Alabama, often referred to as the “Heart of Dixie,” is celebrated for its rich history and vibrant culture, from the bustling streets of Birmingham to the tranquil Gulf Shores. Yet, for businesses operating within this state, understanding the nuances of sales tax in Alabama is as crucial as understanding its diverse economic landscape.
This guide breaks down everything you need to know about Alabama’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Alabama’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Alabama.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Alabama include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning October 1, 2018, the threshold for economic nexus in Alabama is $250,000 in gross revenue in the previous calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Alabama.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Alabama.
Almost all goods are taxable in Alabama, including:
The goods that are exempt from sales tax are:
In Alabama, all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax. However, if a service is performed as part of manufacturing or creating a new tangible item that will later be sold, sales tax may apply to that service, even if the charges for the service are listed separately from the sale price of the item.
SaaS is taxable in the state of Alabama.
Digital products (i.e., ebooks, downloadable video content, computer software, mobile apps) are also taxable.
Shipping and handling charges in Alabama are taxable if the delivery was made by the seller’s own vehicle or in a leased vehicle. However, if the delivery is made by a common carrier or the U.S. postal service and billed as a separate item and paid directly or indirectly by the buyer, it is not taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Alabama, the next important step is getting your Alabama Seller’s Permit, also known as a sales tax permit.
You can register for a Sellers Use Tax online through the My Alabama Taxes or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Alabama, you must renew your sales tax permit annually through your My Alabama Taxes account.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Alabama, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller will report tax on the final sale of the items.
You can fill out the Form ST-EX A1 Application for Sales Tax Certificate of Exemption provided by the Alabama Department of Revenue after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Alabama Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Alabama is not a party to this program as it’s only an advisory state, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Alabama Department of Revenue for the most current information on Alabama’s participation in the Streamlined Sales Tax initiative.
In Alabama, sales tax isn’t just one simple rate; it’s a combination of state and local taxes, with eligible out-of-state or remote sellers having to apply first before they can start reporting, paying, and collecting the 8.00% use tax rate, different from the normal sales tax rate. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Alabama Sales Tax Calculator to compute sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Texas and sells to a customer in Huntsville, AL, with a ZIP code of 35808. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
* includes 1.00% Madison County Special Tax Rate
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Alabama is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Alabama-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For eligible out-of-state or remote sellers with economic nexus in Alabama, they must apply and be accepted first before they can start collecting the 8.00% seller’s use tax rate. For instance, if you’re selling a product from Texas to a customer in Huntsville, Alabama, where you have nexus, you’d have to apply Huntsville’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Alabama sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, bi-annually, or annually. By default, all businesses are required to file sales tax returns monthly. However:
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Alabama’s sales tax regulations.
In Alabama, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Alabama, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Alabama’s timely filing discount is a 2% discount for the first $400,000 of sales taxes collected and repeated, with the discount not exceeding $8,000 per month.
Currently, for 2025, the planned sales tax holidays in Alabama are:
Like in most states, sales tax is a big part of how Alabama generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial to always ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Alabama:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Alabama or any state! |
Doing business in the Cornhusker State means more than hard work—it also requires understanding tax obligations. Knowing how sales tax in Nebraska works can make the difference between compliance and costly fines.
This guide breaks down everything you need to know about Nebraska’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Nebraska’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Nebraska.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Nebraska include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Nebraska, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning April 1, 2019, the threshold for economic nexus in Nebraska is $100,000 in gross revenue or 200 or more separate transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Nebraska.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Nebraska.
Almost all goods are taxable in Nebraska, including:
The goods that are exempt from sales tax are:
In Nebraska, the majority of service-based transactions, such as advertising, storage, and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is not taxable in the state of Nebraska.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable. It applies to selling digital audio, video, books, and related codes to end users, whether they gain permanent, temporary, or payment-based usage rights.
