Wisconsin’s blend of vibrant cities, picturesque farmland, and thriving businesses makes it a unique place to live and work. But whether you’re making a purchase or running a business, knowing how sales tax in Wisconsin applies can help you navigate costs and avoid unexpected fees. This guide breaks down everything you need to know about Wisconsin’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 Wisconsin’s sales tax with confidence and ease.
Sales Tax Nexus in Wisconsin
When a business creates either a physical or economic nexus, it is required to collect sales tax in Wisconsin.
Physical Nexus
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 Wisconsin include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: A retailer has a nexus in Wisconsin if a related affiliate helps advertise, promote, or facilitate sales or provides services like handling returns or customer complaints. Nexus also applies if the retailer operates a business location in Wisconsin, either permanently or temporarily, through a subsidiary.
Presence at Trade Show: Participation in trade shows where sales are made can establish a nexus. If sales exceed $1,000 within a 12-month period, you may be required to collect and remit Wisconsin sales tax.
To stay informed about the current criteria for establishing a physical sales tax nexus in Wisconsin, take a look at the official regulations available right here!
Economic Nexus
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 February 20, 2021, the threshold for economic nexus in Wisconsin 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 economic sales tax nexus requirements in Wisconsin.
Wisconsin Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Wisconsin.
Tangible Products
Almost all goods are taxable in Wisconsin, including:
In Wisconsin, the majority of service-based transactions, such as advertising, employment services, and transportation, arenot subject to sales tax.However, there are specific situations where certain services are taxable. For instance, taxable services are:
Laundry and dry cleaning services
Telecommunications – prepaid calling services, intrastate, interstate, and international telecommunications services.
Animal care
Landscaping and lawn maintenance
Towing services
Lodging
Software as a Service (SaaS)/Digital Products
SaaS is generally not taxable in Wisconsin because it does not involve the transfer of tangible personal property or prewritten software; instead, it’s considered a service, which is typically exempt unless specified otherwise.Digital products(i.e., ebooks, downloadable video content, mobile apps) are taxable. Sales tax applies to the sale, storage, use, or other consumption of specified digital goods, additional digital goods, and digital codes.
Shipping/Handling
Shipping and handling charges in the state of Wisconsin are taxable. Delivery chargesfor direct mail are not subject to sales tax. If a shipment contains both taxable and exempt items, the seller must allocate the delivery charge based on sales price or weight and apply tax only to the portion related to taxable items.
Sales Tax Permits and Licenses in Wisconsin
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Wisconsin, the next important step is getting your Wisconsin Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a seller’s permit online through the State of Wisconsin 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:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
Registration feeThere is a $20 Business Tax Registration (BTR) fee to register for a sales tax permit. This registration fee is valid for two years.RenewalIn Wisconsin, you have to renew your sales tax permit every 2 years. You are also required to pay a $10 BTR renewal fee.
Resale Certificate
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 Wisconsin, 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 Form S-211 provided by Wisconsin after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemptionif 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.
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Wisconsin 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 theWisconsin Department of Revenuefor the most current information on Wisconsin’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Wisconsin
Sales Tax Computation
In Wisconsin, 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 Wisconsin and sells to a customer in Milwaukee, WI, with a ZIP code of 53202. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Wisconsin
5.00%
County:
Milwaukee County
0.90%
District:
Fourth District
0.00%
City:
Milwaukee
2.00%
Combined Sales Tax Rate =
7.90%
Origin-based vs. Destination-Based
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. Wisconsin is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Wisconsin-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 Madison, Wisconsin, where you have nexus, you’d apply Madison’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.
Filing and Remitting Sales Tax Returns in Wisconsin
The next step after collection is filing and remitting your Wisconsin sales tax returns. Filing and remittance can vary in frequency, typically monthly and annually.
Monthly Filing: If a retailer’s quarterly tax exceeds $1,200, the Department of Revenue may require monthly payments and filings by the end of the following month. If the tax exceeds $3,600, payments and returns may be required by the 20th of the following month.
Quarterly Filing: Must inform the Department of Revenue.
Annual Filing: Retailers with sales and use tax liability of $600 or less in the previous year.
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 Wisconsin’s sales tax regulations.
Due Dates
In Wisconsin, the due date falls on the last day of the following month or the 20th of the following month for early monthly filers. For instance, sales tax collected in February is due by March 31 for standard monthly filers, while early monthly filers must submit by March 20.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 1, the following business day, to submit.
File by calling (608) 261-5340 or (414) 227-3895 if you don’t have access to a computer.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Wisconsin, aretailer’s discountis allowed on timely reported sales tax if it’s paid by the due date or within an approved extension. Mailed returns are considered timely if they meet postage, postmark, and delivery requirements.However, the discount is not available for delinquent payments, additional taxes owed after the due date, use tax, or returns filed by compensated certified service providers.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Wisconsin.
Sales Tax Penalties in Wisconsin
Like in most states, sales tax is a big part of how Wisconsin 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 Wisconsin:
Civil penalties amounting from 5% to 50% of the total sales tax due
If a required tax return is not filed by the due date, including any extensions, a sales tax penaltyapplies. The penalty is 5% of the unpaid tax for the first month, with an additional 5% for each following month or part of a month, up to a maximum of 25%. The tax amount used to calculate this penalty is reduced by any payments made by the due date and any applicable tax credits claimed on the return.
On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.
Favored for its diverse landscapes and beautiful beachside towns, Oregon is a place for cozy adventures. Apart from its inviting nature, the distinctive rules for sales tax in Oregon will leave you curious about how it works.
This guide breaks down everything you need to know about Oregon, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand Oregon’s unique tax regulations with confidence and ease.
Is There Sales Tax in Oregon?
Throughout its tariff history, Oregon has never levied a sales tax. Currently, the state does not have plans to change its tax system anytime soon. For now, Ashland City is the only jurisdiction in the state that imposes a sales tax on food and beverages.This leads to the question: Why is there no sales tax in Oregon?The Beaver State aims to promote a business-friendly economy, finding the idea of sales tax nothing but a detrimental burden. After all, low-income individuals or small businesses are most likely to be affected negatively if Oregon had a sales tax.Oregon also attracts more consumers to the state by charging no sales tax, creating more revenue and opportunities for its local market. This is part of Oregon’s economic strategy to keep its trade flourishing.
Attempts have been made to change this system. However, the Oregon legislature and its voters continuously oppose the idea of imposing a sales tax. With this setup, how does the state manage to fund its projects?The main source of revenue for Oregon comes from its personal income tax. From 2025 to 2027, Oregon estimates that its earnings from the said tariff could cover 86% of the state’s General Fund Revenue.To ensure the state collects its revenue from all eligible individuals or corporations, Oregon has introduced a rule called “Substantial Nexus.”
What is a Substantial Nexus?
Before diving into the other taxes in Oregon, every business owner must be aware of the state’s economic laws. In most states, a business is determined liable for sales tax when it creates a sales tax nexus.Since Oregon has no sales tax, it only has a substantial nexus instead. With this regulation, the Beaver State obtains the right to levy taxes on qualified individuals or corporations. This applies whether you are an out-of-state seller or not.Establishing an Oregon substantial nexus means you meet the following qualifications:
Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in the state of Oregon.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating in Oregon on your behalf or under your business name.
Having a sufficient economic presence, meaning you regularly conduct business and produce income within the state of Oregon.
To stay informed about the current criteria for establishing a substantial nexus in Oregon, take a look at the official regulations available right here!
Beyond Oregon Sales Tax: Other Taxes You Should Know
Now that you’ve learned how a substantial nexus works, it’s time to find out which taxes in Oregon can be applied to you. Practically, other taxes in Oregon can still affect your business’s operations.Aside from personal income tax, here are the differentOregon taxes you should know.
Cigarette Taxes – $3.33 per stamp for a pack of 20 cigarettes
Bicycle Excise Taxes– a fixed $15 tax is applied on each sale of a taxable bicycle
Each one follows unique measures; thus, only specific businesses can be directly affected by these tariffs.
Vehicle Taxes
Though Oregon has no general sales tax, its closest alternative would be its Vehicle Taxes. On January 1, 2018, two types of Vehicle Taxes were imposed.
Vehicle Privilege Tax: applies to any vehicle seller with a physical presence in Oregon.
Vehicle Use Tax: applies to out-of-state vendors who selltaxable vehicles to customers in Oregon.
To easily differentiate between the two, see Oregon’s official diagram for guidance.
Vehicle Privilege Tax
Oregon imposes a 0.005% Vehicle Privilege Tax on the sales of every taxable vehicle within the state. A taxable motor vehicle must meet all of the following conditions:
Have a 7,500-mileage or less
Sold with an MSO/MCO if there’s no odometer
Purchased on January 1, 2018, or at a later date
Weighing 26,000 pounds or less in gross vehicle weight rating (GVWR)
Never registered or titled in the state of Oregon (exceptions apply to dealer demonstrators)
Vehicle Use Tax
If you are an out-of-state vehicle merchant, collecting the 0.005% Vehicle Tax is optional when selling to customers in Oregon. After all, some businesses offer to handle the tax as part of their service or simply out of consideration for their buyer.If you choose to collect the tax, it must be labelled as “Oregon Vehicle Use Tax” in the receipt. This would also mean you will have to file and remit the vehicle use tax on behalf of your Oregon customers.However, once you create a substantial nexus in Oregon, you will be considered to have a physical presence within the state. When this occurs, collecting the Vehicle Use Tax is no longer optional but rather a legal obligation you must comply with.Note that filing and remitting vehicle taxes in Oregon follows a specific process. It is different from other general taxes within the state. To simplify your operations, you can let TaxHero handle the procedure for you.
