Iowa, celebrated for its rich agricultural roots and innovative strides in renewable energy and technology, stands proudly in the Midwest. It is a state where traditional cornfields meet modern industry. For businesses operating within this diverse economic landscape, paying Iowa sales tax is a crucial aspect.
This guide breaks down everything you need to know about Iowa’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 Iowa’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Iowa.
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 Iowa include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2019, the threshold for economic nexus in Iowa is 100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Ohio.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Iowa.
Almost all goods are taxable in Iowa, including:
The goods that are exempt from sales tax are:
In Iowa, the majority of service-based transactions, such as advertising, employee service, and construction, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, some of taxable services are:
Refer to the state’s website for the full list of taxable services in Iowa.
SaaS is taxable in the state of Iowa.
Digital Products (i.e., digital audio and audio-visual works, e-books, greeting cards, images, video or electronic games or entertainment, news or information products, and computer software applications ) are also taxable.
Shipping and handling charges in the state of Iowa are not taxable.
Sales tax is exempt if:
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Iowa, the next important step is getting your Iowa Seller’s Permit, also known as a sales tax permit.
You can register for a Sales and Use Tax Permit online through the Iowa Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Iowa, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Iowa, 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 Iowa Sales/Use/Excise Tax Exemption Certificate provided by Iowa 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 Iowa Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Iowa is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Iowa Department of Revenue for the most current information on Iowa’s participation in the Streamlined Sales Tax initiative.
In Iowa, 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 Iowa Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Iowa and sells to a customer in Des Moines, IA, with a ZIP code of 50309. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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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.
Iowa is a destination-based state, meaning sales tax is determined based on the seller’s location. That means for an Iowa-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 Florida to a customer in Des Moines, Iowa, where you have nexus, you’d apply Des Moines’ sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Iowa sales tax returns. Filing and remittance can vary in frequency, either semi-monthly, monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Iowa’s sales tax regulations.
In Iowa, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1, the following business day, to submit.
To file your sales tax return for Iowa, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly. However, Iowa does not offer a discount.
For 2025, the planned sales tax holidays in Iowa are:
Like in most states, sales tax is a big part of how Iowa 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 Iowa:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Iowa or any state! |
Positioned as a gateway of commerce and tourism in the Southeast, Florida is not only renowned for its sun-kissed beaches and attractions but also for its thriving business environment. However, navigating the intricacies of sales tax in Florida requires an understanding of its particular rules and regulations.
This guide breaks down everything you need to know about the Sunshine state’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 Florida’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Florida.
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 Florida include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2021, the threshold for economic nexus in Florida is $100,000 in gross revenue in the previous calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Florida.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Florida.
Almost all goods are taxable in Florida, including:
The goods that are exempt from sales tax are:
In Florida, the majority of service-based transactions, such as professional services, advertising, and salon services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is not taxable in the state of Florida.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping and handling charges in the state of Florida are taxable when imposed with the sale of a taxable item. These charges are exempt from sales tax if they are distinctly listed on a bill or invoice and if the buyer has the option to avoid these charges through their sole decision or action (for example, by choosing to pick up the item themselves or organizing their own third-party transport services).
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Florida, the next important step is getting your Florida Seller’s Permit, also known as a sales tax permit.
You can register for a Sales and Use Tax Permit online through the Florida Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Florida, you don’t have to renew your sales tax permit. As long as you keep operating your business in Florida and maintain your registration for collecting sales tax, you’ll receive a new Annual Resale Certificate or Seller’s Permit every year.
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 Florida, sellers use resale certificates to buy goods from their 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 download the Florida Annual Resale Certificate for Sales Tax (Form DR-13) provided by Florida in your [portal]. If you don’t want the hassle of registering, sign up for our all-inclusive service, including sales tax registration.
Need help? Read our blog: How to Get a Florida Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Florida 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 Florida Department of Revenue for the most current information on Florida’s participation in the Streamlined Sales Tax initiative.
In Florida, 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 Florida 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 Miami, FL, with a ZIP code of 33101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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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.
Florida is a destination-based state, meaning sales tax is determined based on the buyer’s seller’s location. That means for a Florida-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 Miami, Florida, where you have nexus, you’d apply Miami’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Florida sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, semi-annually, 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 Florida’s sales tax regulations.
