Ultimate Guide to Oregon Sales Tax | TaxHero
Favored for its diverse landscapes and beautiful beachside towns, Oregon is a place for cozy adventures. Apart from its inviting nature, the distinctive rules for sales tax in Oregon will leave you curious about how it works.
This guide breaks down everything you need to know about Oregon, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand Oregon’s unique tax regulations with confidence and ease.

Is There Sales Tax in Oregon?

Throughout its tariff history, Oregon has never levied a sales tax. Currently, the state does not have plans to change its tax system anytime soon. For now, Ashland City is the only jurisdiction in the state that imposes a sales tax on food and beverages.
This leads to the question: Why is there no sales tax in Oregon?
The Beaver State aims to promote a business-friendly economy, finding the idea of sales tax nothing but a detrimental burden. After all, low-income individuals or small businesses are most likely to be affected negatively if Oregon had a sales tax.
Oregon also attracts more consumers to the state by charging no sales tax, creating more revenue and opportunities for its local market. This is part of Oregon’s economic strategy to keep its trade flourishing.
Attempts have been made to change this system. However, the Oregon legislature and its voters continuously oppose the idea of imposing a sales tax. With this setup, how does the state manage to fund its projects?
The main source of revenue for Oregon comes from its personal income tax. From 2025 to 2027, Oregon estimates that its earnings from the said tariff could cover 86% of the state’s General Fund Revenue.
To ensure the state collects its revenue from all eligible individuals or corporations, Oregon has introduced a rule called “Substantial Nexus.”

What is a Substantial Nexus?

Before diving into the other taxes in Oregon, every business owner must be aware of the state’s economic laws. In most states, a business is determined liable for sales tax when it creates a sales tax nexus.
Since Oregon has no sales tax, it only has a substantial nexus instead. With this regulation, the Beaver State obtains the right to levy taxes on qualified individuals or corporations. This applies whether you are an out-of-state seller or not.
Establishing an Oregon substantial nexus means you meet the following qualifications:
  1. Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in the state of Oregon.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating in Oregon on your behalf or under your business name.
  4. Having a sufficient economic presence, meaning you regularly conduct business and produce income within the state of Oregon.
To stay informed about the current criteria for establishing a substantial nexus in Oregon, take a look at the official regulations available right here!

Beyond Oregon Sales Tax: Other Taxes You Should Know

Now that you’ve learned how a substantial nexus works, it’s time to find out which taxes in Oregon can be applied to you. Practically, other taxes in Oregon can still affect your business’s operations.
Aside from personal income tax, here are the different Oregon taxes you should know. Each one follows unique measures; thus, only specific businesses can be directly affected by these tariffs.

Vehicle Taxes 

Though Oregon has no general sales tax, its closest alternative would be its Vehicle Taxes. On January 1, 2018, two types of Vehicle Taxes were imposed.
To easily differentiate between the two, see Oregon’s official diagram for guidance.

Vehicle Privilege Tax

Oregon imposes a 0.005% Vehicle Privilege Tax on the sales of every taxable vehicle within the state. A taxable motor vehicle must meet all of the following conditions:

Vehicle Use Tax

If you are an out-of-state vehicle merchant, collecting the 0.005% Vehicle Tax is optional when selling to customers in Oregon. After all, some businesses offer to handle the tax as part of their service or simply out of consideration for their buyer.
If you choose to collect the tax, it must be labelled as “Oregon Vehicle Use Tax” in the receipt. This would also mean you will have to file and remit the vehicle use tax on behalf of your Oregon customers.
However, once you create a substantial nexus in Oregon, you will be considered to have a physical presence within the state. When this occurs, collecting the Vehicle Use Tax is no longer optional but rather a legal obligation you must comply with.
Note that filing and remitting vehicle taxes in Oregon follows a specific process. It is different from other general taxes within the state. To simplify your operations, you can let TaxHero handle the procedure for you.

Business Taxes

Oregon’s corporate taxes are its 2nd largest source of revenue. These business taxes are classified into 2 types: The rate for corporate excise or income tax starts at 6.60% for businesses with a taxable income worth $1,000,000 or less. This rate increases to 7.60% if the total net revenue exceeds $1 million. For a summary of Oregon’s corporate excise or income taxes, access the state’s official guidelines here.

Corporate Activity Tax (CAT)

On May 16, 2019, Oregon approved House Bill 3427—also known as the Student Success Act. Under this law, a 0.57% corporate activity tax (CAT) is imposed on all businesses earning more than $1,000,000 in total income.
The Corporate Activity Tax is computed as $250 plus 0.57% of the business’s commercial activity exceeding the $1 million threshold. Moreover, companies are allowed to deduct about 35% of the Cost-of-Goods Sold (COGS) or the cost of employee labor.
If you are a remote seller, know that Corporate Activity Tax also follows the standard guidelines of Oregon’s substantial nexus. Thus, you can still be liable for this tariff if you have a substantial nexus in the state. Aside from these factors, here are more details about the Corporate Activity Tax in Oregon: Have more questions about Corporate Activity Tax in Oregon? View the state’s list of FAQS here.

Local Sales Tax

As previously mentioned, there is only 1 place in Oregon that imposes a local sales tax—that would be Ashland City, located in Jackson County.
Since 1993, the residents of Ashland have approved the imposition of the Food and Beverage Tax (F&B)The rate is set at 5.00% and is levied on all sales of prepared food and beverages (excluding alcoholic drinks) in restaurants.
The Food and Beverage Tax is also applicable to: Moreover, Ashland also imposes a 10.00% Transient Lodging Tax (TLT). If you are planning to sell food or start a lodging business in this city, it’s good to be aware of these specific local taxes in Oregon.

Oregon and Remote Sellers

Though Oregon has no general sales tax, remote sellers from Oregon may still be liable for sales and use tax obligations in other states. This happens when the remote seller establishes a physical or an economic nexus in another state that has a sales tax.

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax.
The primary factors that determine a physical nexus in other states are identical to Oregon’s substantial nexus, with only a few additions:
  1. Affiliate Nexus: You could trigger a physical nexus if you have affiliates in a state. This applies whether they operate online or in-person, and have collectively sold a total amount of sales or delivered transactions that may meet a state’s nexus threshold.
  2. Presence at Trade Shows: In some states, such as Wyoming or Hawaii, for example, presence at trade shows and making a specific amount of sales during such events can also trigger a physical nexus.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
In general, the thresholds in most states are set at: However, this is only a common standard. Other states may have different amounts set for their economic nexus thresholds. For example, California has a higher requirement of $500,000 in total sales in the previous or current calendar year.
Once you meet these thresholds in other states, Oregon remote sellers can still have the responsibility of collecting and remitting sales tax.
In case you’re an Oregon business purchasing goods for resale in other states, you can also claim a resale sales tax exemption. For that, you may need to learn how to use resale certificates in taxing states.
Need help? Read our blog: Understanding Resale Exemptions for Your Business in Oregon
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. Connect with TaxHero

Business Compliance Obligations in Oregon

Oregon does not have a general business license or a seller’s permit, unlike other states with sales taxes. However, local municipalities in Oregon may require a business license or permit to stay compliant with the state’s regulations.
Depending on your business, your obligations may also vary. In that case, let us summarize everything you might need to do to set up your business in Oregon. For additional directions on starting a business in Oregon, visit the state’s official guide here.
Please be advised that different licenses and taxes also involve different registration steps, requirements, and collection processes. To simplify your experience, you can let experts at TaxHero take care of the complicated work.