Business Taxes
Oregon’s corporate taxes are its 2nd largest source of revenue. These business taxes are classified into 2 types:
Corporate Income Tax – applies to remote sellers with a substantial nexus in Oregon
Corporate Excise Tax – imposed on Oregon-based businesses, has a minimum of $150
The rate for corporate excise or income tax starts at 6.60% for businesses with a taxable income worth $1,000,000 or less. This rate increases to 7.60% if the total net revenue exceeds $1 million. For a summary of Oregon’s corporate excise or income taxes, access the state’s official guidelineshere.
Corporate Activity Tax (CAT)
On May 16, 2019, Oregon approved House Bill 3427—also known as the Student Success Act. Under this law, a 0.57% corporate activity tax (CAT) is imposed on all businesses earning more than$1,000,000 in total income.
The Corporate Activity Tax is computed as $250 plus 0.57% of the business’s commercial activity exceeding the $1 million threshold. Moreover, companies are allowed to deduct about 35% of the Cost-of-Goods Sold (COGS) or the cost of employee labor. If you are a remote seller, know that Corporate Activity Tax also follows thestandard guidelines of Oregon’s substantial nexus. Thus, you can still be liable for this tariff if you have a substantial nexus in the state.
Aside from these factors, here are more details about the Corporate Activity Tax in Oregon:
Revenue from Corporate Activity Tax: Used for funding schools, learning programs, and the K-12 agenda.
Businesses are allowed to recover the expenses for Corporate Activity Tax: The total price charged must be disclosed in the business’s commercial activity.
A business with a total income of $750,000 must register for the Corporate Activity Tax within 30 days of achieving this threshold. Failure to register leads to a penalty fee of $100 monthly or $1,000 yearly.
Have more questions about Corporate Activity Tax in Oregon? View the state’s list of FAQShere.
Local Sales Tax
As previously mentioned, there is only 1 place in Oregon that imposes a local sales tax—that would be Ashland City, located in Jackson County.Since 1993, the residents of Ashland have approved the imposition of theFood and Beverage Tax (F&B). The rate is set at 5.00% and is levied on all sales of prepared food and beverages (excluding alcoholic drinks) in restaurants.The Food and Beverage Tax is also applicable to:
Takeouts and
Food deliveries
Moreover, Ashland also imposes a 10.00% Transient Lodging Tax (TLT). If you are planning to sell food or start a lodging business in this city, it’s good to be aware of these specific local taxes in Oregon.
Oregon and Remote Sellers
Though Oregon has no general sales tax, remote sellers from Oregon may still be liable for sales and use tax obligations in other states. This happens when the remote seller establishes a physical or an economic nexus in another state that has a sales tax.
Physical Nexus
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 primary factors that determine a physical nexus in other states are identical to Oregon’s substantial nexus, with only a few additions:
Affiliate Nexus: You could trigger a physical nexus if you have affiliates in a state. This applies whether they operate online or in-person, and have collectively sold a total amount of sales or delivered transactions that may meet a state’s nexus threshold.
Presence at Trade Shows: In some states, such as Wyoming or Hawaii, for example, presence at trade shows and making a specific amount of sales during such events can also trigger a physical nexus.
Economic Nexus
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.
In general, the thresholds in most states are set at:
200 total transactions within the state and/or
$100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
However, this is only a common standard. Other states may have different amounts set for their economic nexus thresholds. For example, California has a higher requirement of $500,000 in total sales in the previous or current calendar year.
Once you meet these thresholds in other states, Oregon remote sellers can still have the responsibility of collecting and remitting sales tax.
In case you’re an Oregon business purchasing goods for resale in other states, you can also claim a resale sales tax exemption. For that, you may need to learn how to use resale certificates in taxing states.Need help? Read our blog:Understanding Resale Exemptions for Your Business in OregonTo 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.
Business Compliance Obligations in Oregon
Oregon does not have a general business license or a seller’s permit, unlike other states with sales taxes. However, local municipalities in Oregon may require a business license or permit to stay compliant with the state’s regulations.Depending on your business, your obligations may also vary. In that case, let us summarize everything you might need to do to set up your business in Oregon.
Check the state’slicense directory – With over 1,100 license types, it’s best to directly identify which one your business needs.
Reach out to local municipalities – Verify if the city requires any business permits or licenses. For instance, Adams City requires a local business license. Meanwhile, Adair City only requires building permits.
Sign up for the state’s tax programs – You must register your business if you are liable for Oregon taxes, such as the Corporate Activity Tax, business taxes, vehicle taxes, and more.
Collect, file, and remit the appropriate taxes – Knowing the different taxes in Oregon, you must fulfill your legal obligations to avoid tax-related penalties.
Register your business in other states – Oregon remote sellers with a sales tax nexus in other states must follow the sales and use tax regulations of the states where they are engaged in business.
For additional directions on starting a business in Oregon, visit the state’s official guide here.Please be advised that different licenses and taxes also involve different registration steps, requirements, and collection processes. To simplify your experience, you can let experts at TaxHero take care of the complicated work.
Conclusion
Despite having no sales tax, understanding relevant tax obligations in Oregon is always crucial to keep your business running smoothly. Remote sellers from Oregon could also face the burden of handling sales tax responsibilities in other states. Failure to comply may lead to penalties that could harm your business.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero.Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every state.
Popularly known as the “Granite State,” New Hampshire impresses anyone with its spectacular White Mountains and stunning fall foliage. Aside from its natural wonders, doing business in New Hampshire can also bring positive changes. But before you dive in, you must know how sales tax in New Hampshire works.
This guide breaks down everything you need to know about New Hampshire, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand New Hampshire’s unique tax regulations with confidence and ease.
Is There Sales Tax in New Hampshire?
Throughout its tariff history, New Hampshire has never had any sales tax. Currently, the state does not have plans to change its tax system anytime soon.This brings the question: Why is there no sales tax in New Hampshire?
The Granite State remains unclear with its reasoning, but many tax experts speculate that it’s simply part of the state’s frugal nature and the limited government it has.
Implementing sales tax would mean bringing changes to the state constitution. But with New Hampshire’s limited government, even minor changes could lead to immense intricacies. This is what the state may have been avoiding throughout the years.
There had been efforts to change this system, but voters in New Hampshire and the legislature have continuously rejected the idea of imposing sales taxes. In that case, how does the state fund its projects?
The state’s main source of revenue is its property taxes, ranking as the 4th state with the highest property tax rate. For instance, Sullivan County alone has an effective property tax rate of 2.38% as of 2023.
Additionally, New Hampshire alsocollected revenue from interest and dividend taxes. However, since January 23, 2025, the state has declared that the 3.00% interest and dividend tax has been repealed.
Beyond New Hampshire Sales Tax: Other Taxes You Should Know
Apart from the state’s high property taxes or the repealed interest and dividend taxes, there are still other taxes in New Hampshire that every business owner should know.
The list may seem overwhelming at first glance, but don’t worry. Among these various tax types, only a few can directly affect specific businesses in New Hampshire.Let’s discuss the most relevant tax types below.
Meals & Rental Tax (MRT)
In New Hampshire, hotel patrons or any building that offers lodging or sleeping accommodations with room and meal services are subject to an 8.50% tax. The same also applies to restaurants and motor vehicle rentals.
The tax must be collected and remitted by business owners every 15th of each month.Meals and Rental Tax are also imposed on the following types of catering businesses:
Banquets
Field days
Cafeterias
Barbecues
Receptions
Private homes
Special events
Outings or picnics
Concerts or races
Fairs and bazaars
Mobile catering or vending trucks
To learn more about Meals and Rental Tax in New Hampshire, you can read the state’s official guidelines in RSA 78-A and Rev 7000.
Timber Tax
Businesses engaged in the wood-cutting industry must be aware of the RSA 79 Forest Conservation and Taxation in New Hampshire. This rule declares that the cutting and selling of wood or timber are subject to a 10.00% timber tax based on the stumpage value.
The wood‘s value will be assessed by a municipal officer after reporting the collected timber through the Form PA-8. This form is provided by the municipal government.
Exemptions only apply if the wood and timber cut is:
Not being sold or bartered
Cut for the usage of school districts and county projects
Used by the federal, state, or municipal government projects
To learn more about Timber Tax in New Hampshire, you may read the state’s official guidelines in Rev 3400.
Tobacco Tax
New Hampshire also follows many other states when it comes to imposing a tobacco tax. Under RSA 78, various tariff rates are applied to tobacco and cigarette products in general.There is a $1.78 tax imposed on each package containing 20 cigarettes or small cigars. Any other tobacco product is taxed at a rate of 65.03% of the wholesale sale price.