In Florida, the due date falls on the 20th day of the following month for all filing periods. For Florida, you’re required to have your return and payment recorded in your sales tax account by the 20th. So, to be cautious, it’s best to file and send your sales tax return by the 19th of the following month, allowing time for processing and preventing any penalties.
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 21, the following business day, to submit. However, to play it safe in Florida, you should aim to submit and pay this before May 21.
To file your sales tax return for Florida, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.
In Florida, if you file your sales and use tax return online and also pay on time, you can claim a collection discount. This discount is 2.5% of the initial $1,200 in tax owed, but it won’t be more than $30.
Currently, for 2025, the planned sales tax holidays in Florida are:
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Like in most states, sales tax is a big part of how Florida 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 Florida:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Florida or any state! |
With its historic charm and modern energy, Connecticut is a great place for businesses. Known for its beautiful towns, top universities, and strong maritime history, it offers a unique business environment. To do business here, it’s important to know the specific sales tax in CT laws that reflect the state’s unique economy and culture.
This guide breaks down everything you need to know about Connecticut’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 Connecticut’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in CT.
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 Connecticut include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Connecticut, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2019, Connecticut’s threshold for economic nexus is $100,000 in gross revenue or 200 transactions during the 12-month period ending on September 30.
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 Connecticut.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Connecticut.
Almost all goods are taxable in Connecticut, including:
The goods that are exempt from sales tax are:
In Connecticut, the majority of service-based transactions, such as medical services, and engineering are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Connecticut.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
A rate of 1% applies to the sale of computer and data processing services. This includes digital downloads and streaming services.
Shipping and handling charges in the state of Connecticut are taxable. The tax applies only to shipping charges for taxable items and not to such charges for tax-exempt items.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Connecticut, the next important step is getting your Connecticut Seller’s Permit, also known as a sales tax permit.
You can register for a Sales and Use Tax Permit online through MyConnectCT or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee There is a $100 fee to register for a sales tax permit.
Renewal In Connecticut, you don’t have to renew your sales tax permit. Your Sales and Use Tax Permit automatically renews every two years for free if your account is active and in good standing.
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 Connecticut, 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 Connecticut Sales and Use Tax Resale Certificate provided by Connecticut after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Connecticut Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Connecticut 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.
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 Connecticut Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Connecticut and sells to a customer in Bridgeport, CT, with a ZIP code of 06604. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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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.
Connecticut is destination-based, meaning sales tax is determined based on the buyer’s location. That means for a Connecticut-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Ohio to a customer in Bridgeport, Connecticut, where you have nexus, you’d apply Bridegeport’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Connecticut sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Connecticut’s sales tax regulations.
In Connecticut, the due date falls on or before the last day of the following month. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
To file your sales tax return for Connecticut, a few options are available:
Currently, for 2025, the planned sales tax holidays in Connecticut are:
Like in most states, sales tax is a big part of how Connecticut 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 Connecticut:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Connecticut or any state! |
Alabama, often referred to as the “Heart of Dixie,” is celebrated for its rich history and vibrant culture from the bustling streets of Birmingham to the tranquil Gulf Shores. Yet, for businesses operating within this state, understanding the nuances of sales tax in Alabama is as crucial as understanding its diverse economic landscape.
This guide breaks down everything you need to know about Alabama’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Alabama’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Alabama.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Alabama include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning October 1, 2018, the threshold for economic nexus in Alabama is $250,000 in gross revenue in the previous calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Alabama.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Alabama.
Almost all goods are taxable in Alabama, including:
The goods that are exempt from sales tax are:
In Alabama, all service-based transactions, such as professional services, advertising, and cleaning services are not subject to sales tax. However, if a service is performed as part of manufacturing or creating a new tangible item that will later be sold, sales tax may apply to that service, even if the charges for the service are listed separately from the sale price of the item.
SaaS is taxable in the state of Alabama.
Digital products (i.e., ebooks, downloadable video content, computer software, mobile apps) are also taxable.
Shipping and handling charges in Alabama are taxable if the delivery was made by the seller’s own vehicle or in a leased vehicle. However, if the delivery is made by a common carrier or the U.S. postal service and billed as a separate item and paid directly or indirectly by the buyer, it is not taxable..