Shipping and handling charges in the state of Nebraska are taxable. When a delivery fee covers both exempt and taxable items, sales tax applies to the portion allocated to taxable items based on their price or weight ratio in the shipment.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Nebraska, the next important step is getting your Nebraska Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Nebraska Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Nebraska, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Nebraska, sellers use resale certificates to buy goods from the suppliers they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out Form 13 provided by Nebraska after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Nebraska Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Nebraska is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Nebraska Department of Revenue for the most current information on Nebraska’s participation in the Streamlined Sales Tax initiative.
In Nebraska, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs..
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Nebraska and sells to a customer in Omaha, NE, with a ZIP code of 68105. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Nebraska is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Nebraska-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Lincoln, Nebraska, where you have nexus, you’d apply Lincoln’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Nebraska sales tax returns. Filing and remittance can vary in frequency, typically monthly and quarterly.
In Nebraska, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Nebraska, a few options are available:
Some states offer businesses a discount for collecting, filing, and remitting sales tax on time as an incentive to process sales tax promptly. In Nebraska, taxpayers can deduct and retain 2.5% of the total tax due, up to $75 per month, and remit it monthly as compensation for collection costs.
Currently, for 2026, there are no planned sales tax holidays in Nebraska.
Like in most states, sales tax is a big part of how Nebraska generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Nebraska:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Nebraska or any state! |
Wyoming, one of the most tax-friendly states, also known as a “tax haven,” is an outstanding place for business owners. Even if you spend less in Wyoming, you can still earn more, thanks to how business-friendly the state is. To ensure your success, you must first understand the rules of sales tax in Wyoming.
This guide breaks down everything you need to know about Wyoming’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Wyoming’s sales tax with confidence and ease.
|
|||||||||||||||||||
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Wyoming or any state! |
Vermont, known for its scenic Green Mountains and charming small towns, values simplicity, even in its tax system. Understanding what is sales tax in Vermont is as easy as enjoying a crisp autumn day or a locally made maple syrup.
This guide breaks down everything you need to know about Vermont’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Vermont’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Vermont.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Vermont include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2018, the threshold for economic nexus in Vermont is $100,000 in gross revenue or 200 transactions in the prior four calendar quarters.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Vermont.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Vermont.
Almost all goods are taxable in Vermont, including:
The goods that are exempt from sales tax are:
In Vermont, the majority of service-based transactions, such as professional services, advertising, and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Vermont.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping and handling charges in the state of Vermont are taxable when the goods being delivered are taxable. Conversely, if the item is tax-exempt, the associated delivery charges are also exempt. For shipments containing taxable and tax-exempt items, sales tax applies only to the portion of the delivery cost attributable to the taxable items.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Vermont, the next important step is getting your Vermont Seller’s Permit, also known as a sales tax permit.
A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a seller’s permit. You can register for a Vermont sales tax permit online at the Vermont Department of Tax or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Vermont, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Vermont, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Vermont Sales Tax Exemption Certificate provided by Vermont after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Vermont Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Vermont is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Vermont Revenue Services for the most current information on Vermont’s participation in the Streamlined Sales Tax initiative.
In Vermont, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Vermont and sells to a customer in Burlington, VT, with a ZIP code of 05401. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Vermont is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Vermont-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in South Burlington, Vermont, where you have nexus, you’d apply South Burlington’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Vermont sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Vermont’s sales tax regulations.
In Vermont, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.
To file your sales tax return for Vermont, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Vermont does not offer a discount.
Currently, for 2026, there are no planned sales tax holidays in Vermont.
Like in most states, sales tax is a big part of how Vermont generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Vermont:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Vermont or any state! |
Home to tech giants and breathtaking national parks, Washington thrives on innovation and commerce. But to succeed here, businesses must also navigate sales tax in Washington, ensuring compliance and avoiding costly penalties.
This guide breaks down everything you need to know about Washington’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Washington’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Washington.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Washington include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Washington, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Effective March 14, 2019, the threshold for economic nexus in Washington is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Washington.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Washington.