Additionally, since January 1, 2020, New Hampshire has been taxing electronic cigarettes (e.g, vapes) as well.
A liquid container that can be opened and carries nicotine is subject to an 8.00% tobacco tax. This tax is applied to the wholesale sales price.
Closed cartridges or containers with liquid or substances containing nicotine that are not meant to be opened are taxed at a rate of $0.30 per milliliter of the liquid or substance’s total volume.
To learn more about Tobacco Tax in New Hampshire, you may read the state’s official guidelines in Rev 1000.
Alcohol Tax
Much like tobacco, New Hampshire also enforces RSA 175-180.
With this law, a $0.30 per-gallon tax is charged for every sale of beer within the state. The collected tax will be used for New Hampshire’s Alcohol Abuse Prevention and Treatment Fund program.
Communication Services Tax (CST)
While most services are not taxable in New Hampshire, rental and communication services are an exception. For instance, the Communication Services Tax (CST) has been enforced since 2024.
Under the RSA 82-A, a 7.00% tax is charged on two-way communication services. This includes:
Channel services
Internet service providers
Cable and satellite services
Mobile or prepaid telecommunication services
To learn more about the rules of Communication Services Tax in New Hampshire, you can read the state’s official guidelines here.
Business Enterprise Tax (BET)
While New Hampshire also has no income tax, the state has introduced a similar tax called the Business Enterprise Tax (BET).The rate for Business Enterprise Tax is 0.55% of the assessed sum of all expenses paid and accrued by a business enterprise. This is effective for taxable periods ending December 31, 2022. But for taxable periods beginning January 1, 2025, businesses with more than $298,000 of total revenue from all activities must file a Business Enterprise Tax return. The same applies to businesses with an assessed value tax base of $298,000. The filing period for Business Enterprise Tax is adjusted every two years.
Need more details about Business Enterprise Tax? Read the state’s official rules in RSA 77-E and Rev 2400.
Business Profits Tax (BPT)
Once a business pays off its Business Enterprise Tax, it can be used as credits when it comes to Business Profits Tax (BPT).
But what’s the difference between the two?
Business Profits Tax (BPT) – focused on a business’s marketing activities and income within the state.
Business Enterprise Tax (BET) – based on a company’s expenses and total assessed tax base value established by the compensation, interests, and dividends it has paid or accrued during a taxable period.
The rate for Business Profits Tax is 7.60% for taxable periods ending on or after December 31, 2022. In the following year of 2023, this rate decreased to 7.50%.For taxable periods beginning on or after January 1, 2025, businesses with a total income of more than $109,000 are required to file a Business Profits Tax return. Similar to Business Enterprise Tax, this filing period is adjusted once every two years.
Filing a return for Business Profits Tax or Business Enterprise Tax can be done through the state’s official site, Granite Tax Connect (GTC). An account must be created first to proceed.
Learn more about Business Profits Tax through the state’s official files: RSA 77-A and Rev 300.
New Hampshire and Remote Sellers
On July 19, 2019, New Hampshire passed SB 242—a bill meant to protect New Hampshire remote sellers from being subject to sales and use tax liabilities in other states.
However, this rule mainly prevents fraudulent sales tax collection. New Hampshire’s Department of Justice (DOJ) requires other states to send a written notice to determine whether a remote seller should charge and collect sales and use tax in another state.After 45 days, the DOJ will confirm if a business should comply with the sales and use tax policies of another state.In that case, how do you know if you’re liable to collect and remit sales tax in other states? The determining factor is whether you have a sales tax nexus or not.
Sales Tax Nexus
Establishing a sales tax nexus in a state means that you’re actively engaged in business in that state. Sales tax nexus has 2 principal types:
Physical nexus
Economic nexus
When a business creates one of these nexus, it is required to collect sales tax in most states.But since New Hampshire has no sales tax, the state has no regulations for creating a physical or an economic nexus. However, a New Hampshire remote seller can still trigger a sales tax nexus in other states despite the existence of SB 242.
Once a nexus is established and a written notice has been approved by the New Hampshire DOJ, remote sellers will be required to register and collect sales tax in other states.
Below are the factors that define whether you have a physical or an economic nexus in another state.
Physical Nexus
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. Here are the common factors that determine a physical nexus in most states:
Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in a state.
Inventory in the State: This covers situations where you store your products within a state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating within a state on your behalf.
Affiliate Nexus: You could trigger a physical nexus if you have affiliates in a state. This applies whether they operate online or in-person, and have collectively sold a total amount of sales or delivered transactions that may meet a state’s nexus threshold.
Presence at Trade Shows: In some states, such as Wyoming or Hawaii, for example, presence at trade shows and making a specific amount of sales during such events can also trigger a physical nexus.
Economic Nexus
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.
In general, the thresholds in most states are set at:
200 total transactions within the state and/or
$100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
However, this is only a common standard. Other states may have different amounts set for their economic nexus thresholds. For example, California has a higher requirement of $500,000 in total sales in the previous or current calendar year.
Once you meet these thresholds in other states, even remote sellers from New Hampshire can still have the responsibility of collecting sales tax.
In case you’re a New Hampshire business purchasing goods for resale in other states, you can also claim a resale sales tax exemption. For that, you may need to learn how to use resale certificates in taxing states.Need help? Read our blog:Understanding Resale Exemptions for Your Business in New HampshireTo 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.
Business Compliance Obligations in New Hampshire
Without a sales tax, businesses in New Hampshire aren’t required to register for a sales tax permit. However, there are still other legal duties you must follow to stay compliant with the Granite State.
In New Hampshire, businesses must register for specific licenses, such as:
Local Business Permits – New Hampshire advises business owners to contact the city or town clerk for municipal permits and licenses.
Tobacco Tax Operator’s License – Apply for a Tobacco License through the Granite Tax Connect state website.
Meals & Rooms (Rentals) License – Also called an “Operator’s License.” You can apply for this license via the Granite Tax Connect state website.
Communication Services Retailer’s Tax License – Also called “Registration Number.” You can apply for this license through the Granite Tax Connect state website.
Despite having no sales tax, understanding relevant tax obligations in New Hampshire is always crucial to keep your business running smoothly. Remote sellers from New Hampshire could also face the burden of handling sales tax responsibilities in other states. Failure to comply may lead to penalties that could harm your business.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero.Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every 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.
Sales Tax Nexus in Wyoming
When a business creates either a physical or economic nexus, it is required to collect sales tax in Wyoming.
Physical Nexus
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 Wyoming include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: An out-of-state seller without a physical presence in Wyoming may still have a nexus if the seller has an affiliate. This applies to affiliates with a physical presence in Wyoming who act on behalf of the seller.
Presence at Trade Shows: You must collect sales tax if you exhibit at more than four Wyoming trade shows in 12 months. Once you establish a nexus and obtain a license, sales tax applies to all sales in Wyoming, including those outside trade shows.
To stay informed about the current criteria for establishing a physical sales tax nexus in Wyoming, take a look at the official regulations available right here!
Economic Nexus
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, 2024, the threshold for economic nexus in Wyoming is $100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
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 economic sales tax nexus requirements in Wyoming.
Wyoming Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Wyoming.
Tangible Products
Almost all goods are taxable in Wyoming, including:
Groceries – Under Wyoming’s Food and Nutrition Act of 2008, food items with supplemental nutrition assistance benefits are exempt from sales tax. This includes food items purchased for domestic home consumption and groceries purchased with food stamps. However, alcoholic beverages and prepared food are taxable.
Medical Devices– Exemptions do not apply to non-prescribed durable medical equipment
Retail sales of trucks, trailers, and semitrailers, including leases of motor vehicles
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming
Services
In Wyoming, most service-based transactions such as professional services and sanitary services (i.e., garbage hauling and latrines) are generally exempt from sales tax.
However, sellers must separate the exempt charges when a taxable transfer of tangible personal property is involved in a non-taxable service. Otherwise, the whole transaction becomes subject to sales tax.There are also specific situations where certain services are taxable in Wyoming. For instance, taxable services are:
Telecommunications services
Laundry, dry cleaning, or pressing
Lodging service for transient guests
Intrastate transportation of passengers
Repairing, changing, or improving tangible personal property
Utility services such as gas, electricity, or heat for domestic, industrial, and commercial consumption
Software as a Service (SaaS)/Digital Products
SaaS is not taxable in Wyoming. This only applies if the transaction does not involve obtaining tangible property or itemized service within the product.
Access to digital productsthrough streaming or subscription services is taxable. This applies if the service does not grant the buyer permanent use and access to the item.
Shipping/Handling
Shipping and handling charges in the state of Wyoming are generally not taxable. This applies when the shipping or handling fees are listed separately on the invoice.
However, if the fees are included in the total price of a taxable product, the shipping or handling charges become subject to sales tax.
