Doing business in the Cornhusker State means more than hard work—it also requires understanding tax obligations. Knowing how sales tax in Nebraska works can make the difference between compliance and costly fines.
This guide breaks down everything you need to know about Nebraska’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Nebraska’s sales tax with confidence and ease.
Sales Tax Nexus in Nebraska
When a business creates either a physical or economic nexus, it is required to collect sales tax in Nebraska.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Nebraska include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: A business is considered to be operating in Nebraska if it is owned or controlled by the same interests that own or control a retailer conducting business in the same or related industry within the state.
Presence at Trade Show: A trade show or fair promoter must be licensed as a retailer if they collect taxes for unpermitted sellers or make taxable sales. They must also provide a list of participating sellers to the Department. All sellers, including nonresidents, need a sales tax permit unless the promoter remits tax on their behalf.
To stay informed about the current criteria for establishing a physical sales tax nexus in Nebraska, take a look at the official regulations available right here!
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning April 1, 2019, the threshold for economic nexus in Nebraska is $100,000 in gross revenue or 200 or more separate transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Nebraska.
Nebraska Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Nebraska.
Tangible Products
Almost all goods are taxable in Nebraska, including:
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable. It applies to selling digital audio, video, books, and related codes to end users, whether they gain permanent, temporary, or payment-based usage rights.
Shipping/Handling
Shipping and handling charges in the state of Nebraska are taxable. When a delivery fee covers both exempt and taxable items, sales tax applies to the portion allocated to taxable items based on their price or weight ratio in the shipment.
Sales Tax Permits and Licenses in Nebraska
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Nebraska, the next important step is getting your Nebraska Seller’s Permit, also known as a sales tax permit.
There is no fee to register for a sales tax permit.
Renewal
In Nebraska, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Nebraska, sellers use resale certificates to buy goods from the suppliers they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Nebraska is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Nebraska Department of Revenue for the most current information on Nebraska’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Nebraska
Sales Tax Computation
In Nebraska, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs..
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Nebraska and sells to a customer in Omaha, NE, with a ZIP code of 68105. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
Nebraska is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Nebraska-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Lincoln, Nebraska, where you have nexus, you’d apply Lincoln’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Nebraska
The next step after collection is filing and remitting your Nebraska sales tax returns. Filing and remittance can vary in frequency, typically monthly and quarterly.
Quarterly Filing: Tax liability of at least $900 but less than $3,000.
Annual Filing: Annual tax liability is under $900; seasonal retailers may receive special approval to submit annual returns.
Due Dates
In Nebraska, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
File by calling 1-800-433-8631 if you don’t have access to a computer
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. In Nebraska, taxpayers can deduct and retain 3% of the first $5,000 in use taxes, which they remit monthly as compensation for collection costs.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Nebraska.
Sales Tax Penalties in Nebraska
Like in most states, sales tax is a big part of how Nebraska generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Nebraska:
Civil penalties: 10% of unpaid tax or $25 for failure to file or remit by the due date; 25% or $50 if due to fraud or intent to evade tax.
Criminal offenses: Class 4 misdemeanors for general violations, operating without permits, misuse of certificates, and frivolous compliance delays. Class 4 felonies for willful failure to collect, report, or pay sales tax, assisting in fraudulent filings, or intentional tax evasion.
South Dakota, home to Mount Rushmore and vast open prairies, keeps things simple—including its tax system. Understanding what sales tax is in South Dakota is as straightforward as the state’s wide skies and welcoming communities.
This guide breaks down everything you need to know about South Dakota’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle South Dakota’s sales tax with confidence and ease.
Sales Tax Nexus in South Dakota
When a business creates either a physical or economic nexus, it is required to collect sales tax in South Dakota.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in South Dakota include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: South Dakota retailers have nexus if they share ownership with an in-state business selling similar products or using local facilities or employees to aid sales. Nexus also applies if a related in-state business delivers their products.
Presence at Trade Show: An out-of-state retailer doesn’t have nexus in South Dakota if it attends only one trade show per year, regardless of duration, sales, or activity. Nexus applies if more than one show is attended or other business activities occur.
To stay informed about the current criteria for establishing a physical sales tax nexus in South Dakota, take a look at the official regulations available right here!
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2023, the economic nexus threshold in South Dakota is more than $100,000 in gross sales in the previous or current calendar year. The 200-transaction threshold is no longer applicable.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in South Dakota.
South Dakota Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in South Dakota.
Tangible Products
Almost all goods are taxable in South Dakota, including:
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping/Handling
Shipping and handling charges in the state of South Dakota are taxable. If a shipment has both taxable and exempt items, only the delivery cost for taxable items is taxed. Freight charges paid directly to the carrier by the buyer are not taxed.
Sales Tax Permits and Licenses in South Dakota
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in South Dakota, the next important step is getting your South Dakota Seller’s Permit, also known as a sales tax permit.
There is no fee to register for a sales tax permit.
Renewal
In South Dakota, you don’t have to renew your sales tax permit.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In South Dakota, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
Check with the South Dakota Revenue Services for the most current information on South Dakota’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in South Dakota
Sales Tax Computation
In South Dakota, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in South Dakota and sells to a customer in Sioux Falls, SD, with a ZIP code of 57104. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
South Dakota is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a South Dakota-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, South Dakota, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in South Dakota
The next step after collection is filing and remitting your South Dakota sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
Monthly Filing: Required for businesses with an annual tax liability of $1,000 or more.
Quarterly Filing: Applies to businesses with less than $1,000 in annual tax liability that do not meet the monthly filing threshold.
Annual Filing: Typically for businesses with minimal sales tax liability.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with South Dakota’s sales tax regulations.
Due Dates
In South Dakota, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for South Dakota, a few options are available:
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. In South Dakota, electronic filers can receive a 1.5% discount on the gross tax due, capped at $70 per return period.
However, under South Dakota’s House Bill 1037, the discount will temporarily be unavailable starting July 1, 2025, until July 30, 2028.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in South Dakota.
South Dakota Sales Tax Penalties
Like in most states, sales tax is a big part of how South Dakota generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in South Dakota:
Late Filing Penalty: A 10% penalty (minimum $10) is applied if a return is not filed within 30 days after the due date. The penalty may be reduced or waived if reasonable cause is shown.
Late Payment Interest: A 1% interest charge (minimum $5) applies for the first month of late payment, increasing by 1% per month thereafter.
Intentional Non-Payment: If tax is unpaid with the intent to evade or delay payment, interest increases to 1.5% per month (minimum $5).
Tennessee, often celebrated as the Volunteer State for its rich history of civic involvement, stands as a musical heritage and economic vitality. Known for its vibrant culture, this state offers a unique landscape for businesses. However, mastering the nuances of Tennessee sales tax exemptions is crucial for entrepreneurs looking to thrive in Tennessee’s distinct business milieu.
This guide breaks down everything you need to know about Tennessee’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 Tennessee’s sales tax with confidence and ease.
Sales Tax Nexus in Tennessee
When a business creates either a physical or economic nexus, it is required to collect sales tax in Tennessee.
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 Tennessee include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Click-through Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who have collectively sold more than $10,000 worth of products for delivery in Tennessee within the 12-month period.
Presence at Tradeshows: Company staff engaging in promotional activities within Tennessee, like attending trade shows, establishes nexus with 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.
Tennessee enacted a new law that reduces the threshold for sales tax collection from $500,000 to $100,000, effective October 1, 2020.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Tennessee.
Tennessee 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 Tennessee.
Tangible Products
Almost all goods are taxable in Tennessee, including:
Cosmetics
Electronics
Clothing – Clothing items are generally taxable in Tennessee. However, clothes sold by no-profit organizations may be exempt.
Furniture
Jewelry
Home Goods
Groceries – The sale of food and grocery items are taxable in Tennessee at a reduced rate of 4%.
Feminine Hygiene Products – Products such as pads, tampons, and menstrual cups are still taxable in Tennessee.
Healthcare Products – particularly prescription drugs, prescribed durable medical equipment for home use (e.g., humidifiers, blood pressure equipment), mobility enhancing equipment (e.g., wheelchairs, canes), prosthetic devices (e.g., artificial arms/legs, hearing aids), and other medical devices like enteral feeding systems and diabetic testing supplies.
Gasoline
Liquified gas and compressed natural gas
Film, including negatives, used in the business of printing or typesetting
Home communication terminals, remote control devices, and similar equipment
purchased by a video programming service provider for sale/lease to its subscribers
Air and water pollution control chemicals
United States and Tennessee flags sold by nonprofit organizations
Packaging
Utility poles, anchors, guys, and conduits
School meals
Coin-operated telephone services
Services
In Tennessee, the majority of service-based transactions, such as professional services and advertising, are not subject to sales tax.
However, there are specific situations where certain services are taxable:
Repair and installation services of tangible personal property or computer software
Lodging services and rooms and short-term space rentals
Digital products (i.e., downloaded video games, digital audio works, digital audio-visual works, digital books, and streaming videos) are also taxable. However, products such as digital newspapers or magazines, digital photographs or images, digital artwork, and digital greeting cards are not taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Tennessee, the next important step is getting your Tennessee Seller’s Permit, also known as a sales tax permit.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Tennessee, 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 Tennessee, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Tennessee has been a party to this program since October 1, 2005, meaning it follows the uniform rules and definitions established by SST.
Check with the Tennessee Department of Revenue for the most current information on Tennessee’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Tennessee
Sales Tax Computation
In Tennessee, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Tennessee Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Tennessee and sells to a customer in Nashville, TN, with a ZIP code of 37013. 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:
Tennessee
7.000%
County:
Davidson
2.250%
District:
Fifth District
0.000%
City:
Nashville
0.000%
Combined Sales Tax Rate =
9.250%
Origin-based vs. Destination-based
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Tennessee is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Tennessee-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 New York to a customer in Nashville, Tennessee, where you have nexus, you’d apply Nashville’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 Tennessee
The next step after collection is filing and remitting your Tennessee sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually. Taxpayers with an average monthly sales and use tax liability of $1,000 or less for 12 consecutive months are authorized to file either monthly or quarterly.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Tennessee sales tax regulations.
