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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:

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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:

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

The goods that are exempt from sales tax are:

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

Services

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

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

• Armored Car Services
• Janitorial
• Landscaping
• Pest Control
• Printing Services
• Security

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Nebraska.

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

Shipping/Handling

Shipping and handling charges in the state of Nebraska are taxable. When a delivery fee covers both exempt and taxable items, sales tax applies to the portion allocated to taxable items based on their price or weight ratio in the shipment.

Sales Tax Permits and Licenses in Nebraska

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

Seller’s Permit

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

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

• Business Identification Information (name, address, phone number, email address)
• Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Owner/Partner/Officer Information
• Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
• A Signed Power of Attorney (Form 33) if applicable
• NAICS Code

Registration fee

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

Renewal

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

Resale Certificate

A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.

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

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

Need help? Read our blog: How to Get a Nebraska 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. Nebraska is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.

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

Calculating and Collecting Sales Tax in Nebraska

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Nebraska and sells to a customer in Omaha, NE, with a ZIP code of 68105. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

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

Origin-based vs. Destination-Based

When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.

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

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

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.

Filing Sales Tax Returns

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

1. File online through the NebFile for Business.
2. File by calling 1-800-433-8631 if you don’t have access to a computer
3. 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:

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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:

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

The goods that are exempt from sales tax are:

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

Services

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

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

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

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of South Dakota.

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

Shipping/Handling

Shipping and handling charges in the state of South Dakota are taxable. If a shipment has both taxable and exempt items, only the delivery cost for taxable items is taxed. Freight charges paid directly to the carrier by the buyer are not taxed.

Sales Tax Permits and Licenses in South Dakota

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

Seller’s Permit

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

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

• Business Identification Information (name, address, phone number, email address)
• Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Owner/Partner/Officer Information
• Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
• NAICS code

Registration fee

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

Renewal

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

Resale Certificate

A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.

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

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

Need help? Read our blog: How to Get a South Dakota Resale Certificate for your Business

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in South Dakota

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in South Dakota and sells to a customer in Sioux Falls, SD, with a ZIP code of 57104. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

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

Origin-based vs. Destination-Based

When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.

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

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

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:

1. Pay online through the South Dakota website portal.
2. 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:

1. 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. 
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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.

Tennesse sales tax exemptions include the following:

• Coins, currency, and bullion
• Textbooks and Workbooks
• Newspapers and Periodicals 
• 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
• Cleaning of tangible personal property services 
• Animal bathing
• Telecommunication services
• Parking and storing of motor vehicles 
• Television programming services
• Ancillary services
• Enriching of uranium materials

Software-As-A-Service (SaaS)/Digital Products

SaaS is taxable in the state of Tennessee.

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.

Shipping/Handling

Shipping and handling charges in the state of Tennessee are taxable if the item is taxable.

Sales Tax Permits and Licenses in Tennessee

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.

Seller’s Permit

You can register for a Sales Tax Permit online through the Tennessee Taxpayer Access Point (TNTAP) 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 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.

You can fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously or access the resale certificate provided by the Tennessee Department of Revenue after you receive your sales tax permit at TNTAP. 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 Tennessee 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. 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:

1. File online through the TNTAP.
2. 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.

Sales Tax Nexus in Wyoming

Physical Nexus

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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.

Economic Nexus

Wyoming Sales Tax on Goods and Services

Tangible Products

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

• Groceries – Under Wyoming’s Food and Nutrition Act of 2008, food items with supplemental nutrition assistance benefits are exempt from sales tax. This includes food items purchased for domestic home consumption and groceries purchased with food stamps. However, alcoholic beverages and prepared food are taxable.
• Diapers – for both children and adult diapers
• Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
• School annuals and newspapers
• Prescription Medication
• Medical Devices – Exemptions do not apply to non-prescribed durable medical equipment
• Retail sales of trucks, trailers, and semitrailers, including leases of motor vehicles
• Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming

Services

• 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

Shipping/Handling

Sales Tax Permits and Licenses in Wyoming

Seller’s Permit

• Business Identification Information: Legal Business Name, Physical Address, Mailing Address
• Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Name, Address, and SSN of Owners, Partners, or Officers
• Business Activity Details: Date & State of Incorporation, Start Date with the State of Wyoming (Nexus Start Date), Month of Fiscal Year End, Estimated Monthly Sales Volume)
• NAICS code

Resale Certificate

Streamlined Sales Tax (SST)

Calculating and Collecting Sales Tax in Wyoming

Sales Tax Computation

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

Filing and Remitting Sales Tax Returns in Wyoming

• 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.