Sales Tax Permits and Licenses in Wyoming
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Wyoming, the next important step is getting your Wyoming Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a Wyoming sales tax permit online at the Wyoming Internet Filing System for Business (WYIFS) 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:
Business Identification Information: Legal Business Name, Physical Address, Mailing Address
Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Name, Address, and SSN of Owners, Partners, or Officers
Business Activity Details: Date & State of Incorporation, Start Date with the State of Wyoming (Nexus Start Date), Month of Fiscal Year End, Estimated Monthly Sales Volume)
Registration feeThere is a $60 fee to register for a sales tax permit in Wyoming. The state charges a non-refundable registration fee. RenewalIn Wyoming, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Resale Certificate
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 Wyoming, 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 fill out Wyoming Sales Tax Exemption Certificate provided by the state of Wyoming after you receive your sales tax permit. You can also fill out the StreamlinedSales 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 Wyoming Resale Certificate for your Business
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Wyoming is a party to the program, meaning it follows the uniform rules and definitions established by SST. Check with the Wyoming Excise Tax Division for the most current information on Wyoming’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Wyoming
Sales Tax Computation
In Wyoming, 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 Wyoming and sells to a customer in Cheyenne, WY, with a ZIP code of 82001. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Wyoming
4.00%
County:
Laramie County
2.00%
District:
First District
0.00%
City:
Cheyenne
0.00%
Combined Sales Tax Rate =
6.00%
Origin-based vs. Destination-Based
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. Wyoming is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Wyoming-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 Jackson, Wyoming, where you have a nexus, you’d apply Jackson’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.
Filing and Remitting Sales Tax Returns in Wyoming
The next step after collection is filing and remitting your Wyoming sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
Monthly Filing: Required if the average monthly liability is greater than $150.
Quarterly Filing: Needed when the average monthly liability is between $50 and $150.
Annual Filing: Mandatory if the average monthly liability is less than $50.
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 Wyoming’s sales tax regulations.
Due Dates
In Wyoming, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th 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 a quarterly filer, you’re required to submit your returns on or before January 31, April 30, July 31, and October 31 of each calendar year. Meanwhile, annual filers must submit returns on or before January 31 of each calendar year.
Filing Sales Tax Returns
When filing your sales tax return for Wyoming, a few options are available:
File by mail by filling up the Form 41-1 for monthly and quarterly filers or Form 42-1 for annual filers.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Wyoming’s timely filing discount amount is determined using specific formulas based on the tax due. On the first $6,250 of your total sales tax, filers can get a 1.95% discount and 1% for any remaining remittance. The maximum allowable discount is $500 for each filing period.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Wyoming.
Wyoming Sales Tax Penalties
Like in most states, sales tax is a big part of how Wyoming 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 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 Wyoming:
Late Filing Penalty: $10 penalty for failing to file a sales tax return by the due date. This penalty is imposed 30 days after receiving the first notice from the state of Wyoming. A $25 penalty is applied when a seller fails to file a return within the 30-day notice.
Inaccurate Filing Penalty: An incorrect calculation without fraudulent intent leads to a 10% penalty of the missing sales tax with interest. Any fraudulent, inaccurate filing with the intent of tax evasion results in a 25% penalty of the unreported sales tax with added interest.
Fraudulent Tax Collection: Sellers who falsely collect excessive sales tax and fail to remit the accurate amount to the state of Wyoming are deemed guilty of a misdemeanor. This applies if the total amount they collected is less than $500, resulting in a $750 fine. If the collected amount exceeds $500, the criminal offense is raised to a felony charge with a $5,000 fine.
General Violations: Any violation of sales tax laws without any specific penalty is automatically guilty of a misdemeanor. Other charges may be applicable depending on the committed offense.
Montana is known for its wide-open spaces, rugged mountains, and one rare financial perk: no statewide sales tax. That’s right, sales tax in Montana doesn’t apply to most purchases, making it a shopper’s dream. But while the Treasure State skips this common tax, there are still a few cases where you might pay extra charges on specific purchases.This guide breaks down everything you need to know about Montana, one of the five states that do not have a sales tax. By the end of this comprehensive guide, you’ll understand Montana’s unique sales tax regulations with confidence and ease.
Is There Sales Tax in Montana?
If you plan to start a business in Montana, you may wonder whether the state imposes a sales tax. The short answer? Montana does not have a statewide sales tax.Montana is one of only a few states in the U.S. that have chosen not to implement a general sales tax. This policy dates back decades, with voters consistently rejecting proposals to implement a sales tax. The result is a tax-friendly environment for both residents and local businesses.While the lack of a sales tax may sound like a break for businesses and consumers, it doesn’t mean there are no tax-related responsibilities for Montana business owners.
Beyond Montana Sales Tax: Other Taxes You Should Know
While you won’t be charging your customers a general sales tax, there are other tax typesto keep in mind as a business owner in Montana.
Corporate Income Tax
Montana imposes acorporate income taxon corporations that conduct business or derive income within the state. It’s designed to capture a fair share of taxes from corporations that benefit from Montana’s infrastructure and services, while also addressing the complexities associated with multi-state and international business operations.The standard tax rate is 6.75%, with the option for corporations to elect using the water’s-edge method, which focuses taxation on US-based income and specific foreign sources, at a slightly higher rate of 7%.This approach aims to prevent profit shifting to low-tax jurisdictions by requiring combined reporting of income from all entities within a unitary business, unless the water’s-edge election is made.
Mineral Royalty Withholding Tax
The Montana Mineral Royalty Withholding Taxis a state income tax requirement that mandates withholding on certain mineral royalty payments. Specifically, when mineral royalties are paid from Montana-based production to nonresident individuals or out-of-state business entities, the payer, referred to as the “remitter,” must withhold 6% of the net royalty amount.This withholding applies regardless of the recipient’s business structure, including individuals, trusts, partnerships, or corporations.Remitters are required to register with the Montana Department of Revenue and comply with specific filing obligations. These include:
Providing Forms 1099-MISC or 1042-S to royalty owners.
The withheld amounts are considered trust funds held on behalf of the state, and remitters remain liable for proper withholding and reporting, even if they use third-party accounting services.For royalty owners, the withheld tax can be claimed as a refundable credit against their Montana income tax liability. This information is typically reported on Form 1099-MISC (Box 15) or a Montana Schedule K-1, depending on the nature of the payment.
Natural Resource Tax
Montana collects taxes on natural resources harvested in the state, including coal, metal, oil, and natural gas.
Bentonite Production Tax
Cement and Gypsum Producers License Tax
Coal Gross Proceeds Tax
Coal Severance Tax
Electrical Energy Producers License Tax
Metal Mines Gross Proceeds Tax
Metal Mines License Tax
Micaceous Mineral Mines License Tax
Mineral Royalty Withholding Tax
Miscellaneous Mines Net Proceeds Tax
Oil and Natural Gas Production Tax
Resource Indemnity Trust & Ground Water Assessment Tax
Wholesale Energy Transaction (WET) Tax
Miscellaneous Tax
Montana has several taxes covering specific businesses, services, or locations. These taxes include telecommunications, tobacco, tourism, cannabis, and health care facilities.
Alcohol Taxes
Cannabis Tax
Cigarette Taxes
Consumer Counsel Fee (CCT)
Contractor’s Gross Receipts Tax (CGR)
Emergency Telephone System Fee
General Sales Tax
HELP Entity Fee (HEF)
HELP Integrity Fee (HIF)
Hospital Facility Utilization Fee (HUF)
Intermediate Care Facility Utilization Fee (ICFUF)
Local Resort Tax
Lodging Facility Sales and Use Tax
Moist Snuff Taxes
Nursing Facility Utilization Fee (NFBT)
Opioid Seller’s License
Other Tobacco Product Taxes
Public Service Regulation Fee (PSR)
Rental Vehicle Tax (RVT)
Retail Telecommunications Excise Tax (RTE)
TDD Telecommunications Service Fee
Unclaimed Property Holders
Universal Systems Benefits Programs
Unlocatable Mineral Trusts
Montana and Remote Sellers
Montana does not impose a statewide sales tax, and there are no economic nexus standards for sales tax in the state. This means that out-of-state sellers are not required to collect or remit Montana sales tax on sales to Montana customers.However, Montana does follow an economic presence standard for corporate income tax. A business is considered to have nexus for income tax purposes if it is “engaged in business” in Montana, which is broadly defined as any activity carried out for profit.Additionally, Montana applies the Joyce Rule, which states that only in-state activities conducted by or on behalf of the company can establish income tax nexus. While Montana sales tax does not apply to in-state transactions, Montana-based businesses that sell to other states may still have sales tax obligations in those states.Need help? Read our blog:Understanding Resale Exemptions for Your Business In MontanaIf a business has a physical presence in another state, it may trigger physical nexus, requiring sales tax registration and collection.Therefore, although Montana sales tax laws are minimal, businesses operating from Montana must still be proactive in understanding how multistate nexus laws affect their overall tax compliance.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.
Business Compliance Obligations in Montana
Just because there’s no sales tax doesn’t mean you can skip registration. If you’re running a business in Montana, you may still need to:
Check the state’s official business registration site to start and ensure you meet your obligations.