Due Dates
In Tennessee, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 21st for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Tennessee, a few options are available:
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly.However, Tennessee does not offer a discount.
Sales Tax Holiday
Currently, for 2025, the planned sales tax holiday in Tennessee is:
Back to School Sales Tax Holiday (July 25-27, 2025) – School supplies and school art supplies for $100 and less, clothing apparel for $100 and less, and computers and laptops priced at $1,500 and less.
Tennessee Sales Tax Penalties
Like in most states, sales tax is a big part of how Tennessee 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 Tennessee:
Civil penalties for late filing or payment amounting to a minimum of $15 regardless of the amount of tax due, and a maximum penalty of 25% of the total sales tax due; Whereas civil penalties for negligence carry a penalty of at least 10% of the underpayment
On the criminal side, offenses can be classified as a felony, depending on the severity and specific circumstances.
Wyoming, one of the most tax-friendly states, also known as a “tax haven,” is an outstanding place for business owners. Even if you spend less in Wyoming, you can still earn more, thanks to how business-friendly the state is. To ensure your success, you must first understand the rules of sales tax in Wyoming.
This guide breaks down everything you need to know about Wyoming’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Wyoming’s sales tax with confidence and ease.
Sales Tax Nexus in Wyoming
When a business creates either a physical or economic nexus, it is required to collect sales tax in Wyoming.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Wyoming include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: An out-of-state seller without a physical presence in Wyoming may still have a nexus if the seller has an affiliate. This applies to affiliates with a physical presence in Wyoming who act on behalf of the seller.
Presence at Trade Shows: You must collect sales tax if you exhibit at more than four Wyoming trade shows in 12 months. Once you establish a nexus and obtain a license, sales tax applies to all sales in Wyoming, including those outside trade shows.
To stay informed about the current criteria for establishing a physical sales tax nexus in Wyoming, take a look at the official regulations available right here!
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus. Beginning July 1, 2024, the threshold for economic nexus in Wyoming is $100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Wyoming.
Wyoming Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Wyoming.
Tangible Products
Almost all goods are taxable in Wyoming, including:
Groceries – Under Wyoming’s Food and Nutrition Act of 2008, food items with supplemental nutrition assistance benefits are exempt from sales tax. This includes food items purchased for domestic home consumption and groceries purchased with food stamps. However, alcoholic beverages and prepared food are taxable.
Medical Devices– Exemptions do not apply to non-prescribed durable medical equipment
Retail sales of trucks, trailers, and semitrailers, including leases of motor vehicles
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming
Services
In Wyoming, most service-based transactions such as professional services and sanitary services (i.e., garbage hauling and latrines) are generally exempt from sales tax.
However, sellers must separate the exempt charges when a taxable transfer of tangible personal property is involved in a non-taxable service. Otherwise, the whole transaction becomes subject to sales tax.There are also specific situations where certain services are taxable in Wyoming. For instance, taxable services are:
Telecommunications services
Laundry, dry cleaning, or pressing
Lodging service for transient guests
Intrastate transportation of passengers
Repairing, changing, or improving tangible personal property
Utility services such as gas, electricity, or heat for domestic, industrial, and commercial consumption
Software as a Service (SaaS)/Digital Products
SaaS is not taxable in Wyoming. This only applies if the transaction does not involve obtaining tangible property or itemized service within the product.
Access to digital productsthrough streaming or subscription services is taxable. This applies if the service does not grant the buyer permanent use and access to the item.
Shipping/Handling
Shipping and handling charges in the state of Wyoming are generally not taxable. This applies when the shipping or handling fees are listed separately on the invoice.
However, if the fees are included in the total price of a taxable product, the shipping or handling charges become subject to sales tax.
Sales Tax Permits and Licenses in Wyoming
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Wyoming, the next important step is getting your Wyoming Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a Wyoming sales tax permit online at the Wyoming Internet Filing System for Business (WYIFS) or follow our detailed step-by-step guide for assistance. Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information: Legal Business Name, Physical Address, Mailing Address
Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Name, Address, and SSN of Owners, Partners, or Officers
Business Activity Details: Date & State of Incorporation, Start Date with the State of Wyoming (Nexus Start Date), Month of Fiscal Year End, Estimated Monthly Sales Volume)
Registration feeThere is a $60 fee to register for a sales tax permit in Wyoming. The state charges a non-refundable registration fee. RenewalIn Wyoming, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale. In Wyoming, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the fill out Wyoming Sales Tax Exemption Certificate provided by the state of Wyoming after you receive your sales tax permit. You can also fill out the StreamlinedSales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration. Need help? Read our blog: How to Get a Wyoming Resale Certificate for your Business
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Wyoming is a party to the program, meaning it follows the uniform rules and definitions established by SST. Check with the Wyoming Excise Tax Division for the most current information on Wyoming’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Wyoming
Sales Tax Computation
In Wyoming, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Wyoming and sells to a customer in Cheyenne, WY, with a ZIP code of 82001. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Wyoming
4.00%
County:
Laramie County
2.00%
District:
First District
0.00%
City:
Cheyenne
0.00%
Combined Sales Tax Rate =
6.00%
Origin-based vs. Destination-Based
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax. Wyoming is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Wyoming-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Texas to a customer in Jackson, Wyoming, where you have a nexus, you’d apply Jackson’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Wyoming
The next step after collection is filing and remitting your Wyoming sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
Monthly Filing: Required if the average monthly liability is greater than $150.
Quarterly Filing: Needed when the average monthly liability is between $50 and $150.
Annual Filing: Mandatory if the average monthly liability is less than $50.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Wyoming’s sales tax regulations.
Due Dates
In Wyoming, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th for monthly filers.However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.If you’re a quarterly filer, you’re required to submit your returns on or before January 31, April 30, July 31, and October 31 of each calendar year. Meanwhile, annual filers must submit returns on or before January 31 of each calendar year.
Filing Sales Tax Returns
When filing your sales tax return for Wyoming, a few options are available:
File by mail by filling up the Form 41-1 for monthly and quarterly filers or Form 42-1 for annual filers.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Wyoming’s timely filing discount amount is determined using specific formulas based on the tax due. On the first $6,250 of your total sales tax, filers can get a 1.95% discount and 1% for any remaining remittance. The maximum allowable discount is $500 for each filing period.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Wyoming.
Wyoming Sales Tax Penalties
Like in most states, sales tax is a big part of how Wyoming generates revenue. Thus, maintaining compliance with sales tax regulations is of the utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial to always ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Wyoming:
Late Filing Penalty: $10 penalty for failing to file a sales tax return by the due date. This penalty is imposed 30 days after receiving the first notice from the state of Wyoming. A $25 penalty is applied when a seller fails to file a return within the 30-day notice.
Inaccurate Filing Penalty: An incorrect calculation without fraudulent intent leads to a 10% penalty of the missing sales tax with interest. Any fraudulent, inaccurate filing with the intent of tax evasion results in a 25% penalty of the unreported sales tax with added interest.
Fraudulent Tax Collection: Sellers who falsely collect excessive sales tax and fail to remit the accurate amount to the state of Wyoming are deemed guilty of a misdemeanor. This applies if the total amount they collected is less than $500, resulting in a $750 fine. If the collected amount exceeds $500, the criminal offense is raised to a felony charge with a $5,000 fine.
General Violations: Any violation of sales tax laws without any specific penalty is automatically guilty of a misdemeanor. Other charges may be applicable depending on the committed offense.
Montana is known for its wide-open spaces, rugged mountains, and one rare financial perk: no statewide sales tax. That’s right, sales tax in Montana doesn’t apply to most purchases, making it a shopper’s dream. But while the Treasure State skips this common tax, there are still a few cases where you might pay extra charges on specific purchases.This guide breaks down everything you need to know about Montana, one of the five states that do not have a sales tax. By the end of this comprehensive guide, you’ll understand Montana’s unique sales tax regulations with confidence and ease.
Is There Sales Tax in Montana?
If you plan to start a business in Montana, you may wonder whether the state imposes a sales tax. The short answer? Montana does not have a statewide sales tax.Montana is one of only a few states in the U.S. that have chosen not to implement a general sales tax. This policy dates back decades, with voters consistently rejecting proposals to implement a sales tax. The result is a tax-friendly environment for both residents and local businesses.While the lack of a sales tax may sound like a break for businesses and consumers, it doesn’t mean there are no tax-related responsibilities for Montana business owners.
Beyond Montana Sales Tax: Other Taxes You Should Know
While you won’t be charging your customers a general sales tax, there are other tax typesto keep in mind as a business owner in Montana.
Corporate Income Tax
Montana imposes acorporate income taxon corporations that conduct business or derive income within the state. It’s designed to capture a fair share of taxes from corporations that benefit from Montana’s infrastructure and services, while also addressing the complexities associated with multi-state and international business operations.The standard tax rate is 6.75%, with the option for corporations to elect using the water’s-edge method, which focuses taxation on US-based income and specific foreign sources, at a slightly higher rate of 7%.This approach aims to prevent profit shifting to low-tax jurisdictions by requiring combined reporting of income from all entities within a unitary business, unless the water’s-edge election is made.
Mineral Royalty Withholding Tax
The Montana Mineral Royalty Withholding Taxis a state income tax requirement that mandates withholding on certain mineral royalty payments. Specifically, when mineral royalties are paid from Montana-based production to nonresident individuals or out-of-state business entities, the payer, referred to as the “remitter,” must withhold 6% of the net royalty amount.This withholding applies regardless of the recipient’s business structure, including individuals, trusts, partnerships, or corporations.Remitters are required to register with the Montana Department of Revenue and comply with specific filing obligations. These include:
Providing Forms 1099-MISC or 1042-S to royalty owners.
The withheld amounts are considered trust funds held on behalf of the state, and remitters remain liable for proper withholding and reporting, even if they use third-party accounting services.For royalty owners, the withheld tax can be claimed as a refundable credit against their Montana income tax liability. This information is typically reported on Form 1099-MISC (Box 15) or a Montana Schedule K-1, depending on the nature of the payment.