Almost all goods are taxable in Washington, including:
The goods that are exempt from sales tax are:
In Washington, the majority of service-based transactions, such as advertising, janitorial, and storage services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Washington.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. Washington imposes sales and use tax on downloaded digital goods, digital products, codes, and automated services, including streaming, regardless of ownership rights or payment structure.
Shipping and handling charges in the state of Washington are taxable. Charges incurred after the buyer receives the goods and fees for delivering exempt items are not included.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Washington, the next important step is getting your Washington Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Washington Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit. However, additional fees may apply based on the endorsement type required for your Business License.
Renewal
In Washington, you have to renew your sales tax permit annually. It must be renewed annually for $5, with a renewal notice sent before expiration.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Washington, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
Reseller permits issued by the Department are typically valid for 48 months but may be limited to 24 months under certain conditions. The Department may deny or revoke permits due to misuse, tax liabilities, or incomplete applications. Misusing a reseller permit incurs penalties, and sellers must maintain records verifying permit validity.
You can fill out the form provided by Washington after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Washington Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Washington is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Washington Department of Revenue for the most current information on Washington’s participation in the Streamlined Sales Tax initiative.
In Washington, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs..
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Washington and sells to a customer in Seattle, WA, with a ZIP code of 98101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Washington is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Washington-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Lincoln, Washington, where you have nexus, you’d apply Lincoln’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Washington sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
In Washington, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.
To file your sales tax return for Washington, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Washington does not offer a discount.
Currently, for 2026 there are no planned sales tax holidays in Washington.
Like in most states, sales tax is a big part of how Washington generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Washington:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Washington or any state! |
Known for its sandy shores and historic towns, Rhode Island’s charm extends beyond its landscapes. When it comes to business, grasping sales tax in Rhode Island is essential, revealing a system as distinct as the Ocean State’s coastal beauty.
This guide breaks down everything you need to know about Rhode Island’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Rhode Island’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Rhode Island.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Rhode Island include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2019, the threshold for economic nexus in Rhode Island is $100,000 in gross revenue or 200 or more transactions in the previous calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Rhode Island.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Rhode Island.
Almost all goods are taxable in Rhode Island, including:
The goods that are exempt from sales tax are:
In Rhode Island, the majority of service-based transactions, such as advertising, security, and employment, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Rhode Island.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. Effective October 1, 2019, specified digital products like digital books, audio, and audio-visual works are subject to sales and use tax.
Shipping and handling charges in the state of Rhode Island are taxable. If the property sold is exempt, delivery charges are not taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Rhode Island, the next important step is getting your Rhode Island Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online at the State of Rhode Island Division of Taxation Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is a $10 fee to register for a sales tax permit.
Renewal
In Rhode Island, you have to renew your sales tax permit annually. If you apply through the Rhode Island website, you will pay the fee with a credit card. If you apply via paper application, you must attach a $10 check payable to the state of Rhode Island.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Rhode Island, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Resale Certificate provided by Rhode Island after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Rhode Island Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Rhode Island is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Rhode Island Division of Taxation for the most current information on Rhode Island’s participation in the Streamlined Sales Tax initiative.
It’s important to note that Rhode Island does not have a local, county, or city rate.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Rhode Island and sells to a customer in Providence, RI, with a ZIP code of 02904. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Rhode Island is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Rhode Island-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Hawaii to a customer in Cranston, Rhode Island, where you have nexus, you’d apply Cranston’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Rhode Island sales tax returns. Filing and remittance can vary in frequency, typically monthly and quarterly.
In Rhode Island, the due date falls on the 20th or the final day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Businesses with a notable sales tax liability may need to make monthly prepayments ahead of their monthly return filings. The specifics of these prepayments depend on the business’s prior year’s tax liabilities.
Licensed cigarette distributors and dealers in Rhode Island must prepay sales tax annually on tax-stamped cigarettes. The tax is based on the minimum price of standard brands as of April 1, multiplied by the cigarette tax rate. Payment is due when purchasing stamps, but a 30-day deferral is allowed with a sufficient bond.
