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! |
Nestled in the majestic Rocky Mountains, Colorado’s stunning natural beauty and business-friendly policies make it a premier destination for entrepreneurs. However, successfully launching and running an enterprise here requires grappling with the complexities of the state’s sales tax codes. For both existing and aspiring business owners, having a handle on sales tax in Colorado is crucial for smooth sailing.
This guide breaks down everything you need to know about Colorado’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 Colorado’s sales tax with confidence and ease.
It is important to understand that Colorado is a home-rule state. This means that many of its cities and counties have the authority to set their own sales tax rates and regulations independently of the state’s rules. As of January 1, 2024, Colorado has 66 home-rule cities and two home-rule counties (Denver County and Bloomfield County). As a result, businesses operating in multiple home-rule jurisdictions within the state may find it challenging to navigate these varied regulations. Moreover, when a business establishes either a physical or economic nexus, it is required to collect sales tax in Colorado.
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 Colorado 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 December 1, 2018, the threshold for economic nexus in Colorado is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Colorado.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Colorado.
Almost all goods are taxable in Colorado, including:
The goods that are exempt from sales tax are:
In Colorado, 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:
SaaS is not taxable in the state of Colorado.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable.
Shipping and handling charges in Colorado are not taxable as long as both are separately stated in the customer invoice. However, retailers must collect a $0.27 Retail Delivery Fee on all deliveries by motor vehicle that include at least one item of taxable tangible personal property. This fee applies to each sale and is in addition to any other state sales or use taxes.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Colorado, the next important step is getting your Colorado Seller’s Permit, also known as a sales tax permit. Home rule refers to the authority granted to local jurisdictions, like cities and counties, to enact and administer their own sales and use taxes independently of state tax laws.
Colorado simplified sales tax permit regulations for remote sellers. Previously, businesses without a physical presence had to obtain separate licenses in each of Colorado’s home-rule cities. From July 1, 2022, these businesses can register statewide, avoiding the need for multiple local licenses with full effect on July 1, 2023.
The registration process varies depending on the location of the business’s incorporation.
You can register for a Sales Tax License online through the Colorado Revenue Online or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
The registration fee for a Colorado sales tax permit varies based on the time of application:
Additionally, new accounts must include a $50 deposit with the application, refundable after the business has collected and remitted $50 in state sales taxes.
Renewal
In Colorado, you can renew your sales tax permit every two years through the Renewal Application for Sales Tax License form. Applicants must pay a $16 fee, which is prorated based on the issuance date. Wholesale licenses expire on December 31st of odd-numbered years (e.g., 2023, 2025, 2027) unless revoked sooner by the CO Department of Revenue.
A resale certificate or wholesale license 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 Colorado, 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.
Businesses that plan to purchase items for resale without paying sales tax should obtain a Colorado sales tax account/license by completing the CR 0100 form. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Colorado Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Colorado 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 Colorado Department of Revenue for the most current information on Colorado’s participation in the Streamlined Sales Tax initiative.
In Colorado, 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. Additionally, the tax rate and rules can vary significantly in home rule jurisdictions, where local governments set and administer their own sales and use taxes independently. Use TaxHero’s Colorado 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 sells to a customer in the home-rule city of Denver, CO, with a ZIP code of 80201. 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 a fixed-amount Retail Delivery Fee
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.
Colorado is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Colorado-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 Denver, CO, where you have nexus, you’d apply Denver’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 Colorado 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 Colorado sales tax regulations. Meanwhile, in self-collecting home rule cities, different filing requirements and guidelines may apply. For specific information on these jurisdictions, you may contact the respective local cities directly.
In Colorado, 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 Colorado, 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. Colorado’s timely filing discount allows filers to retain 4.00% of their sales tax due or up to $1,000 per filing period. However, businesses with sales tax collections over $1,000,000 are not eligible for the filing discount.
Currently, for 2025, there are no planned sales tax holidays in Colorado.
