaster preparedness items, energy-efficient products, and ammunition.

When are tax free weekends in 2023?

Tax-free weekends are announced in various states at any time throughout the year. Sometimes the states may expand existing tax free weekends to benefit citizens. The states may also suspend tax free weekends when tight on budget. Refer to our schedule for sales tax holidays to learn about tax free weekends occurring in 2023.

Do sales tax holidays have price restrictions?

Yes, sales tax holidays may have some price restrictions, but it is not mandatory. Some states don’t set a price cap on products during sales tax holidays, and others might. Our schedule for sales tax holidays 2023 includes price restrictions on certain items as announced by each state.

Ready to streamline sales tax processes? Get started with TaxHero.

Sales tax rules and regulations change frequently in all states. As a retailer, you must track your sales during sales tax holidays to ensure prompt compliance with sales tax holidays rules and regulations. Automate your sales tax compliance with TaxHero to avoid any legal penalties. Book a call to learn how we can help your business.

Sales tax by state: Highest to lowest tax rates | TaxHero

The United States has a wide range of sales tax rates across different states, with some states having the highest sales tax rates in the country while others have the lowest.

When you shop, it’s important to remember that sales tax will increase the overall price of your purchases. You may spend more than planned if you don’t factor in sales tax. So, it’s wise to know more about it.

It’s important to know that sales tax rates, laws, compliance requirements, and collection methods can differ across states. Whether you’re a seller or a regular customer, keeping track of sales tax rates in different states is essential. To help with this, we’ve put together a guide detailing the states with the highest and lowest sales tax rates and their combined state and local sales tax rates.

What Items Are Taxable?

As a rule of thumb, all tangible personal property (TPP) is taxable under sales tax laws. It refers to goods that have a physical existence. However, some physical goods are not counted as tangible personal property and are exempt from sales tax requirements.

Most states exempt grocery from TPP because it is a necessity and frequently purchased by consumers. You must check your state’s Department of Revenue’s website to understand taxable and non-taxable goods.

States with Highest Sales Tax Rates

Some states in the USA charge a higher rate than others, making them one of the most expensive states for buyers. So, what state has the highest sales tax? The following 11 states have the highest sales tax rates in the US.

California 7.25%
Indiana 7%
Mississippi 7%
Rhode Island 7%
Tennessee 7%
Minnesota 6.875%
Nevada 6.85%
New Jersey 6.625%
Arkansas 6.5%
Kansas 6.5%
Washington 6.5%

States with Lowest Sales Tax Rates

States with the lowest sales tax rates have a rate range between 2.5% – 5%. The following states have comparatively lower state sales tax rates than others.

Colorado 2.9%
Alabama 4%
Georgia 4%
Hawaii 4%
New York 4%
Wyoming 4%
Missouri 4.225%
South Dakota 4.5%
Oklahoma 4.5 %
North Carolina 4.75%

States with No Sales Tax

Did you know that some states do not charge state sales tax at all? It includes five US states, of which four have complete state and local sales tax exemption. The following are the states with no sales tax.

Alaska
Delaware
Montana
New Hampshire
Oregon

Among these states with zero sales tax, Alaska has locally imposed sales tax on some goods. There are other things too that you must know about states with no sales tax to manage your taxes efficiently.

Combined State and Local Sales Tax Rates

When discussing a state’s combined sales tax rate, we consider the following two taxes.

State Sales Tax: It represents the sales tax levied by the state government on sales of goods and services. Forty-five states impose a state sales tax.
Local Sales Tax: Besides the state, the government allows localities to charge local sales tax on sales. This rate varies from the state sales tax rate and may sometimes exceed it. Thirty-eight states charge local sales tax from customers.

The above lists present state-by-state ranking on the basis of state sales tax. However, local sales tax is an essential factor that you must pay attention to when discussing sales tax. Below are the states with the highest and lowest combined sales tax rates.

States with Highest Combined Sales Tax

The following states have the highest combined sales tax rates.

Louisiana 9.55%
Tennessee 9.48%
Arkansas 9.46%
Alabama 9.25%
Oklahoma 8.99%
California 8.82%
Illinois 8.82%
Kansas 8.66%
New York 8.52%
Arizona 8.37%
Missouri 8.33%

States with Lowest Combined Sales Tax

The following states have the lowest combined sales tax rates.

Alaska 1.76%
Hawaii 4.44%
Wyoming 5.36%
Wisconsin 5.43%
Maine 5.5%
Virginia 5.75%

States with Gross Receipt Tax

People often compare gross receipt tax with sales tax. Gross receipt tax refers to the levy or tax paid by the seller of the goods. On the other hand, sales tax is levied upon customers or the buyers of the goods.

The following are the states with gross receipt tax.

- Delaware
- Nevada
- Ohio
- Oregon
- Tennessee
- Texas
- Washington

Variation in Sales Tax

Besides sales tax rates, the sales tax bases also vary among states. What is taxable in one state may not be taxable in the other. For instance, some states like New Jersey exempt clothing from tax brackets, some set a certain limit for levy, while others regard them as taxable goods.

From the rates levied to what is taxable, all 50 states have their own set of laws and statutes. Not only that, these regulations are subject to change. That means states with low sales tax rates may become high tax-charging states and vice versa. Therefore as a business owner, you must keep track and take a comprehensive analysis of various states’ sales tax laws to be compliant.

Sales Tax Rates Frequently Asked Questions

1. What is the highest sales tax rate in the USA?

As of March 9th, 2023, the highest state sales tax in the USA is 7.25% in California, and the highest local sales tax in the USA is 5.25% in Alabama. The highest combined sales tax rate in the USA is 9.55% in Louisiana.

2. What is the lowest sales tax rate in the USA?

As of March 9th, 2023, the lowest state sales tax in the USA is 2.9% in Colorado, and the lowest local and combined sales tax in the USA is 1.76% in Alaska.

3. Which state has the highest sales tax rate?

As of March 9th, 2023, California (7.25%) charges the highest state sales tax percentage, whereas Louisiana has the highest combined sales tax rate (9.55%). Increased sales tax rates have a significant impact on the economy.

4. What are sales taxes used for?

Sales taxes are used for financing several public services. It includes improving infrastructure, health, education, and emergency services. The state decides where and how to spend the collected sales tax for the betterment of people. You can learn in detail what sales tax is used for in this blog.

5. Are ecommerce sellers required to collect sales tax?

Yes, ecommerce sellers must collect sales tax for the products they sell in the states that meet physical or economic nexus. They must first check nexus and meet other requirements to collect and remit sales tax.

Need Help with Sales Tax?

Although sales tax is only a part of the complex taxation structure, it isn’t very easy to understand and comply with. It is always better to rely on experts to ensure error-free sales tax compliance. Book a call with TaxHero and let professionals handle the varying sales tax rates and compliance requirements in any and every state.