To file your sales tax return for Rhode Island, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Rhode Island does not offer a discount.
Currently, for 2026, there are no planned sales tax holidays in Rhode Island.
Like in most states, sales tax is a big part of how Rhode Island generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Rhode Island:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Rhode Island or any state! |
As the nation’s capital, Washington D.C. is home to a significant business community, with companies in industries like government contracting, tourism, technology, and professional services. Businesses and consumers in the District need to pay close attention to the complex sales tax laws and requirements in order to properly collect, file, and remit DC sales tax.
This guide breaks down everything you need to know about DC’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle the District of Columbia’s sales tax with confidence and ease.
|
|||||||||||||||||||
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Washington D.C. or any state! |
In Maine, where rugged coastlines meet serene forests and lighthouses stand tall against Atlantic waves, even the tax system reflects the state’s distinctive character. Learning sales tax in Maine is a straightforward process, shaped by the state’s practical and no-nonsense New England approach.
This guide breaks down everything you need to know about Maine’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Maine’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Maine.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Maine include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning January 1, 2022, the threshold for economic nexus in Maine is $100,000 in gross revenue.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Maine.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Maine.
Almost all goods are taxable in Maine, including:
The goods that are exempt from sales tax are:
In Maine, most service-based transactions, such as advertising, employment services, and cleaning services are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is not taxable in the state of Maine.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable. Digital products are taxed at the standard rate if their physical versions are also subject to sales tax.
Shipping and handling charges in the state of Maine are not taxable. Shipping charges are not taxed if the product is shipped directly to the customer, sent via a carrier or U.S. mail, and the shipping cost is listed separately from the item’s price or other fees.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Maine, the next important step is getting your Maine Seller’s Permit, also known as a sales tax permit.
A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a seller’s permit. You can register for a Maine sales tax permit online at the Maine Tax Portal (MTP) or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Maine, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Maine, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Uniform Sales & Use Tax Exemption/Resale Certificate provided by Maine after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Maine Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Maine is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Maine Revenue Services for the most current information on Maine’s participation in the Streamlined Sales Tax initiative.
Maine keeps sales tax simple with a single statewide rate. No local taxes apply, so you only need to calculate based on the state’s fixed percentage.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Maine and sells to a customer in Portland, ME, with a ZIP code of 04101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Maine is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Maine-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Ohio to a customer in Bangor, Maine, where you have nexus, you’d apply Maine’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Maine sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Maine’s sales tax regulations.
In Maine, the due date falls on the 15th day of the following month. For instance, sales tax collected in January is due by February 15th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for April, and the May 15th deadline falls on a holiday or weekend, you’ll have until May 16th, the following business day, to submit.
To file your sales tax return for Maine, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Maine does not offer a discount.
Currently, for 2026, there are no planned sales tax holidays in Maine.
Like in most states, sales tax is a big part of how Maine generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Maine:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Maine or any state! |
Positioned as a hub of Midwestern commerce and a crossroads of America, Illinois stands out not just for its iconic Chicago skyline and rich history but also for its bustling business landscape. Yet, mastering the complexities of sales tax in Illinois calls for a deep dive into its unique rules and regulations, something every savvy business owner or entrepreneur in the Land of Lincoln should be well-versed in.
This guide breaks down everything you need to know about Illinois’s sales tax, from determining the right state and local sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Illinois’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Illinois.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Illinois include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
The threshold for economic nexus in Illinois is $100,000 in gross revenue. As of January 1, 2026, Illinois has removed the 200-transaction economic nexus threshold.While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for both physical and economic sales tax nexus requirements in Illinois.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Illinois.
Almost all goods are taxable in Illinois, including:
The goods that are exempt from sales tax are:
In Illinois, all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax.