Like in most states, sales tax is a big part of how Colorado 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 Colorado:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Colorado 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! |
Positioned as a beacon of commerce and tourism in the Southwest, Arizona is not only renowned for its dramatic landscapes and cultural richness but also for its thriving business environment. However, navigating the intricacies of transaction privilege tax, also referred to as sales tax, in the Grand Canyon State requires an understanding of its particular rules and regulations.
This guide breaks down everything you need to know about Arizona’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 Arizona’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 Arizona.
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 Arizona include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Arizona, 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 2021, the threshold for economic nexus in Arizona is $100,000 in gross revenue in the previous or current calendar year’s sales.
The economic nexus law went into effect on October 1, 2019. This law allows Arizona to require out-of-state sellers to collect and remit sales tax if they meet the specified sales threshold.
Graduated Thresholds: In 2019, the threshold was $200,000. In 2020, it was revised to $150,000. From Jan 1, 2021 onward, the threshold has been set at $100,000.
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 Arizona.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Arizona.
Almost all goods are taxable in Arizona, including:
The goods that are exempt from sales tax are:
In Arizona, the majority of all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Arizona.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable.
Shipping and handling charges in the state of Arizona are not taxable. Shipping and handling charges are only exempt from sales tax when a customer’s total bill includes separate fees specifically for delivering items to them, regardless of delivery location, and these fees are clearly listed in the seller’s records.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Arizona, the next important step is getting your Arizona Transaction Privilege Tax License , also known as a sales tax permit.
You can register for a Transaction Privilege Tax License online through the Arizona 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 a $12.00 fee to register for a sales tax permit. Vendors need to get a special permit to sell things in each city they do business in. Different cities charge different fees for this permit, ranging from $2.00 to $50.00. If a vendor is from out of state but sells in Arizona, there are additional rules they need to know.
Renewal
In Arizona, you have to renew your sales tax 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 Arizona, 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 Arizona Form 5000A provided by Arizona if you have a sales tax permit in the state after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get an Arizona Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Arizona 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 Arizona, 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 Arizona Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Arizona and sells to a customer in Phoenix, AZ, with a ZIP code of 85003. 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.
Arizona is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for an Arizona-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 Illinois to a customer in Phoenix, Arizona, where you have nexus, you’d apply Phoenix’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 Arizona 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 Arizona’s sales tax regulations.
In Arizona, 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.
If your business has an annual Arizona sales tax liability of $1 million or more, you must make an estimated prepayment by June 20. This estimated payment should equal either half your actual sales tax for May or your total sales tax for the first 15 days of June. This prepayment will be credited against the total sales tax due when you file your June return in July.
Even if your prior year’s sales tax was under $100,000, you may still need to make a June estimated payment if you expect your total current year liability to reach $100,000 or more.
To file your sales tax return for Arizona, 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 Arizona, paying your sales tax on time earns you a 1% discount up to $10,000 annually. Additionally, filing online gives an extra 1.2% discount, capped at $12,000 a year. However, these discounts don’t apply to local TPT.
Currently, for 2025, there are no planned sales tax holidays in Arizona.
Like in most states, sales tax is a big part of how Arizona 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 Arizona:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Arizona 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! |
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! |
Ohio, a land of rolling hills and bustling cities, isn’t just about scenic beauty and vibrant urban life. There’s a key challenge for anyone diving into the business scene here: mastering Ohio’s sales tax landscape. With rules that vary as much as their landscapes, understanding these nuances is crucial for business success in the Buckeye State.
This guide breaks down everything you need to know about Ohio’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 Ohio’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 Ohio.
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 Ohio include:
To stay informed about the current criteria for establishing a physical sales tax nexus in [State], 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 August 1, 2019, the threshold for economic nexus in Ohio 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 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 offer are taxable in Ohio.
Almost all goods are taxable in Ohio, including
The goods that are exempt from sales tax are:
In Ohio, the majority of service-based transactions, such as professional services and advertising, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of Ohio.
Digital products (i.e., printed books, CDs, and DVDs, whether rented or owned) are also taxable.
Shipping and handling charges in the state of Ohio are 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 Ohio, the next important step is getting your Ohio Seller’s Permit, also known as a sales tax permit.