Due Dates

Filing Sales Tax Returns

1. File online through the Wyoming Internet Filing System for Business (WYIFS).
2. File by mail by filling up the Form 41-1 for monthly and quarterly filers or Form 42-1 for annual filers.
3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Sales Tax Holiday

Wyoming Sales Tax Penalties

• 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.

Is There Sales Tax in Montana?

Beyond Montana Sales Tax: Other Taxes You Should Know

Corporate Income Tax

Mineral Royalty Withholding Tax

• Submitting quarterly payment vouchers
• Filing an Annual Tax Reconciliation (Form RW-13)
• Providing Forms 1099-MISC or 1042-S to royalty owners.

Natural Resource Tax

• 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

• 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

Business Compliance Obligations in Montana

• Register your business with the Montana Department of Revenue.
• Obtain appropriate business licenses depending on your industry.
• File and pay state tax and returns.

Conclusion

Is There Sales Tax in New Hampshire?

Beyond New Hampshire Sales Tax: Other Taxes You Should Know

• Timber Tax
• Alcohol Tax
• Tobacco Tax
• Excavation (Gravel) Tax
• Inheritance & Estate Tax
• Business Profit Tax (BPT)
• Medicaid Enhancement Tax
• Electricity Consumption Tax
• Meals and Rentals Tax (MRT)
• Communication Services Tax (CST)
• Business Enterprise Tax (BET)
• Utility Property & Railroad Taxes
• Real Estate Transfer Tax (RETT)
• Nursing Facility Quality Assessment
• Statewide Education Property Tax (SWEPT)

Meals & Rental Tax (MRT)

• Banquets
• Field days
• Cafeterias
• Barbecues
• Receptions
• Private homes
• Special events
• Outings or picnics
• Concerts or races
• Fairs and bazaars
• Mobile catering or vending trucks

Timber Tax

• Not being sold or bartered
• Cut for the usage of school districts and county projects
• Used by the federal, state, or municipal government projects

Tobacco Tax

• 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.

Alcohol Tax

Communication Services Tax (CST)

• Channel services
• Internet service providers
• Cable and satellite services
• Mobile or prepaid telecommunication services

Business Enterprise Tax (BET)

Business Profits Tax (BPT)

• 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.

New Hampshire and Remote Sellers

Sales Tax Nexus

• Physical nexus 
• Economic nexus

Physical Nexus

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating within a state on your behalf.
4. 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.
5. 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

• 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.

Business Compliance Obligations in New Hampshire

• 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.
• Liquor License – You can apply for this license via the New Hampshire Liquor Commission (NHLC) government website.

Conclusion

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:

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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 this legal article from the government of West Virginia. Exemptions are also applicable for certain clothing types during Sales Tax Holidays.
• Furniture
• Jewelry 
• Home Goods
• Personal Hygiene 
• Feminine Hygiene Products (i.e. pads, tampons, and menstrual cups)

The goods that are exempt from sales tax are:

• Grocery Food – Since July 1, 2013, grocery food has been exempt from sales and use tax in West Virginia. However, food sold in a heated state, prepared food, packaged food with eating utensils provided by the seller, soft drinks, and food sold through vending machines are taxable.
• Lottery tickets, delivered newspapers, educational textbooks used in schools
• Prescription Medications  
• Medical Devices 
• Agricultural Supplies  such as Seeds, fertilizers, and machinery used directly in farming

Services

In West Virginia, services are taxable only when specifically defined as taxable by law. This includes telecommunications and some personal services.

Most professional services, such as legal, accounting, and medical services, are not taxable.