Conclusion

Despite having no sales tax, understanding relevant tax obligations in Oregon is always crucial to keep your business running smoothly. Remote sellers from Oregon could also face the burden of handling sales tax responsibilities in other states. Failure to comply may lead to penalties that could harm your business.
To ensure your business stays tax compliant even in a no-sales-tax state, you can make things easier by consulting tax professionals like TaxHero.
Schedule a call with our CEO, who will personally walk you through the intricacies of sales tax compliance in every state.
Ultimate Guide to Wisconsin Sales Tax | TaxHero
Wisconsin’s blend of vibrant cities, picturesque farmland, and thriving businesses makes it a unique place to live and work. But whether you’re making a purchase or running a business, knowing how sales tax in Wisconsin applies can help you navigate costs and avoid unexpected fees.
This guide breaks down everything you need to know about Wisconsin’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Wisconsin’s sales tax with confidence and ease.
 

Sales Tax Nexus in Wisconsin

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

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Wisconsin include:  
  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus: A retailer has a nexus in Wisconsin if a related affiliate helps advertise, promote, or facilitate sales or provides services like handling returns or customer complaints. Nexus also applies if the retailer operates a business location in Wisconsin, either permanently or temporarily, through a subsidiary.
  5. Presence at Trade Show: Participation in trade shows where sales are made can establish a nexus. If sales exceed $1,000 within a 12-month period, you may be required to collect and remit Wisconsin sales tax.
To stay informed about the current criteria for establishing a physical sales tax nexus in Wisconsin, take a look at the official regulations available right here!

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning February 20, 2021, the threshold for economic nexus in Wisconsin is $100,000 in gross revenue in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Wisconsin.
Connect with TaxHero
 

Wisconsin Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Wisconsin.

Tangible Products

Almost all goods are taxable in Wisconsin, including: The goods that are exempt from sales tax are:  

Services

In Wisconsin, the majority of service-based transactions, such as advertising, employment services, and transportation, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:  

Software as a Service (SaaS)/Digital Products

SaaS is generally not taxable in Wisconsin because it does not involve the transfer of tangible personal property or prewritten software; instead, it’s considered a service, which is typically exempt unless specified otherwise.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable. Sales tax applies to the sale, storage, use, or other consumption of specified digital goods, additional digital goods, and digital codes.
 

Shipping/Handling

Shipping and handling charges in the state of Wisconsin are taxable. Delivery charges for direct mail are not subject to sales tax. If a shipment contains both taxable and exempt items, the seller must allocate the delivery charge based on sales price or weight and apply tax only to the portion related to taxable items.
 

Sales Tax Permits and Licenses in Wisconsin

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

Seller’s Permit

You can register for a seller’s permit online through the State of Wisconsin Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to: Registration fee
There is a $20 Business Tax Registration (BTR) fee to register for a sales tax permit. This registration fee is valid for two years.
Renewal
In Wisconsin, you have to renew your sales tax permit every 2 years. You are also required to pay a $10 BTR renewal fee.
 

Resale Certificate

A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Wisconsin, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Form S-211 provided by Wisconsin after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
 

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Wisconsin is a party to this program, meaning it follows the uniform rules and definitions established by SST but has its own sales tax regulations.
Check with the Wisconsin Department of Revenue for the most current information on Wisconsin’s participation in the Streamlined Sales Tax initiative.
 

Calculating and Collecting Sales Tax in Wisconsin

Sales Tax Computation

In Wisconsin, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Wisconsin and sells to a customer in Milwaukee, WI, with a ZIP code of 53202. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA RATE
State: Wisconsin
5.00%
County: Milwaukee County
0.90%
District: Fourth District
0.00%
City: Milwaukee
2.00%
Combined Sales Tax Rate =
7.90%
 

Origin-based vs. Destination-Based

When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Wisconsin is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Wisconsin-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Alabama to a customer in Madison, Wisconsin, where you have nexus, you’d apply Madison’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
 

Filing and Remitting Sales Tax Returns in Wisconsin

The next step after collection is filing and remitting your Wisconsin sales tax returns. Filing and remittance can vary in frequency, typically monthly and annually. It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Wisconsin’s sales tax regulations.
 

Due Dates

In Wisconsin, the due date falls on the last day of the following month or the 20th of the following month for early monthly filers. For instance, sales tax collected in February is due by March 31 for standard monthly filers, while early monthly filers must submit by March 20.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1, the following business day, to submit.
 

Filing Sales Tax Returns

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

Timely Filing Discount

Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Wisconsin, a retailer’s discount is allowed on timely reported sales tax if it’s paid by the due date or within an approved extension. Mailed returns are considered timely if they meet postage, postmark, and delivery requirements.
However, the discount is not available for delinquent payments, additional taxes owed after the due date, use tax, or returns filed by compensated certified service providers.
 

Sales Tax Holiday

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

Sales Tax Penalties in Wisconsin

Like in most states, sales tax is a big part of how Wisconsin generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Wisconsin:  
Questions? Connect with TaxHero today for a free sales tax consultation about your business in Wisconsin or any state!

Ultimate Guide to Utah Sales Tax | TaxHero

Utah, often referred to as the Beehive State, is a confluence of pioneering spirit and contemporary commerce. Grasping the specific rules and nuances of sales tax in Utah is crucial for maneuvering its complex business terrain.

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

 

Sales Tax Nexus in Utah

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require collecting and paying sales tax. The factors that determine a physical nexus in Utah include:

 
  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business. 
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Affiliate Nexus: You can establish a physical nexus if your affiliates, whether online or in-person, are connected to a Utah-based seller and sell similar products with similar names. Nexus can also be triggered if the Utah-based seller promotes the out-of-state seller’s sales to Utah buyers, or if either the out-of-state or Utah-based seller owns more than 10% of the other, or if the affiliate wholly owns the seller, it can establish an affiliate nexus.
  4. Regularly delivering property in Utah other than by a common carrier or U.S. mail or leasing or servicing property located in Utah.
  5. Regularly Soliciting Orders: If you often ask for business in Utah, it’s like setting up shop there. But if all you’re doing is online ads, sending emails and mailers, or making phone calls—that doesn’t count. You’re free from these specific tax rules if you’re just spreading the word from afar.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning July 1, 2025, the threshold for economic nexus in Utah is $100,000 in gross revenue in the previous or current calendar year’s sales.