You can register for a Vendor’s License online through the Ohio Business Gateway 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
If you’re a seller in Ohio, you need an Ohio sales tax permit (form ST-1, also known as a vendor’s permit), which costs $25 and must be paid by ACH debit. But if you’re a “remote seller” (located outside of Ohio but need to collect Ohio sales tax due to economic sales tax nexus), you use form UT-1000, which is free.
Renewal
In Ohio, 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 Ohio, 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 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 Ohio Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Ohio is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Ohio Department of Taxation for the most current information on Ohio’s participation in the Streamlined Sales Tax initiative.
In Ohio, 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 Ohio Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Ohio and sells to a customer in Columbus, OH, with a ZIP code of 43215. 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.
Ohio is an origin-based state, meaning sales tax is determined based on the buyer’s location. That means for an Ohio-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Columbus, Ohio, where you have nexus, you’d apply Columbus’ 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 Ohio 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 Ohio’s sales tax regulations.
In Ohio, the due date falls on the 23rd day of the following month. For instance, sales tax collected in January is due by February 23rd 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 23rd deadline falls on a holiday or weekend, you’ll have until May 24th, 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.
When making a prepayment for taxes, it’s required that this payment be at least 75% of the estimated tax liability for that month. This rule ensures that taxpayers are meeting a significant portion of their anticipated tax obligations in advance.
To file your sales tax return for Ohio, 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.
The discount rate for sales tax returns filed is 0.75% of the sales tax liability reported on line 6 of the sales tax form (UST-1). This discount only applies if the Ohio Department of Taxation receives the UST-1 return and full payment on or before the due date.
Currently, for 2025, there are no planned sales tax holidays in Ohio.
Like in most states, sales tax is a big part of how Ohio 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 Ohio:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Ohio or any state! |
South Dakota, home to Mount Rushmore and vast open prairies, keeps things simple—including its tax system. Understanding what sales tax is in South Dakota is as straightforward as the state’s wide skies and welcoming communities.
This guide breaks down everything you need to know about South Dakota’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle South Dakota’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in South Dakota.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in South Dakota include:
To stay informed about the current criteria for establishing a physical sales tax nexus in South Dakota, take a look at the official regulations available right here!
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2023, the economic nexus threshold in South Dakota is more than $100,000 in gross sales in the previous or current calendar year. The 200-transaction threshold is no longer applicable.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in South Dakota.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in South Dakota.
Almost all goods are taxable in South Dakota, including:
The goods that are exempt from sales tax are:
In South Dakota, the majority of service-based transactions, such as information services and employment services, are subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is taxable in the state of South Dakota.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping and handling charges in the state of South Dakota are taxable. If a shipment has both taxable and exempt items, only the delivery cost for taxable items is taxed. Freight charges paid directly to the carrier by the buyer are not taxed.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in South Dakota, the next important step is getting your South Dakota Seller’s Permit, also known as a sales tax permit.
You can register for a Louisiana Direct Marketer Permit online through the South Dakota Tax Application or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In South Dakota, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In South Dakota, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the South Dakota Sales Tax Exemption Certificate provided by South Dakota after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. South Dakota is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the South Dakota Revenue Services for the most current information on South Dakota’s participation in the Streamlined Sales Tax initiative.
In South Dakota, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in South Dakota and sells to a customer in Sioux Falls, SD, with a ZIP code of 57104. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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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.
South Dakota is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a South Dakota-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Mississippi to a customer in Aberdeen, South Dakota, where you have nexus, you’d apply Aberdeen’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your South Dakota sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with South Dakota’s sales tax regulations.
In South Dakota, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for South Dakota, 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 South Dakota, electronic filers can receive a 1.5% discount on the gross tax due, capped at $70 per return period.
However, under South Dakota’s House Bill 1037, the discount will temporarily be unavailable starting July 1, 2025, until July 30, 2028.
Currently, for 2024-2025, there are no planned sales tax holidays in South Dakota.
Like in most states, sales tax is a big part of how South Dakota generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in South Dakota:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in South Dakota or any state! |
Tennessee, often celebrated as the Volunteer State for its rich history of civic involvement, stands as a musical heritage and economic vitality. Known for its vibrant culture, this state offers a unique landscape for businesses. However, mastering the nuances of Tennessee sales tax exemptions is crucial for entrepreneurs looking to thrive in Tennessee’s distinct business milieu.
This guide breaks down everything you need to know about Tennessee’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Tennessee’s sales tax with confidence and ease.
When a business creates either a physical or economic nexus, it is required to collect sales tax in Tennessee.
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Tennessee include:
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Tennessee enacted a new law that reduces the threshold for sales tax collection from $500,000 to $100,000, effective October 1, 2020.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Tennessee.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Tennessee.
Almost all goods are taxable in Tennessee, including:
Tennesse sales tax exemptions include the following:
In Tennessee, the majority of service-based transactions, such as professional services and advertising, are not subject to sales tax.
However, there are specific situations where certain services are taxable:
SaaS is taxable in the state of Tennessee.
Digital products (i.e., downloaded video games, digital audio works, digital audio-visual works, digital books, and streaming videos) are also taxable. However, products such as digital newspapers or magazines, digital photographs or images, digital artwork, and digital greeting cards are not taxable.
Shipping and handling charges in the state of Tennessee are taxable if the item is taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Tennessee, the next important step is getting your Tennessee Seller’s Permit, also known as a sales tax permit.
You can register for a Sales Tax Permit online through the Tennessee Taxpayer Access Point (TNTAP) or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Tennessee, you don’t have to renew your sales tax permit.
A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Tennessee, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously or access the resale certificate provided by the Tennessee Department of Revenue after you receive your sales tax permit at TNTAP. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Tennessee Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Tennessee has been a party to this program since October 1, 2005, meaning it follows the uniform rules and definitions established by SST.
Check with the Tennessee Department of Revenue for the most current information on Tennessee’s participation in the Streamlined Sales Tax initiative.
In Tennessee, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Tennessee Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Tennessee and sells to a customer in Nashville, TN, with a ZIP code of 37013. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
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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.
Tennessee is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Tennessee-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from New York to a customer in Nashville, Tennessee, where you have nexus, you’d apply Nashville’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
The next step after collection is filing and remitting your Tennessee sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually. Taxpayers with an average monthly sales and use tax liability of $1,000 or less for 12 consecutive months are authorized to file either monthly or quarterly.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Tennessee sales tax regulations.
In Tennessee, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 21st for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
To file your sales tax return for Tennessee, 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, Tennessee does not offer a discount.
Currently, for 2025, the planned sales tax holiday in Tennessee is:
Like in most states, sales tax is a big part of how Tennessee generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Tennessee:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Tennessee or any state! |
Georgia, known for its beautiful landscapes and rich history, is also a hub for trade and tourism in the Southeast. Beyond its natural beauty, the state has a growing business scene. But when it comes to handling sales tax in Georgia, it’s important to know the rules and regulations that make the process unique.
This guide breaks down everything you need to know about the Georgia’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 Georgia’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 Georgia.
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 Georgia 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 January 1, 2020, the threshold for economic nexus in Georgia is $100,000 in gross revenue or 200 transactions 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 governing laws for economic sales tax nexus requirements in Georgia.
Knowing whether the goods you’re selling or services you’re offering are taxable in Georgia is one of the first things you need to know.
Almost all goods are taxable in Georgia, including:
The goods that are exempt from sales tax are:
In Georgia, the majority of service-based transactions, such as medical services, project management, and engineering are not subject to sales tax. However, there are specific situations where certain services are deemed taxable.
However, there are specific situations where certain services are taxable. For instance, taxable services are:
SaaS is not taxable in the state of Georgia.
Digital products (i.e., ebooks, downloadable video content, mobile apps) will remain exempt from sales tax until the end of 2023. However, following the signing of Georgia Senate Bill 56 on May 2, 2023, digital products, goods, services, and downloaded codes within Georgia will be subject to Georgia sales and use tax starting from January 1, 2024.