Natural Resource Tax
Montana collects taxes on natural resources harvested in the state, including coal, metal, oil, and natural gas.
Bentonite Production Tax
Cement and Gypsum Producers License Tax
Coal Gross Proceeds Tax
Coal Severance Tax
Electrical Energy Producers License Tax
Metal Mines Gross Proceeds Tax
Metal Mines License Tax
Micaceous Mineral Mines License Tax
Mineral Royalty Withholding Tax
Miscellaneous Mines Net Proceeds Tax
Oil and Natural Gas Production Tax
Resource Indemnity Trust & Ground Water Assessment Tax
Wholesale Energy Transaction (WET) Tax
Miscellaneous Tax
Montana has several taxes covering specific businesses, services, or locations. These taxes include telecommunications, tobacco, tourism, cannabis, and health care facilities.
Alcohol Taxes
Cannabis Tax
Cigarette Taxes
Consumer Counsel Fee (CCT)
Contractor’s Gross Receipts Tax (CGR)
Emergency Telephone System Fee
General Sales Tax
HELP Entity Fee (HEF)
HELP Integrity Fee (HIF)
Hospital Facility Utilization Fee (HUF)
Intermediate Care Facility Utilization Fee (ICFUF)
Local Resort Tax
Lodging Facility Sales and Use Tax
Moist Snuff Taxes
Nursing Facility Utilization Fee (NFBT)
Opioid Seller’s License
Other Tobacco Product Taxes
Public Service Regulation Fee (PSR)
Rental Vehicle Tax (RVT)
Retail Telecommunications Excise Tax (RTE)
TDD Telecommunications Service Fee
Unclaimed Property Holders
Universal Systems Benefits Programs
Unlocatable Mineral Trusts
Montana and Remote Sellers
Montana does not impose a statewide sales tax, and there are no economic nexus standards for sales tax in the state. This means that out-of-state sellers are not required to collect or remit Montana sales tax on sales to Montana customers.However, Montana does follow an economic presence standard for corporate income tax. A business is considered to have nexus for income tax purposes if it is “engaged in business” in Montana, which is broadly defined as any activity carried out for profit.Additionally, Montana applies the Joyce Rule, which states that only in-state activities conducted by or on behalf of the company can establish income tax nexus. While Montana sales tax does not apply to in-state transactions, Montana-based businesses that sell to other states may still have sales tax obligations in those states.Need help? Read our blog:Understanding Resale Exemptions for Your Business In MontanaIf a business has a physical presence in another state, it may trigger physical nexus, requiring sales tax registration and collection.Therefore, although Montana sales tax laws are minimal, businesses operating from Montana must still be proactive in understanding how multistate nexus laws affect their overall tax compliance.To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Business Compliance Obligations in Montana
Just because there’s no sales tax doesn’t mean you can skip registration. If you’re running a business in Montana, you may still need to:
Check the state’s official business registration site to start and ensure you meet your obligations.
Conclusion
Montana may not have a general sales tax, but that doesn’t mean business owners are exempt from taxes and compliance. From corporate income tax to potential nexus in other states, understanding your responsibilities and staying compliant is key to staying on the right side of the law.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero. Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every state.
Popularly known as the “Granite State,” New Hampshire impresses anyone with its spectacular White Mountains and stunning fall foliage. Aside from its natural wonders, doing business in New Hampshire can also bring positive changes. But before you dive in, you must know how sales tax in New Hampshire works.
This guide breaks down everything you need to know about New Hampshire, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand New Hampshire’s unique tax regulations with confidence and ease.
Is There Sales Tax in New Hampshire?
Throughout its tariff history, New Hampshire has never had any sales tax. Currently, the state does not have plans to change its tax system anytime soon.This brings the question: Why is there no sales tax in New Hampshire?
The Granite State remains unclear with its reasoning, but many tax experts speculate that it’s simply part of the state’s frugal nature and the limited government it has.
Implementing sales tax would mean bringing changes to the state constitution. But with New Hampshire’s limited government, even minor changes could lead to immense intricacies. This is what the state may have been avoiding throughout the years.
There had been efforts to change this system, but voters in New Hampshire and the legislature have continuously rejected the idea of imposing sales taxes. In that case, how does the state fund its projects?
The state’s main source of revenue is its property taxes, ranking as the 4th state with the highest property tax rate. For instance, Sullivan County alone has an effective property tax rate of 2.38% as of 2023.
Additionally, New Hampshire alsocollected revenue from interest and dividend taxes. However, since January 23, 2025, the state has declared that the 3.00% interest and dividend tax has been repealed.
Beyond New Hampshire Sales Tax: Other Taxes You Should Know
Apart from the state’s high property taxes or the repealed interest and dividend taxes, there are still other taxes in New Hampshire that every business owner should know.
The list may seem overwhelming at first glance, but don’t worry. Among these various tax types, only a few can directly affect specific businesses in New Hampshire.Let’s discuss the most relevant tax types below.
Meals & Rental Tax (MRT)
In New Hampshire, hotel patrons or any building that offers lodging or sleeping accommodations with room and meal services are subject to an 8.50% tax. The same also applies to restaurants and motor vehicle rentals.
The tax must be collected and remitted by business owners every 15th of each month.Meals and Rental Tax are also imposed on the following types of catering businesses:
Banquets
Field days
Cafeterias
Barbecues
Receptions
Private homes
Special events
Outings or picnics
Concerts or races
Fairs and bazaars
Mobile catering or vending trucks
To learn more about Meals and Rental Tax in New Hampshire, you can read the state’s official guidelines in RSA 78-A and Rev 7000.
Timber Tax
Businesses engaged in the wood-cutting industry must be aware of the RSA 79 Forest Conservation and Taxation in New Hampshire. This rule declares that the cutting and selling of wood or timber are subject to a 10.00% timber tax based on the stumpage value.
The wood‘s value will be assessed by a municipal officer after reporting the collected timber through the Form PA-8. This form is provided by the municipal government.
Exemptions only apply if the wood and timber cut is:
Not being sold or bartered
Cut for the usage of school districts and county projects
Used by the federal, state, or municipal government projects
To learn more about Timber Tax in New Hampshire, you may read the state’s official guidelines in Rev 3400.
Tobacco Tax
New Hampshire also follows many other states when it comes to imposing a tobacco tax. Under RSA 78, various tariff rates are applied to tobacco and cigarette products in general.There is a $1.78 tax imposed on each package containing 20 cigarettes or small cigars. Any other tobacco product is taxed at a rate of 65.03% of the wholesale sale price.
Additionally, since January 1, 2020, New Hampshire has been taxing electronic cigarettes (e.g, vapes) as well.
A liquid container that can be opened and carries nicotine is subject to an 8.00% tobacco tax. This tax is applied to the wholesale sales price.
Closed cartridges or containers with liquid or substances containing nicotine that are not meant to be opened are taxed at a rate of $0.30 per milliliter of the liquid or substance’s total volume.
To learn more about Tobacco Tax in New Hampshire, you may read the state’s official guidelines in Rev 1000.
Alcohol Tax
Much like tobacco, New Hampshire also enforces RSA 175-180.
With this law, a $0.30 per-gallon tax is charged for every sale of beer within the state. The collected tax will be used for New Hampshire’s Alcohol Abuse Prevention and Treatment Fund program.
Communication Services Tax (CST)
While most services are not taxable in New Hampshire, rental and communication services are an exception. For instance, the Communication Services Tax (CST) has been enforced since 2024.
Under the RSA 82-A, a 7.00% tax is charged on two-way communication services. This includes:
Channel services
Internet service providers
Cable and satellite services
Mobile or prepaid telecommunication services
To learn more about the rules of Communication Services Tax in New Hampshire, you can read the state’s official guidelines here.
Business Enterprise Tax (BET)
While New Hampshire also has no income tax, the state has introduced a similar tax called the Business Enterprise Tax (BET).The rate for Business Enterprise Tax is 0.55% of the assessed sum of all expenses paid and accrued by a business enterprise. This is effective for taxable periods ending December 31, 2022. But for taxable periods beginning January 1, 2025, businesses with more than $298,000 of total revenue from all activities must file a Business Enterprise Tax return. The same applies to businesses with an assessed value tax base of $298,000. The filing period for Business Enterprise Tax is adjusted every two years.
Need more details about Business Enterprise Tax? Read the state’s official rules in RSA 77-E and Rev 2400.
Business Profits Tax (BPT)
Once a business pays off its Business Enterprise Tax, it can be used as credits when it comes to Business Profits Tax (BPT).
But what’s the difference between the two?
Business Profits Tax (BPT) – focused on a business’s marketing activities and income within the state.
Business Enterprise Tax (BET) – based on a company’s expenses and total assessed tax base value established by the compensation, interests, and dividends it has paid or accrued during a taxable period.
The rate for Business Profits Tax is 7.60% for taxable periods ending on or after December 31, 2022. In the following year of 2023, this rate decreased to 7.50%.For taxable periods beginning on or after January 1, 2025, businesses with a total income of more than $109,000 are required to file a Business Profits Tax return. Similar to Business Enterprise Tax, this filing period is adjusted once every two years.
Filing a return for Business Profits Tax or Business Enterprise Tax can be done through the state’s official site, Granite Tax Connect (GTC). An account must be created first to proceed.
Learn more about Business Profits Tax through the state’s official files: RSA 77-A and Rev 300.
New Hampshire and Remote Sellers
On July 19, 2019, New Hampshire passed SB 242—a bill meant to protect New Hampshire remote sellers from being subject to sales and use tax liabilities in other states.
However, this rule mainly prevents fraudulent sales tax collection. New Hampshire’s Department of Justice (DOJ) requires other states to send a written notice to determine whether a remote seller should charge and collect sales and use tax in another state.After 45 days, the DOJ will confirm if a business should comply with the sales and use tax policies of another state.In that case, how do you know if you’re liable to collect and remit sales tax in other states? The determining factor is whether you have a sales tax nexus or not.