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

Connect with TaxHero

 

Utah Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Utah.

Tangible Products

Almost all goods are taxable in Utah, including:

The goods that are exempt from sales tax are:

 

Services

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

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

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

 

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

SaaS is taxable in the state of Utah.

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

 

Shipping/Handling

Shipping and handling charges in the state of Utah are taxable. If the shipping and handling charge is separately stated on the invoice to the customer, the delivery charge is not subject to sales or use tax.

 

Sales Tax Permits and Licenses in Utah

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

 

Seller’s Permit

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

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

Registration fee

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

Renewal

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

 

Resale Certificate

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

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

You can fill out the TC-21 Exemption Certificate provided by the Utah State Tax Commission after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

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

 

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Utah has been a party to this program since October 1, 2012, meaning it follows the uniform rules and definitions established by SST.

Check with the Utah State Tax Commission for the most current information on Utah’s participation in the Streamlined Sales Tax initiative.

 

Calculating and Collecting Sales Tax in Utah

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Texas and sells to a customer in Salt Lake City, UT, with a ZIP code of 84105. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA RATE
State: Utah
4.85%
County: Salt Lake
2.40%
District: First
0.00%
City: Salt Lake
0.50%
Combined Sales Tax Rate =
7.75%
 

Origin-based vs. Destination-based 

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Utah

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

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

 

Due Dates 

In Utah, the due date falls on the last day of the following month for monthly and quarterly filers. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.

If you’re an annual filer, the due date for remittance falls on January 31 following the reported tax year.

 

Filing Sales Tax Returns

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

  1. File online through the Utah Taxpayer Access Point.
  2. File by mail – Fill out TC62S/M and remit to the Utah State Tax Commission by the due date.
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Utah’s timely filing discount is 1.31% of the sales tax due.

 

Sales Tax Holiday

Currently, for 2025, there are no planned sales tax holidays in Utah.

 

Utah Sales Tax Penalties

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

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

 

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

Ultimate Guide to Oklahoma Sales Tax | TaxHero

Oklahoma, often hailed as the “Sooner State” for its rich history of pioneers and land runs, is not just famous for its sweeping plains and vibrant Native American culture but also for its dynamic business landscape. Yet, mastering the complexities of Oklahoma sales tax demands a nuanced understanding of its specific regulations.

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

 

Sales Tax Nexus in Oklahoma

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Oklahoma include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus: You could trigger a physical nexus in Oklahoma if you have affiliates, whether they operate online or in-person, who facilitate the delivery of your products to customers in the state.
  5. Presence at Trade Show: Sales tax must be collected at Oklahoma trade shows, even for peddlers and solicitors without a fixed business location or Oklahoma sales tax permit. Resold items are also taxable.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning November 1, 2019, the threshold for economic nexus in Oklahoma is $100,000 in gross revenue in the prior 12 months.

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

 

Connect with TaxHero

 

Oklahoma Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Oklahoma.

Tangible Products

Almost all goods are taxable in Oklahoma, including:

The goods that are exempt from sales tax are:

 

Services

In Oklahoma, the majority of service-based transactions, such as professional services and cleaning services, are not subject to sales tax unless they are directly related to the sale of tangible personal property (i.e., products). For example, when you buy a computer and pay extra for setup services like software installation, the entire purchase, including the service fee, is subject to sales tax since the service is necessary for completing the sale of the computer.

However, there are specific situations where certain services are taxable:

 

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

SaaS is not taxable in the state of Oklahoma.

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

 

Shipping/Handling

Shipping and handling charges in the state of Oklahoma are not taxable if they are separately stated.

 

Sales Tax Permits and Licenses in Oklahoma

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

 

Seller’s Permit

You can register for a Sales or Use Tax Permit online through the Oklahoma Tax Commission’s Online Taxpayer Access Point (OKTAP) or follow our detailed step-by-step guide for assistance.

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

Registration fee

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

Renewal

In Oklahoma, you must renew your sales tax permit every three years.

 

Resale Certificate

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

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

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

Need help? Read our blog: How to Get an Oklahoma Resale Certificate for your Business

 

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Oklahoma has been a party to this program since October 1, 2005, meaning it follows the uniform rules and definitions established by SST.

Check with the Oklahoma Tax Commission for the most current information on Oklahoma’s participation in the Streamlined Sales Tax initiative.

 

Calculating and Collecting Sales Tax in Oklahoma

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Oklahoma City, OK, with a ZIP code of 73008. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

 
SALES TAX FORMULA RATE
State: Oklahoma
4.500%
County: Oklahoma
0.000%
District: Fifth
0.000%
City: Oklahoma
4.125%
Combined Sales Tax Rate =
8.625%
 

 

Origin-based vs. Destination-based 

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Oklahoma

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

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

 

Due Dates 

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

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.

 

Filing Sales Tax Returns

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

  1. File online through the OKTAP website portal.
  2. File by mail – Use Form STS-20002-A and send it by mail to the Oklahoma Tax Commission
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly. However, Oklahoma does not offer a discount.

 

Sales Tax Holiday

For 2025, the planned sales tax holidays in Oklahoma are:

Oklahoma Sales Tax Penalties

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

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

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

Ultimate Guide to Indiana Sales Tax | TaxHero

In the heart of America, Indiana blends the charm of its basketball legacy and lush farmlands with a robust business environment. Yet, navigating its economic landscape is a unique challenge, especially in understanding sales tax in Indiana and its laws. This knowledge is essential for thriving amidst the vibrant and diverse economic fabric of the Hoosier State.

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

 

Sales Tax Nexus in Indiana

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Indiana include: 

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Presence at Trade Show: An out-of-state retailer must collect sales taxes in Indiana if they display their products at a trade show or convention. However, merely being present without showcasing products in Indiana at conventions or trade shows doesn’t require you to collect sales tax in Indiana..
  5. Delivery of goods into Indiana by seller’s truck where title and possession transfers in Indiana.
 

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Starting January 1, 2024, Indiana will only have a $100,000 threshold for sales tax nexus. If a merchant meets the 200 transaction threshold in 2023 but not the $100,000 threshold, they may close their sales tax account in 2024 if they do not have $100,000 in sales in 2024. However, they will still have to file all required sales tax returns for 2024.

It should be noted that while the nexus criteria mentioned above generally apply to most businesses, additional methods are available for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the governing laws for economic sales tax nexus requirements in Indiana.