Software as a Service (SaaS)/Digital Products

SaaS, when classified as a data processing service, is taxable in West Virginia. This refers to services that provide access to computer equipment for the purpose of processing, acquiring, or examining data.

This includes situations where a service processes data for a customer using the provider’s equipment (e.g., streaming services).

Digital products (i.e., digital audio-visual works, audio works, and digital books) are not taxable as long as the product is only transferred electronically.

Shipping/Handling

Shipping and handling charges in the state of West Virginia are not taxable for sellers if the delivery charge is already included in the total amount of the taxable item’s sale.

If delivery charges are stated separately, the shipping and handling fees are subject to sales tax in West Virginia.

Sales Tax Permits and Licenses in West Virginia

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

Seller’s Permit

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

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

• Business Identification Information (name, address, phone number, email address)
• Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Owner/Partner/Officer Information
• Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates) 
• NAICS code

Registration fee

There is a $30 fee to register for a sales tax permit. The state charges a non-refundable registration fee.

Renewal

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

Instead of a renewal, businesses are only required to file an annual report from January 1 to July 1 of each calendar year after your official registration date for the sake of compliance.

Resale Certificate

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.

To get a resale certificate in West Virginia, you only need to fill out the Streamlined Sales and Use Tax Certificate of Exemption. This certificate will also give you sales tax exemption for multiple states simultaneously once approved. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Need help? Read our blog: How to Get a West Virginia 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. West Virginia is a party to the program, meaning it follows the uniform rules and definitions established by SST.

Check with the West Virginia Tax Division for the most current information on West Virginia’s participation in the Streamlined Sales Tax initiative. 

Calculating and Collecting Sales Tax in West Virginia

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in West Virginia and sells to a customer in Charleston, WV, with a ZIP code of 25301. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

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

Origin-based vs. Destination-Based

When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.

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

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

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:

1. File online through the MyTaxes.WVTax.Gov.
2. 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.
3. 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:

West Virginia Sales Tax Penalties

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

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

• Late Filing Penalty: Failure to timely file a return due to willful neglect adds a 5% charge on top of the amount of the total tax due. An additional 5% is added to the penalty for each missed month. A maximum of 25% total penalty can be accumulated.
• Failure to Timely Pay Tax Due: Failing to pay the tax incurs a 0.5% penalty, increasing monthly for repeat offenses, up to a 25% maximum.
• Underpayments: Measured based on the underpaid tax amount. A total of 12.25% interest rate can be added.
• Fraudulent Returns: Results in a 50% added charge on the total amount due.
• Negligence: Failure to pay the tax due because of negligence or intentional disregard of rules results in a 5% added interest on top of the total tax due. A maximum of 25% interest rate can be accumulated.

If you wish to waive a penalty, the West Virginia Tax Division allows you to submit a letter or web notice through their official website, MyTaxes. When you submit your letter, you must state your reason for requesting a penalty waiver.

Is There Sales Tax in Oregon?

What is a Substantial Nexus?

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating in Oregon on your behalf or under your business name.
4. Having a sufficient economic presence, meaning you regularly conduct business and produce income within the state of Oregon.

Beyond Oregon Sales Tax: Other Taxes You Should Know

• Vehicle Taxes
• Property Taxes
• Business Taxes
• Corporate Activity Tax (CAT)
• Local Sales Taxes – Only in Ashland City, OR
• 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

Vehicle Taxes 

• Vehicle Privilege Tax: applies to any vehicle seller with a physical presence in Oregon.
• Vehicle Use Tax: applies to out-of-state vendors who sell taxable vehicles to customers in Oregon.

Vehicle Privilege Tax

• 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

Business Taxes

• 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

Corporate Activity Tax (CAT)

• 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.

Local Sales Tax

• Takeouts and
• Food deliveries

Oregon and Remote Sellers

Physical Nexus

1. 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.
2. 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

• 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.

Business Compliance Obligations in Oregon

• Check the state’s license 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.

Conclusion

Sales Tax Nexus in Wisconsin

Physical Nexus

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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.