Shipping and handling expenses are not taxable in the state of Georgia if the item you buy is tax-exempt. But if the item is taxable, the shipping can be fully, partially, or not taxable.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Georgia, the next important step is getting your Georgia Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Georgia Tax Center 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 Georgia, you don’t have to renew your sales tax permit. It remains in effect as long as the company remains operational without any changes in ownership or structure.
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 Georgia, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the ST-5 tax exemption certificate form provided by Georgia if you have a sales tax permit in the state. 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 Georgia Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Georgia is a party to this program, meaning it follows the uniform rules and definitions established by SST.
Check with the Georgia Department of Tax/Revenue for the most current information on Georgia’s participation in the Streamlined Sales Tax initiative.
In Georgia, 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 Georgia Sales Tax Calculator to compute for sales tax.
Here’s an example: Suppose an out-of-state seller satisfies the economic nexus criteria in Georgia and sells to a customer in Atlanta, GA, with a ZIP code of 30303. 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.
Georgia is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Georgia-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 Atlanta, Georgia, where you have nexus, you’d apply Atlanta’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 Georgia sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually. For the first 6 months after registering for sales tax, 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 Georgia Department of Revenue 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 Georgia’s sales tax regulations.
In Georgia, 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 December, and the January 20th deadline falls on a holiday or weekend, you’ll have until January 22nd, 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.
If a dealer paid over $60,000 in taxes last year (not counting local sales taxes), they need to make a prepayment for the upcoming year. This prepayment is half of their average monthly tax from the previous year, adjusted if the tax rate changes.
To file your sales tax return for Georgia, 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.
Georgia provides a 3% discount on the initial $3,000 of tax owed and a 0.5% discount on any amount beyond that.
Currently, for 2025, there are no planned sales tax holidays in Georgia.
Like in most states, sales tax is a big part of how Georgia 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 Georgia:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Georgia or any state! |
Serving as a cornerstone of industry and travel in the Southwest, the Lone Star State stands out for its sprawling landscapes, rich cultural heritage, and vibrant economic scene. Yet, mastering the nuances of sales tax in Texas demands a comprehensive grasp of its statutes and guidelines.
This guide breaks down everything you need to know about Texas’ 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 Texas’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 Texas.
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 Texas include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Texas, 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 October 1, 2019, the threshold for economic nexus in Texas is $500,000 in gross revenue in the prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing economic sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Texas.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Texas.
Almost all goods are taxable in Texas, including:
The goods that are exempt from sales tax are:
In Texas, the majority of service-based transactions, such as professional services, advertising, and cleaning services, are subject to sales tax.
However, there are specific situations where certain services are tax-exempt. For instance, non-taxable services are:
SaaS is taxable as they are considered part of a data processing service.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable.
Shipping and handling charges in the state of Texas are 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 Texas, the next important step is getting your Texas Seller’s Permit, also known as a sales tax permit.
You can register for a seller’s permit online through the Texas Comptroller of Public Accounts 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 Texas, you don’t have to renew your sales tax permit. Texas sales tax permits renew automatically every year, so business owners don’t need to do it themselves. But, the permit only stays valid if you’re actively selling as a business.
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 Texas, 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 01-339 Texas Sales and Use Tax Resale Certificate provided by Texas 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 Texas Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Texas 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 Texas, 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 Texas 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 Houston, TX, with a ZIP code of 77002. 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.
Texas is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Texas-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 Illinois to a customer in Houston, Texas, where you have nexus, you’d apply Houston’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 Texas 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 Texas’ sales tax regulations.
In Texas, 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/quarterly prepayments ahead of their monthly/quarterly return filings. The specifics of these prepayments depend on the business’s prior year’s tax liabilities.
If you pay your taxes monthly or quarterly, you can get a 1.25% discount for paying early. This is on top of the 0.5% discount you get for filing your taxes and payments on time.
To file your sales tax return for Texas, 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 Texas, permitted sales taxpayers are eligible for a 0.5% discount on the tax amount they report and pay on time.