SaaS (i.e computer software) is not taxable in the state of Illinois.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping and handling charges in the state of Illinois are generally not taxable.
However in certain situations, shipping and handling fees are subject to sales tax if they meet the following conditions:
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Illinois, the next important step is getting your Illinois Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the MyTaxIllinois or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Illinois, you have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Illinois, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out Form CRT-61 provided by Illinois after you receive your sales tax permit from the state. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Illinois Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Illinois is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
In Illinois, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Illinois Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Chicago, IL, with a ZIP code of 60607. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Illinois is a destination-based state, meaning sales tax is determined based on the seller’s location. That means for an Illinois-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the IL tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Chicago, Illinois, where you have nexus, you’d apply Chicago’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Illinois sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Illinois’ sales tax regulations.
In Illinois, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Illinois, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.
Illinois’s timely filing discount is either $5 or 1.75% of the total sales tax collected, whichever amount is higher.
Currently, for 2026, there are no planned sales tax holidays in Illinois.
Like in most states, sales tax is a big part of how Illinois generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial to always ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Illinois:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Illinois or any state! |
Nestled in the heart of the Deep South, Louisiana is more than just Mardi Gras and gumbo. It’s a buzzing crossroads of culture, business, and some of the friendliest folks you’ll meet. But let’s talk turkey: If you’re diving into the biz world here, you gotta wrap your head around our sales tax. Sure, it might seem as twisty as the Mississippi River, but don’t fret.
This guide breaks down everything you need to know about Louisiana’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Louisiana’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Louisiana.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Louisiana include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning August 1, 2023, the threshold for economic nexus in Louisiana is $100,000 in gross revenue in the previous or current calendar year’s sales. This marks a change from the 2020 criterion, which included a threshold of 200 transactions.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for physical and economic nexus requirements in Louisiana.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Louisiana.
Almost all goods are taxable in Louisiana, including:
The goods that are exempt from sales tax are:
In Louisiana, the majority of or all service-based transactions, such as professional services, advertising, and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
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.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. However, sales tax exemptions may apply to the following:
Shipping and handling charges in the state of Louisiana are not taxable if:
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Louisiana, the next important step is getting your Louisiana Seller’s Permit, also known as a sales tax permit.
You can register for a Louisiana Direct Marketer Permit online through the Louisiana Department of Revenue’s website or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Louisiana, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Louisiana, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Louisiana Resale Certificate form provided by the Louisiana Department of Revenue after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Louisiana Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Louisiana is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Louisiana Department of Revenue for the most current information on Louisiana’s participation in the Streamlined Sales Tax initiative.
In Louisiana, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Louisiana Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Louisiana and sells to a customer in New Orleans, LA, with a ZIP code of 70130. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Louisiana is destination-based, meaning sales tax is determined based on the seller’s location. That means for a Louisiana-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Georgia to a customer in New Orleans, Louisiana, where you have nexus, you’d apply New Orleans’ sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Louisiana sales tax returns. Filing and remittance can vary in frequency, typically monthly or quarterly.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Louisiana sales tax regulations.
In Louisiana, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Louisiana, a few options are available:
Starting from August 1, 2020, Louisiana offers a discount for filing sales tax on time. The discount rate is now 1.05% of the total sales and use taxes owed, increased from the earlier rate of 0.935%. However, this discount is capped at $1,500 each month.
Currently, for 2026, there are no planned sales tax holidays in Louisiana.
Like in most states, sales tax is a big part of how Louisiana generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Louisiana:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Louisiana or any state! |
Arkansas, famed for its stunning Ozark Mountains and thriving agriculture, is more than just a natural gem of the South. With its growing business hubs and bustling trade, understanding sales tax in Arkansas is essential for businesses and consumers alike.
This guide breaks down everything you need to know about Arkansas’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Arkansas’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Arkansas.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Arkansas include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Arkansas, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2019, the threshold for economic nexus in Arkansas is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Arkansas.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Arkansas.