Economic Nexus

Wisconsin Sales Tax on Goods and Services

Tangible Products

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

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

Services

• 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

Shipping/Handling

Sales Tax Permits and Licenses in Wisconsin

Seller’s Permit

• Business Identification Information (name, address, phone number, email address)
• Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Owner/Partner/Officer Information
• Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
• NAICS Code

Resale Certificate

Streamlined Sales Tax (SST)

Calculating and Collecting Sales Tax in Wisconsin

Sales Tax Computation

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

Filing and Remitting Sales Tax Returns in Wisconsin

• 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.

Due Dates

Filing Sales Tax Returns

1. File online through the Wisconsin My Tax Account.
2. File by calling (608) 261-5340 or (414) 227-3895 if you don’t have access to a computer.
3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Sales Tax Holiday

Sales Tax Penalties in Wisconsin

• Civil penalties amounting from 5% to 50% of the total sales tax due
• If a required tax return is not filed by the due date, including any extensions, a sales tax penalty applies. The penalty is 5% of the unpaid tax for the first month, with an additional 5% for each following month or part of a month, up to a maximum of 25%. The tax amount used to calculate this penalty is reduced by any payments made by the due date and any applicable tax credits claimed on the return.
• On the criminal side, offenses can be classified as either misdemeanors or felonies, depending on the severity and specific circumstances.

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:

1. 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. 
2. 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.
3. 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.
4. Regularly delivering property in Utah other than by a common carrier or U.S. mail or leasing or servicing property located in Utah.
5. 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.
• Clothing

The goods that are exempt from sales tax are:

• Medical devices
• Newspapers
• Prescription drugs
• Prosthetic devices
• Electricity and fuel for industrial use
• Semiconductor fabricating, processing, research, or development materials

Services

In Utah, the majority of service-based transactions, such as professional services, advertising, and beauty services, are not subject to sales tax.

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

• Laundry and dry-cleaning services, if the buyer does not perform the labor
• Assisted cleaning or washing of tangible personal property, if the buyer does not perform the cleaning or washing labor
• Use of assisted amusement devices when the buyer does not operate the device or ride.
• In-state telecom services

For a full list, check the Utah Department of Revenue.

Software-As-A-Service (SaaS)/Digital Products

SaaS is taxable in the state of Utah.

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.

Seller’s Permit

You can register for a Sales and Use Tax License online through the Taxpayer Access Point or follow our detailed step-by-step guide for assistance.

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

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

Need help? Read our blog: How to Get a Utah Resale Certificate for your Business

Streamlined Sales Tax (SST)

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:

1. File online through the Utah Taxpayer Access Point.
2. File by mail – Fill out TC62S/M and remit to the Utah State Tax Commission by the due date.
3. 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 discount is 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 Utah generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.

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

• 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.

Have any questions? Connect with TaxHero today for a free sales tax consultation about your business in Utah or any state!

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:

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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 establishing sales 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:

• Cosmetics
• Electronics
• Clothing
• Furniture
• Jewelry
• Home Goods
• 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.
• Catering services
• Computer services involving prewritten programs
• Fabrication services
• Florist services
• Hotel accommodation 
• Tanning salons
• Telecommunications services sourced to Oklahoma

Software-As-A-Service (SaaS)/Digital Products

SaaS is not taxable in the state of Oklahoma.

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.

Seller’s Permit

You can register for a Sales or Use Tax Permit online through the Oklahoma Tax Commission’s Online Taxpayer Access Point (OKTAP) 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 a fee of $20 plus a handling fee to register for a sales tax permit.

Renewal

In Oklahoma, you must 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.

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

Need help? Read our blog: How to Get an Oklahoma 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. 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:

1. File online through the OKTAP website portal.
2. File by mail – Use Form STS-20002-A and send it by mail to the Oklahoma Tax Commission
3. 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 Oklahoma 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 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: 

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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..
5. 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 requirements in 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:

• Cosmetics
• Electronics
• Clothing
• Furniture
• Jewelry
• Home Goods

The goods that are exempt from sales tax are:

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

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)
• Room And Lodging Rental For Less Than 30 Days
• Framing Services
• Water Softening and Conditioning 

Software-As-A-Service (SaaS)/Digital Products

SaaS (i.e., computer software) is not taxable in the state of Indiana.