Sales Tax Nexus
Establishing a sales tax nexus in a state means that you’re actively engaged in business in that state. Sales tax nexus has 2 principal types:
Physical nexus
Economic nexus
When a business creates one of these nexus, it is required to collect sales tax in most states.But since New Hampshire has no sales tax, the state has no regulations for creating a physical or an economic nexus. However, a New Hampshire remote seller can still trigger a sales tax nexus in other states despite the existence of SB 242.
Once a nexus is established and a written notice has been approved by the New Hampshire DOJ, remote sellers will be required to register and collect sales tax in other states.
Below are the factors that define whether you have a physical or an economic nexus in another state.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. Here are the common factors that determine a physical nexus in most states:
Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in a state.
Inventory in the State: This covers situations where you store your products within a state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating within a state on your behalf.
Affiliate Nexus: You could trigger a physical nexus if you have affiliates in a state. This applies whether they operate online or in-person, and have collectively sold a total amount of sales or delivered transactions that may meet a state’s nexus threshold.
Presence at Trade Shows: In some states, such as Wyoming or Hawaii, for example, presence at trade shows and making a specific amount of sales during such events can also trigger a physical nexus.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
In general, the thresholds in most states are set at:
200 total transactions within the state and/or
$100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
However, this is only a common standard. Other states may have different amounts set for their economic nexus thresholds. For example, California has a higher requirement of $500,000 in total sales in the previous or current calendar year.
Once you meet these thresholds in other states, even remote sellers from New Hampshire can still have the responsibility of collecting sales tax.
In case you’re a New Hampshire business purchasing goods for resale in other states, you can also claim a resale sales tax exemption. For that, you may need to learn how to use resale certificates in taxing states.Need help? Read our blog:Understanding Resale Exemptions for Your Business in New HampshireTo make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Business Compliance Obligations in New Hampshire
Without a sales tax, businesses in New Hampshire aren’t required to register for a sales tax permit. However, there are still other legal duties you must follow to stay compliant with the Granite State.
In New Hampshire, businesses must register for specific licenses, such as:
Local Business Permits – New Hampshire advises business owners to contact the city or town clerk for municipal permits and licenses.
Tobacco Tax Operator’s License – Apply for a Tobacco License through the Granite Tax Connect state website.
Meals & Rooms (Rentals) License – Also called an “Operator’s License.” You can apply for this license via the Granite Tax Connect state website.
Communication Services Retailer’s Tax License – Also called “Registration Number.” You can apply for this license through the Granite Tax Connect state website.
Despite having no sales tax, understanding relevant tax obligations in New Hampshire is always crucial to keep your business running smoothly. Remote sellers from New Hampshire could also face the burden of handling sales tax responsibilities in other states. Failure to comply may lead to penalties that could harm your business.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero.Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every state.
Surrounded by beautiful scenic mountains and lush forests, West Virginia truly deserves the title “Almost Heaven.” These natural wonders invite endless business opportunities, attracting entrepreneurs from all over the states. Before you get lost in the maze, it’s essential to learn what is sales tax in West Virginia to keep you ahead of the marketing race.
This guide breaks down everything you need to know about West Virginia’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle West Virginia’s sales tax with confidence and ease.
Sales Tax Nexus in West Virginia
When a business creates either a physical or economic nexus, it is required to collect sales tax in West Virginia.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in West Virginia include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: Any retailer with an affiliate operating in West Virginia is considered to have a business presence, regardless of physical location. Out-of-state sellers establish a nexus if their affiliate’s sales exceed $100,000 or 200 transactions in the state.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning January 1, 2019, the threshold for economic nexus in West Virginia is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in West Virginia.
West Virginia Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in West Virginia.
Tangible Products
Almost all goods are taxable in West Virginia, including:
Cosmetics
Electronics
Clothing – Generally taxable unless purchased for resale or with an exemption certificate. For a comprehensive definition of taxable clothing types, you may view thislegal article from the government of West Virginia. Exemptions are also applicable for certain clothing types during Sales Tax Holidays.
Furniture
Jewelry
Home Goods
Personal Hygiene
Feminine Hygiene Products (i.e. pads, tampons, and menstrual cups)
Grocery Food – Since July 1, 2013, grocery food has been exempt from sales and use tax in West Virginia. However, food sold in a heated state, prepared food, packaged food with eating utensils provided by the seller, soft drinks, and food sold through vending machines are taxable.
Lottery tickets, delivered newspapers, educational textbooks used in schools
Agricultural Supplies such as Seeds, fertilizers, and machinery used directly in farming
Services
In West Virginia, services are taxable only when specifically defined as taxable by law. This includes telecommunications and some personal services.
Most professional services, such as legal, accounting, and medical services, are not taxable.
Software as a Service (SaaS)/Digital Products
SaaS, when classified as a data processing service, is taxable in West Virginia. This refers to services that provide access to computer equipment for the purpose of processing, acquiring, or examining data.
This includes situations where a service processes data for a customer using the provider’s equipment (e.g., streaming services).
Digital products (i.e., digital audio-visual works, audio works, and digital books) are not taxable as long as the product is only transferred electronically.
Shipping/Handling
Shipping and handling charges in the state of West Virginia are not taxable for sellers if the delivery charge is already included in the total amount of the taxable item’s sale.
If delivery charges are stated separately, the shipping and handling fees are subject to sales tax in West Virginia.
Sales Tax Permits and Licenses in West Virginia
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in West Virginia, the next important step is getting your West Virginia Seller’s Permit, also known as a sales tax permit.
There is a $30 fee to register for a sales tax permit. The state charges a non-refundable registration fee.
Renewal
In West Virginia, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Instead of a renewal, businesses are only required to file an annual report from January 1 to July 1 of each calendar year after your official registration date for the sake of compliance.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In West Virginia, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
Check with the West Virginia Tax Division for the most current information on West Virginia’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in West Virginia
Sales Tax Computation
In West Virginia, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in West Virginia and sells to a customer in Charleston, WV, with a ZIP code of 25301. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
West Virginia is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a West Virginia-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Morgantown, West Virginia, where you have a nexus, you’d apply Morgantown’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in West Virginia
The next step after collection is filing and remitting your West Virginia sales tax returns. Filing and remittance can vary in frequency, typically quarterly or annually.
Quarterly Filing: Needed when the average monthly liability does not exceed $250.
Annual Filing: Mandatory if average monthly liability does not exceed $600.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with West Virginia’s sales tax regulations.
Due Dates
In West Virginia, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
When filing your sales tax return for West Virginia, a few options are available:
File by mail – Download and fill out the RTL-348 form and mail it to the address provided. For additional instructions, read West Virginia’s official guidelines here.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. West Virginia’s timely filing discount amount is determined using specific formulas based on the tax due. As long as the taxpayer pays on or before the date their taxes become payable, they become eligible for a 2.5% discount.
Sales Tax Holiday
Currently, for 2025, the planned sales tax holiday in West Virginia is:
Like in most states, sales tax is a big part of how West Virginia generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial to always ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in West Virginia:
Late Filing Penalty: Failure to timely file a return due to willful neglect adds a 5% charge on top of the amount of the total tax due. An additional 5% is added to the penalty for each missed month. A maximum of 25% total penalty can be accumulated.
Failure to Timely Pay Tax Due: Failing to pay the tax incurs a 0.5% penalty, increasing monthly for repeat offenses, up to a 25% maximum.
Underpayments: Measured based on the underpaid tax amount. A total of 12.25% interest rate can be added.
Fraudulent Returns: Results in a 50% added charge on the total amount due.
Negligence: Failure to pay the tax due because of negligence or intentional disregard of rules results in a 5% added interest on top of the total tax due. A maximum of 25% interest rate can be accumulated.
If you wish to waive a penalty, the West Virginia Tax Division allows you to submit a letter or web notice through their official website, MyTaxes. When you submit your letter, you must state your reason for requesting a penalty waiver.
Favored for its diverse landscapes and beautiful beachside towns, Oregon is a place for cozy adventures. Apart from its inviting nature, the distinctive rules for sales tax in Oregon will leave you curious about how it works.
This guide breaks down everything you need to know about Oregon, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand Oregon’s unique tax regulations with confidence and ease.
Is There Sales Tax in Oregon?
Throughout its tariff history, Oregon has never levied a sales tax. Currently, the state does not have plans to change its tax system anytime soon. For now, Ashland City is the only jurisdiction in the state that imposes a sales tax on food and beverages.This leads to the question: Why is there no sales tax in Oregon?The Beaver State aims to promote a business-friendly economy, finding the idea of sales tax nothing but a detrimental burden. After all, low-income individuals or small businesses are most likely to be affected negatively if Oregon had a sales tax.Oregon also attracts more consumers to the state by charging no sales tax, creating more revenue and opportunities for its local market. This is part of Oregon’s economic strategy to keep its trade flourishing.
Attempts have been made to change this system. However, the Oregon legislature and its voters continuously oppose the idea of imposing a sales tax. With this setup, how does the state manage to fund its projects?The main source of revenue for Oregon comes from its personal income tax. From 2025 to 2027, Oregon estimates that its earnings from the said tariff could cover 86% of the state’s General Fund Revenue.To ensure the state collects its revenue from all eligible individuals or corporations, Oregon has introduced a rule called “Substantial Nexus.”
What is a Substantial Nexus?
Before diving into the other taxes in Oregon, every business owner must be aware of the state’s economic laws. In most states, a business is determined liable for sales tax when it creates a sales tax nexus.Since Oregon has no sales tax, it only has a substantial nexus instead. With this regulation, the Beaver State obtains the right to levy taxes on qualified individuals or corporations. This applies whether you are an out-of-state seller or not.Establishing an Oregon substantial nexus means you meet the following qualifications:
Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in the state of Oregon.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating in Oregon on your behalf or under your business name.
Having a sufficient economic presence, meaning you regularly conduct business and produce income within the state of Oregon.
To stay informed about the current criteria for establishing a substantial nexus in Oregon, take a look at the official regulations available right here!