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Alabama, the next important step is getting your Alabama Seller’s Permit, also known as a sales tax permit.
You can register for a Sellers Use Tax online through the My Alabama Taxes or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Alabama, you must renew your sales tax permit annually through your My Alabama Taxes account.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Alabama, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Form ST-EX A1 Application for Sales Tax Certificate of Exemption provided by the Alabama Department of Revenue after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Alabama Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Alabama is not a party to this program as it’s only an advisory state, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Alabama Department of Revenue for the most current information on Alabama’s participation in the Streamlined Sales Tax initiative.
In Alabama, sales tax isn’t just one simple rate; it’s a combination of state and local taxes, with eligible out-of-state or remote sellers having to apply first before they can start reporting, paying, and collecting the 8.00% use tax rate different from the normal sales tax rate. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Alabama Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Texas and sells to a customer in Huntsville, AL, with a ZIP code of 35808. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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* includes 1.00% Madison County Special Tax Rate
When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Alabama is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Alabama-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For eligible out-of-state or remote sellers with economic nexus in Alabama, they must apply and be accepted first before they can start collecting the 8.00% seller’s use tax rate. For instance, if you’re selling a product from Texas to a customer in Huntsville, Alabama, where you have nexus, you’d have to apply Huntsville’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Alabama sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, bi-annually, or annually. By default, all businesses are required to file sales tax returns monthly. However:
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Alabama’s sales tax regulations.
In Alabama, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Alabama, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Alabama’s timely filing discount is a 2% discount for the first $400,000 of sales taxes collected and repeated, with the discount not exceeding $8,000 per month.
Currently, for 2025, the planned sales tax holidays in Alabama are:
Like in most states, sales tax is a big part of how Alabama generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial 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 Alabama:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Alabama or any state! |
Massachusetts is famous for its rich history and top-notch schools, but it’s also a prime spot for businesses to bloom. Now, when it comes to sales tax in Massachusetts, there are some rules you need to know. Understanding these helps keep everything running smoothly, ensuring your business can flourish and fit right into the bustling scene here. So, it’s not just about getting by; it’s about getting it right and making the most of what the Bay State has to offer.
This guide breaks down everything you need to know about Mass’ 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 Massachusetts’ sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Massachusetts.
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 Massachusetts include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning October 1, 2019, the threshold for economic nexus in Massachusetts is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Massachusetts .
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Massachusetts.
Almost all goods are taxable in Massachusetts, including:
The goods that are exempt from sales tax are:
In Massachusetts, the majority of service-based transactions, such as professional services, advertising, and cleaning services are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Massachusetts.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are not taxable if delivered.
Shipping and handling charges in the state of Massachusetts are not taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Massachusetts, the next important step is getting your Massachusetts Seller’s Permit, also known as a sales tax permit.
You can register for a Sales and Use Tax Permit online through the MassTaxConnect or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Massachusetts, you don’t have to renew your sales tax permit. But remember, you’ve got to keep it updated if there are any changes to your address, if ownership switches hands, if you have new tax duties, or if you open a new location.
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 Massachusetts, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Form ST-4 Sales Tax Resale Certificate provided by Massachusetts if you have a sales tax permit in 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 Massachusetts Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Massachusetts is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
In Massachusetts, 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 Massachusetts Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Massachusetts and sells to a customer in Boston, MA, with a ZIP code of 02109. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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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.
Massachusetts is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an MA-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from California to a customer in Boston, Massachusetts, where you have nexus, you’d apply Boston’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Mass sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
To remain compliant with Massachusetts’ sales tax regulations, it’s crucial to keep accurate records of your sales and tax collections, incorporating Mass sales tax calculator to ensure precision. Adhering to the filing schedule set by the state becomes much more manageable when you have exact tax amounts calculated for every transaction.
In Massachusetts, the due date falls on or before the 30th day of the following month. For instance, sales tax collected in March is due by April 30th 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 30th deadline falls on a holiday or weekend, you’ll have until May 31, the following business day, to submit.
Further, if you paid over $150,000 in sales tax last year, you now need to make an early payment each month. This advance needs to be at least 70% of the tax you owe and should be paid by the 25th of the same month you collected the sales tax.
To file your sales tax return for Massachusetts, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Massachusetts does not offer a discount.