Almost all goods are taxable in Arkansas, including:
The goods that are exempt from sales tax are:
In Arkansas, the majority of service-based transactions, such as information services and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is not taxable in the state of Arkansas.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable when sold to end users for permanent or temporary use.
Shipping and handling charges in the state of Arkansas are taxable. Freight charges are taxed if tied to taxable goods unless billed by a carrier or for non-taxable goods.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Arkansas, the next important step is getting your Arkansas Seller’s Permit, also known as a sales tax permit.
You can register for an Arkansas seller’s permit online through the Arkansas Taxpayer Access Point (ATAP) or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is a $50 fee to register for a sales tax permit for businesses with a physical presence in the state and free for out-of-state/remote sellers with no physical presence.
Renewal
In Arkansas, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Arkansas, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Arkansas Exemption Certificate (Form ST 391) provided by Arkansas after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Arkansas Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Arkansas is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Arkansas Revenue Services for the most current information on Arkansas’s participation in the Streamlined Sales Tax initiative.
In Arkansas, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Arkansas and sells to a customer in Little Rock, AR, with a ZIP code of 72201. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Arkansas is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Arkansas-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, Arkansas, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Arkansas sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Arkansas’s sales tax regulations.
In Arkansas, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Businesses with a notable sales tax liability may need to make monthly prepayments ahead of their monthly return filings. The specifics of these prepayments depend on the business’s prior year’s tax liabilities.
Arkansas Pre-pay Sales Tax on a Vehicle lets vehicle buyers pay sales tax before titling or registering, avoiding penalties while awaiting dealership paperwork. Dealers can also use it to pay a customer’s sales tax.
To file your sales tax return for Arkansas, a few options are available:
Some states offer businesses a discount for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Since July 2019, the DFA has provided a 2% discount for timely filings, capped at $1,000 monthly. Local jurisdictions may also offer a 2% discount, up to $4,000 per city or county.
Currently, for 2024-2025, here is the planned sales tax holiday in Arkansas:
|
Like in most states, sales tax is a big part of how Arkansas generates revenue. Thus, maintaining compliance with sales tax regulations is of the utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Arkansas:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Arkansas or any state! |
Nestled in the Pacific Northwest, Idaho, hailed as the “Gem State,” stands as a hub of business and innovation. Renowned for its picturesque landscapes and a booming agricultural sector, the state presents unique opportunities and challenges for businesses operating within its borders. However, mastering the complexities of sales tax in Idaho is crucial for entrepreneurs looking to tap into its market.
This guide breaks down everything you need to know about Idaho’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Idaho’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Idaho.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Idaho include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning June 1, 2019, the threshold for economic nexus in Idaho is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Idaho.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Idaho.
Almost all goods are taxable in Idaho, including:
The goods that are exempt from sales tax are:
In Idaho, the majority of service-based transactions, such as professional services, advertising, and cleaning services are not subject to sales tax.
However, there are specific situations where certain services are taxable:
SaaS is not taxable in the state of Idaho.
Digital products (digital music, digital books, digital videos, and digital games) where the buyer has a permanent right to use these products are considered tangible personal property, irrespective of their delivery or access method, and so are taxable. However, leases or rentals of these digital products are not subject to taxation.
Shipping and handling charges in the state of Idaho are not taxable if listed separately on the invoice, but if you’re a seller who first receives an item from another seller or manufacturer before shipping it to the customer, the shipping costs you pay are taxable and charged to the buyer.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Idaho, the next important step is getting your Idaho Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Idaho Business Registration System or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Idaho, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Idaho, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out Form ST-101 – Sales Tax Resale or Exemption Certificate provided by the Idaho State Tax Commission after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Idaho Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Idaho is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Idaho State Tax Commission for the most current information on Idaho’s participation in the Streamlined Sales Tax initiative.