Beyond Oregon Sales Tax: Other Taxes You Should Know
Now that you’ve learned how a substantial nexus works, it’s time to find out which taxes in Oregon can be applied to you. Practically, other taxes in Oregon can still affect your business’s operations.Aside from personal income tax, here are the differentOregon taxes you should know.
Cigarette Taxes – $3.33 per stamp for a pack of 20 cigarettes
Bicycle Excise Taxes– a fixed $15 tax is applied on each sale of a taxable bicycle
Each one follows unique measures; thus, only specific businesses can be directly affected by these tariffs.
Vehicle Taxes
Though Oregon has no general sales tax, its closest alternative would be its Vehicle Taxes. On January 1, 2018, two types of Vehicle Taxes were imposed.
Vehicle Privilege Tax: applies to any vehicle seller with a physical presence in Oregon.
Vehicle Use Tax: applies to out-of-state vendors who selltaxable vehicles to customers in Oregon.
To easily differentiate between the two, see Oregon’s official diagram for guidance.
Vehicle Privilege Tax
Oregon imposes a 0.005% Vehicle Privilege Tax on the sales of every taxable vehicle within the state. A taxable motor vehicle must meet all of the following conditions:
Have a 7,500-mileage or less
Sold with an MSO/MCO if there’s no odometer
Purchased on January 1, 2018, or at a later date
Weighing 26,000 pounds or less in gross vehicle weight rating (GVWR)
Never registered or titled in the state of Oregon (exceptions apply to dealer demonstrators)
Vehicle Use Tax
If you are an out-of-state vehicle merchant, collecting the 0.005% Vehicle Tax is optional when selling to customers in Oregon. After all, some businesses offer to handle the tax as part of their service or simply out of consideration for their buyer.If you choose to collect the tax, it must be labelled as “Oregon Vehicle Use Tax” in the receipt. This would also mean you will have to file and remit the vehicle use tax on behalf of your Oregon customers.However, once you create a substantial nexus in Oregon, you will be considered to have a physical presence within the state. When this occurs, collecting the Vehicle Use Tax is no longer optional but rather a legal obligation you must comply with.Note that filing and remitting vehicle taxes in Oregon follows a specific process. It is different from other general taxes within the state. To simplify your operations, you can let TaxHero handle the procedure for you.
Business Taxes
Oregon’s corporate taxes are its 2nd largest source of revenue. These business taxes are classified into 2 types:
Corporate Income Tax – applies to remote sellers with a substantial nexus in Oregon
Corporate Excise Tax – imposed on Oregon-based businesses, has a minimum of $150
The rate for corporate excise or income tax starts at 6.60% for businesses with a taxable income worth $1,000,000 or less. This rate increases to 7.60% if the total net revenue exceeds $1 million. For a summary of Oregon’s corporate excise or income taxes, access the state’s official guidelineshere.
Corporate Activity Tax (CAT)
On May 16, 2019, Oregon approved House Bill 3427—also known as the Student Success Act. Under this law, a 0.57% corporate activity tax (CAT) is imposed on all businesses earning more than$1,000,000 in total income.
The Corporate Activity Tax is computed as $250 plus 0.57% of the business’s commercial activity exceeding the $1 million threshold. Moreover, companies are allowed to deduct about 35% of the Cost-of-Goods Sold (COGS) or the cost of employee labor. If you are a remote seller, know that Corporate Activity Tax also follows thestandard guidelines of Oregon’s substantial nexus. Thus, you can still be liable for this tariff if you have a substantial nexus in the state.
Aside from these factors, here are more details about the Corporate Activity Tax in Oregon:
Revenue from Corporate Activity Tax: Used for funding schools, learning programs, and the K-12 agenda.
Businesses are allowed to recover the expenses for Corporate Activity Tax: The total price charged must be disclosed in the business’s commercial activity.
A business with a total income of $750,000 must register for the Corporate Activity Tax within 30 days of achieving this threshold. Failure to register leads to a penalty fee of $100 monthly or $1,000 yearly.
Have more questions about Corporate Activity Tax in Oregon? View the state’s list of FAQShere.
Local Sales Tax
As previously mentioned, there is only 1 place in Oregon that imposes a local sales tax—that would be Ashland City, located in Jackson County.Since 1993, the residents of Ashland have approved the imposition of theFood and Beverage Tax (F&B). The rate is set at 5.00% and is levied on all sales of prepared food and beverages (excluding alcoholic drinks) in restaurants.The Food and Beverage Tax is also applicable to:
Takeouts and
Food deliveries
Moreover, Ashland also imposes a 10.00% Transient Lodging Tax (TLT). If you are planning to sell food or start a lodging business in this city, it’s good to be aware of these specific local taxes in Oregon.
Oregon and Remote Sellers
Though Oregon has no general sales tax, remote sellers from Oregon may still be liable for sales and use tax obligations in other states. This happens when the remote seller establishes a physical or an economic nexus in another state that has a sales tax.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax.
The primary factors that determine a physical nexus in other states are identical to Oregon’s substantial nexus, with only a few additions:
Affiliate Nexus: You could trigger a physical nexus if you have affiliates in a state. This applies whether they operate online or in-person, and have collectively sold a total amount of sales or delivered transactions that may meet a state’s nexus threshold.
Presence at Trade Shows: In some states, such as Wyoming or Hawaii, for example, presence at trade shows and making a specific amount of sales during such events can also trigger a physical nexus.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
In general, the thresholds in most states are set at:
200 total transactions within the state and/or
$100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
However, this is only a common standard. Other states may have different amounts set for their economic nexus thresholds. For example, California has a higher requirement of $500,000 in total sales in the previous or current calendar year.
Once you meet these thresholds in other states, Oregon remote sellers can still have the responsibility of collecting and remitting sales tax.
In case you’re an Oregon business purchasing goods for resale in other states, you can also claim a resale sales tax exemption. For that, you may need to learn how to use resale certificates in taxing states.Need help? Read our blog:Understanding Resale Exemptions for Your Business in OregonTo make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Business Compliance Obligations in Oregon
Oregon does not have a general business license or a seller’s permit, unlike other states with sales taxes. However, local municipalities in Oregon may require a business license or permit to stay compliant with the state’s regulations.Depending on your business, your obligations may also vary. In that case, let us summarize everything you might need to do to set up your business in Oregon.
Check the state’slicense directory – With over 1,100 license types, it’s best to directly identify which one your business needs.
Reach out to local municipalities – Verify if the city requires any business permits or licenses. For instance, Adams City requires a local business license. Meanwhile, Adair City only requires building permits.
Sign up for the state’s tax programs – You must register your business if you are liable for Oregon taxes, such as the Corporate Activity Tax, business taxes, vehicle taxes, and more.
Collect, file, and remit the appropriate taxes – Knowing the different taxes in Oregon, you must fulfill your legal obligations to avoid tax-related penalties.
Register your business in other states – Oregon remote sellers with a sales tax nexus in other states must follow the sales and use tax regulations of the states where they are engaged in business.
For additional directions on starting a business in Oregon, visit the state’s official guide here.Please be advised that different licenses and taxes also involve different registration steps, requirements, and collection processes. To simplify your experience, you can let experts at TaxHero take care of the complicated work.
Conclusion
Despite having no sales tax, understanding relevant tax obligations in Oregon is always crucial to keep your business running smoothly. Remote sellers from Oregon could also face the burden of handling sales tax responsibilities in other states. Failure to comply may lead to penalties that could harm your business.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero.Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every state.Wisconsin’s blend of vibrant cities, picturesque farmland, and thriving businesses makes it a unique place to live and work. But whether you’re making a purchase or running a business, knowing how sales tax in Wisconsin applies can help you navigate costs and avoid unexpected fees. This guide breaks down everything you need to know about Wisconsin’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Wisconsin’s sales tax with confidence and ease.
Sales Tax Nexus in Wisconsin
When a business creates either a physical or economic nexus, it is required to collect sales tax in Wisconsin.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Wisconsin include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: A retailer has a nexus in Wisconsin if a related affiliate helps advertise, promote, or facilitate sales or provides services like handling returns or customer complaints. Nexus also applies if the retailer operates a business location in Wisconsin, either permanently or temporarily, through a subsidiary.
Presence at Trade Show: Participation in trade shows where sales are made can establish a nexus. If sales exceed $1,000 within a 12-month period, you may be required to collect and remit Wisconsin sales tax.
To stay informed about the current criteria for establishing a physical sales tax nexus in Wisconsin, take a look at the official regulations available right here!
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus. Beginning February 20, 2021, the threshold for economic nexus in Wisconsin is $100,000 in gross revenue in the previous or current calendar year’s sales. While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Wisconsin.
Wisconsin Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Wisconsin.
Tangible Products
Almost all goods are taxable in Wisconsin, including:
In Wisconsin, the majority of service-based transactions, such as advertising, employment services, and transportation, arenot subject to sales tax.However, there are specific situations where certain services are taxable. For instance, taxable services are:
Laundry and dry cleaning services
Telecommunications – prepaid calling services, intrastate, interstate, and international telecommunications services.
Animal care
Landscaping and lawn maintenance
Towing services
Lodging
Software as a Service (SaaS)/Digital Products
SaaS is generally not taxable in Wisconsin because it does not involve the transfer of tangible personal property or prewritten software; instead, it’s considered a service, which is typically exempt unless specified otherwise.Digital products(i.e., ebooks, downloadable video content, mobile apps) are taxable. Sales tax applies to the sale, storage, use, or other consumption of specified digital goods, additional digital goods, and digital codes.
Shipping/Handling
Shipping and handling charges in the state of Wisconsin are taxable. Delivery chargesfor direct mail are not subject to sales tax. If a shipment contains both taxable and exempt items, the seller must allocate the delivery charge based on sales price or weight and apply tax only to the portion related to taxable items.