Connect with TaxHero

 

Indiana Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Indiana. 

 

Tangible Products

Almost all goods are taxable in Indiana, including:

The goods that are exempt from sales tax are:

For the latest updates and detailed information on sales tax in Indiana, you can visit the Sales Tax Information Bulletins, which provides current guidelines and bulletins.

 

Services

In Indiana, the majority of all service-based transactions, such as professional services, advertising, and cleaning services are not subject to sales tax

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

 

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

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

Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable only when the seller gives the buyer the right to use them permanently without requiring ongoing payments.

 

Shipping/Handling

Shipping and handling charges in the state of Indiana are taxable. Sales tax is exempt if delivery charges are billed and furnished by a third party.

 

Sales Tax Permits and Licenses in Indiana

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

 

Seller’s Permit

You can register for a Retail Merchant Certificate online through the Indiana Business Roadmap (INBiz) or follow our detailed step-by-step guide for assistance.

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

Registration fee

There is a $25 fee to register for a sales tax permit.

Renewal

In Indiana, you have to renew your sales tax permit every 2 years.

 

Resale Certificate

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

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

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

Need help? Read our blog: How to Get an Indiana Resale Certificate for your Business

Streamlined Sales Tax (SST)

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

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

 

Calculating and Collecting Sales Tax in Indiana

Sales Tax Computation 

To determine the total sales tax for your calculation, you’ll only need to consider the state sales tax rate, as there are no additional county or city rates applicable for the state of Indiana. Use TaxHero’s Indiana Sales Tax Calculator to compute for sales tax.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Indiana and sells to a customer in Indianapolis, IN, with a ZIP code of 46204. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA RATE
State: Indiana
7.00%
County: Marion
N/A
District: Seventh District
N/A
City: Indianapolis
N/A
Combined Sales Tax Rate =
7.00%

Origin-based vs. Destination-based 

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Indiana

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

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

 

Due Dates 

In Indiana, the due date falls for sales tax varies. Monthly filers must submit by the 20th of the month following the reporting period if their average monthly sales and use tax liability exceeded $1,000 in the previous year or if filing a combined sales/withholding tax return. 

If the liability did not exceed $1,000, the due date is the 30th of the month following the reporting period. For annual filers, the due date is the last day of the month following the reporting period.

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20 deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.

 

Filing Sales Tax Returns

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

  1. File online through INTIME.
  2. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return. 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales taxes on time as an incentive to process them promptly. Indiana’s timely filing discount amount is  1% of sales tax collected.

 

Sales Tax Holiday

Currently, for 2025, there are no planned sales tax holidays in Indiana.

 

Indiana Sales Tax Penalties

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

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

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

Ultimate Guide to Maryland Tax | TaxHero

Are you setting your entrepreneurial sights on the maritime gateway of the East Coast? To flourish in Maryland, a state known for its pivotal role in American history and its robust economy, it’s crucial to master the state of Maryland’s sales tax intricacies.

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

 

Sales Tax Nexus in Maryland

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Maryland include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Uses personal vehicles to sell or deliver taxable goods or services in the State on a regular basis.
  5. Regularly enters the state to provide service or maintenance for tangible personal property.
  6. Presence at Trade Shows: If you plan to sell items at a single event or craft show in Maryland, you might not have to register with the state. But, you will need to get a Temporary Sales & Use Tax License.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning October 1, 2018, the threshold for economic nexus in Maryland is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.

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

 

Connect with TaxHero

 

Maryland Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Maryland.

Tangible Products

Almost all goods are taxable in Maryland, including:

The goods that are exempt from sales tax are:

 

Services

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

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

 

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

SaaS is taxable in the state of Maryland.

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

 

Shipping/Handling

Shipping charges in the state of Maryland are not taxable on their own, but handling charges are. When shipping and handling charges are combined on a bill, the entire amount becomes taxable.

 

Sales Tax Permits and Licenses in Maryland

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

 

Seller’s Permit

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

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

Registration fee

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

Renewal

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

 

Resale Certificate

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

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

You can fill out the Online Verification of Maryland Tax Account Numbers provided by the Comptroller of Maryland after you receive your sales tax permit. In most cases, this form needs either a sales and use tax registration number or an exemption number to be valid. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

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

Streamlined Sales Tax (SST)

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

Check with the Comptroller of Maryland for the most current information on Maryland’s participation in the Streamlined Sales Tax initiative.

 

Calculating and Collecting Sales Tax in Maryland

 

Sales Tax Computation

In Maryland, the sales tax is made up of only the statewide sales tax. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Maryland Sales Tax Calculator to compute for sales tax.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Florida and sells to a customer in Baltimore, MD, with a ZIP code of 21201. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

 
SALES TAX FORMULA RATE
State: Maryland
6.00%
County: Baltimore
N/A
District: Second District
N/A
City: Baltimore
N/A
Combined Sales Tax Rate =
6.00%
 

 

Origin-based vs. Destination-based

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Maryland

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

The frequency of your filings is determined by your sales and use tax liability and occurs in one of the following ways:

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

 

Due Dates

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

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.

 

Filing Sales Tax Returns

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

  1. File online through the Comptroller of Maryland portal.
  2. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.

Maryland’s timely filing discount is in the form of a deduction, with the amount determined using specific formulas based on the sales tax due. The maximum discounts available range from 1.2% of the first $6,000 sales tax collected to 0.9% for the sales tax amount collected above $6,000.

 

Sales Tax Holiday

Currently, for 2025, the planned sales tax holidays in Maryland are:

DATE TYPE ELIGIBLE MERCHANDISE
February 15 – 17, 2025 Shop Maryland Energy

Various Energy Star appliances, including:

  • Standard size refrigerators
  • Air conditioners
  • Boilers
  • Heat pumps
  • Washers and dryers
  • Compact fluorescent light bulbs
  • Dehumidifiers
  • Solar water heaters
August 10 – 16, 2025 Back-to-School
  • Clothing and footwear ($100/item or less)
  • Backpacks (only the first $40)
 

 

Maryland Sales Tax Penalties

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

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

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

Ultimate Guide to Illinois Sales Tax | TaxHero

Positioned as a hub of Midwestern commerce and a crossroads of America, Illinois stands out not just for its iconic Chicago skyline and rich history but also for its bustling business landscape. Yet, mastering the complexities of sales tax in Illinois calls for a deep dive into its unique rules and regulations, something every savvy business owner or entrepreneur in the Land of Lincoln should be well-versed in.