Currently, for 2025, the planned sales tax holidays in Massachusetts is:
Like in most states, sales tax is a big part of how Massachusetts 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 Massachusetts:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Massachusetts or any state! |
As the nation’s capital, Washington D.C. is home to a significant business community, with companies in industries like government contracting, tourism, technology, and professional services. Businesses and consumers in the District need to pay close attention to the complex sales tax laws and requirements in order to properly collect, file, and remit DC sales tax.
This guide breaks down everything you need to know about DC’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle the District of Columbia’s sales tax with confidence and ease.
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| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Washington D.C. or any state! |
Nestled in the heart of the Deep South, Louisiana is more than just Mardi Gras and gumbo. It’s a buzzing crossroads of culture, business, and some of the friendliest folks you’ll meet. But let’s talk turkey: If you’re diving into the biz world here, you gotta wrap your head around our sales tax. Sure, it might seem as twisty as the Mississippi River, but don’t fret.
This guide breaks down everything you need to know about Louisiana’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Louisiana’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Louisiana.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Louisiana include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning August 1, 2023, the threshold for economic nexus in Louisiana is $100,000 in gross revenue in the previous or current calendar year’s sales. This marks a change from the 2020 criterion, which included a threshold of 200 transactions.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for physical and economic nexus requirements in Louisiana.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Louisiana.
Almost all goods are taxable in Louisiana, including:
The goods that are exempt from sales tax are:
In Louisiana, the majority of or all service-based transactions, such as professional services, advertising, and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
Starting January 1, 2025, Saas will now be taxable in the state of Louisiana. Additionally, transactions where the customer pays a fee to use a website or software without owning it will also be subject to sales tax.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. However, sales tax exemptions may apply to the following:
Shipping and handling charges in the state of Louisiana are not taxable if:
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Louisiana, the next important step is getting your Louisiana Seller’s Permit, also known as a sales tax permit.
You can register for a Louisiana Direct Marketer Permit online through the Louisiana Department of Revenue’s website or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Louisiana, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Louisiana, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Louisiana Resale Certificate form provided by the Louisiana Department of Revenue after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Louisiana Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Louisiana is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Louisiana Department of Revenue for the most current information on Louisiana’s participation in the Streamlined Sales Tax initiative.
In Louisiana, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Louisiana Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Louisiana and sells to a customer in New Orleans, LA, with a ZIP code of 70130. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Louisiana is destination-based, meaning sales tax is determined based on the seller’s location. That means for a Louisiana-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Georgia to a customer in New Orleans, Louisiana, where you have nexus, you’d apply New Orleans’ sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Louisiana sales tax returns. Filing and remittance can vary in frequency, typically monthly or quarterly.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Louisiana sales tax regulations.
In Louisiana, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Louisiana, a few options are available:
Starting from August 1, 2020, Louisiana offers a discount for filing sales tax on time. The discount rate is now 1.05% of the total sales and use taxes owed, increased from the earlier rate of 0.935%. However, this discount is capped at $1,500 each month.
Currently, for 2025, there are no planned sales tax holidays in Louisiana.
Like in most states, sales tax is a big part of how Louisiana generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Louisiana:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Louisiana or any state! |
Arkansas, famed for its stunning Ozark Mountains and thriving agriculture, is more than just a natural gem of the South. With its growing business hubs and bustling trade, understanding sales tax in Arkansas is essential for businesses and consumers alike.
This guide breaks down everything you need to know about Arkansas’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Arkansas’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Arkansas.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Arkansas include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Arkansas, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2019, the threshold for economic nexus in Arkansas is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Arkansas.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Arkansas.
Almost all goods are taxable in Arkansas, including:
The goods that are exempt from sales tax are:
In Arkansas, the majority of service-based transactions, such as information services and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is not taxable in the state of Arkansas.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable when sold to end users for permanent or temporary use.
Shipping and handling charges in the state of Arkansas are taxable. Freight charges are taxed if tied to taxable goods unless billed by a carrier or for non-taxable goods.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Arkansas, the next important step is getting your Arkansas Seller’s Permit, also known as a sales tax permit.
You can register for an Arkansas seller’s permit online through the Arkansas Taxpayer Access Point (ATAP) or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is a $50 fee to register for a sales tax permit for businesses with a physical presence in the state and free for out-of-state/remote sellers with no physical presence.