Sales Tax Permits and Licenses in Wisconsin
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Wisconsin, the next important step is getting your Wisconsin Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a seller’s permit online through the State of Wisconsin Department of Revenue or follow our detailed step-by-step guide for assistance.Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
Registration feeThere is a $20 Business Tax Registration (BTR) fee to register for a sales tax permit. This registration fee is valid for two years.RenewalIn Wisconsin, you have to renew your sales tax permit every 2 years. You are also required to pay a $10 BTR renewal fee.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale. In Wisconsin, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.You can fill out the Form S-211 provided by Wisconsin after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemptionif you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Wisconsin is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations. Check with theWisconsin Department of Revenuefor the most current information on Wisconsin’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Wisconsin
Sales Tax Computation
In Wisconsin, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Wisconsin and sells to a customer in Milwaukee, WI, with a ZIP code of 53202. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Wisconsin
5.00%
County:
Milwaukee County
0.90%
District:
Fourth District
0.00%
City:
Milwaukee
2.00%
Combined Sales Tax Rate =
7.90%
Origin-based vs. Destination-Based
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax. Wisconsin is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Wisconsin-based seller, sales tax is generally based on the location of the buyer when selling within the state.For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Madison, Wisconsin, where you have nexus, you’d apply Madison’s sales tax rate to that sale.To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Wisconsin
The next step after collection is filing and remitting your Wisconsin sales tax returns. Filing and remittance can vary in frequency, typically monthly and annually.
Monthly Filing: If a retailer’s quarterly tax exceeds $1,200, the Department of Revenue may require monthly payments and filings by the end of the following month. If the tax exceeds $3,600, payments and returns may be required by the 20th of the following month.
Quarterly Filing: Must inform the Department of Revenue.
Annual Filing: Retailers with sales and use tax liability of $600 or less in the previous year.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Wisconsin’s sales tax regulations.
Due Dates
In Wisconsin, the due date falls on the last day of the following month or the 20th of the following month for early monthly filers. For instance, sales tax collected in February is due by March 31 for standard monthly filers, while early monthly filers must submit by March 20.However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1, the following business day, to submit.
File by calling (608) 261-5340 or (414) 227-3895 if you don’t have access to a computer.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Wisconsin, aretailer’s discountis allowed on timely reported sales tax if it’s paid by the due date or within an approved extension. Mailed returns are considered timely if they meet postage, postmark, and delivery requirements.However, the discount is not available for delinquent payments, additional taxes owed after the due date, use tax, or returns filed by compensated certified service providers.
Sales Tax Holiday
Currently, for 2024-2025, there are no planned sales tax holidays in Wisconsin.
Sales Tax Penalties in Wisconsin
Like in most states, sales tax is a big part of how Wisconsin generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.Here are the specific penalties for non-compliance with sales tax regulations in Wisconsin:
Civil penalties amounting from 5% to 50% of the total sales tax due
If a required tax return is not filed by the due date, including any extensions, a sales tax penaltyapplies. The penalty is 5% of the unpaid tax for the first month, with an additional 5% for each following month or part of a month, up to a maximum of 25%. The tax amount used to calculate this penalty is reduced by any payments made by the due date and any applicable tax credits claimed on the return.
On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.
Utah, often referred to as the Beehive State, is a confluence of pioneering spirit and contemporary commerce. Grasping the specific rules and nuances of sales tax in Utah is crucial for maneuvering its complex business terrain.
This guide breaks down everything you need to know about Utah’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Utah’s sales tax with confidence and ease.
Sales Tax Nexus in Utah
When a business creates either a physical or economic nexus, it is required to collect sales tax in Utah.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Utah include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Affiliate Nexus: You can establish a physical nexus if your affiliates, whether online or in-person, are connected to a Utah-based seller and sell similar products with similar names. Nexus can also be triggered if the Utah-based seller promotes the out-of-state seller’s sales to Utah buyers, or if either the out-of-state or Utah-based seller owns more than 10% of the other, or if the affiliate wholly owns the seller, it can establish an affiliate nexus.
Regularly delivering property in Utah other than by a common carrier or U.S. mail or leasing or servicing property located in Utah.
Regularly Soliciting Orders: If you often ask for business in Utah, it’s like setting up shop there. But if all you’re doing is online ads, sending emails and mailers, or making phone calls—that doesn’t count. You’re free from these specific tax rules if you’re just spreading the word from afar.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2025, the threshold for economic nexus in Utah is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Utah.
Utah Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Utah.
Tangible Products
Almost all goods are taxable in Utah, including:
Cosmetics
Electronics
Furniture
Jewelry
Automobiles
Home Goods,
Groceries– In Utah, there’s a reduced 3% sales tax on grocery food, made up of 1.75% from the state, 1% from local areas, and 0.25% from the county, while sales of prepared food are taxed at a full rate.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping/Handling
Shipping and handling charges in the state of Utah are taxable. If the shipping and handling charge is separately stated on the invoice to the customer, the delivery charge is not subject to sales or use tax.
Sales Tax Permits and Licenses in Utah
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Utah, the next important step is getting your Utah Seller’s Permit, also known as a sales tax permit.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Utah, you don’t have to renew your sales tax permit.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Utah, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the TC-21 Exemption Certificate provided by the Utah State Tax Commission after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemptionif you would like to get sales tax exemption for multiple states simultaneously.If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Utah has been a party to this program since October 1, 2012, meaning it follows the uniform rules and definitions established by SST.
Check with the Utah State Tax Commission for the most current information on Utah’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Utah
Sales Tax Computation
In Utah, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Utah Sales Tax Calculator to compute sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Texas and sells to a customer in Salt Lake City, UT, with a ZIP code of 84105. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Utah
4.85%
County:
Salt Lake
2.40%
District:
First
0.00%
City:
Salt Lake
0.50%
Combined Sales Tax Rate =
7.75%
Origin-based vs. Destination-based
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Utah is an origin-based state, meaning sales tax is determined based on the buyer’s location. That means for a Utah-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Texas to a customer in Salt Lake City, Utah, where you have nexus, you’d apply Salt Lake City’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Utah
The next step after collection is filing and remitting your Utah sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
If you owe up to $1,000 in sales tax annually, file monthly.
For amounts between $1,001 and $50,000, file quarterly.
Businesses with a sales tax liability of $50,001 to $96,000 should file monthly, with those owing 96,001 and more pay electronically.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Utah’s sales tax regulations.
Due Dates
In Utah, the due date falls on the last day of the following month for monthly and quarterly filers. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
If you’re an annual filer, the due date for remittance falls on January 31 following the reported tax year.
Filing Sales Tax Returns
To file your sales tax return for Utah, a few options are available:
File by mail – Fill out TC62S/M and remit to the Utah State Tax Commission by the due date.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.Utah’s timely filing discountis 1.31% of the sales tax due.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Utah.
Utah Sales Tax Penalties
Like in most states, sales tax is a big part of how Utahgenerates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Utah:
Civil penalties amounting to greater of 10% of the total sales tax due or $20;
On the criminal side, offenses can be classified as second or third-degree felonies, depending on the severity and specific circumstances.
Oklahoma, often hailed as the “Sooner State” for its rich history of pioneers and land runs, is not just famous for its sweeping plains and vibrant Native American culture but also for its dynamic business landscape. Yet, mastering the complexities of Oklahoma sales tax demands a nuanced understanding of its specific regulations.
This guide breaks down everything you need to know about Oklahoma’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Oklahoma’s sales tax with confidence and ease.
Sales Tax Nexus in Oklahoma
When a business creates either a physical or economic nexus, it is required to collect sales tax in Oklahoma.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Oklahoma include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: You could trigger a physical nexus in Oklahoma if you have affiliates, whether they operate online or in-person, who facilitate the delivery of your products to customers in the state.
Presence at Trade Show: Sales tax must be collected at Oklahoma trade shows, even for peddlers and solicitors without a fixed business location or Oklahoma sales tax permit. Resold items are also taxable.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning November 1, 2019, the threshold for economic nexus in Oklahoma is $100,000 in gross revenue in the prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishingsales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Oklahoma.
Oklahoma Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Oklahoma.
Tangible Products
Almost all goods are taxable in Oklahoma, including:
Feminine Hygiene Products – Oklahoma has not yet repealed the Tampon Tax and is still taxable in the state.
Diapers
The goods that are exempt from sales tax are:
Groceries – Oklahoma has officially eliminated the state sales tax on food and groceries as of August 29, 2024. However, some items, such as prepared food, dietary supplements, alcoholic beverages, and tobacco products, will still be subject to state taxes. For a detailed breakdown of what’s exempt and what’s not, check out the comprehensive list here.Although the state sales tax has been eliminated, local taxes remain unaffected. Residents may still face higher grocery taxes in the future if counties or cities decide to increase their local sales tax rates. However, under the new law, changes will not take effect until after July 1, 2025.
Agricultural products used for production
Services
In Oklahoma, the majority of service-based transactions, such as professional services and cleaning services, are not subject to sales tax unless they are directly related to the sale of tangible personal property (i.e., products).For example, when you buy a computer and pay extra for setup services like software installation, the entire purchase, including the service fee, is subject to sales tax since the service is necessary for completing the sale of the computer.
However, there are specific situations where certain services are taxable:
Advertising services, unless stated that it is specifically exempt
Admissions, dues, or fees to clubs, amusement venues, sports events, or for using facilities related to entertainment, recreation, or athletics.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping/Handling
Shipping and handling charges in the state of Oklahoma are not taxable if they are separately stated.
Sales Tax Permits and Licenses in Oklahoma
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Oklahoma, the next important step is getting your Oklahoma Seller’s Permit, also known as a sales tax permit.
In Oklahoma, youmust renew your sales tax permit every three years.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Oklahoma, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Oklahoma has been a party to this program since October 1, 2005, meaning it follows the uniform rules and definitions established by SST.
Check with the Oklahoma Tax Commission for the most current information on Oklahoma’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Oklahoma
Sales Tax Computation
In Oklahoma, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Oklahoma Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Oklahoma City, OK, with a ZIP code of 73008. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Oklahoma
4.500%
County:
Oklahoma
0.000%
District:
Fifth
0.000%
City:
Oklahoma
4.125%
Combined Sales Tax Rate =
8.625%
Origin-based vs. Destination-based
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Oklahoma is a destination-based state, meaning sales tax is determined based on the seller’s location. That means for an Oklahoma-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Oklahoma City, Oklahoma, where you have nexus, you’d apply Oklahoma City’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Oklahoma
The next step after collection is filing and remitting your Oklahoma sales tax returns. Filing and remittance can vary in frequency, typically monthly or semi-annually.