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.

Seller’s Permit

You can register for a Retail Merchant Certificate online through the Indiana Business Roadmap (INBiz) 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

Renewal

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.

You can fill out the General Sales Tax Exemption Certificate Form ST-105 provided by Indiana if you have a sales tax permit in the state after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Need help? Read our blog: How to Get an Indiana 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. 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:

1. File online through INTIME.
2. 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 Indiana 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 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:

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. Uses personal vehicles to sell or deliver taxable goods or services in the State on a regular basis.
5. Regularly enters the state to provide service or maintenance for tangible personal property.
6. 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:

• Cosmetics
• Electronics
• Clothing
• Furniture
• Jewelry
• Home Goods
• 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.
• Prescription Medicines & Eyewear (i.e. corrective contact lenses & eyeglasses) 
• Medical Devices

Services

In Maryland, 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. For instance:

• Manufacturing or producing personal property
• Transportation of electricity or natural gas
• Certain telecommunications services
• Credit reporting services
• Security services
• Commercial cleaning and janitorial services

Software-As-A-Service (SaaS)/Digital Products

SaaS is taxable in the state of Maryland.

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.

Seller’s Permit

You can register for a Sales and Use Tax License online through the Maryland Tax Connect 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 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.

Need help? Read our blog: How to Get a Maryland 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. 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:

1. File online through the Comptroller of Maryland portal.
2. 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:

Maryland Sales Tax Penalties

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

1. 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. 
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf.
4. 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.
5. 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.

While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for both physical and economic sales tax nexus requirements in Illinois.

Illinois 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 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.
• Furniture
• Jewelry 
• Home Goods
• Groceries – Groceries are subject to a reduced state sales tax rate of 1%, although local areas like cities and counties may apply additional sales tax rates.
• 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)

The goods that are exempt from sales tax are:

• Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
• Building materials – Manufacturers of electric vehicles, producers of electric vehicle component parts, and makers of electric vehicle power supplies.
• Newspapers and Magazines
• Retail leases of motor vehicles, watercraft, aircraft, and semitrailers

Services

In Illinois, all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax. 

Software-As-A-Service (SaaS)/Digital Products

SaaS (i.e. computer software) is not taxable in the state of Illinois. 

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

Shipping/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-61 provided by Illinois after you receive your sales tax permit from the state. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Need help? Read our blog: How to Get a Colorado 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. 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:

1. File online through the MyTax Illinois
2. File by mail – Fill up Form ST-1 and file and pay through the mail.
3. 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 discount is 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 Illinois generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial 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.

Sales Tax Nexus in Missouri

Physical Nexus

1. 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.
2. 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.
3. Employees, independent contractors, agents, or other representatives operating on your behalf for more than 2 days.
4. 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

Missouri Sales Tax on Goods and Services

Tangible Products

• Cosmetics
• Electronics
• Clothing – Clothing sales in Missouri are usually taxed because they’re considered physical items.
• Furniture
• Jewelry
• Automobiles
• Home Goods
• Groceries – Grocery food is taxed at a reduced rate of 1.225%  

• Feminine Hygiene Products – this includes tampons, pads, liners, and cups
• 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.
• Medical Devices
• Agricultural Supplies – this includes seeds, fertilizers, and machinery used directly in farming

Services

• 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

Shipping/Handling

Sales Tax Permits and Licenses in Missouri

Seller’s Permit

• 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)

Resale Certificate

Streamlined Sales Tax (SST)

Calculating and Collecting Sales Tax in Missouri

Sales Tax Computation

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

Filing and Remitting Sales Tax Returns in Missouri

• 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

Filing Sales Tax Returns

1. File online through Mytax Missouri. If out of state/remote seller, fill out the vendor’s use tax form online.
2. File by mail – You can use Form 53-1 and file and pay through the mail.
3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Sales Tax Holiday

Missouri Sales Tax Penalties

• 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.