Renewal
In Arkansas, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Arkansas, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Arkansas Exemption Certificate (Form ST 391) provided by Arkansas after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Arkansas Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Arkansas is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Arkansas Revenue Services for the most current information on Arkansas’s participation in the Streamlined Sales Tax initiative.
In Arkansas, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Arkansas and sells to a customer in Little Rock, AR, with a ZIP code of 72201. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Arkansas is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Arkansas-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, Arkansas, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Arkansas sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Arkansas’s sales tax regulations.
In Arkansas, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Businesses with a notable sales tax liability may need to make monthly prepayments ahead of their monthly return filings. The specifics of these prepayments depend on the business’s prior year’s tax liabilities.
Arkansas Pre-pay Sales Tax on a Vehicle lets vehicle buyers pay sales tax before titling or registering, avoiding penalties while awaiting dealership paperwork. Dealers can also use it to pay a customer’s sales tax.
To file your sales tax return for Arkansas, a few options are available:
Some states offer businesses a discount for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Since July 2019, the DFA has provided a 2% discount for timely filings, capped at $1,000 monthly. Local jurisdictions may also offer a 2% discount, up to $4,000 per city or county.
Currently, for 2024-2025, here is the planned sales tax holiday in Arkansas:
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Like in most states, sales tax is a big part of how Arkansas generates revenue. Thus, maintaining compliance with sales tax regulations is of the utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Arkansas:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Arkansas or any state! |
Nestled in the Pacific Northwest, Idaho, hailed as the “Gem State,” stands as a hub of business and innovation. Renowned for its picturesque landscapes and a booming agricultural sector, the state presents unique opportunities and challenges for businesses operating within its borders. However, mastering the complexities of sales tax in Idaho is crucial for entrepreneurs looking to tap into its market.
This guide breaks down everything you need to know about Idaho’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Idaho’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Idaho.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Idaho include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning June 1, 2019, the threshold for economic nexus in Idaho is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Idaho.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Idaho.
Almost all goods are taxable in Idaho, including:
The goods that are exempt from sales tax are:
In Idaho, the majority of service-based transactions, such as professional services, advertising, and cleaning services are not subject to sales tax.
However, there are specific situations where certain services are taxable:
SaaS is not taxable in the state of Idaho.
Digital products (digital music, digital books, digital videos, and digital games) where the buyer has a permanent right to use these products are considered tangible personal property, irrespective of their delivery or access method, and so are taxable. However, leases or rentals of these digital products are not subject to taxation.
Shipping and handling charges in the state of Idaho are not taxable if listed separately on the invoice, but if you’re a seller who first receives an item from another seller or manufacturer before shipping it to the customer, the shipping costs you pay are taxable and charged to the buyer.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Idaho, the next important step is getting your Idaho Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Idaho Business Registration System or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Idaho, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Idaho, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out Form ST-101 – Sales Tax Resale or Exemption Certificate provided by the Idaho State Tax Commission after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Idaho Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Idaho is not a party to this program, meaning it does not follow the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Idaho State Tax Commission for the most current information on Idaho’s participation in the Streamlined Sales Tax initiative.
In Idaho, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Idaho Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Idaho and sells to a customer in Boise, ID, with a ZIP code of 83701. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Idaho is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for an Idaho-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from California to a customer in Boise, Idaho, where you have nexus, you’d apply Boise’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Idaho sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, semi-annually, or annually. By default, all businesses are required to file sales tax returns monthly. If you have low sales volume and sales tax liability, you can reach out to the Idaho State Tax Commission to request a quarterly or annual filing.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Idaho’s sales tax regulations.
In Idaho, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Idaho, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Idaho does not offer a discount.
For 2025, there are no planned sales tax holidays in Idaho.
Like in most states, sales tax is a big part of how Idaho generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Idaho:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Idaho or any state! |
California: a dream for many, but its sales tax? That can be a business owner’s puzzle. Whether launching a startup or managing an established company, understanding the sales tax in California is crucial.
This guide breaks down everything you need to know about the Golden State’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 California’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in California.
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 California include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning April 1, 2019, the threshold for economic nexus in California is $500,000 in gross revenue on 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 CA Department of Tax and Fee Administration (CDTFA).