Monthly Filing: Businesses with a sales tax liability of more than $500 are required to file monthly
Semi-Annual Filing: Businesses with a sales tax liability of less than $50 are required to file annually
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Oklahoma sales tax regulations.
Due Dates
In Oklahoma, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Oklahoma, a few options are available:
File by mail – Use Form STS-20002-A and send it by mail to the Oklahoma Tax Commission
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly. However, Oklahoma does not offer a discount.
Sales Tax Holiday
For 2025, the planned sales tax holidays in Oklahoma are:
Back-to-School(August 1-3, 2025) – Clothing and footwear costing $100 and less are tax-exempt. Note that this excludes accessories, special clothing, or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use. Rental clothing or footwear is also excluded.
Oklahoma Sales Tax Penalties
Like in most states, sales tax is a big part of how Oklahomagenerates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Oklahoma:
Civil penalties amounting to 25% of the total sales tax due or $50, or greater of 10% of the total sales tax due or $50;
On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.
In the heart of America, Indiana blends the charm of its basketball legacy and lush farmlands with a robust business environment. Yet, navigating its economic landscape is a unique challenge, especially in understanding sales tax in Indiana and its laws. This knowledge is essential for thriving amidst the vibrant and diverse economic fabric of the Hoosier State.
This guide breaks down everything you need to know about Indiana’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 Indiana’s sales tax with confidence and ease.
Sales Tax Nexus in Indiana
When a business creates either a physical or economic nexus, it is required to collect sales tax in Indiana.
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 Indiana 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 retailer must collect sales taxes in Indiana if they display their products at a trade show or convention. However, merely being present without showcasing products in Indiana at conventions or trade shows doesn’t require you to collect sales tax in Indiana..
Delivery of goods into Indiana by seller’s truck where title and possession transfers in Indiana.
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.
Starting January 1, 2024, Indiana will only have a $100,000 threshold for sales tax nexus. If a merchant meets the 200 transaction threshold in 2023 but not the $100,000 threshold, they may close their sales tax account in 2024 if they do not have $100,000 in sales in 2024. However, they will still have to file all required sales tax returns for 2024.
It should be noted that while the nexus criteria mentioned above generally apply to most businesses, additional methods are available for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirementsin Indiana.
Indiana 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 Indiana.
Tangible Products
Almost all goods are taxable in Indiana, including:
Groceries: Sales of food and food ingredients intended for human consumption are generally exempt from sales tax. However, this exemption does not apply to tobacco, alcoholic beverages, candy, dietary supplements, or soft drinks.
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt
For the latest updates and detailed information on sales tax in Indiana, you can visit the Sales Tax Information Bulletins, which provides current guidelines and bulletins.
Services
In Indiana, the majority of all service-based transactions, such as professional services, advertising, and cleaning services are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, a few taxable services are:
Rental of Tangible Personal Property
Services that result in tangible personal property (i.e. designing and selling a custom jewlery piece)
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable only when the seller gives the buyer the right to use them permanently without requiring ongoing payments.
Shipping/Handling
Shipping and handling charges in the state of Indiana are taxable. Sales tax is exempt if delivery charges are billed and furnished by a third party.
Sales Tax Permits and Licenses in Indiana
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Indiana, the next important step is getting your Indiana Seller’s Permit, also known as a sales tax permit.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
Registration fee
There is a $25 fee to register for a sales tax permit.
Renewal
In Indiana, you have to renew your sales tax permit every 2 years.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Indiana, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Indiana is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Indiana Department of Revenue for the most current information on Indiana’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Indiana
Sales Tax Computation
To determine the total sales tax for your calculation, you’ll only need to consider the state sales tax rate, as there are no additional county or city rates applicable for the state of Indiana. Use TaxHero’s Indiana Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Indiana and sells to a customer in Indianapolis, IN, with a ZIP code of 46204. 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:
Indiana
7.00%
County:
Marion
N/A
District:
Seventh District
N/A
City:
Indianapolis
N/A
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 or destination-based state to figure out what rate to charge for sales tax.
Indiana is destination-based, meaning sales tax is determined based on the seller’s location. That means for an Indiana-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 Ohio to a customer in Indianapolis, Indiana, where you have Nexus, you’d apply Indianapolis’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 Indiana
The next step after collection is filing and remitting your Indiana sales tax returns. Filing and remittance can vary in frequency, typically monthly or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Indiana’s sales tax regulations.
Due Dates
In Indiana, the due date falls for sales tax varies. Monthly filers must submit by the 20th of the month following the reporting period if their average monthly sales and use tax liability exceeded $1,000 in the previous year or if filing a combined sales/withholding tax return.
If the liability did not exceed $1,000, the due date is the 30th of the month following the reporting period. For annual filers, the due date is the last day of the month following the reporting period.
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 20 deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Indiana, a few options are available:
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly. Indiana’s timely filing discount amount is 1% of sales tax collected.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Indiana.
Indiana Sales Tax Penalties
Like in most states, sales tax is a big part of how Indianagenerates 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 Indiana:
Not paying tax: Penalty of 10% of the owed tax or $5, whichever is more. This applies to payments that should be made electronically but aren’t.
Not filing a tax return, with the Department preparing it: 20% penalty.
Not filing a tax return with intent to avoid tax: 100% penalty.
Bad checks: A flat fee of $35.
Not filing an information return: $10 penalty for each missed filing, up to $25,000 annually. This includes failing to file electronically when required.
Not filing a corporate or partnership tax return with zero tax: $10 per day late fee, up to $250. Plus, there is an extra $10 penalty for each late Schedule K1 information return.
Are you setting your entrepreneurial sights on the maritime gateway of the East Coast? To flourish in Maryland, a state known for its pivotal role in American history and its robust economy, it’s crucial to master the state of Maryland’s sales tax intricacies.
This guide breaks down everything you need to know about Maryland’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 Maryland’s sales tax with confidence and ease.
Sales Tax Nexus in Maryland
When a business creates either a physical or economic nexus, it is required to collect sales tax in Maryland.
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 Maryland 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.
Uses personal vehicles to sell or deliver taxable goods or services in the State on a regular basis.
Regularly enters the state to provide service or maintenance for tangible personal property.
Presence at Trade Shows: If you plan to sell items at a single event or craft show in Maryland, you might not have to register with the state. But, you will need to get a Temporary Sales & Use Tax License.
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 Maryland is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Maryland.
Maryland 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 Maryland.
Tangible Products
Almost all goods are taxable in Maryland, including:
Groceries – Frozen yogurts and desserts, ice cream in less than one-pint containers, cold sandwiches, and party platters are not exempted from sales tax. However, sales of food to patients in a hospital, on vehicles operating in interstate commerce, etc., may be exempt.
The goods that are exempt from sales tax are:
Feminine Hygiene Products – Products such as sanitary pads, tampons, menstrual sponges, menstrual cups, or other similar feminine hygiene products are exempt from sales tax.
Baby Products – Products such as baby bottles, baby bottle nipples, diapers, diaper rash cream, baby wipes, and infant car seats are exempt from sales tax
Oral Hygiene Products
Agricultural and Farming Supplies and Equipment – Items bought or sold by a farmer for agricultural purposes are not subject to sales tax.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping/Handling
Shipping charges in the state of Maryland are not taxable on their own, but handling charges are. When shipping and handling charges are combined on a bill, the entire amount becomes taxable.
Sales Tax Permits and Licenses in Maryland
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Maryland, the next important step is getting your Maryland Seller’s Permit, also known as a sales tax permit.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Maryland, 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 Maryland, 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 Online Verification of Maryland Tax Account Numbers provided by the Comptroller of Maryland after you receive your sales tax permit. In most cases, this form needs either a sales and use tax registration number or an exemption number to be valid. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Maryland 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 Comptroller of Maryland for the most current information on Maryland’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Maryland
Sales Tax Computation
In Maryland, the sales tax is made up of only the statewide sales tax. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Maryland Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Florida and sells to a customer in Baltimore, MD, with a ZIP code of 21201. 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:
Maryland
6.00%
County:
Baltimore
N/A
District:
Second District
N/A
City:
Baltimore
N/A
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 or destination-based state to figure out what rate to charge for sales tax.
Maryland is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Maryland-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 Florida to a customer in Baltimore, Maryland, where you have nexus, you’d apply Baltimore’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 Maryland
The next step after collection is filing and remitting your Maryland sales tax returns. Filing and remittance can vary in frequency, typically monthly or quarterly.
The frequency of your filings is determined by your sales and use tax liability and occurs in one of the following ways:
Monthly filing: Annual sales tax liability of $15,000 or more is required to file monthly;
Quarterly filing: Annual sales tax liability of less than $15,000 is required to file quarterly.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Maryland’s sales tax regulations.
Due Dates
In Maryland, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Maryland, a few options are available:
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.
Maryland’s timely filing discount is in the form of a deduction, with the amount determined using specific formulas based on the sales tax due. The maximum discounts available range from 1.2% of the first $6,000 sales tax collected to 0.9% for the sales tax amount collected above $6,000.
Sales Tax Holiday
Currently, for 2025, the planned sales tax holidays in Maryland are:
DATE
TYPE
ELIGIBLE MERCHANDISE
February 15 – 17, 2025
Shop Maryland Energy
Various Energy Star appliances, including:
Standard size refrigerators
Air conditioners
Boilers
Heat pumps
Washers and dryers
Compact fluorescent light bulbs
Dehumidifiers
Solar water heaters
August 10 – 16, 2025
Back-to-School
Clothing and footwear ($100/item or less)
Backpacks (only the first $40)
Maryland Sales Tax Penalties
Like in most states, sales tax is a big part of how Marylandgenerates 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 Maryland:
Civil penalties amounting to 10% of the total sales tax due;
On the criminal side, offenses can be classified as misdemeanors, depending on the severity and specific circumstances.