Conclusion
Montana may not have a general sales tax, but that doesn’t mean business owners are exempt from taxes and compliance. From corporate income tax to potential nexus in other states, understanding your responsibilities and staying compliant is key to staying on the right side of the law.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero. Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every state.Situated at the crossroads of America’s heartland, the Show-Me State is celebrated not only for its scenic rivers and rolling hills but also for its dynamic economic landscape. However, maneuvering through the complexities of sales tax in Missouri demands comprehending its unique rules and regulations. Ecommerce businesses must grasp the concept of What is Sales Tax in Missouri to effectively navigate this component of the state’s economic structure. This guide breaks down everything you need to know about Missouri’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 Missouri’s sales tax with confidence and ease.
Sales Tax Nexus in Missouri
When a business creates either a physical or economic nexus, it is required to collect sales tax in Missouri.
Physical Nexus
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 Missouriinclude:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business. This includes owning or leasing real or tangible personal property within the state.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf for more than 2 days.
Presence at Trade Show: If you go to a trade show in Missouri for a short time (up to 14 days) and don’t sell anything or take orders, you don’t have to worry about nexus. But if you do start taking orders or making sales, then nexus applies.
Economic Nexus
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, 2023, the threshold for economic nexus in Missouri for remote sellers is $100,000 in gross in a calendar year. For any remote seller or marketplace facilitator that meets this threshold, they are required to collect and remit vendor’s use tax. In Missouri, use tax is a type of sales tax that is imposed on out-of-state businesses. While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishingsales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Missouri.
Missouri Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Missouri.
Tangible Products
Almost all goods are taxable in Missouri, including:
Non-Reusable Items Furnished to Guests in Hotels and Motels – this includes soap, shampoo, tissue and other toiletries in hotel rooms
Textbooks – Students can buy required textbooks tax-free with proof of enrollment. The bookstore needs a list of books each semester from the school or department. This exemption doesn’t apply to local sales taxes.
Agricultural Supplies – this includes seeds, fertilizers, and machinery used directly in farming
Services
In Missouri, 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:
Admissions to places of amusement, entertainment and recreation, games, and athletic events;
Utilities like electricity, water, or gas to domestic, commercial or industrial users
Phone, mobile, and telegraph services
Hotel stays, restaurant meals, and drinks from places like hotels, diners, and bars
Transportation services like taxis, rideshares, buses, etc.
Software-As-A-Service (SaaS)/Digital Products
Saas is nottaxable in the state of Missouri. Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping/Handling
Shipping and handling charges in the state of Missouri are not taxable.
Sales Tax Permits and Licenses in Missouri
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Missouri, the next important step is getting your Missouri Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a sales tax permit online through the Missouri 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:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
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 Missouri, 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 Sales and Use Tax Exemption Certificate (Form 149) provided by Missouri 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 a Missouri Resale Certificate for your Business
In Missouri, 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 Missouri Sales Tax Calculator to compute for sales tax. Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Missouri and sells to a customer in St. Louis, MO, with a ZIP code of 63103. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Missouri
4.225%
County:
St. Louis County
0.00%
District:
Clayton Business District
0.00%
City:
St. Louis
5.454%
Combined Sales Tax Rate =
9.679%
Origin-based vs. Destination-based
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. Missouri is an origin-based state, meaning sales tax is determined based on the buyer’s location. That means for a Missouri-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 New Jersey to a customer in St. Louis, Missouri, where you have nexus, you’d apply St Louis’ 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.
Filing and Remitting Sales Tax Returns in Missouri
The next step after collection is filing and remitting your Missouri 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, utilize a Missouri sales tax calculator to ensure accuracy, and adhere to the filing schedule set by the state to remain compliant with Missouri’s sales tax regulations.
Annual filing: For companies who collect less than $200 sales tax per quarter.
Quarterly filing: If you collect $500 or less in sales tax per month. The quarters are: January-March, April-June, July-September, and October-December.
Monthly filing: If you’re collecting $500 or more in sales taxes each month.
Due Dates
In Missouri, the due date falls on the last day of the following month. 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.
Filing Sales Tax Returns
To file your sales tax return for Missouri, a few options are available:
File online through Mytax Missouri. If out of state/remote seller, fill out the vendor’s use tax form online.
File by mail – You can use Form 53-1 and file and pay through the mail.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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 Missouri, if you pay your sales tax on time, you get a timely filing allowance of 2% on the sales tax you owe. Here’s how it works: Say you owe $100 in sales taxes. You multiply $100 by 2%, which gives you $2. So, you subtract $2 from your original $100 tax, and now you only have to pay $98. It’s a little reward for paying on time!
any article of clothing with a taxable value of $100 or less;
school supplies, but not to exceed $50 per purchase;
computer software with a taxable value of $350 or less;
personal computers or computer peripheral devices, but not to exceed $1,500;
and graphing calculators with a taxable value of $150 or less.
Missouri Sales Tax Penalties
Like in most states, sales tax is a big part of how Missouri 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 Missouri:
Civil penalties amounting to 5% of the tax due per month or fraction (maximum 25%);
On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.
Surrounded by beautiful scenic mountains and lush forests, West Virginia truly deserves the title “Almost Heaven.” These natural wonders invite endless business opportunities, attracting entrepreneurs from all over the states. Before you get lost in the maze, it’s essential to learn what is sales tax in West Virginia to keep you ahead of the marketing race.
This guide breaks down everything you need to know about West Virginia’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 West Virginia’s sales tax with confidence and ease.
Sales Tax Nexus in West Virginia
When a business creates either a physical or economic nexus, it is required to collect sales tax in West Virginia.
Physical Nexus
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 West Virginia include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: Any retailer with an affiliate operating in West Virginia is considered to have a business presence, regardless of physical location. Out-of-state sellers establish a nexus if their affiliate’s sales exceed $100,000 or 200 transactions in the state.
Economic Nexus
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, 2019, the threshold for economic nexus in West Virginia 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 sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in West Virginia.
West Virginia Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in West Virginia.
Tangible Products
Almost all goods are taxable in West Virginia, including:
Cosmetics
Electronics
Clothing – Generally taxable unless purchased for resale or with an exemption certificate. For a comprehensive definition of taxable clothing types, you may view thislegal article from the government of West Virginia. Exemptions are also applicable for certain clothing types during Sales Tax Holidays.
Furniture
Jewelry
Home Goods
Personal Hygiene
Feminine Hygiene Products (i.e. pads, tampons, and menstrual cups)
Grocery Food – Since July 1, 2013, grocery food has been exempt from sales and use tax in West Virginia. However, food sold in a heated state, prepared food, packaged food with eating utensils provided by the seller, soft drinks, and food sold through vending machines are taxable.
Lottery tickets, delivered newspapers, educational textbooks used in schools
Agricultural Supplies such as Seeds, fertilizers, and machinery used directly in farming
Services
In West Virginia, services are taxable only when specifically defined as taxable by law. This includes telecommunications and some personal services.
Most professional services, such as legal, accounting, and medical services, are not taxable.
Software as a Service (SaaS)/Digital Products
SaaS, when classified as a data processing service, is taxable in West Virginia. This refers to services that provide access to computer equipment for the purpose of processing, acquiring, or examining data.
This includes situations where a service processes data for a customer using the provider’s equipment (e.g., streaming services).
Digital products (i.e., digital audio-visual works, audio works, and digital books) are not taxable as long as the product is only transferred electronically.
Shipping/Handling
Shipping and handling charges in the state of West Virginia are not taxable for sellers if the delivery charge is already included in the total amount of the taxable item’s sale.
If delivery charges are stated separately, the shipping and handling fees are subject to sales tax in West Virginia.
Sales Tax Permits and Licenses in West Virginia
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in West Virginia, the next important step is getting your West Virginia Seller’s Permit, also known as a sales tax permit.
There is a $30 fee to register for a sales tax permit. The state charges a non-refundable registration fee.
Renewal
In West Virginia, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Instead of a renewal, businesses are only required to file an annual report from January 1 to July 1 of each calendar year after your official registration date for the sake of compliance.
Resale Certificate
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 West Virginia, 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.
Check with the West Virginia Tax Division for the most current information on West Virginia’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in West Virginia
Sales Tax Computation
In West Virginia, 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 West Virginia and sells to a customer in Charleston, WV, with a ZIP code of 25301. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
West Virginia is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a West Virginia-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 Pennsylvania to a customer in Morgantown, West Virginia, where you have a nexus, you’d apply Morgantown’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.
Filing and Remitting Sales Tax Returns in West Virginia
The next step after collection is filing and remitting your West Virginia sales tax returns. Filing and remittance can vary in frequency, typically quarterly or annually.
Quarterly Filing: Needed when the average monthly liability does not exceed $250.
Annual Filing: Mandatory if average monthly liability does not exceed $600.
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 West Virginia’s sales tax regulations.
Due Dates
In West Virginia, 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.
Filing Sales Tax Returns
When filing your sales tax return for West Virginia, a few options are available:
File by mail – Download and fill out the RTL-348 form and mail it to the address provided. For additional instructions, read West Virginia’s official guidelines here.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. West Virginia’s timely filing discount amount is determined using specific formulas based on the tax due. As long as the taxpayer pays on or before the date their taxes become payable, they become eligible for a 2.5% discount.