In Idaho, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Idaho Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Idaho and sells to a customer in Boise, ID, with a ZIP code of 83701. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Idaho is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Idaho-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from California to a customer in Boise, Idaho, where you have nexus, you’d apply Boise’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Idaho sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, semi-annually, or annually. By default, all businesses are required to file sales tax returns monthly. If you have low sales volume and sales tax liability, you can reach out to the Idaho State Tax Commission to request a quarterly or annual filing.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Idaho’s sales tax regulations.
In Idaho, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Idaho, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Idaho does not offer a discount.
For 2026, there are no planned sales tax holidays in Idaho.
Like in most states, sales tax is a big part of how Idaho generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Idaho:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Idaho or any state! |
South Dakota, home to Mount Rushmore and vast open prairies, keeps things simple—including its tax system. Understanding what sales tax is in South Dakota is as straightforward as the state’s wide skies and welcoming communities.
This guide breaks down everything you need to know about South Dakota’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle South Dakota’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in South Dakota.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in South Dakota include:
To stay informed about the current criteria for establishing a physical sales tax nexus in South Dakota, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2023, the economic nexus threshold in South Dakota is more than $100,000 in gross sales in the previous or current calendar year. The 200-transaction threshold is no longer applicable.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in South Dakota.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in South Dakota.
Almost all goods are taxable in South Dakota, including:
The goods that are exempt from sales tax are:
In South Dakota, the majority of service-based transactions, such as information services and employment services, are subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of South Dakota.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping and handling charges in the state of South Dakota are taxable. If a shipment has both taxable and exempt items, only the delivery cost for taxable items is taxed. Freight charges paid directly to the carrier by the buyer are not taxed.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in South Dakota, the next important step is getting your South Dakota Seller’s Permit, also known as a sales tax permit.
You can register for a Louisiana Direct Marketer Permit online through the South Dakota Tax Application or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In South Dakota, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In South Dakota, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the South Dakota Sales Tax Exemption Certificate provided by South Dakota after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a South Dakota Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. South Dakota is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the South Dakota Revenue Services for the most current information on South Dakota’s participation in the Streamlined Sales Tax initiative.
In South Dakota, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in South Dakota and sells to a customer in Sioux Falls, SD, with a ZIP code of 57104. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
South Dakota is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a South Dakota-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, South Dakota, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your South Dakota sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with South Dakota’s sales tax regulations.
In South Dakota, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for South Dakota, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. In South Dakota, electronic filers can receive a 1.5% discount on the gross tax due, capped at $70 per return period.
However, under South Dakota’s House Bill 1037, the discount will temporarily be unavailable starting July 1, 2025, until July 30, 2028.
Currently, for 2026, there are no planned sales tax holidays in South Dakota.
Like in most states, sales tax is a big part of how South Dakota generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in South Dakota:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in South Dakota or any state! |
Positioned as a beacon of commerce and tourism in the Southwest, Arizona is not only renowned for its dramatic landscapes and cultural richness but also for its thriving business environment. However, navigating the intricacies of transaction privilege tax, also referred to as sales tax, in the Grand Canyon State requires an understanding of its particular rules and regulations.
This guide breaks down everything you need to know about Arizona’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Arizona’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Arizona.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Arizona include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Arizona, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning 2021, the threshold for economic nexus in Arizona is $100,000 in gross revenue in the previous or current calendar year’s sales.
The economic nexus law went into effect on October 1, 2019. This law allows Arizona to require out-of-state sellers to collect and remit sales tax if they meet the specified sales threshold.
Graduated Thresholds: In 2019, the threshold was $200,000. In 2020, it was revised to $150,000. From Jan 1, 2021 onward, the threshold has been set at $100,000.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Arizona.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Arizona.
Almost all goods are taxable in Arizona, including:
The goods that are exempt from sales tax are:
In Arizona, the majority of all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Arizona.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable.
Shipping and handling charges in the state of Arizona are not taxable. Shipping and handling charges are only exempt from sales tax when a customer’s total bill includes separate fees specifically for delivering items to them, regardless of delivery location, and these fees are clearly listed in the seller’s records.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Arizona, the next important step is getting your Arizona Transaction Privilege Tax License , also known as a sales tax permit.