Currently, for 2025, the planned sales tax holidays in Texas are:
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Like in most states, sales tax is a big part of how Texas 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 Texas:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Texas or any state! |
Michigan, known for its breathtaking Great Lakes and diverse landscapes, offers abundant business prospects. However, unraveling the complexities of Michigan sales tax might prove more challenging than charting a course across its expansive lakes.
This guide breaks down everything you need to know about Michigan’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 Michigan’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 Michigan.
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 Michigan 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 Michigan is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales or prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Michigan.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Michigan.
Almost all goods are taxable in Michigan, including:
The goods that are exempt from sales tax are:
In Michigan, the majority of service-based transactions, such as professional services and advertising, are not subject to sales tax.
However, there are specific situations where certain services are taxable. If a business offers repair, enhancement, or modification services for items owned by others, and also sells tangible products, it needs to get a sales tax license. Any item provided to the customer as part of the service or repair is seen as a retail sale and, therefore, is subject to sales tax.
SaaS is not taxable in the state of Michigan.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping and handling charges in the state of Michigan are not taxable if the seller:
Meanwhile, shipping and handling charges may be subject to sales and use taxes in the state of Michigan if:
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Michigan, the next important step is getting your Michigan Seller’s Permit, also known as a sales tax permit.
You can register for a Sales Tax License online through the Michigan Treasury Online or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Michigan, you have to renew your sales tax 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 Michigan, 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 3372 – Michigan Sales and Use Tax Certificate of Exemption provided by the State, or 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 Michigan Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Michigan has been a party to this program since October 1, 2005, meaning you may use your SST in this state.
Check with the Department of Treasury for the most current information on Michigan’s participation in the Streamlined Sales Tax initiative.
In Michigan, the sales tax is made up of only the statewide sales tax. To figure out the total sales tax for your calculation, you’ll need to determine where your transaction occurs. Use TaxHero’s Michigan Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Michigan and sells to a customer in Detroit, Michigan, with a ZIP code of 48226. 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.
Michigan is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Michigan-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 Detroit, Michigan, where you have nexus, you’d apply Detroit’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 Michigan 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 Michigan’s sales tax regulations.
In Michigan, the due date falls on the 20th day of the following month for monthly and quarterly filers. 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 January, and the February 20th deadline falls on a holiday or weekend, you’ll have until February 21st, the following business day, to submit.
If you’re an annual filer, the due date for remittance falls on February 28 (or February 29 if a leap year) following the reported tax year.
Taxpayers whose average sales or use tax annually is an average of $720,000 are required to remit on an accelerated schedule of about 75% of the total tax liability on or before the 20th day of the current month. For more detailed information regarding the accelerated EFT filing requirements, check out the Michigan Department of Treasury.
To file your sales tax return for Michigan, 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.
Michigan’s timely filing discount amount is determined using specific formulas based on the tax due. The maximum discounts available range from $15,000 to $20,000, depending on the filing period.
Currently, for 2025, there are no planned sales tax holidays in Michigan.
Like in most states, sales tax is a big part of how Michigan 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 Michigan:
Nevada, often celebrated for its lively cities and vast deserts, stands as a distinct hub for commerce and innovation. And if you plan on establishing your business in the Silver State, understanding sales tax in Nevada is crucial for navigating its unique business landscape.
This guide breaks down everything you need to know about Nevada’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 Nevada’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 Nevada.
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 Nevada 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 Nevada is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for sales tax nexus requirements in Nevada.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Nevada.
Almost all goods are taxable in Nevada, including:
The goods that are exempt from sales tax are:
In Nevada, the majority of service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax if separately stated on an invoice.
When a service also includes some tangible goods or property, the service portion can still be exempt from sales tax if two conditions are met:
If the service fees are broken out on their own line, only those goods/property charges would be taxable. The service itself would qualify for sales tax exemption.
Sales tax may apply to the full combined amount if the invoice lumps everything into one blended total without separating the service cost. So, the key is itemizing the service fees independently to exclude them from sales tax.