Sales Tax Holiday
Currently, for 2025, the planned sales tax holiday in West Virginia is:
Like in most states, sales tax is a big part of how West Virginia 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 West Virginia:
Late Filing Penalty: Failure to timely file a return due to willful neglect adds a 5% charge on top of the amount of the total tax due. An additional 5% is added to the penalty for each missed month. A maximum of 25% total penalty can be accumulated.
Failure to Timely Pay Tax Due: Failing to pay the tax incurs a 0.5% penalty, increasing monthly for repeat offenses, up to a 25% maximum.
Underpayments: Measured based on the underpaid tax amount. A total of 12.25% interest rate can be added.
Fraudulent Returns: Results in a 50% added charge on the total amount due.
Negligence: Failure to pay the tax due because of negligence or intentional disregard of rules results in a 5% added interest on top of the total tax due. A maximum of 25% interest rate can be accumulated.
If you wish to waive a penalty, the West Virginia Tax Division allows you to submit a letter or web notice through their official website, MyTaxes. When you submit your letter, you must state your reason for requesting a penalty waiver.
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.
Sales Tax Nexus in South Dakota
When a business creates either a physical or economic nexus, it is required to collect sales tax in South Dakota.
Physical Nexus
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:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: South Dakota retailers have nexus if they share ownership with an in-state business selling similar products or using local facilities or employees to aid sales. Nexus also applies if a related in-state business delivers their products.
Presence at Trade Show: An out-of-state retailer doesn’t have nexus in South Dakota if it attends only one trade show per year, regardless of duration, sales, or activity. Nexus applies if more than one show is attended or other business activities occur.
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!
Economic Nexus
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.
South Dakota Sales Tax on Goods and Services
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.
Tangible Products
Almost all goods are taxable in South Dakota, including:
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping/Handling
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.
Sales Tax Permits and Licenses in South Dakota
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.
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.
Resale Certificate
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.
Check with the South Dakota Revenue Services for the most current information on South Dakota’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in South Dakota
Sales Tax Computation
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:
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.
Filing and Remitting Sales Tax Returns in South Dakota
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.
Monthly Filing: Required for businesses with an annual tax liability of $1,000 or more.
Quarterly Filing: Applies to businesses with less than $1,000 in annual tax liability that do not meet the monthly filing threshold.
Annual Filing: Typically for businesses with minimal sales tax liability.
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.
Due Dates
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.
Filing Sales Tax Returns
To file your sales tax return for South Dakota, a few options are available:
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in South Dakota.
South Dakota Sales Tax Penalties
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:
Late Filing Penalty: A 10% penalty (minimum $10) is applied if a return is not filed within 30 days after the due date. The penalty may be reduced or waived if reasonable cause is shown.
Late Payment Interest: A 1% interest charge (minimum $5) applies for the first month of late payment, increasing by 1% per month thereafter.
Intentional Non-Payment: If tax is unpaid with the intent to evade or delay payment, interest increases to 1.5% per month (minimum $5).
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.
Sales Tax Nexus in Utah
When a business creates either a physical or economic nexus, it is required to collect sales tax in Utah.
Physical Nexus
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:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Affiliate Nexus: You can establish a physical nexus if your affiliates, whether online or in-person, are connected to a Utah-based seller and sell similar products with similar names. Nexus can also be triggered if the Utah-based seller promotes the out-of-state seller’s sales to Utah buyers, or if either the out-of-state or Utah-based seller owns more than 10% of the other, or if the affiliate wholly owns the seller, it can establish an affiliate nexus.
Regularly delivering property in Utah other than by a common carrier or U.S. mail or leasing or servicing property located in Utah.
Regularly Soliciting Orders: If you often ask for business in Utah, it’s like setting up shop there. But if all you’re doing is online ads, sending emails and mailers, or making phone calls—that doesn’t count. You’re free from these specific tax rules if you’re just spreading the word from afar.
Economic Nexus
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.
Utah Sales Tax on Goods and Services
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.
Tangible Products
Almost all goods are taxable in Utah, including:
Cosmetics
Electronics
Furniture
Jewelry
Automobiles
Home Goods,
Groceries– In Utah, there’s a reduced 3% sales tax on grocery food, made up of 1.75% from the state, 1% from local areas, and 0.25% from the county, while sales of prepared food are taxed at a full rate.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping/Handling
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.
Sales Tax Permits and Licenses in Utah
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.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
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.
Resale Certificate
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 Exemptionif 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.
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.
Calculating and Collecting Sales Tax in Utah
Sales Tax Computation
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:
SALES TAX FORMULA
RATE
State:
Utah
4.85%
County:
Salt Lake
2.40%
District:
First
0.00%
City:
Salt Lake
0.50%
Combined Sales Tax Rate =
7.75%
Origin-based vs. Destination-based
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.
Filing and Remitting Sales Tax Returns in Utah
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.
If you owe up to $1,000 in sales tax annually, file monthly.
For amounts between $1,001 and $50,000, file quarterly.
Businesses with a sales tax liability of $50,001 to $96,000 should file monthly, with those owing 96,001 and more pay electronically.
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.
Due Dates
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.
Filing Sales Tax Returns
To file your sales tax return for Utah, a few options are available:
File by mail – Fill out TC62S/M and remit to the Utah State Tax Commission by the due date.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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 discountis 1.31% of the sales tax due.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Utah.
Utah Sales Tax Penalties
Like in most states, sales tax is a big part of how Utahgenerates 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:
Civil penalties amounting to greater of 10% of the total sales tax due or $20;
On the criminal side, offenses can be classified as second or third-degree felonies, depending on the severity and specific circumstances.
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.
Sales Tax Nexus in Rhode Island
When a business creates either a physical or economic nexus, it is required to collect sales tax in Rhode Island.
Physical Nexus
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:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Click-through Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who have collectively sold more than $5,000 worth of products for delivery in Rhode Island during the four preceding quarterly periods ending on the last day of March, June, September, and December.
Economic Nexus
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.
Rhode Island Sales Tax on Goods and Services
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.
Tangible Products
Almost all goods are taxable in Rhode Island, including:
Cosmetics
Electronics
Furniture
Jewelry
Home Goods
Personal Hygiene– includes soaps, cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, suntan lotions, and screens.
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/Handling
Shipping and handling charges in the state of Rhode Island are taxable. If the property sold is exempt, delivery charges are not taxable.
Sales Tax Permits and Licenses in Rhode Island
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.
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.
Resale Certificate
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.
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.
Calculating and Collecting Sales Tax in Rhode Island
Sales Tax Computation
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:
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.
Filing and Remitting Sales Tax Returns in Rhode Island
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.
Quarterly Filing: Businesses with an average sales tax liability of less than $200 for six consecutive months.
Due Dates
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.
Monthly Prepayments
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.
Filing Sales Tax Returns
To file your sales tax return for Rhode Island, a few options are available:
File by mail – You may file and pay using theRhode Island Streamlined Sales Tax Returnby mail, but if your tax liability exceeded $200 in the previous year, you are required to file and pay online.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Rhode Island.
Sales Tax Penalties 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:
Civil penalties amounting to 10% to 50% of the total sales tax due.
A 10% tax penalty applies to late tax payments. Additionally, interest is charged on the unpaid tax at the current rate, with a minimum rate of 12%.
On the criminal side, offenses can be classified as either felony or imprisonment, depending on the severity and specific circumstances.
Oklahoma, often hailed as the “Sooner State” for its rich history of pioneers and land runs, is not just famous for its sweeping plains and vibrant Native American culture but also for its dynamic business landscape. Yet, mastering the complexities of Oklahoma sales tax demands a nuanced understanding of its specific regulations.
This guide breaks down everything you need to know about Oklahoma’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 Oklahoma’s sales tax with confidence and ease.
Sales Tax Nexus in Oklahoma
When a business creates either a physical or economic nexus, it is required to collect sales tax in Oklahoma.
Physical Nexus
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 Oklahoma include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: You could trigger a physical nexus in Oklahoma if you have affiliates, whether they operate online or in-person, who facilitate the delivery of your products to customers in the state.
Presence at Trade Show: Sales tax must be collected at Oklahoma trade shows, even for peddlers and solicitors without a fixed business location or Oklahoma sales tax permit. Resold items are also taxable.
Economic Nexus
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 November 1, 2019, the threshold for economic nexus in Oklahoma is $100,000 in gross revenue in the prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishingsales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Oklahoma.
Oklahoma Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Oklahoma.
Tangible Products
Almost all goods are taxable in Oklahoma, including:
Feminine Hygiene Products – Oklahoma has not yet repealed the Tampon Tax and is still taxable in the state.
Diapers
The goods that are exempt from sales tax are:
Groceries – Oklahoma has officially eliminated the state sales tax on food and groceries as of August 29, 2024. However, some items, such as prepared food, dietary supplements, alcoholic beverages, and tobacco products, will still be subject to state taxes. For a detailed breakdown of what’s exempt and what’s not, check out the comprehensive list here.Although the state sales tax has been eliminated, local taxes remain unaffected. Residents may still face higher grocery taxes in the future if counties or cities decide to increase their local sales tax rates. However, under the new law, changes will not take effect until after July 1, 2025.