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in California.
Almost all goods are taxable in California, including:
The goods that are exempt from sales tax are:
It’s crucial to emphasize that these products are subject to specific regulations that exempt them from sales tax when purchased. For example, tax does not apply to sales of food products for human consumption but does not include sales of carbonated or effervescent bottled waters, spirituous, malt or vinous liquors, or carbonated beverages.
In California, the majority of service-based transactions, such as consulting, teaching, or professional services, are not subject to sales tax. However, there are specific situations where certain services are deemed taxable.
For instance:
SaaS is not taxable in the state of California.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are not taxable either.
Shipping and handling charges in the state of California are not taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in California, the next important step is getting your California Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online at the California Department of Tax and Fee Administration or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit. However, you will have to provide a security deposit to cover any unpaid taxes that you may owe if, later on, your business closes. The amount of the security deposit will be computed upon application.
Renewal
You don’t have to renew your sales tax permit unless the products you intend to sell are cigarettes or any tobacco products, which, in this case, you’ll have to renew your permit annually.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In California, 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. Meanwhile, although California requires ecommerce businesses to have a seller’s permit first before using a resale certificate, some are not required to, especially if they sell sales tax-exempt items when sold at retail.
You can fill out the form provided by the CDTFA or visit the California Department of Tax’s website for more information about filling out the resale certificate. 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 California Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, California 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 California Department of Tax and Fee Administration (CDTFA) for the most current information on California’s participation in the Streamlined Sales Tax initiative.
In California, 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 California Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in California and are selling to a customers in Beverly Hills, CA, with a ZIP code of 90210, the following is the breakdown of the total sales tax you’ll have to charge your customer:
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Before diving into the sales tax rates and calculation in California, 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.
California has a mixed sales tax system, meaning it combines elements of both origin-based and destination-based taxation. In practical terms, this means that the application of sales tax can vary depending on several factors, including:
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your CA sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, quarterly prepayment, or annually, based on the volume of sales. Given California’s intricate system of district taxes, it’s vital for businesses to understand the nuances, ensuring they remain compliant and accurately distribute collected taxes.
In California, the due date falls on the last day of the month. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers. However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day.
Another example is when you’re filing sales tax quarterly for the months of April through June, and the July 31st deadline falls on a holiday or weekend, you’d need to submit by the next business day, which would be August 1st.
When a business collects a significant amount of sales tax but is not set to file sales tax returns monthly, they may be required to make monthly prepayments and then file a return quarterly. This schedule is termed as “quarterly prepayments.”
When filing your sales tax return for California, a few options are available:
California does not offer a discount to businesses for collecting, filing, and remitting sales tax on time. Some states provide this as an incentive for companies to process sales taxes promptly, but California is not among them.
Currently, for 2023-2024, there are no planned sales tax holidays in California.
Like in most states, sales tax is a big part of how California 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 California:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in California or any state! |
Embraced by Southern warmth, South Carolina, with its historical grace, is a tapestry of more than just scenic shores. Key to thriving here in business is grasping “what is sales tax in South Carolina” – as distinctive as a sweetgrass basket. Let’s unpack this, navigating its nuances like a journey through the marshy Lowcountry.
This guide breaks down everything you need to know about South Carolina’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 Carolina’s sales tax with confidence and ease.
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| Questions? Connect with TaxHero today for a free sales tax consultation about your business in South Carolina or any state! |
Delaware is a haven for both shoppers and business owners, thanks to its unique tax-friendly policies.
With no state or local sales tax in Delaware, residents and visitors can enjoy tax-free shopping on a wide range of items, from clothing to electronics.
This also makes the First State an attractive destination for businesses looking to maximize profits and consumers eager to save money.
This guide breaks down everything you need to know about Delaware, one of the five states that do not have a sales tax. By the end of this comprehensive guide, you’ll understand Delaware’s unique sales tax regulations with confidence and ease.
Vermont, known for its scenic Green Mountains and charming small towns, values simplicity, even in its tax system. Understanding what is sales tax in Vermont is as easy as enjoying a crisp autumn day or a locally made maple syrup.
This guide breaks down everything you need to know about Vermont’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Vermont’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Vermont.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Vermont include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2018, the threshold for economic nexus in Vermont is $100,000 in gross revenue or 200 transactions in the prior four calendar quarters.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Vermont.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Vermont.
Almost all goods are taxable in Vermont, including:
The goods that are exempt from sales tax are:
In Vermont, the majority of service-based transactions, such as professional services, advertising, and employment services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Vermont.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping and handling charges in the state of Vermont are taxable when the goods being delivered are taxable. Conversely, if the item is tax-exempt, the associated delivery charges are also exempt. For shipments containing taxable and tax-exempt items, sales tax applies only to the portion of the delivery cost attributable to the taxable items.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Vermont, the next important step is getting your Vermont Seller’s Permit, also known as a sales tax permit.
A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a seller’s permit. You can register for a Vermont sales tax permit online at the Vermont Department of Tax or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Vermont, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Vermont, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Vermont Sales Tax Exemption Certificate provided by Vermont after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Vermont Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Vermont is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Vermont Revenue Services for the most current information on Vermont’s participation in the Streamlined Sales Tax initiative.
In Vermont, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Vermont and sells to a customer in Burlington, VT, with a ZIP code of 05401. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Vermont is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Vermont-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in South Burlington, Vermont, where you have nexus, you’d apply South Burlington’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Vermont sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Vermont’s sales tax regulations.
In Vermont, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.
To file your sales tax return for Vermont, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Vermont does not offer a discount.
Currently, for 2024-2025, there are no planned sales tax holidays in Vermont.
Like in most states, sales tax is a big part of how Vermont generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Vermont:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Vermont or any state! |
In Hawaii, where lush landscapes and the spirit of aloha shape daily life, even the tax system operates uniquely. What many refer to as Hawaii Sales Tax is actually the General Excise Tax (GET)—a business privilege tax rather than a traditional sales tax.
Unlike sales tax, which is collected from consumers at checkout, GET is imposed directly on businesses for the right to conduct business in the state. Ecommerce businesses in Hawaii including those selling online or out-of-state businesses selling to Hawaii customers must comply with Hawaii’s GE Tax.
This guide covers everything ecommerce businesses need to know about Hawaii sales tax, officially known as GE Tax. From tax rates and exemptions to permit registration and filing requirements, we’ll break down the essentials so you can navigate compliance with confidence.
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| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Hawaii or any state! |
Home to tech giants and breathtaking national parks, Washington thrives on innovation and commerce. But to succeed here, businesses must also navigate sales tax in Washington, ensuring compliance and avoiding costly penalties.
This guide breaks down everything you need to know about Washington’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Washington’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Washington.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Washington include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Washington, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Effective March 14, 2019, the threshold for economic nexus in Washington is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Washington.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Washington.
Almost all goods are taxable in Washington, including:
The goods that are exempt from sales tax are:
In Washington, the majority of service-based transactions, such as advertising, janitorial, and storage services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Washington.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. Washington imposes sales and use tax on downloaded digital goods, digital products, codes, and automated services, including streaming, regardless of ownership rights or payment structure.
Shipping and handling charges in the state of Washington are taxable. Charges incurred after the buyer receives the goods and fees for delivering exempt items are not included.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Washington, the next important step is getting your Washington Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Washington Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit. However, additional fees may apply based on the endorsement type required for your Business License.
Renewal
In Washington, you have to renew your sales tax permit annually. It must be renewed annually for $5, with a renewal notice sent before expiration.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Washington, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
Reseller permits issued by the Department are typically valid for 48 months but may be limited to 24 months under certain conditions. The Department may deny or revoke permits due to misuse, tax liabilities, or incomplete applications. Misusing a reseller permit incurs penalties, and sellers must maintain records verifying permit validity.
You can fill out the form provided by Washington after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Washington Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Washington is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Washington Department of Revenue for the most current information on Washington’s participation in the Streamlined Sales Tax initiative.
In Washington, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs..
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Washington and sells to a customer in Seattle, WA, with a ZIP code of 98101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Washington is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Washington-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Lincoln, Washington, where you have nexus, you’d apply Lincoln’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Washington sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
In Washington, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.
To file your sales tax return for Washington, a few options are available:
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Washington does not offer a discount.
Currently, for 2024-2025, there are no planned sales tax holidays in Washington.
Like in most states, sales tax is a big part of how Washington generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Washington:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Washington or any state! |