Positioned as a hub of Midwestern commerce and a crossroads of America, Illinois stands out not just for its iconic Chicago skyline and rich history but also for its bustling business landscape. Yet, mastering the complexities of sales tax in Illinois calls for a deep dive into its unique rules and regulations, something every savvy business owner or entrepreneur in the Land of Lincoln should be well-versed in.
This guide breaks down everything you need to know about Illinois’s sales tax, from determining the right state and local sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Illinois’s sales tax with confidence and ease.
Sales Tax Nexus in Illinois
When a business creates either a physical or economic nexus, it is required to collect sales tax in Illinois.
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 Illinois include:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: A retailer is considered to have a business presence in Illinois if they sell similar products under a similar name as someone in Illinois and pay them a commission on sales. This rule applies if the retailer’s total sales in Illinois exceed $10,000 over the past four quarters ending in March, June, September, and December.
Presence at Trade Show: Out-of-state retailers making sales at Illinois trade shows are subject to state and local sales tax, as per Illinois Department of Revenue regulations—these regulations detail registration and tax collection requirements for such sellers.
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 Illinois is $100,000 in gross revenue or 200 transactions in the preceding 12-month period.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Illinois.
Tangible Products
Almost all goods are taxable in Illinois, including:
Cosmetics
Electronics
Clothing – Retail clothing sales, including special order items, are subject to Retailers’ Occupation Tax (ROT) and Use Tax (UT) in Illinois. The labor cost for making custom-made clothing is not deductible when calculating the sales tax.
Personal Hygiene – Personal grooming and hygiene products are taxed at a high rate of 6.25%, even if they claim medicinal benefits. However, if these products are sold with a prescription, they are taxed at a lower rate of 1%, similar to medication.
Prescription Medications – Both prescription and non-prescription medicines are taxed at a low rate of 1%. However, nonprescription medicines classified as “grooming and hygiene products” do not qualify for this low tax rate.
Medical Devices – Qualifying medical appliances in Illinois are taxed at a lower rate of 1% in retail sales compared to general merchandise, which is taxed at 6.25%.
Retail leases of certain forms of tangible personal property (TPP)
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping/Handling
Shipping and handling charges in the state of Illinois are generally not taxable.
However in certain situations, shipping and handling fees are subject to sales tax if they meet the following conditions:
Not separately listed on the invoice or contract or
if listed separately, but the seller doesn’t offer an option to avoid these charges, such as in-store pickup or free delivery.
Sales Tax Permits and Licenses in Illinois
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Illinois, the next important step is getting your Illinois Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a seller’s permit online through the MyTaxIllinois or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Illinois, you have to renew your sales tax permit.
Retailer Certificates of Registration expire annually and renew automatically if filing and payment requirements are met, unless in Collections or with incomplete account information.
Reseller (wholesaler, distributor, manufacturer) certificates or licenses expire every three years and require manual renewal with a paper Renewal Packet sent 90 days before expiration. Renewal by email or phone is possible if there are no account changes and the account is in a Renewal Pending state or has not expired for over three years.
Cigarette/tobacco distributor licenses expire yearly; electricity excise tax self-assessing purchaser licenses expire every two years. These require a renewal application 30 days before expiration. Licenses become invalid upon business discontinuation.
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 Illinois, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out Form CRT-61provided by Illinois after you receive your sales tax permit from the state. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Illinois is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Calculating and Collecting Sales Tax in Illinois
Sales Tax Computation
In Illinois, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Illinois Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Chicago, IL, with a ZIP code of 60607. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Illinois
6.25%
County:
Cook
1.75%
District:
Seventh
1.00%
City:
Chicago
1.25%
Combined Sales Tax Rate =
10.25%
Origin-based vs. Destination-based
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Illinois is a destination-based state, meaning sales tax is determined based on the seller’s location. That means for an Illinois-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the IL tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Chicago, Illinois, where you have nexus, you’d apply Chicago’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Illinois
The next step after collection is filing and remitting your Illinois sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
Monthly Filing: Required if average monthly liability is greater than $200.
Quarterly Filing: Needed when average monthly liability is between $50 and $200.
Annual Filing: Mandatory if average monthly liability is less than $50.
Quarter-Monthly Filing: Businesses with a monthly tax liability of $20,000 or more are required to make tax payments on the 7th, 15th, 22nd, and last day of each 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 Illinois’ sales tax regulations.
Due Dates
In Illinois, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Illinois, a few options are available:
File by mail – Fill up Form ST-1 and file and pay through the mail.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.
Illinois’timely filing discountis either $5 or 1.75% of the total sales tax collected, whichever amount is higher.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Illinois.
Illinois Sales Tax Penalties
Like in most states, sales tax is a big part of how Illinoisgenerates 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 Illinois:
Civil penalties: 2% of total due (or minimum $250 if failure to file) within 30 days late, 10% for 31-90 days late, 15% for 91-180 days late, 20% for over 180 days late.
Criminal offenses: Classified as Class 3 or Class 4 felonies, depending on severity and specific circumstances.
Situated at the crossroads of America’s heartland, the Show-Me State is celebrated not only for its scenic rivers and rolling hills but also for its dynamic economic landscape. However, maneuvering through the complexities of sales tax in Missouri demands comprehending its unique rules and regulations. Ecommerce businesses must grasp the concept of What is Sales Tax in Missouri to effectively navigate this component of the state’s economic structure. This guide breaks down everything you need to know about Missouri’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Missouri’s sales tax with confidence and ease.
Sales Tax Nexus in Missouri
When a business creates either a physical or economic nexus, it is required to collect sales tax in Missouri.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Missouriinclude:
Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business. This includes owning or leasing real or tangible personal property within the state.
Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating on your behalf for more than 2 days.
Presence at Trade Show: If you go to a trade show in Missouri for a short time (up to 14 days) and don’t sell anything or take orders, you don’t have to worry about nexus. But if you do start taking orders or making sales, then nexus applies.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus. Beginning January 1, 2023, the threshold for economic nexus in Missouri for remote sellers is $100,000 in gross in a calendar year. For any remote seller or marketplace facilitator that meets this threshold, they are required to collect and remit vendor’s use tax. In Missouri, use tax is a type of sales tax that is imposed on out-of-state businesses. While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishingsales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Missouri.
Missouri Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Missouri.
Tangible Products
Almost all goods are taxable in Missouri, including:
Non-Reusable Items Furnished to Guests in Hotels and Motels – this includes soap, shampoo, tissue and other toiletries in hotel rooms
Textbooks – Students can buy required textbooks tax-free with proof of enrollment. The bookstore needs a list of books each semester from the school or department. This exemption doesn’t apply to local sales taxes.
Agricultural Supplies – this includes seeds, fertilizers, and machinery used directly in farming
Services
In Missouri, the majority of all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax. However, there are specific situations where certain services are taxable. For instance, taxable services are:
Admissions to places of amusement, entertainment and recreation, games, and athletic events;
Utilities like electricity, water, or gas to domestic, commercial or industrial users
Phone, mobile, and telegraph services
Hotel stays, restaurant meals, and drinks from places like hotels, diners, and bars
Transportation services like taxis, rideshares, buses, etc.
Software-As-A-Service (SaaS)/Digital Products
Saas is nottaxable in the state of Missouri. Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping/Handling
Shipping and handling charges in the state of Missouri are not taxable.
Sales Tax Permits and Licenses in Missouri
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Missouri, the next important step is getting your Missouri Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a sales tax permit online through the Missouri Department of Revenue or follow our detailed step-by-step guide for assistance.Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale. In Missouri, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items. You can fill out the Sales and Use Tax Exemption Certificate (Form 149) provided by Missouri if you have a sales tax permit in the state after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration. Need help? Read our blog: How to Get a Missouri Resale Certificate for your Business
In Missouri, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Missouri Sales Tax Calculator to compute for sales tax. Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Missouri and sells to a customer in St. Louis, MO, with a ZIP code of 63103. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA
RATE
State:
Missouri
4.225%
County:
St. Louis County
0.00%
District:
Clayton Business District
0.00%
City:
St. Louis
5.454%
Combined Sales Tax Rate =
9.679%
Origin-based vs. Destination-based
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax. Missouri is an origin-based state, meaning sales tax is determined based on the buyer’s location. That means for a Missouri-based seller, sales tax is generally based on the location of the buyer when selling within the state. For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from New Jersey to a customer in St. Louis, Missouri, where you have nexus, you’d apply St Louis’ sales tax rate to that sale. To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Missouri
The next step after collection is filing and remitting your Missouri sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually. It’s crucial to keep accurate records of your sales and tax collections, utilize a Missouri sales tax calculator to ensure accuracy, and adhere to the filing schedule set by the state to remain compliant with Missouri’s sales tax regulations.
Annual filing: For companies who collect less than $200 sales tax per quarter.
Quarterly filing: If you collect $500 or less in sales tax per month. The quarters are: January-March, April-June, July-September, and October-December.
Monthly filing: If you’re collecting $500 or more in sales taxes each month.
Due Dates
In Missouri, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers. However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
Filing Sales Tax Returns
To file your sales tax return for Missouri, a few options are available:
File online through Mytax Missouri. If out of state/remote seller, fill out the vendor’s use tax form online.
File by mail – You can use Form 53-1 and file and pay through the mail.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.In Missouri, if you pay your sales tax on time, you get a timely filing allowance of 2% on the sales tax you owe. Here’s how it works: Say you owe $100 in sales taxes. You multiply $100 by 2%, which gives you $2. So, you subtract $2 from your original $100 tax, and now you only have to pay $98. It’s a little reward for paying on time!
any article of clothing with a taxable value of $100 or less;
school supplies, but not to exceed $50 per purchase;
computer software with a taxable value of $350 or less;
personal computers or computer peripheral devices, but not to exceed $1,500;
and graphing calculators with a taxable value of $150 or less.
Missouri Sales Tax Penalties
Like in most states, sales tax is a big part of how Missouri generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state. Here are the specific penalties for non-compliance with sales tax regulations in Missouri:
Civil penalties amounting to 5% of the tax due per month or fraction (maximum 25%);
On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.