Agricultural products used for production
Services
In Oklahoma, the majority of service-based transactions, such as professional services and cleaning services, are not subject to sales tax unless they are directly related to the sale of tangible personal property (i.e., products).For example, when you buy a computer and pay extra for setup services like software installation, the entire purchase, including the service fee, is subject to sales tax since the service is necessary for completing the sale of the computer.
However, there are specific situations where certain services are taxable:
Advertising services, unless stated that it is specifically exempt
Admissions, dues, or fees to clubs, amusement venues, sports events, or for using facilities related to entertainment, recreation, or athletics.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping/Handling
Shipping and handling charges in the state of Oklahoma are not taxable if they are separately stated.
Sales Tax Permits and Licenses in Oklahoma
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Oklahoma, the next important step is getting your Oklahoma Seller’s Permit, also known as a sales tax permit.
In Oklahoma, youmust renew your sales tax permit every three years.
Resale Certificate
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 Oklahoma, 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.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Oklahoma has been a party to this program since October 1, 2005, meaning it follows the uniform rules and definitions established by SST.
Check with the Oklahoma Tax Commission for the most current information on Oklahoma’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Oklahoma
Sales Tax Computation
In Oklahoma, 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 Oklahoma 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 Oklahoma City, OK, with a ZIP code of 73008. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Oklahoma
4.500%
County:
Oklahoma
0.000%
District:
Fifth
0.000%
City:
Oklahoma
4.125%
Combined Sales Tax Rate =
8.625%
Origin-based vs. Destination-based
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.
Oklahoma is a destination-based state, meaning sales tax is determined based on the seller’s location. That means for an Oklahoma-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 Pennsylvania to a customer in Oklahoma City, Oklahoma, where you have nexus, you’d apply Oklahoma 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.
Filing and Remitting Sales Tax Returns in Oklahoma
The next step after collection is filing and remitting your Oklahoma sales tax returns. Filing and remittance can vary in frequency, typically monthly or semi-annually.
Monthly Filing: Businesses with a sales tax liability of more than $500 are required to file monthly
Semi-Annual Filing: Businesses with a sales tax liability of less than $50 are required to file 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 Oklahoma sales tax regulations.
Due Dates
In Oklahoma, 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.
Filing Sales Tax Returns
To file your sales tax return for Oklahoma, a few options are available:
File by mail – Use Form STS-20002-A and send it by mail to the Oklahoma Tax Commission
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly. However, Oklahoma does not offer a discount.
Sales Tax Holiday
For 2025, the planned sales tax holidays in Oklahoma are:
Back-to-School(August 1-3, 2025) – Clothing and footwear costing $100 and less are tax-exempt. Note that this excludes accessories, special clothing, or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use. Rental clothing or footwear is also excluded.
Oklahoma Sales Tax Penalties
Like in most states, sales tax is a big part of how Oklahomagenerates 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 Oklahoma:
Civil penalties amounting to 25% of the total sales tax due or $50, or greater of 10% of the total sales tax due or $50;
On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.
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.
Sales Tax Nexus in Vermont
When a business creates either a physical or economic nexus, it is required to collect sales tax in Vermont.
Physical Nexus
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:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: If a remote seller has a referral agreement with a Vermont resident and made over $10,000 in taxable sales in Vermont last year, they must collect and remit Vermont Sales Tax.
Economic Nexus
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.
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.
Vermont Sales Tax on Goods and Services
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.
Tangible Products
Almost all goods are taxable in Vermont, including:
Cosmetics
Electronics
Furniture
Jewelry
Home Goods
Groceries – Food, food products, and beverages are exempt from Vermont sales tax, except for soft drinks.
Personal Hygiene – Personal hygiene products, including soaps, shampoo, toothpaste, and sunscreen, are taxable in Vermont
The goods that areexempt from sales tax are:
Clothing – Most clothing and footwear are exempt from Vermont sales tax, but tax applies to clothing accessories and equipment.
Diapers – Diapers are exempt from Vermont sales tax as they are classified as clothing.
Feminine Hygiene Products – Menstrual care products are exempt from Vermont sales tax.
Prescription Medications
Medical Devices
Agricultural Supplies – Agricultural machinery and equipment are exempt from Vermont sales tax if used at least 75% of the time for producing agricultural or horticultural commodities for sale.
Services
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:
Telecommunications
Public utility services
Manufacturing, Processing, Assembling, or Refining – Manufacturers are exempt from sales tax on materials and equipment used in production, but retail sales of tangible goods are taxable.
Directory assistance
Guide services that include access fees – Guide services are not taxable if fees do not include payments to landowners.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping/Handling
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.
Sales Tax Permits and Licenses in Vermont
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.
Seller’s 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:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
There is no fee to register for a sales tax permit.
Renewal
In Vermont, you don’t have to renew your sales tax permit.
Resale Certificate
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.
Check with the Vermont Revenue Services for the most current information on Vermont’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Vermont
Sales Tax Computation
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:
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.
Filing and Remitting Sales Tax Returns in Vermont
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.
Monthly Filing: Businesses must file monthly returns if their sales and use tax liability exceeds $2,500 for the immediately preceding calendar year.
Quarterly Filing: Businesses whose sales and use tax liability for the preceding calendar year was more than $500 but less than $2,500 must file quarterly returns.
Annual Filing: Businesses with a sales and use tax liability of $500 or less for the preceding calendar year must file one annual payment on or before January 25 of the following year.
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.
Due Dates
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.
Filing Sales Tax Returns
To file your sales tax return for Vermont, a few options are available:
You can mail your payment to the Vermont Department of Taxes at PO Box 1779, Montpelier, VT 05601-1779.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Vermont.
Vermont Sales Tax Penalties
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:
Late Filing Penalty: A 5% penalty per month applies if you fail to file a tax return.
60-Day Late Penalty: If your return is more than 60 days late, you’ll be charged a $50 penalty, even if you don’t owe any tax (unless you filed an extension).
Maximum Civil Penalty: The penalty for unpaid taxes can go up to 25% of the amount due.
Fraudulent or Willful Evasion: If you intentionally avoid paying taxes, the penalty is 100% of the unpaid tax.
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.
Sales Tax Nexus in Nebraska
When a business creates either a physical or economic nexus, it is required to collect sales tax in Nebraska.
Physical Nexus
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:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: A business is considered to be operating in Nebraska if it is owned or controlled by the same interests that own or control a retailer conducting business in the same or related industry within the state.
Presence at Trade Show: A trade show or fair promoter must be licensed as a retailer if they collect taxes for unpermitted sellers or make taxable sales. They must also provide a list of participating sellers to the Department. All sellers, including nonresidents, need a sales tax permit unless the promoter remits tax on their behalf.
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!
Economic Nexus
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.
Nebraska Sales Tax on Goods and Services
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.
Tangible Products
Almost all goods are taxable in Nebraska, including:
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/Handling
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.
Sales Tax Permits and Licenses in Nebraska
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.
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.
Resale Certificate
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.
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.
Calculating and Collecting Sales Tax in Nebraska
Sales Tax Computation
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:
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.
Filing and Remitting Sales Tax Returns in Nebraska
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.
Quarterly Filing: Tax liability of at least $900 but less than $3,000.
Annual Filing: Annual tax liability is under $900; seasonal retailers may receive special approval to submit annual returns.
Due Dates
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.
File by calling 1-800-433-8631 if you don’t have access to a computer
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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 Nebraska, taxpayers can deduct and retain 3% of the first $5,000 in use taxes, which they remit monthly as compensation for collection costs.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Nebraska.
Sales Tax Penalties 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:
Civil penalties: 10% of unpaid tax or $25 for failure to file or remit by the due date; 25% or $50 if due to fraud or intent to evade tax.
Criminal offenses: Class 4 misdemeanors for general violations, operating without permits, misuse of certificates, and frivolous compliance delays. Class 4 felonies for willful failure to collect, report, or pay sales tax, assisting in fraudulent filings, or intentional tax evasion.
In Minnesota, the Land of 10,000 Lakes, natural beauty blends seamlessly with a vibrant Midwestern spirit. Understanding sales tax in Minnesota means uncovering a system as balanced and dependable as the state’s renowned outdoor adventures and welcoming communities.
This guide breaks down everything you need to know about Minnesota’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 Minnesota’s sales tax with confidence and ease.
Sales Tax Nexus in Minnesota
When a business creates either a physical or economic nexus, it is required to collect sales tax in Minnesota.
Physical Nexus
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 Minnesota include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: You could trigger a physical nexus if you have affiliates in Minnesota. This applies whether the affiliate operates online or in-person.
Presence at Trade Show: Participating in trade shows, seminars, or similar events to promote or conduct business in Minnesota counts as business activity. Each day involved in these activities contributes to establishing a physical presence for sales tax purposes.
Economic Nexus
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, 2019, the threshold for economic nexus in Minnesota is $100,000 in gross revenue or 200 transactions in the prior 12 months.
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 Minnesota.
Minnesota Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Minnesota.
Tangible Products
Almost all goods are taxable in Minnesota, including:
Medical Devices – Durable medical equipment is taxable unless sold for home use or covered by Medicare or Medicaid. No certificate is needed for home use.