However, there are specific situations where certain services are taxable. For instance:
SaaS is not taxable in the state of Nevada.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping and handling charges in the state of Nevada are not taxable when you buy a physical item, and the shipping cost is listed separately on the bill. But, if there are extra services like packing or handling, you still have to pay tax on those, even if they’re listed separately. Also, any shipping costs that happened before you bought the item (like getting it to the store) are taxable. These costs might be added to the item’s price or shown separately on your bill.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Nevada, the next important step is getting your Nevada Seller’s Permit, also known as a sales tax permit.
You can register for a Certificate of Authority online through the Nevada Tax Center 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 $15 fee per location to register for a sales tax permit.
Renewal
In Nevada, you don’t have to renew your sales tax permit. However, if you open a business in a new location, you must apply for another 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 Nevada, 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 Tax-C006 Nevada Resale Certificate form provided by the Nevada Department of Taxation after you receive your sales tax permit.
You can also fill out theStreamlined 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 Nevada Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Nevada has been a party to this program since April 1, 2008, meaning it follows the uniform rules and definitions established by SST.
Check with the Nevada Department of Taxation for the most current information on Nevada’s participation in the Streamlined Sales Tax initiative.
In Nevada, 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 Nevada Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Las Vegas, Nevada, with a ZIP code of 89032. 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.
Nevada is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Nevada-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Las Vegas, Nevada, where you have nexus, you’d apply Las Vegas’ 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 Nevada sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, 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 Nevada’s sales tax regulations.
In Nevada, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
To file your sales tax return for Nevada, 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. Nevada’s timely filing discount is an uncapped 0.25% discount of the total sales tax due.
Currently, for 2025, here is the planned sales tax holiday in Nevada:
Like in most states, sales tax is a big part of how Nevada 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 Nevada:
Nestled in the heart of the East Coast, Virginia, also known as the Old Dominion, stands as a unique hub where history, culture, and business intersect. Understanding the particular rules and regulations of sales and use tax in Virginia is key to navigating its intricate business landscape.
This guide breaks down everything you need to know about Old Dominion 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 Virginia’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 Virginia.
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 Virginia 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 Virginia is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales or prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Virginia.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Virginia.
Almost all goods are taxable in Virginia, including:
The goods that are exempt from sales tax are:
In Virginia, the majority of service-based transactions, such as professional services, clothing alterations, and repair services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. If a business offers services that include creating or manufacturing a tangible personal product, it is seen as a retail sale and, therefore, is subject to sales tax.
SaaS is not taxable in the state of Virginia.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
Shipping charges in the state of Virginia are not taxable. However, the handling charge is taxable as it’s not specifically excluded from the definition of “sales price.”
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Virginia, the next important step is getting your Virginia Seller’s Permit, also known as a sales tax permit.
You can register for a Retail Sales and Use Tax Permit online through the Virginia Department of Taxation 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 Virginia, 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 Virginia, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out Form ST-10 – Commonwealth of Virginia Sales and Use Tax Certificate of Exemption 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 Virginia Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Virginia 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 Virginia Department of Taxation for the most current information on Virginia’s participation in the Streamlined Sales Tax initiative.
In Virginia, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Virginia Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Virginia and sells to a customer in Richmond, VA, with a ZIP code of 23237. 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.
Virginia is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Virginia-based seller, sales tax is generally based on the location of the seller when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from New York to a customer in Richmond, Virginia, where you have nexus, you’d apply Richmond’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 Virginia sales tax returns. Filing and remittance can vary in frequency, typically monthly or quarterly. If you have low sales volume and sales tax liability, you can reach out to the Virginia Department of Taxation to request a quarterly 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 Virginia sales tax regulations.
In Virginia, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of January, and the February 20th deadline falls on a holiday or weekend, you’ll have until February 21st, the following business day, to submit.
To file your sales tax return for Virginia, 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.
Virginia’s timely filing discount is in the form of a deduction, with the amount determined using specific formulas based on the sales tax due. The maximum discounts available range from 0.80% to 1.60%, depending on the total sales tax due.