You can register for a Transaction Privilege Tax License online through the Arizona Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is a $12.00 fee to register for a sales tax permit. Vendors need to get a special permit to sell things in each city they do business in. Different cities charge different fees for this permit, ranging from $2.00 to $50.00. If a vendor is from out of state but sells in Arizona, there are additional rules they need to know.
Renewal
In Arizona, you have to renew your sales tax permit annually.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Arizona, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Arizona Form 5000A provided by Arizona if you have a sales tax permit in the state after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Arizona Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Arizona is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
In Arizona, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Arizona Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Arizona and sells to a customer in Phoenix, AZ, with a ZIP code of 85003. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Arizona is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for an Arizona-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Illinois to a customer in Phoenix, Arizona, where you have nexus, you’d apply Phoenix’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Arizona sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Arizona’s sales tax regulations.
In Arizona, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
If your business has an annual Arizona sales tax liability of $1 million or more, you must make an estimated prepayment by June 20. This estimated payment should equal either half your actual sales tax for May or your total sales tax for the first 15 days of June. This prepayment will be credited against the total sales tax due when you file your June return in July.
Even if your prior year’s sales tax was under $100,000, you may still need to make a June estimated payment if you expect your total current year liability to reach $100,000 or more.
To file your sales tax return for Arizona, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.
In Arizona, paying your sales tax on time earns you a 1% discount up to $10,000 annually. Additionally, filing online gives an extra 1.2% discount, capped at $12,000 a year. However, these discounts don’t apply to local TPT.
Currently, for 2026, there are no planned sales tax holidays in Arizona.
Like in most states, sales tax is a big part of how Arizona generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Arizona:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Arizona or any state! |
Utah, often referred to as the Beehive State, is a confluence of pioneering spirit and contemporary commerce. Grasping the specific rules and nuances of sales tax in Utah is crucial for maneuvering its complex business terrain.
This guide breaks down everything you need to know about Utah’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Utah’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Utah.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Utah include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2025, the threshold for economic nexus in Utah is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Utah.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Utah.
Almost all goods are taxable in Utah, including:
The goods that are exempt from sales tax are:
In Utah, the majority of service-based transactions, such as professional services, advertising, and beauty services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance:
For a full list, check the Utah Department of Revenue.
SaaS is taxable in the state of Utah.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping and handling charges in the state of Utah are taxable. If the shipping and handling charge is separately stated on the invoice to the customer, the delivery charge is not subject to sales or use tax.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Utah, the next important step is getting your Utah Seller’s Permit, also known as a sales tax permit.
You can register for a Sales and Use Tax License online through the Taxpayer Access Point or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Utah, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Utah, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the TC-21 Exemption Certificate provided by the Utah State Tax Commission after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Utah Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Utah has been a party to this program since October 1, 2012, meaning it follows the uniform rules and definitions established by SST.
Check with the Utah State Tax Commission for the most current information on Utah’s participation in the Streamlined Sales Tax initiative.
In Utah, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Utah Sales Tax Calculator to compute sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Texas and sells to a customer in Salt Lake City, UT, with a ZIP code of 84105. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
|
|||||||||||||||||||
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Utah is an origin-based state, meaning sales tax is determined based on the buyer’s location. That means for a Utah-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Texas to a customer in Salt Lake City, Utah, where you have nexus, you’d apply Salt Lake City’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Utah sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Utah’s sales tax regulations.
In Utah, the due date falls on the last day of the following month for monthly and quarterly filers. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
If you’re an annual filer, the due date for remittance falls on January 31 following the reported tax year.
To file your sales tax return for Utah, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Utah’s timely filing discount is 1.31% of the sales tax due.
Currently, for 2026, there are no planned sales tax holidays in Utah.
Like in most states, sales tax is a big part of how Utah generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Utah:
