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Ultimate Guide to Mississippi Sales Tax | TaxHero

Mississippi, known for its Southern charm and rich heritage, has a tax system that’s straightforward to navigate. Understanding what is sales tax in Mississippi is as simple as enjoying its famous hospitality and warm traditions.

This guide breaks down everything you need to know about Mississippi’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 Mississippi’s sales tax with confidence and ease.

Sales Tax Nexus in Mississippi

When a business creates either a physical or economic nexus, it is required to collect sales tax in Mississippi.

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 Mississippi 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.
Presence at Trade Show: If you’re attending conventions or trade shows in Mississippi, you might need to collect and pay Mississippi use tax on any orders you take or sales you make at the event.
Mail order sales: Businesses must collect Mississippi use tax on mail order sales if they operate, have a presence, or deliver goods under contracts accepted in the state.

To stay informed about the current criteria for establishing a physical sales tax nexus in Mississippi, 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 September 1, 2018, the threshold for economic nexus in Mississippi is $250,000 in gross revenue 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 Mississippi.

Mississippi 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 Mississippi.

Tangible Products

Almost all goods are taxable in Mississippi, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Groceries

The goods that are exempt from sales tax are:

Diapers
Feminine Hygiene Products (i.e. napkins, tampons)
Prescription Medications – Prescription drugs dispensed by a licensed pharmacist with a valid prescription are exempt from sales tax. Over-the-counter medications are generally taxable, regardless of a physician’s prescription.
Textbooks
Medical Devices
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt

Services

In Mississippi, the majority of service-based transactions, such as information services and employment services, are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Air conditioning installation or repairs
Shoe repairing
Welding
Woodworking or wood turning shops
Computer software services performed within Mississippi

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Mississippi.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable.

Shipping/Handling

Shipping and handling charges in the state of Mississippi are included. Sales or use tax on delivery charges depends on the tax status of the item being delivered. Delivery charges are tax-exempt if the delivered item is exempt.

Sales Tax Permits and Licenses in Mississippi

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Mississippi, the next important step is getting your Mississippi Seller’s Permit, also known as a sales tax permit.

Seller’s Permit

You can register for a Mississippi sales tax permit online at the Department of Revenue State of Mississippi TAP website.

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)
Copy of your IRS Notice Letter CP 575/EIN Confirmation Letter
NAICS code

Registration fee

There is no fee to register for a sales tax permit.

Renewal

In Mississippi, 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 Mississippi, 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.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Mississippi is not a party to this program, , meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.

Check with the Mississippi Revenue Services for the most current information on Mississippi’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Mississippi

Sales Tax Computation

In Mississippi, 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 Mississippi and sells to a customer in Jackson, MS, with a ZIP code of 39202. 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:	Mississippi	6.50%
County:	Hinds County	0.00%
District:	Second District	0.00%
City:	Jackson	1.00%
Combined Sales Tax Rate =		8.00%

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.

Mississippi is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Mississippi-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 Texas to a customer in Gulfport, Mississippi, where you have nexus, you’d apply Gulfport’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 Mississippi

The next step after collection is filing and remitting your Mississippi sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.

Monthly returns: required if your annual remittance is $3,600 or more.
Quarterly returns: must be filed if your annual remittance falls between $600 and $3,599.
Annual returns: apply if your annual remittance is less than $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 Mississippi’s sales tax regulations.

Due Dates

In Mississippi, 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.

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.

Mississippi Pre-pay Sales Tax on a Vehicle lets vehicle buyers pay sales tax before titling or registering, avoiding penalties while awaiting dealership paperwork. Dealers can also use it to pay a customer’s sales tax.

Filing Sales Tax Returns

To file your sales tax return for Mississippi, a few options are available:

File online through the Mississippi Department of Revenue.
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 businesses a discount for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Since July 2019, the DFA has provided a 2% discount for timely filings, capped at $1,000 monthly. Local jurisdictions may also offer a 2% discount, up to $4,000 per city or county.

Sales Tax Holiday

Currently, for 2024 – 2025, the planned sales tax holidays in Mississippi are:

DATE	TYPE	ELIGIBLE MERCHANDISE
July 11, 2025 – July 13, 2025	Back-to-School Sales Tax Holiday	any article of clothing with a taxable value of $100 or less; Footwear (less than $100)
August 29-31, 2025	Second Amendment	Firearms Ammunition Hunting supplies (tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts, and slings.)

Mississippi Sales Tax Penalties

Like in most states, sales tax is a big part of how Mississippi generates revenue. Thus, maintaining compliance with sales tax regulations is of the utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.

Here are the specific penalties for non-compliance with sales tax regulations in Mississippi:

Failure to File or Pay: A penalty of 10% of the tax due for the first offense if the failure is persistent, willful, or recurring.
Repeated Offenses: The penalty is 10% of the tax due for the first offense, 15% for the second offense, 25% for the third offense, and 50% for any subsequent offense.
Failure to Pay After Notice: The penalty is 15% of the tax due for the first offense, 25% for the second offense, and 50% for any subsequent offense.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Mississippi or any state!

Ultimate Guide to Wyoming Sales Tax | TaxHero

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

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:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Personal Hygiene – Grooming and other hygiene products such as soap or cleaning solutions are taxable.

The goods that are exempt from sales tax are:

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.
Diapers – for both children and adult diapers
Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
School annuals and newspapers
Prescription Medication
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 products through 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)
NAICS code

Registration fee

There is a $60 fee to register for a sales tax permit in Wyoming. The state charges a non-refundable registration fee.

Renewal

In 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

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 Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

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.

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 online through the Wyoming Internet Filing System for Business (WYIFS).
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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Wyoming or any state!

Ultimate Guide to Hawaii Sales Tax | TaxHero

In Hawaii, where lush landscapes and the spirit of aloha shape daily life, even the tax system operates uniquely. What many refer to as Hawaii Sales Tax is actually the General Excise Tax (GET)—a business privilege tax rather than a traditional sales tax.

Unlike sales tax, which is collected from consumers at checkout, GET is imposed directly on businesses for the right to conduct business in the state. Ecommerce businesses in Hawaii including those selling online or out-of-state businesses selling to Hawaii customers must comply with Hawaii’s GE Tax.

This guide covers everything ecommerce businesses need to know about Hawaii sales tax, officially known as GE Tax. From tax rates and exemptions to permit registration and filing requirements, we’ll break down the essentials so you can navigate compliance with confidence.

Sales Tax Nexus in Hawaii

When a business creates either a physical or economic nexus, it is required to collect sales tax in Hawaii.

Physical Nexus

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: An out-of-state seller without a physical presence in Hawaii may still have a nexus in Hawaii if it has an affiliate in the state. This applies when the affiliate has a physical presence in Hawaii and acts on behalf of the seller, such as through shared merchandise exchanges or loyalty programs.
Presence at Trade Shows: Exhibiting at Hawaii trade shows and taking orders creates nexus if the product is accepted in Hawaii. Attending as a consumer or exhibiting without making sales does not create nexus.
Phone Number in Hawaii: A Hawaii phone number is considered part of seller activity in the state and is a factor in establishing nexus within the state.

To stay informed about the current criteria for establishing a physical sales tax nexus in Hawaii, 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, 2018, the threshold for economic nexus in Hawaii is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.

Hawaii 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 Hawaii.

Tangible Products

Almost all goods are taxable in Hawaii, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Groceries

The goods that are exempt from sales tax are:

Feminine Hygiene Products – Beginning July 1, 2025, feminine hygiene products, including sanitary napkins, tampons, panty liners, douches, menstrual cups, and hygiene-related creams and sprays, will be exempt from sales tax.
Diapers
Prescription Medications
Textbooks
Medical Devices – This exemption does not apply to durable medical equipment that has a 4-year lasting period.
Energy-efficient Appliances – Hawaii provides tax exemptions for products that promote energy efficiency.

Services

In Hawaii, the majority of service-based transactions, such as information services and employment services, are subject to sales tax.

However, there are specific situations where certain services are tax-exempt. For instance, tax-exempt services are:

Call center services
Foster care
Ship building and repair
Nonprofit hospital services

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Hawaii.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.

Shipping/Handling

Shipping and handling charges in the state of Hawaii are taxable. Charges for items shipped outside the state are excluded.

GET Licenses in Hawaii

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Hawaii, the next important step is getting your license. Hawaii requires businesses to obtain a GET license.

Seller’s Permit

You can register for a Hawaii sales tax permit online at the Hawaii Tax Online 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)
NAICS code

Registration fee

There is a $20 fee to register for a sales tax permit.

Renewal

In Hawaii, you don’t have to renew your sales tax permit.

Resale Certificate

A resale certificate also known as a Resale Certificate for Goods 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 Certificate for Goods from others looking to buy for resale.

Hawaii uses resale certificates (Forms G-17, G-18, or G-19) to document tax-free sales for resale purposes.

You can fill out the Resale Certificate for Goods provided by Hawaii after you receive your GE Tax License. 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. However, Hawaii is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.

Check with the Hawaii Revenue Services for the most current information on Hawaii’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Hawaii

Sales Tax Computation

In Hawaii, there is no traditional sales tax. Instead, businesses pay a GE Tax on their gross income. While businesses may pass this tax on to customers, it is still considered a tax on the business rather than a direct sales tax on consumers. The GET rate varies based on the location and type of transaction. The standard state GET rate is 4.00%, but some counties impose an additional surcharge, making the total rate 4.50% in certain areas.

Here’s an example: Suppose an out-of-state seller meets Hawaii’s economic nexus threshold and sells to a customer in Honolulu, HI with a ZIP code of 96813). The seller would need to apply the applicable GET rate as follows:

SALES TAX FORMULA		RATE
State:	Hawaii	4.00%
County:	Honolulu	0.50%
District:	First District	0.21%
City:	Honolulu	0.00%
Combined Sales Tax Rate =		4.71%

Filing and Remitting Sales Tax Returns in Hawaii

The next step after collection is filing and remitting your Hawaii sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or semi-annually.

If your total Hawaii GE Tax payments exceed $4,000 in a year, you must file monthly.
If your total GE Tax payments are $4,000 or less, you can file quarterly.
If your total GE Tax payments are $2,000 or less, you can file semi-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 Hawaii’s sales tax regulations.

Due Dates

In Hawaii, 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.

Filing Sales Tax Returns

To file your sales tax return for Hawaii, a few options are available:

File online through the Hawaii Tax Online.
File by mail – You can file and pay using g-45 form by 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. However, Hawaii does not offer a discount.

Sales Tax Holiday

Hawaii does not offer sales tax holidays because the state imposes a General Excise Tax (GET) instead of a traditional sales tax. Since GET is a tax on businesses rather than consumers, there are no designated periods when it is waived.

Hawaii Sales Tax Penalties

Like in most states, sales tax is a big part of how Hawaii 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 Hawaii:

The penalty for not filing a return on time is 5% of the unpaid tax per month (or part of a month), up to a maximum of 25% of the total unpaid tax.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Hawaii or any state!

Ultimate Guide to Kansas Sales Tax | TaxHero

What is sales tax in Kansas? In the Sunflower State, where golden prairies meet historic trails, even the tax system has its own charm. Known for its rich history and Midwestern warmth, Kansas weaves its unique identity into every aspect of life, including its sales tax approach.

This guide breaks down everything you need to know about Kansas’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 Kansas’s sales tax with confidence and ease.

Sales Tax Nexus in Kansas

When a business creates either a physical or economic nexus, it is required to collect sales tax in Kansas.

Physical Nexus

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 if you have affiliates, whether they operate online or in-person.
Presence at Trade Shows: Retailers from other states who sell goods in Kansas at temporary events, such as trade shows, craft fairs, or similar venues, must collect sales tax and get a permanent registration number.

To stay informed about the current criteria for establishing a physical sales tax nexus in Kansas, 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, 2021, the threshold for economic nexus in Kansas is $100,000 in gross revenue in the current calendar year’s sales or the previous year.

Kansas 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 Kansas.

Tangible Products

Almost all goods are taxable in Kansas, including:

Cosmetics
Electronics
Clothing – Clothing is taxable, but certain items are tax-free during the back-to-school holiday in August.
Furniture – Taxable, but sales or rentals to entities with valid exemption certificates are not subject to sales tax. Be sure to keep these certificates on file to support any non-taxable transactions.
Jewelry
Home Goods

The goods that are exempt from sales tax are:

Groceries – As of January 1, 2025, Kansas has officially eliminated the state sales tax on food and food ingredients. All local sales and use taxes will still apply.
Prescription Medications – Prescription medicine is exempt from sales tax, except for those used in abortion procedures.
Medical Devices
Energy-efficient Appliances – Kansas provides tax exemptions for products that promote energy efficiency.
Agricultural Supplies: Agribusiness qualifies for exemptions on four specific items: agricultural animals, farm machinery and equipment, propane for agricultural use, and soil erosion prevention materials.

Services

In Kansas, the majority of service-based transactions, such as information services and employment services, are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Dry cleaning and pressing services
Hotel accommodations
Pest control services
Washing and waxing of vehicles
Leases and rentals
Laundry services (excluding coin-operated machines)

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Kansas. However, sales of prewritten software are taxable.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.

Shipping/Handling

Shipping and handling charges in the state of Kansas are not taxable if they are separately stated from the item cost on the invoice. For shipments including both exempt and taxable items, the seller must allocate the delivery charge and tax the portion related to taxable items.

Sales Tax Permits and Licenses in Kansas

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Kansas, the next important step is getting your Kansas Seller’s Permit, also known as a sales tax permit.

Seller’s Permit

You can register for a Kansas sales tax permit online at the CR-16 Business Tax Application Rev. 6-22 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)
Annual Kansas sales estimation
Additional questions may focus on your business activities, such as involvement in construction, natural gas, or related industries.
NAICS code

Registration fee

There is no fee to register for a sales tax permit.

Renewal

In Kansas, you don’t have to renew your sales tax permit.

Resale Certificate

In Kansas, 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 ST-28A Resale Exemption Certificate provided by Kansas after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Kansas is a party to this program, meaning it follows the uniform rules and definitions established by SST.

Check with the Kansas Revenue Services for the most current information on Kansas’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Kansas

Sales Tax Computation

In Kansas, 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 Kansas and sells to a customer in Wichita, KS, with a ZIP code of 67203. 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:	Kansas	6.50%
County:	Sedgwick	1.00%
District:	Fourth District	0.00%
City:	Wichita	0.00%
Combined Sales Tax Rate =		7.50%

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.

Kansas is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Kansas-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, Kansas, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.

Filing and Remitting Sales Tax Returns in Kansas

The next step after collection is filing and remitting your Kansas sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.

Monthly Returns: If your annual sales or use tax liability exceeds $5,000, you must file monthly returns.
Quarterly Returns: If your annual tax liability is $5,000 or less, you must file quarterly returns.
Annual Returns: If your total sales or use tax owed is $1000 or less, you can file an annual return.

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 Kansas’s sales tax regulations.

Due Dates

In Kansas, 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 Kansas, a few options are available:

File online through the Kansas Department of Revenue.
File by mail – You can file and pay using ST-36 Retailers’ Sales Tax Return by 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. However, Kansas does not offer a discount.

Sales Tax Holiday

Currently, for 2024-2025, there are no planned sales tax holidays in Kansas.

Kansas Sales Tax Penalties

Like in most states, sales tax is a big part of how Kansas 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 or non-compliance with sales tax regulations in Kansas:

Failure to File: A penalty of $500 to $10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
Failure to Pay: A penalty of $500 to 10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
Intent to Evade: A penalty of $500 to $10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Kansas or any state!

Ultimate Guide to Arkansas Sales Tax | TaxHero

Arkansas, famed for its stunning Ozark Mountains and thriving agriculture, is more than just a natural gem of the South. With its growing business hubs and bustling trade, understanding sales tax in Arkansas is essential for businesses and consumers alike.

This guide breaks down everything you need to know about Arkansas’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Arkansas’s sales tax with confidence and ease.

Sales Tax Nexus in Arkansas

When a business creates either a physical or economic nexus, it is required to collect sales tax in Arkansas.

Physical Nexus

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.

To stay informed about the current criteria for establishing a physical sales tax nexus in Arkansas, take a look at the official regulations available right here!

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 Arkansas is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.

Arkansas 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 Arkansas.

Tangible Products

Almost all goods are taxable in Arkansas, including:

Cosmetics
Electronics
Clothing – Clothing is taxable, but certain items are tax-free during the back-to-school holiday in August.
Furniture
Jewelry
Home Goods
Groceries – Arkansas reduces the food sales tax rate to 0.125% effective January 1, 2019. Additionally, as of March 2025, there are proposals to eliminate the remaining grocery tax, but these have not yet been enacted
Textbooks – Taxable, but school instructional materials are tax-free during the back-to-school holiday in early August.

The goods that are exempt from sales tax are:

Diapers – Children’s and adult diapers used for bladder or bowel control issues.
Feminine Hygiene Products (i.e. pads, tampons, panty liners, sanitary napkins, and menstrual cups)
Prescription Medications
Medical Devices
Energy-efficient Appliances – Energy-efficient appliances in Arkansas are tax-free, with rebates and credits offered.
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

In Arkansas, the majority of service-based transactions, such as information services and employment services, are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Accommodations (lodging) provided to transient guests
Boat storage and docking
Car Washes, Cleaning or janitorial work
Printing

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Arkansas.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable when sold to end users for permanent or temporary use.

Shipping/Handling

Shipping and handling charges in the state of Arkansas are taxable. Freight charges are taxed if tied to taxable goods unless billed by a carrier or for non-taxable goods.

Sales Tax Permits and Licenses in Arkansas

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Arkansas, the next important step is getting your Arkansas Seller’s Permit, also known as a sales tax permit.

Seller’s Permit

You can register for an Arkansas seller’s permit online through the Arkansas Taxpayer Access Point (ATAP) or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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)
NAICS code

Registration fee

There is a $50 fee to register for a sales tax permit for businesses with a physical presence in the state and free for out-of-state/remote sellers with no physical presence.

Renewal

In Arkansas, you don’t have to renew your sales tax permit.

Resale Certificate

In Arkansas, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.

You can fill out the Arkansas Exemption Certificate (Form ST 391) provided by Arkansas after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Arkansas is a party to this program, meaning it follows the uniform rules and definitions established by SST.

Check with the Arkansas Revenue Services for the most current information on Arkansas’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Arkansas

Sales Tax Computation

In Arkansas, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Arkansas and sells to a customer in Little Rock, AR, with a ZIP code of 72201. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Arkansas	6.50%
County:	Pulaski	1.00%
District:	Second District	0.00%
City:	Little Rock	1.13%
Combined Sales Tax Rate =		8.63%

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.

Arkansas is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Arkansas-based seller, sales tax is generally based on the location of the buyer when selling within the state.

For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, Arkansas, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.

Filing and Remitting Sales Tax Returns in Arkansas

The next step after collection is filing and remitting your Arkansas sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.

Monthly Returns: If your total sales tax liability exceeds $100 in any given month, you are required to file and remit your sales tax every month.
Quarterly Returns: If your average tax liability for the previous fiscal year (July 1 – June 30) does not exceed $100 per month.
Annual Returns: If your average tax liability for the previous fiscal year does not exceed $25 per month.

It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Arkansas’s sales tax regulations.

Due Dates

In Arkansas, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.

Monthly Prepayments

Arkansas Pre-pay Sales Tax on a Vehicle lets vehicle buyers pay sales tax before titling or registering, avoiding penalties while awaiting dealership paperwork. Dealers can also use it to pay a customer’s sales tax.

Filing Sales Tax Returns

To file your sales tax return for Arkansas, a few options are available:

File online through the Arkansas Taxpayer Access Point (ATAP).
File by mail – You can file and pay using Form ET-1 by mail. Contact the Arkansas Department of Finance and Administration at 501-682-7104 to request the form.
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

Sales Tax Holiday

Currently, for 2024-2025, here is the planned sales tax holiday in Arkansas:

DATE	TYPE	ELIGIBLE MERCHANDISE
August 2-5, 2025	Back-to-School Sales Tax Holiday	Various school-related items, including: Clothing and footwear ($100/item or less) Clothing accessories and equipment ($50/item or less) School supplies

Arkansas Sales Tax Penalties

Like in most states, sales tax is a big part of how Arkansas generates revenue. Thus, maintaining compliance with sales tax regulations is of the utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.

Here are the specific penalties for non-compliance with sales tax regulations in Arkansas:

Interest on Unpaid Taxes: Charged at 10% per year from the original due date (April 15th for most taxpayers) until payment is made. The same rate applies to underpayments.
Failure to File: 5% of the tax owed per month or part of a month late. Maximum penalty: 35% of the tax owed.
Failure to Pay: 1% of the unpaid taxes per month or part of a month late. Maximum penalty: 35% of the unpaid taxes.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Arkansas or any state!

Ultimate Guide to Nebraska Sales Tax | TaxHero

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

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.

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:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Personal Hygiene – Soaps, cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, sun tan lotions, and sunscreens are taxable.

The goods that are exempt from sales tax are:

Grocery Food – Sales of food and food ingredients are exempt, except for prepared food and food sold through vending machines.
Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
Prescription Medications
Diapers – Effective July 1, 2027, sale, storage, use, or other consumption of diapers are exempt.
Medical Devices
Agricultural Supplies: Chemicals and machinery used directly in farming are exempt.

Services

In Nebraska, the majority of service-based transactions, such as advertising, storage, and employment services, are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Armored Car Services
Janitorial
Landscaping
Pest Control
Printing Services
Security

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Nebraska.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable. It applies to selling digital audio, video, books, and related codes to end users, whether they gain permanent, temporary, or payment-based usage rights.

Shipping/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.

Seller’s Permit

You can register for a seller’s permit online through the Nebraska Department of Revenue or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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 Signed Power of Attorney (Form 33) if applicable
NAICS Code

Registration fee

There is no fee to register for a sales tax permit.

Renewal

In Nebraska, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.

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.

You can fill out Form 13 provided by Nebraska after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

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:

SALES TAX FORMULA		RATE
State:	Nebraska	5.50%
County:	Douglas	0.00%
District:	Second District	0.00%
City:	Omaha	1.50%
Combined Sales Tax Rate =		7.00%

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.

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.

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.

Filing Sales Tax Returns

To file your sales tax return for Nebraska, a few options are available:

File online through the NebFile for Business.
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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Nebraska or any state!

Ultimate Guide to Washington Sales Tax | TaxHero

Home to tech giants and breathtaking national parks, Washington thrives on innovation and commerce. But to succeed here, businesses must also navigate sales tax in Washington, ensuring compliance and avoiding costly penalties.

This guide breaks down everything you need to know about Washington’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Washington’s sales tax with confidence and ease.

Sales Tax Nexus in Washington

When a business creates either a physical or economic nexus, it is required to collect sales tax in Washington.

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 Washington 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.
Presence at Trade Show: An out-of-state seller’s trade show participation in Washington creates a nexus if it establishes or maintains a market. However, attending one convention yearly without making retail sales or taking orders does not count.

To stay informed about the current criteria for establishing a physical sales tax nexus in Washington, take a look at the official regulations available right here!

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.

Effective March 14, 2019, the threshold for economic nexus in Washington is $100,000 in gross revenue in the previous or current calendar year’s sales.

Washington 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 Washington.

Tangible Products

Almost all goods are taxable in Washington, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods

The goods that are exempt from sales tax are:

Grocery Food
Diapers
Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
Prescription Medications
Medical Devices
Energy-efficient Appliances – Equipment used directly in generating electricity using qualified renewable energy sources.
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

In Washington, the majority of service-based transactions, such as advertising, janitorial, and storage services, are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Construction services
Installation, cleaning, and repair services
Landscaping and landscape maintenance
Retail recreation services – Fishing charters, day trips for sightseeing, and service charges on tickets to professional sporting events.
Personal services – Personal training at athletic and fitness facilities.
Miscellaneous services – Car wash, catering, personal chefs, extended warranties and maintenance agreements, vehicle towing, and automobile parking.

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Washington.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. Washington imposes sales and use tax on downloaded digital goods, digital products, codes, and automated services, including streaming, regardless of ownership rights or payment structure.

Shipping/Handling

Shipping and handling charges in the state of Washington are taxable. Charges incurred after the buyer receives the goods and fees for delivering exempt items are not included.

Sales Tax Permits and Licenses in Washington

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Washington, the next important step is getting your Washington Seller’s Permit, also known as a sales tax permit.

Seller’s Permit

You can register for a seller’s permit online through the Washington Department of Revenue or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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)
NAICS Code

Registration fee

There is no fee to register for a sales tax permit. However, additional fees may apply based on the endorsement type required for your Business License.

Renewal

In Washington, you have to renew your sales tax permit annually. It must be renewed annually for $5, with a renewal notice sent before expiration.

Resale Certificate

In Washington, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.

Reseller permits issued by the Department are typically valid for 48 months but may be limited to 24 months under certain conditions. The Department may deny or revoke permits due to misuse, tax liabilities, or incomplete applications. Misusing a reseller permit incurs penalties, and sellers must maintain records verifying permit validity.

You can fill out the form provided by Washington after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Washington is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.

Check with the Washington Department of Revenue for the most current information on Washington’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Washington

Sales Tax Computation

In Washington, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs..

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Washington and sells to a customer in Seattle, WA, with a ZIP code of 98101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Washington	6.50%
County:	King County	0.10%
District:	Seventh District	0.00%
City:	Seattle	3.75%
Combined Sales Tax Rate =		10.35%

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.

Washington is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Washington-based seller, sales tax is generally based on the location of the buyer when selling within the state.

For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Lincoln, Washington, where you have nexus, you’d apply Lincoln’s sales tax rate to that sale.

Filing and Remitting Sales Tax Returns in Washington

The next step after collection is filing and remitting your Washington sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.

Annual Filing: If annual tax liability is $1,050 or less
Quarterly Filing: If annual tax liability is between $1,051 and $4,800
Monthly Filing: If annual tax liability is $4,801 or greater

Due Dates

In Washington, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.

Filing Sales Tax Returns

To file your sales tax return for Washington, a few options are available:

File online through the Washington Department of Revenue.
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, Washington does not offer a discount.

Sales Tax Holiday

Currently, for 2024-2025, there are no planned sales tax holidays in Washington.

Sales Tax Penalties in Washington

Like in most states, sales tax is a big part of how Washington generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.

Here are the specific penalties for non-compliance with sales tax regulations in Washington:

Civil penalties: 9% of tax due if unpaid by the due date, 19% after one month, 29% after two months (minimum $5 penalty).
Criminal offenses: Classified as either misdemeanors or felonies, depending on the severity and specific circumstances.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Washington or any state!

Ultimate Guide to South Dakota Sales Tax | TaxHero

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

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.

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:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Groceries
Personal Hygiene – (i.e. shampoo, toothpaste, mouthwash, and antiperspirants)

The goods that are exempt from sales tax are:

Diapers
Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
Prescription Medications
Medical Devices
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

In South Dakota, the majority of service-based transactions, such as information services and employment services, are subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Agricultural services
Construction services
Travel agent services
Insurance services
Doctors, chiropractors, podiatrists, osteopaths, and physical therapists

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of South Dakota.

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.

Seller’s Permit

You can register for a Louisiana Direct Marketer Permit online through the South Dakota Tax Application or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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)
NAICS code

Registration fee

There is no fee to register for a sales tax permit.

Renewal

In South Dakota, you don’t have to renew your sales tax permit.

Resale Certificate

In South Dakota, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.

You can fill out the South Dakota Sales Tax Exemption Certificate provided by South Dakota after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. South Dakota is a party to this program, meaning it follows the uniform rules and definitions established by SST.

Check with the South Dakota Revenue Services for the most current information on South Dakota’s participation in the Streamlined Sales Tax initiative.

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:

SALES TAX FORMULA		RATE
State:	South Dakota	4.20%
County:	Chittenden	0.00%
District:	Third District	0.00%
City:	Sioux Falls	2.00%
Combined Sales Tax Rate =		6.20%

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.

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.

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.

Filing Sales Tax Returns

To file your sales tax return for South Dakota, a few options are available:

Pay online through the South Dakota website portal.
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.

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).

Questions? Connect with TaxHero today for a free sales tax consultation about your business in South Dakota or any state!

Ultimate Guide to Vermont Sales Tax | TaxHero

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

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.

Beginning July 1, 2018, the threshold for economic nexus in Vermont is $100,000 in gross revenue or 200 transactions in the prior four calendar quarters.

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 are exempt 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.

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Vermont.

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)
NAICS code

Registration fee

There is no fee to register for a sales tax permit.

Renewal

In Vermont, you don’t have to renew your sales tax permit.

Resale Certificate

In Vermont, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.

You can fill out the Vermont Sales Tax Exemption Certificate provided by Vermont after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Vermont is a party to this program, meaning it follows the uniform rules and definitions established by SST.

Check with the Vermont Revenue Services for the most current information on Vermont’s participation in the Streamlined Sales Tax initiative.

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:

SALES TAX FORMULA		RATE
State:	Vermont	6.00%
County:	Chittenden	0.00%
District:	Third District District	0.00%
City:	Burlington	1.00%
Combined Sales Tax Rate =		7.00%

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.

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.

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:

Pay online through the myVTax portal.
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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Vermont or any state!

Let's discuss what ecommerce businesses must know about sales tax in Minnesota, including MN sales tax calculation, filing returns, and more.

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

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.

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:

Cosmetics
Electronics
Furniture
Jewelry
Personal Hygiene – Grooming and hygiene products, including baby items, are taxable.
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.

The goods that are exempt from sales tax are:

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.
Diapers
Textbooks
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 not taxable 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.

Sales Tax Permits and Licenses in Minnesota

You can register for a seller’s permit online through the Minnesota Department of Revenue (MNDOR) or follow our detailed step-by-step guide for assistance.

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 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)
NAICS code

Registration fee

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

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.

You can fill out the Minnesota form ST-3 – Certificate of Exemption provided by Minnesota after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Minnesota is a party to this program, meaning it follows the uniform rules and definitions established by SST.

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:

SALES TAX FORMULA		RATE
State:	Minnesota	5.50%
County:	Cumberland County	0.00%
District:	First District	0.50%
City:	Rochester	0.75%
Combined Sales Tax Rate =		8.13%

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.

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.

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.

Filing Sales Tax Returns

To file your sales tax return for Minnesota, a few options are available:

File online through the Minnesota Department of Revenue.
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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Minnesota or any state!

Ultimate Guide to Maine Sales Tax | TaxHero

In Maine, where rugged coastlines meet serene forests and lighthouses stand tall against Atlantic waves, even the tax system reflects the state’s distinctive character. Learning sales tax in Maine is a straightforward process, shaped by the state’s practical and no-nonsense New England approach.

This guide breaks down everything you need to know about Maine’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Maine’s sales tax with confidence and ease.

Sales Tax Nexus in Maine

When a business creates either a physical or economic nexus, it is required to collect sales tax in Maine.

Physical Nexus

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 is considered to have a business in Maine if a related company in the state sells similar products, shares a name or branding, helps with deliveries, or supports the retailer’s business in any way.
Presence at Trade Show: Attending a trade show in Maine doesn’t require an out-of-state business to collect tax, but if they take orders from Maine customers, they must collect tax on all sales, not just those from the trade show.

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, 2022, the threshold for economic nexus in Maine is $100,000 in gross revenue.

Maine 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 Maine.

Tangible Products

Almost all goods are taxable in Maine, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods

The goods that are exempt from sales tax are:

Groceries – Grocery staples, which are basic foods for human nourishment, are not taxed, but this doesn’t include prepared foods or certain other items meant to be eaten or consumed.
Diapers – Child diapers, both disposable and reusable, along with diaper covers, wraps, and pins for reusable diapers, are tax-free.
Feminine Hygiene Products (i.e. pads, tampons, liners, and menstrual cups)
Prescription Medications
Medical Devices
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

In Maine, most service-based transactions, such as advertising, employment services, and cleaning services are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Rentals or leases of automobiles
Prepaid calling services
Installation, maintenance or repair of telecommunications equipment
Fabrication services
Rental of video media and video equipment

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Maine.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable. Digital products are taxed at the standard rate if their physical versions are also subject to sales tax.

Shipping/Handling

Shipping and handling charges in the state of Maine are not taxable. Shipping charges are not taxed if the product is shipped directly to the customer, sent via a carrier or U.S. mail, and the shipping cost is listed separately from the item’s price or other fees.

Sales Tax Permits and Licenses in Maine

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Maine, the next important step is getting your Maine Seller’s Permit, also known as a sales tax permit.

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 Maine sales tax permit online at the Maine Tax Portal (MTP) or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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)
NAICS code

Registration fee

There is no fee to register for a sales tax permit.

Renewal

In Maine, you don’t have to renew your sales tax permit.

Resale Certificate

In Maine, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.

You can fill out the Uniform Sales & Use Tax Exemption/Resale Certificate provided by Maine after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Maine is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.

Check with the Maine Revenue Services for the most current information on Maine’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Maine

Sales Tax Computation

Maine keeps sales tax simple with a single statewide rate. No local taxes apply, so you only need to calculate based on the state’s fixed percentage.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Maine and sells to a customer in Portland, ME, with a ZIP code of 04101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Maine	5.50%
County:	Cumberland County	0.00%
District:	First District	0.00%
City:	Portland	0.00%
Combined Sales Tax Rate =		5.50%

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.

Maine is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Maine-based seller, sales tax is generally based on the location of the buyer when selling within the state.

For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Ohio to a customer in Bangor, Maine, where you have nexus, you’d apply Maine’s sales tax rate to that sale.

Filing and Remitting Sales Tax Returns in Maine

The next step after collection is filing and remitting your Maine sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.

Monthly Filing: Required if your average tax liability is $600 or more per month.
Quarterly Filing: Applicable if your average tax liability is at least $100 but less than $600 per month.
Semiannual Filing: For businesses with an average tax liability of less than $100 per month but more than $50 per year.
Annual Filing: Permitted if your average annual tax liability is $50 or less.

It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Maine’s sales tax regulations.

Due Dates

In Maine, the due date falls on the 15th day of the following month. For instance, sales tax collected in January is due by February 15th for monthly filers. However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for April, and the May 15th deadline falls on a holiday or weekend, you’ll have until May 16th, the following business day, to submit.

Filing Sales Tax Returns

To file your sales tax return for Maine, a few options are available:

File online through the Maine Department of Revenue with Maine I-File.
File by mail – You can file and pay using form ST-7 by 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. However, Maine does not offer a discount.

Sales Tax Holiday

Currently, for 2024-2025, there are no planned sales tax holidays in Maine.

Maine Sales Tax Penalties

Like in most states, sales tax is a big part of how Maine generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.

Here are the specific penalties for non-compliance with sales tax regulations in Maine:

Failure to File: A Class D crime for the first offense, escalating to a Class C crime for repeat offenses. Filing with intent to evade is also a Class D crime but increases to Class C if the tax exceeds $2,000. Subsequent offenses exceeding $2,000 are Class B crimes.
Failure to Pay: A Class D crime for the first offense, rising to a Class C crime for repeat offenses. Intentional non-payment is a Class D crime but becomes Class C if the tax exceeds $2,000. Subsequent offenses exceeding $2,000 are Class B crimes.
Intent to Evade: A Class D crime initially, upgraded to Class C if the tax exceeds $2,000. Repeat offenses are Class C crimes or Class B if the tax exceeds $2,000.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Maine or any state!

Ultimate Guide to Wisconsin Sales Tax | TaxHero

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

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.

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:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Personal Hygiene – products such as soap, shampoo, combs, deodorant, shaving cream, and razors are taxable.

The goods that are exempt from sales tax are:

Grocery Food – Sales of food and food ingredients are exempt.
Diapers
Feminine Hygiene Products
Prescription Medications
Medical Devices

Services

In Wisconsin, the majority of service-based transactions, such as advertising, employment services, and transportation, are not 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 charges for 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)
NAICS Code

Registration fee

There is a $20 Business Tax Registration (BTR) fee to register for a sales tax permit. This registration fee is valid for two years.

Renewal

In 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

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 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.

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 the Wisconsin Department of Revenue for 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.

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.

Filing Sales Tax Returns

To file your sales tax return for Wisconsin, a few options are available:

File online through the Wisconsin My Tax Account.
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 offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. In Wisconsin, a retailer’s discount is 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 penalty applies. 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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Wisconsin or any state!

Ultimate Guide to West Virginia Sales Tax | TaxHero

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

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.

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 this legal 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)

The goods that are exempt from sales tax are:

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
Prescription Medications
Medical Devices
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.

Seller’s Permit

You can register for a West Virginia sales tax permit online at the West Virginia Tax Division Website or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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)
NAICS code

Registration fee

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

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.

To get a resale certificate in West Virginia, you only need to fill out the Streamlined Sales and Use Tax Certificate of Exemption. This certificate will also give you sales tax exemption for multiple states simultaneously once approved. 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. West Virginia is a party to the program, meaning it follows the uniform rules and definitions established by SST.

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:

SALES TAX FORMULA		RATE
State:	West Virginia	6.00%
County:	Kanawha County	0.00%
District:	First District	0.00%
City:	Charleston	1.00%
Combined Sales Tax Rate =		7.00%

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.

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.

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.

Filing Sales Tax Returns

When filing your sales tax return for West Virginia, a few options are available:

File online through the MyTaxes.WVTax.Gov.
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:

DATE	TYPE	ELIGIBLE MERCHANDISE
August 1-4, 2025	Back-to-School	Clothing (less than $125) School supplies (less than $50) Computers and laptops (less than $500) Sports equipment (less than $150) School instruction material (less than $20)

West Virginia Sales Tax Penalties

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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in West Virginia or any state!

Ultimate Guide to Rhode Island Sales Tax | TaxHero

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

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.

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.

The goods that are exempt from sales tax are:

Grocery Food
Clothing – The tax exemption applies to clothing items with a sales price of $250 or less.
Diapers
Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
Prescription Medications
Medical Devices
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

In Rhode Island, the majority of service-based transactions, such as advertising, security, and employment, are not subject to sales tax.

However, there are specific situations where certain services are taxable. For instance, taxable services are:

Food services
Pet care services
Travel and lodging services
- Furnishing services by room resellers
- Furnishing travel packages
- Rental of living quarters in any hotel, rooming house, or tourist camp.
Transportation services – Taxicabs, limousines, charter buses, transportation network companies (TNC), and other road transportation
Armored car services
Telecommunication services

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Rhode Island.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. Effective October 1, 2019, specified digital products like digital books, audio, and audio-visual works are subject to sales and use tax.

Shipping/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.

Seller’s Permit

You can register for a seller’s permit online at the State of Rhode Island Division of Taxation Department of Revenue or follow our detailed step-by-step guide for assistance.

Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:

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)
NAICS Code

Registration fee

There is a $10 fee to register for a sales tax permit.

Renewal

In Rhode Island, you have to renew your sales tax permit annually. If you apply through the Rhode Island website, you will pay the fee with a credit card. If you apply via paper application, you must attach a $10 check payable to the state of Rhode Island.

Resale Certificate

In Rhode Island, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.

You can fill out the Resale Certificate provided by Rhode Island after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

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:

SALES TAX FORMULA		RATE
State:	Rhode Island	7.00%
County:	Providence	0.00%
District:	First District	0.00%
City:	Providence	0.00%
Combined Sales Tax Rate =		7.00%

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.

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.

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.

Monthly Prepayments

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 online through the Rhode Island Division of Taxation.
File by mail – You may file and pay using the Rhode Island Streamlined Sales Tax Return by 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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in Rhode Island or any state!

Ultimate Guide to North Dakota Sales Tax | TaxHero

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

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.

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:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Personal Hygiene
Feminine Hygiene Products

The goods that are exempt from sales tax are:

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.
Children’s Diapers, incontinent pads, and adult diapers
Prescription Medications
Textbooks
Medical Devices
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
Printing services

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of North Dakota.

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.

Seller’s Permit

You can register for a North Dakota sales tax permit online at the North Dakota Taxpayer Access Point (ND TAP) 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)
NAICS code

Registration fee

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

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.

You can fill out the Certificate of Resale Form provided by North Dakota after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. North Dakota is a party to the program, meaning it follows the uniform rules and definitions established by SST.

Check with the North Dakota Office of State Tax Commissioner for the most current information on North Dakota’s participation in the Streamlined Sales Tax initiative.

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:

SALES TAX FORMULA		RATE
State:	North Dakota	5.00%
County:	Cass	0.50%
District:	Twenty Seventh	0.00%
City:	Fargo	2.00%
Combined Sales Tax Rate =		7.50%

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.

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.

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 electronically through 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 online through the North Dakota Taxpayer Access Point (NDTap).
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.

Questions? Connect with TaxHero today for a free sales tax consultation about your business in North Dakota or any state!