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

 

Sales Tax Nexus in Illinois

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Illinois include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business. 
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus: A retailer is considered to have a business presence in Illinois if they sell similar products under a similar name as someone in Illinois and pay them a commission on sales. This rule applies if the retailer’s total sales in Illinois exceed $10,000 over the past four quarters ending in March, June, September, and December.
  5. Presence at Trade Show: Out-of-state retailers making sales at Illinois trade shows are subject to state and local sales tax, as per Illinois Department of Revenue regulations—these regulations detail registration and tax collection requirements for such sellers.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning October 1, 2018, the threshold for economic nexus in Illinois is $100,000 in gross revenue or 200 transactions in the preceding 12-month period.

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

Connect with TaxHero

 

Illinois Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Illinois. 

 

Tangible Products

Almost all goods are taxable in Illinois, including:

The goods that are exempt from sales tax are:

Services

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

 

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

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

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

 

Shipping/Handling

Shipping and handling charges in the state of Illinois are generally not taxable.

However in certain situations, shipping and handling fees are subject to sales tax if they meet the following conditions:

Sales Tax Permits and Licenses in Illinois

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

 

Seller’s Permit

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

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

Registration fee

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

Renewal

In Illinois, you have to renew your sales tax permit.

Resale Certificate

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

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

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

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

Streamlined Sales Tax (SST)

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

 

Calculating and Collecting Sales Tax in Illinois 

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Pennsylvania and sells to a customer in Chicago, IL, with a ZIP code of 60607. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA RATE
State: Illinois
6.25%
County: Cook
1.75%
District: Seventh
1.00%
City: Chicago
1.25%
Combined Sales Tax Rate =
10.25%

Origin-based vs. Destination-based 

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Illinois

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

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

 

Due Dates 

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

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.

 

Filing Sales Tax Returns

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

  1. File online through the MyTax Illinois
  2. File by mail – Fill up Form ST-1 and file and pay through the mail.
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.  

Illinois’ timely filing discount is either $5 or 1.75% of the total sales tax collected, whichever amount is higher.

 

Sales Tax Holiday

Currently, for 2025, there are no planned sales tax holidays in Illinois.

 

Illinois Sales Tax Penalties

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

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

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

Ultimate Guide to Kentucky Sales Tax | TaxHero

Kentucky, often referred to as the Bluegrass State for its rich heritage in horse racing and bourbon, presents a unique landscape for business ventures. Grappling with the sales tax in Kentucky involves delving into a complex web of regulations.

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

 

Sales Tax Nexus in Kentucky

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Kentucky include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business. 
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. If a business regularly seeks orders for products, digital items, or extended warranty services from people in Kentucky and uses Kentucky-based services like banks, telecom systems, radio or TV stations, cable services, or any other local facility to take orders, communicate, or receive payments.
  5. Earns money from leasing or renting out physical items located in Kentucky.
  6. Affiliate Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who maintain, operate, or use in Kentucky via a subsidiary or a related company, an office, distribution center, sales or sample room, warehouse, storage facility, or any other type of business location.
  7. Presence at Tradeshows: You must collect sales tax at Kentucky trade shows if you are present for more than 15 days within a 12-month period.
 

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning July 1, 2018, the threshold for economic nexus in Kentucky 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 Kentucky.

 

Connect with TaxHero

 

Kentucky Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Kentucky.

Tangible Products

Almost all goods are taxable in Kentucky, including:

 

The goods that are exempt from sales tax are:

 

Services

In Kentucky, the majority of service-based transactions, such as janitorial services and landscaping, are subject to sales tax.

However, there are specific situations where certain services are exempt from sales tax, especially if gross receipts are under $6,000 for the first calendar year of operation if sold after January 1, 2023. If sold prior to January 1, 2023, gross receipts from the sales should be less than $6,000 in calendar year 2021, for the below services to be exempt from sales tax. Those services include:

 

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

SaaS is taxable in the state of Kentucky.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable, with the exception of digital audio-visual work.

 

Shipping/Handling

When delivering a taxable product to a location in Kentucky chosen by the customer via postal service or a common carrier, shipping fees are not taxed; however, if the seller personally delivers the product, these shipping charges typically become taxable. Handling charges are always subject to tax without any exceptions. In cases where a seller charges a single amount for both shipping and handling, this total fee is taxable regardless of the delivery method.

 

Sales Tax Permits and Licenses in Kentucky

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

 

Seller’s Permit

You can register for a Sales and Use Tax Permit online through the Kentucky One Business Stop Portal 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 Kentucky, you don’t have to renew your sales tax permit.

 

Resale Certificate

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

In Kentucky, 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 51A105 – Resale Certificate provided by the Kentucky Department of Revenue after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

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

Streamlined Sales Tax (SST)

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

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

 

Calculating and Collecting Sales Tax in Kentucky

Sales Tax Computation

In Kentucky, the sales tax is made up of only the statewide sales tax. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Kentucky Sales Tax Calculator to compute for sales tax.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Kentucky and sells to a customer in Louisville, KY, with a ZIP code of 40214. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA RATE
State: Kentucky
6.00%
County: Jefferson
N/A
District: Third District
N/A
City: Louisville
N/A
Combined Sales Tax Rate =
6.00%
 

 

Origin-based vs. Destination-based 

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Kentucky

The next step after collection is filing and remitting your Kentucky 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 Kentucky’s sales tax regulations.

 

Due Dates 

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

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.

 

Filing Sales Tax Returns

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

  1. File online through the Kentucky Business One Stop Portal.
  2. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Kentucky’s timely filing discount amount is a 1.75% discount on the first $1,000 and a 1.50% discount on any additional amount without exceeding $50 per month.

 

Sales Tax Holiday

Currently, for 2025, there are no planned sales tax holidays in Kentucky.

 

Kentucky Sales Tax Penalties

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

 
Questions? Connect with TaxHero today for a free sales tax consultation about your business in Kentucky or any state!
 
Ultimate Guide to Missouri Sales Tax | TaxHero
Situated at the crossroads of America’s heartland, the Show-Me State is celebrated not only for its scenic rivers and rolling hills but also for its dynamic economic landscape. However, maneuvering through the complexities of sales tax in Missouri demands comprehending its unique rules and regulations. Ecommerce businesses must grasp the concept of What is Sales Tax in Missouri to effectively navigate this component of the state’s economic structure. 
This guide breaks down everything you need to know about Missouri’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Missouri’s sales tax with confidence and ease.
 

Sales Tax Nexus in Missouri

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

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Missouri include:
  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business. This includes owning or leasing real or tangible personal property within the state.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf for more than 2 days.
  4. Presence at Trade Show: If you go to a trade show in Missouri for a short time (up to 14 days) and don’t sell anything or take orders, you don’t have to worry about nexus. But if you do start taking orders or making sales, then nexus applies.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning January 1, 2023, the threshold for economic nexus in Missouri for remote sellers is $100,000 in gross in a calendar year. For any remote seller or marketplace facilitator that meets this threshold, they are required to collect and remit vendor’s use tax. In Missouri, use tax is a type of sales tax that is imposed on out-of-state businesses.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for 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 Missouri.
  Connect with TaxHero

Missouri Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Missouri.
 