Currently, for 2025, the planned sales tax holidays in Virginia are on August 1-3, 2025:
Like in most states, sales tax is a big part of how Virginia generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial 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 Virginia:
If you’re doing business in Pennsylvania, home to the iconic Liberty Bell and beautiful Amish landscapes, there’s a lot to enjoy. But getting a handle on the state’s sales tax? It’s not always easy.
This guide breaks down everything you need to know about Pennsylvania’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 Pennsylvania’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 Pennsylvania.
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 Pennsylvania include:
To stay informed about the current criteria for establishing a physical sales tax nexus in Pennsylvania, 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 Pennsylvania is $100,000 in gross revenue on the previous calendar year.
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 Pennsylvania Department of Revenue.
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Pennsylvania.
Almost all goods are taxable in Pennsylvania, including:
The goods that are exempt from sales tax are:
In Pennsylvania, the majority of service-based transactions, such as professional services, advertising, and laundry and dry 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 Pennsylvania. If you’re using computer software over the internet (often called cloud computing or SaaS) and you’re in Pennsylvania, you’ll have to pay sales tax. This is because Pennsylvania considers software as a physical thing, even if you’re just accessing it online. So, if you’re a company offering such software, you’ll need to charge sales tax to users in Pennsylvania.
Digital products (i.e., ebooks, downloadable video content, mobile apps, canned software) are also taxable.
Shipping and handling charges in the state of Pennsylvania are taxable. But if the item you’re purchasing is tax-exempt, you may not be required to pay sales tax.
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Pennsylvania, the next important step is getting your Pennsylvania Seller’s Permit, also known as a sales tax permit.
You can register for a Sales, Use, and Hotel Occupancy Retail Tax License online through the myPATH Pennsylvania Tax Hub 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 Pennsylvania, you have to renew your sales tax permit every 5 years.
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 Pennsylvania, 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 provided by the Pennsylvania Department of Revenue or visit the Pennsylvania Department of Revenue 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 Pennsylvania Resale Certificate for your Business
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, Pennsylvania 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 Pennsylvania Department of Revenue for the most current information on Pennsylvania’s participation in the Streamlined Sales Tax initiative.
In Pennsylvania, 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 Pennsylvania Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Pittsburgh, PA, with a ZIP code of 15219. 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.
Pennsylvania is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Pennsylvania-based seller, sales tax is generally based on the seller’s location 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 Philadelphia, Pennsylvania, where you have nexus, you’d apply Philadephia’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 Pennsylvania sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually based on the volume of sales.
Here is the sales tax filing frequency for Pennsylvania:
Please note that these thresholds are subject to change, so it’s essential to verify the current requirements with the Pennsylvania Department of Revenue. Additionally, your specific situation, including the nature of your business and sales volume, may affect your filing frequency.
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 Pennsylvania’s sales tax regulations.
In Pennsylvania, the due date falls on the 20th day of the 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.
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 1.
Businesses with a notable sales tax liability may need to make monthly prepayments ahead of their monthly return filings. The specifics of these so-called Accelerated Sales Tax (AST) Prepayments depend on the business’s prior year’s tax liabilities.
AST Level 1 (Tax Liability between $25,000 and $100,000 from the previous year’s third quarter): Businesses can choose between two prepayment calculation methods:
AST Level 2 (Tax Liability of $100,000 or more from the previous year’s third quarter): Businesses must remit 50% of the tax liability from the same month of the previous year. No alternate calculation method is available for this level.
To file your sales tax return for Pennsylvania, 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.
Starting with returns ending after August 1, 2016, the discount vendors receive for on-time filings and payments has been capped. Monthly filers can get the lower of $25 or 1% of the tax they collect. Quarterly filers can get up to $75 or 1% of their collected tax. And for those filing every six months, the limit is $150 or 1% of the tax collected. This caps the annual discount at $300 for on-time submissions.
Currently, for 2025, there are no planned sales tax holidays in Pennsylvania.
Like in most states, sales tax is a big part of how Pennsylvania 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 Pennsylvania:
| Questions? Connect with TaxHero today for a free sales tax consultation about your business in Pennsylvania or any state! |