Groceries – Food and food ingredients are tax-exempt. This includes items in liquid, solid, frozen, or dried form, meant for human consumption, and consumed for taste or nutrition.
Home Goods
Feminine Hygiene Products
Prescription Medications – All drugs for human use, both prescribed and over-the-counter, are tax-exempt.
Clothing – Clothing suitable for general use is exempt. This includes but is not limited to aprons, athletic supporters, baby receiving blankets, bathing suits, costumes, children and adult diapers, shoes, underwear, etc.
Agricultural Supplies: Qualifying new and used farm machinery is tax-exempt if it meets the legal definition, is used directly in farming, and is used at least 50% of the time for agriculture.
Services
In Minnesota, 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:
Massage
Motor vehicle cleaning
Software maintenance
Pet grooming and animal boarding
Pest control and exterminating services
Software as a Service (SaaS)/Digital Products
SaaS is nottaxable in the state of Minnesota. However, software is taxable if bought, leased, or licensed to a customer and stored on a server in Minnesota.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable.
Shipping/Handling
Shipping and handling charges in Minnesota are taxable if the sale of the item is taxable. If the item is exempt, the shipping charge is also exempt.
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 Minnesota sales tax permit online at the Minnesota 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:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
There is no fee to register for a sales tax permit.
Renewal
In Minnesota, you don’t have to renew your sales tax permit.
Resale Certificate
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 Minnesota, 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.
Check with the Minnesota Revenue Services for the most current information on Minnesota’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Minnesota
Sales Tax Computation
In Minnesota, 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 Minnesota and sells to a customer in Rochester, MN, with a ZIP code of 55901. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
Minnesota is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Minnesota-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 Maine to a customer in Eagan, Minnesota, where you have nexus, you’d apply Eagan’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.
Filing and Remitting Sales Tax Returns in Minnesota
The next step after collection is filing and remitting your Minnesota sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
Annual Filing: If your average monthly sales tax liability is less than $100, you are required to file annually.
Quarterly Filing: For an average monthly liability between $100 and $500, quarterly filing is mandated.
Monthly Filing: If your average monthly sales tax liability exceeds $500, you must file monthly.
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 Minnesota’s sales tax regulations.
Due Dates
In Minnesota, the due date falls 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.
Filing Sales Tax Returns
To file your sales tax return for Minnesota, a few options are available:
File by phone – To file by touch-tone phone, call 1-800-570-3329. If your sales and use tax liability is $10,000 or more during the state’s fiscal year (July 1 – June 30), you must pay all taxes electronically starting the next calendar year.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
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, Minnesota does not offer a discount.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Minnesota.
Minnesota Sales Tax Penalties
Like in most states, sales tax is a big part of how Minnesota 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 Minnesota:
Late Filing Penalty: 5% of unpaid tax if filed late.
Late Payment Penalty: 5% to 15% of unpaid tax, depending on the delay.
Interest: Interest is charged on any unpaid tax from the due date until the tax is paid in full. The interest rate is determined annually by the Minnesota Department of Revenue.
As a proud member of the Great Plains region, North Dakota is truly a place for growth and adventure, especially for various enterprises. With so many opportunities, understanding sales tax in North Dakota is essential to achieving a bountiful harvest for your business.
This guide breaks down everything you need to know about North 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 North Dakota’s sales tax with confidence and ease.
Sales Tax Nexus in North Dakota
When a business creates either a physical or economic nexus, it is required to collect sales tax in North Dakota.
Physical Nexus
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 North Dakota include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: An out-of-state seller without a physical presence in North Dakota may still have a nexus if the seller has an affiliate. This applies when the affiliate has a physical presence in North Dakota and acts on behalf of the seller.
Presence at Trade Shows: In North Dakota, having a temporary sales location still creates a nexus with the state. Thus, an out-of-state seller with a presence at trade shows can still have nexus in North Dakota.
Economic Nexus
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 North Dakota 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 economic sales tax nexus requirements in North Dakota.
North Dakota Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in North Dakota.
Tangible Products
Almost all goods are taxable in North Dakota, including:
Grocery Food – In North Dakota, most food and food ingredients sold and used for home consumption are not subject to sales tax. However, certain types of food and drinks, such as candy, soft drinks, and alcoholic beverages, including prepared food, do not qualify for this tax exemption.
Agricultural Supplies such as Seeds, fertilizers, and machinery used directly in farming
Services
In North Dakota, most service-based transactions, such as personal or 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:
Communication services
Lodging
Tire repairs
Picture framing – only exempt from sales tax when the buyer performs the labor of installing the photo inside the frame, and the photo is the buyer’s personal property
Digital products, such as digital audiovisual works, digital audio works, and digital books, are not considered tangible personal property and are generally exempt from sales tax. Prewritten (canned) software, whether delivered electronically or on physical media, is taxable.
Shipping/Handling
Shipping and handling charges in the state of North Dakota are taxable. However, shipping and handling charges can be exempt from sales tax when selling a non-taxable item.
Sales Tax Permits and Licenses in North Dakota
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in North Dakota, the next important step is getting your North Dakota Seller’s Permit, also known as a sales tax permit.
There is no fee to register for a sales tax permit. However, the state may require a bond to secure your permit. After 2 years of remitting accurate and timely returns, you can request an early bond refund.
Renewal
In North Dakota, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Resale Certificate
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 North 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.
Calculating and Collecting Sales Tax in North Dakota
Sales Tax Computation
In North 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 North Dakota and sells to a customer in Fargo, ND, with a ZIP code of 58102. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
North Dakota is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a North 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 California to a customer in Bismarck, North Dakota, where you have nexus, you’d apply Bismarck’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.
Filing and Remitting Sales Tax Returns in North Dakota
The next step after collection is filing and remitting your North Dakota sales tax returns. Filing and remittance can vary in frequency, typically monthly or quarterly.
Quarterly Filing: Businesses with sales and use tax liability under $333,000 in the previous year must file quarterly unless they opt for monthly filing. Returns and payments are due by the last day of the month after each quarter ends.
Monthly Filing: Businesses with a sales and use tax liability of $333,000 in the previous calendar year are required to file their sales tax returns monthly. Filing must be done electronicallythrough the North Dakota TaxPayer Access Point website. Returns and payments are due by the last day of the month following the month when the return is filed.
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 North Dakota’s sales tax regulations.
Due Dates
In North Dakota, the due date falls on the last day of the month. 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.
Filing Sales Tax Returns
When filing your sales tax return for North Dakota, a few options are available:
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. North Dakota’s timely filing discount amount is determined using specific formulas based on the tax due. The maximum discount available for sellers in North Dakota is 1.5% of tax due, allowing you to retain a total of $110 per month.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in North Dakota.
North Dakota Sales Tax Penalties
Like in most states, sales tax is a big part of how North 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 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 North Dakota:
Late Filing Penalty: Failure to file taxes on time results in a 5% penalty of the total sales tax due or $5, depending on the greater amount. This penalty may not exceed 25% in the entirety.
Late Payment Penalty: Also have the same penalty rates but with an added 12% interest rate per year.
Criminal offenses: Any sales and use tax law violations will result in Class A misdemeanors in North Dakota.
Frequent offenses may result in more penalties, such as your records being assessed, having a lien placed on your personal property, or your business license being revoked.
Wisconsin’s blend of vibrant cities, picturesque farmland, and thriving businesses makes it a unique place to live and work. But whether you’re making a purchase or running a business, knowing how sales tax in Wisconsin applies can help you navigate costs and avoid unexpected fees.
This guide breaks down everything you need to know about Wisconsin’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 Wisconsin’s sales tax with confidence and ease.
Favored for its diverse landscapes and beautiful beachside towns, Oregon is a place for cozy adventures. Apart from its inviting nature, the distinctive rules for sales tax in Oregon will leave you curious about how it works.
This guide breaks down everything you need to know about Oregon, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand Oregon’s unique tax regulations with confidence and ease.
Popularly known as the “Granite State,” New Hampshire impresses anyone with its spectacular White Mountains and stunning fall foliage. Aside from its natural wonders, doing business in New Hampshire can also bring positive changes. But before you dive in, you must know how sales tax in New Hampshire works.
This guide breaks down everything you need to know about New Hampshire, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand New Hampshire’s unique tax regulations with confidence and ease.
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.
Montana is known for its wide-open spaces, rugged mountains, and one rare financial perk: no statewide sales tax. That’s right, sales tax in Montana doesn’t apply to most purchases, making it a shopper’s dream.
But while the Treasure State skips this common tax, there are still a few cases where you might pay extra charges on specific purchases.
This guide breaks down everything you need to know about Montana, one of the five states that do not have a sales tax. By the end of this comprehensive guide, you’ll understand Montana’s unique sales tax regulations with confidence and ease.
Situated at the crossroads of America’s heartland, the Show-Me State is celebrated not only for its scenic rivers and rolling hills but also for its dynamic economic landscape. However, maneuvering through the complexities of sales tax in Missouri demands comprehending its unique rules and regulations. Ecommerce businesses must grasp the concept of What is Sales Tax in Missouri to effectively navigate this component of the state’s economic structure.
This guide breaks down everything you need to know about Missouri’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 Missouri’s sales tax with confidence and ease.