Tangible Products

Almost all goods are taxable in Missouri, including: The goods that are exempt from sales tax are:

Services

In Missouri, the majority of all service-based transactions, such as professional services, advertising, and cleaning services, are not subject to sales tax.
However, there are specific situations where certain services are taxable. For instance, taxable services are:  

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

Saas is not taxable in the state of Missouri.
Digital products (i.e., ebooks, downloadable video content, mobile apps) are also not taxable.
 

Shipping/Handling

Shipping and handling charges in the state of Missouri are not taxable.
 

Sales Tax Permits and Licenses in Missouri

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

Seller’s Permit

You can register for a sales tax permit online through the Missouri Department of Revenue or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to: Registration fee
There is no fee to register for a sales tax permit.
Renewal
In Missouri, you don’t have to renew your sales tax permit.
 

Resale Certificate

A resale certificate is a document that allows businesses to buy products without paying sales tax on them, as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Missouri, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the Sales and Use Tax Exemption Certificate (Form 149) provided by Missouri if you have a sales tax permit in the state after you receive your sales tax permit. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Need help? Read our blog: How to Get a Missouri Resale Certificate for your Business

Streamlined Sales Tax (SST)

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

Calculating and Collecting Sales Tax in Missouri

Sales Tax Computation

In Missouri, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Use TaxHero’s Missouri Sales Tax Calculator to compute for sales tax.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Missouri and sells to a customer in St. Louis, MO, with a ZIP code of 63103. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
SALES TAX FORMULA RATE
State: Missouri
4.225%
County: St. Louis County
0.00%
District: Clayton Business District
0.00%
City: St. Louis 5.454%
Combined Sales Tax Rate =
9.679%
 

Origin-based vs. Destination-based

When making in-state sales, it is important to determine if you are located in an origin-based or destination-based state to figure out what rate to charge for sales tax.
Missouri is an origin-based state, meaning sales tax is determined based on the buyer’s location. That means for a Missouri-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from New Jersey to a customer in St. Louis, Missouri, where you have nexus, you’d apply St Louis’ sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
 

Filing and Remitting Sales Tax Returns in Missouri

The next step after collection is filing and remitting your Missouri sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
It’s crucial to keep accurate records of your sales and tax collections, utilize a Missouri sales tax calculator to ensure accuracy, and adhere to the filing schedule set by the state to remain compliant with Missouri’s sales tax regulations.

Due Dates

In Missouri, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th (or 29th if it’s a leap year) for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
 

Filing Sales Tax Returns

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

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.
In Missouri, if you pay your sales tax on time, you get a timely filing allowance of 2% on the sales tax you owe.
Here’s how it works: Say you owe $100 in sales taxes. You multiply $100 by 2%, which gives you $2. So, you subtract $2 from your original $100 tax, and now you only have to pay $98. It’s a little reward for paying on time!

Sales Tax Holiday

Currently, for 2025, the planned sales tax holidays in Missouri are:
 
DATE TYPE ELIGIBLE MERCHANDISE
April 19-25, 2025 Energy Star Holiday All Energy Star-certified new appliances up to $1,500, including:
  • Washers and dryers
  • Air conditioners
  • Furnaces
  • Refrigerators
  • Freezers
  • Heat pumps
  • Stoves
August 1-3, 2025 Back to School
  • any article of clothing with a taxable value of $100 or less;
  • school supplies, but not to exceed $50 per purchase;
  • computer software with a taxable value of $350 or less;
  • personal computers or computer peripheral devices, but not to exceed $1,500;
  • and graphing calculators with a taxable value of $150 or less.
 
 

Missouri Sales Tax Penalties

Like in most states, sales tax is a big part of how Missouri generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial always to ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in Missouri:
Questions? Connect with TaxHero today for a free sales tax consultation about your business in Missouri or any state!

Ultimate Guide to New Jersey Sales Tax | TaxHero

New Jersey, renowned for its beautiful Jersey beaches and lush gardens, is a hotspot for business. However, figuring out the intricacies of New Jersey sales tax can be a bit tricky.

This guide breaks down everything you need to know about the Garden 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 New Jersey sales tax with confidence and ease.

 

Sales Tax Nexus in New Jersey

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in New Jersey include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus or Click-through Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who have collectively sold more than $10,000 worth of products for delivery in New Jersey during the previous four quarterly periods ending on March, June, September, and December.
  5. Presence at Trade Show: You must collect sales tax at New Jersey trade shows if you participate as an exhibitor and took orders at a tradeshow.

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

 

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning January 1, 2018, the threshold for economic nexus in New Jersey is $100,000 in gross revenue on the previous or current calendar year’s sales or 200 or more separate transactions sourced to the state.

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 New Jersey.

Connect with TaxHero

 

New Jersey Sales Tax on Goods and Services

Knowing whether the goods you’re selling or services you’re offering are taxable in New Jersey is one of the first things you need to know.

 

Tangible Products

Almost all goods are taxable in New Jersey, including:

The goods that are exempt from sales tax are:

 

Services

In New Jersey, the majority of service-based transactions such as professional services, advertising, and interior design services are not subject to sales tax, unless they are specifically mentioned as being taxable.

Some of the examples of services that are taxable are:

Refer to the New Jersey Department of Revenue for further information on the taxability of services.

 

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

SaaS is not taxable in the state of New Jersey as long as it is not electronically delivered to the user. However, any SaaS that meets the definition of an information service is subject to sales tax.

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

 

Shipping/Handling

Shipping and handling charges in the state of New Jersey are taxable. But if the item you’re purchasing is tax-exempt, you may not be required to pay sales tax.

 

Sales Tax Permits and Licenses in New Jersey

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

 

Seller’s Permit

You can register for a Certificate of Authority online through the New Jersey Department of Treasury 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 New Jersey, you don’t have to renew your sales tax permit. 

 

Resale Certificate

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

In New Jersey, 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.

In New Jersey, the resale certificate is known as Form ST-3, or the Sales Tax Resale Certificate. 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 New Jersey Resale Certificate for your Business

 

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. New Jersey 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 New Jersey’s participation in the Streamlined Sales Tax initiative.

 

Calculating and Collecting Sales Tax in New Jersey

Sales Tax Computation

In New Jersey, the sales tax is made up of only the statewide sales tax, except for Salem County, which collects only its own local sales tax excluding 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 New Jersey Sales Tax Calculator to compute for sales tax.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in New Jersey and sells to a customer in Newark City, NJ, with a ZIP code of 07106. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA RATE
State: New Jersey
6.625%
County: Essex
N/A
District: Tenth District
N/A
City: Newark
N/A
Combined Sales Tax Rate =
6.625%
 
 

Origin-based vs. Destination-based 

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

New Jersey is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a New Jersey-based seller, sales tax is generally based on the buyer’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 California to a customer in Newark City, New Jersey, where you have nexus, you’d apply Newark’s sales tax rate to that sale.

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in New Jersey

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

You will be required to file and pay monthly if you: 

If you don’t meet this requirement, then you will be filing 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 New Jersey’s sales tax regulations.

 

Due Dates 

In New Jersey, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20 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 a quarterly filer, the due date for remittance falls on or before the 20th of January, April, July, and October for the preceding three-month period.

 

Filing Sales Tax Returns

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

  1. File online through New Jersey’s website portal.
  2. File by calling 1-877-829-2866 if you don’t have access to a computer. You will still be required to make your payment electronically
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, New Jersey does not offer a discount.

 

Sales Tax Holiday

Currently, for 2025, there are no planned sales tax holidays in New Jersey.

 

New Jersey Sales Tax Penalties

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

 

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

Ultimate Guide to New York Sales Tax | TaxHero

Are you an e-commerce entrepreneur with dreams of making it big in the bustling business hub of the world? To succeed in New York, the business capital of the world, it’s essential to understand and navigate NY sales tax regulations.

This guide breaks down everything you need to know about the Empire 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 New York’s sales tax with confidence and ease.

 

Sales Tax Nexus in New York

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in New York include:

 
  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. If a business actively promotes and sells things in New York through advertising or solicitation and makes taxable sales to New York residents.
  5. Delivery of taxable items to New York customers through your own vehicle at least 12 times a year.
  6. Affiliate Nexus or Click-through Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who have collectively sold more than $10,000 worth of products for delivery in New York during the preceding four quarterly sales tax periods.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning June 24, 2019, the threshold for economic nexus in New York is $500,000 in gross revenue and 100 transactions in the previous or current calendar year’s sales. This is different from most states as you meet economic nexus if you meet the dollar threshold and the order threshold.

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 New York.

 

 

New York Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in New York.

Tangible Products

Almost all goods are taxable in New York, including:

The goods that are exempt from sales tax are:

 

Services

In New York, 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:

 

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

SaaS is taxable in the state of New York.

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

 

Shipping/Handling

Shipping and handling charges in the state of New York are taxable.

 

Sales Tax Permits and Licenses in New York

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

 

Seller’s Permit

You can register for a Certificate of Authority online through the New York Business Express 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 New York, you don’t have to renew your sales tax permit unless the New York State Department of Taxation and Finance sends you a notification letter requiring you to renew your sales tax permit. This is randomly selected by the State.

 

Resale Certificate

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

In New York, 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-120:6/18 Form: New York State and Local Sales and Use Tax Resale Certificate. In most cases, this form needs either a sales and use tax registration number or an exemption number to be valid. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

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

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. However, New York 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 New York State Department of Taxation and Finance for the most current information on New York’s participation in the Streamlined Sales Tax initiative.

 

Calculating and Collecting Sales Tax in New York

Sales Tax Computation

In New York, sales tax isn’t just one simple rate; it’s a combination of state and local taxes and an additional surcharge of 0.375% if the location is within the Metropolitan Commuter Transportation District. 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 New York 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 New York City, NY, with a ZIP code of 10018. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA RATE
State: New York
4.000%
County: Manhattan
0.000%
District: Eighth
0.000%
City: New York
4.875%
Combined Sales Tax Rate =
8.875%
 

Origin-based vs. Destination-based 

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in New York

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

If your quarterly sales tax collections exceed $300,000, you’ll need to file monthly. If your sales tax collections are under $300,000 during the previous quarter, you’ll file quarterly. For businesses owing $3,000 or less in sales tax annually, an annual filing requirement applies.

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 New York sales tax regulations.

 

Due Dates 

Unlike many states that adhere to a uniform filing date, the state of New York has distinct due dates based on the frequency of filing. For monthly filers, all sales tax collected in a given month is due by the 20th day of the following month. For example, sales tax from January should be filed by February 20th.

For quarterly filers:

For annual filers with a filing period of March 1 to February 28 (29 if it’s a leap year), the filing is due by March 20 of the following year.

If the due date falls on a weekend, public holiday, or is interrupted by unforeseen events like natural disasters, the deadline is typically extended to the next business day. For instance, if May 20th lands on a weekend, monthly filers would have until May 21st to submit.

 

Filing Sales Tax Returns

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

  1. File online through New York’s website portal.
  2. File by mail – fill out the eforms provided by the New York State Department of Taxation and Finance if you don’t have access to the internet.
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.

New York’s timely filing discount offers a 5% discount for quarterly and annual filers with a maximum of $200 per reporting period and a minimum of $0. No filing discount is available for monthly filers.

 

Sales Tax Holiday

 

New York Sales Tax Penalties

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

 

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

Ultimate Guide to Georgia Sales Tax | TaxHero

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.

 

Sales Tax Nexus in Georgia

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Georgia include:

 
  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus or Click-through Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who have collectively sold more than $100,000 worth of products for delivery in Georgia in the preceding or current calendar year.
  5. Presence at Convention or Trade Show: You must collect sales tax at Georgia trade shows or conventions if you participate as an exhibitor and took orders. You will need to remit the tax collected using the Miscellaneous Sales Event Form.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus. 

Beginning January 1, 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

 

Connect with TaxHero

 

Georgia Sales Tax on Goods and Services

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.

Tangible Products

Almost all goods are taxable in Georgia, including:

The goods that are exempt from sales tax are:

Services

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:

 

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

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/Handling

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.

 

Sales Tax Permits and Licenses in Georgia

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.

 

Seller’s 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.

 

Resale Certificate

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

In 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

 

Streamlined Sales Tax (SST)

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.

 

Calculating and Collecting Sales Tax in Georgia

Sales Tax Computation

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:

SALES TAX FORMULA RATE
State: Georgia
4.00%
County: Fulton
3.00%
District: Seventh District
0.00%
City: Atlanta
1.9%
Combined Sales Tax Rate =
8.90%

 

Origin-based vs. Destination-based

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

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.

 

Filing and Remitting Sales Tax Returns in Georgia

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.

 

Due Dates

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.

 

Monthly Prepayments

Businesses with a notable sales tax liability may need to make monthly prepayments ahead of their monthly return filings. The specifics of these prepayments depend on the business’s prior year’s tax liabilities.

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.

 

Filing Sales Tax Returns

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

  1. File online through Georgia’s Tax Center portal. You are required to file and pay electronically through this portal if you owe more than $500 for sales tax for any filing period.
  2. File by mail – See return here: Form ST-3
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.

Georgia provides a 3% discount on the initial $3,000 of tax owed and a 0.5% discount on any amount beyond that.

 

Sales Tax Holiday

Currently, for 2025, there are no planned sales tax holidays in Georgia.

 

Georgia Sales Tax Penalties

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!

Ultimate Guide to Virginia Sales Tax | TaxHero

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.

 

Sales Tax Nexus in Virginia

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Virginia include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person, who maintains a distribution center, warehouse, fulfillment center, office, or similar location in Virginia that facilitates the delivery of tangible personal property to its customers.
  5. Advertising in newspapers or other periodicals printed and published in Virginia: This includes billboards, posters, or other materials distributed by any means other than U.S. mail.
  6. Made more than 12 deliveries of merchandise in a year in Virginia, not by a common carrier.
  7. Ownership of real or personal property in Virginia, including leased property.
 

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning July 1, 2019, the threshold for economic nexus in 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.

Connect with TaxHero

 

Virginia Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Virginia.

 

Tangible Products

Almost all goods are taxable in Virginia, including:

The goods that are exempt from sales tax are:

 

Services

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.

 

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

SaaS is not taxable in the state of Virginia.

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

Shipping/Handling

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.”

 

Sales Tax Permits and Licenses in Virginia

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.

 

Seller’s 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.

 

Resale Certificate

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

In 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 

Streamlined Sales Tax (SST)

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.

 

Calculating and Collecting Sales Tax in Virginia

Sales Tax Computation

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:

SALES TAX FORMULA RATE
State: Virginia
4.30%
County: Chesterfield
1.70%
District: Seventh
0.00%
City: Richmond
0.00%
Combined Sales Tax Rate =
6.00%
 

Origin-based vs. Destination-based 

When making in-state sales, it is important to determine if you are located in an origin-based 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.

 

Filing and Remitting Sales Tax Returns in Virginia

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.

 

Due Dates 

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.

 

Filing Sales Tax Returns

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

  1. File online through the Business Online Services Account.
  2. File through eforms provided by Virgina or web upload service.
  3. File by mail – Form ST-9 for in-state dealers based on the seller’s location, and Form ST-8 for out-of-state dealers based on the buyer’s location.
  4. File with TaxHero TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
 

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.

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.

 

Sales Tax Holiday

Currently, for 2025, the planned sales tax holidays in Virginia are on August 1-3, 2025:

 

Virginia Sales Tax Penalties

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:

 

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

Ultimate Guide to Texas Sales Tax | TaxHero

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.

 

Sales Tax Nexus in Texas

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

 

Physical Nexus

A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Texas include:

  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products (i.e., sample room), a warehouse or storage facility, or any other place where you conduct business. This includes ownership, usage, leases, or rents of tangible personal property in Texas.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus: An out-of-state seller may establish a taxable presence in Texas—if there is a significant ownership link with any entity in Texas that fulfills orders, shares a brand or product line, or conducts business activities that bolster the seller’s market within the state. This includes affiliates that manage distribution centers, conduct business under a similar name, or engage in activities on the seller’s behalf, such as handling returns.
  5. Presence at Trade Show: Out-of-state sellers attending trade shows in Texas for product promotion and order solicitation are considered to be conducting business in the state, thereby requiring them to collect Texas use tax on sales, regardless of where the orders are processed or fulfilled. This applies even if a single order is taken at a trade show, whether from Texas residents or non-residents.

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!

 

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning October 1, 2019, the threshold for economic nexus in 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.

Connect with TaxHero

 

Texas Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Texas.

 

Tangible Products

Almost all goods are taxable in Texas, including:

The goods that are exempt from sales tax are:

Services

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:

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

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/Handling

Shipping and handling charges in the state of Texas are taxable.

Sales tax is exempt if:

Sales Tax Permits and Licenses in Texas

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.

 

Seller’s 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.

Resale Certificate

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

In 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

 

Streamlined Sales Tax (SST)

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.

 

Calculating and Collecting Sales Tax in Texas

Sales Tax Computation

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:

SALES TAX FORMULA RATE
State: Texas
6.25%
County: Harris
0.00%
District: Downtown
1.00%
City: Houston
1.00%
Combined Sales Tax Rate =
8.25%

Origin-based vs. Destination-based

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

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.

 

Filing and Remitting Sales Tax Returns in Texas

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.

 

Due Dates

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.

 

Quarterly/Monthly Prepayments

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.

 

Filing Sales Tax Returns

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

  1. File online through the Texas Comptroller of Public Accounts.
  2. File by mail – Download a Texas Sales and Use Tax Return here.
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly.

In Texas, permitted sales taxpayers are eligible for a 0.5% discount on the tax amount they report and pay on time.

 

Sales Tax Holiday

Currently, for 2025, the planned sales tax holidays in Texas are:

 
DATE TYPE ELIGIBLE MERCHANDISE
April 26-28, 2025 Emergency Preparedness

Various emergency preparedness supplies include:

  • Portable generators (less than $3,000)
  • Emergency ladders and hurricane shutters (less than $300)
  • First aid kits, batteries, axes, fuel containers, and light sources (less than $75)
May 24-26, 2025 Energy Star Appliance

Various Energy Star appliances, including:

  • Air conditioners (up to $6,000)
  • Dishwashers
  • Dehumidifiers
  • Refrigerators (up to $2,000)
  • Ceiling fans
May 24-26, 2025 Water-Efficiency

Various water-efficient products including:

  • Soakers or drip irrigation hoses.
  • Moisture control systems for sprinkler or irrigation systems.
  • Mulch.
  • Rain collection systems.
  • Soil and compost.
  • Plants, trees, and grasses.
  • Water-saving surfactants.
  • Permeable ground cover surfaces that allow water to reach water collection points.
August 8-10, 2025 Back-to-School
  • Clothing and footwear (less than $100). This excludes accessories, athletic or protective clothing, and rentals of clothing or footwear
  • Backpacks
  • School supplies (less than $100)

Texas Sales Tax Penalties

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!

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

In Minnesota, the Land of 10,000 Lakes, natural beauty blends seamlessly with a vibrant Midwestern spirit. Understanding sales tax in Minnesota means uncovering a system as balanced and dependable as the state’s renowned outdoor adventures and welcoming communities.

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

 

Sales Tax Nexus in Minnesota

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

 

Physical Nexus

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 Minnesota include:

 
  1. Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
  2. Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
  3. Employees, independent contractors, agents, or other representatives operating on your behalf.
  4. Affiliate Nexus or Click-through Nexus: You could trigger a physical nexus if you have affiliates in Minnesota. This applies whether the affiliate operates online or in-person.
  5. Presence at Trade Show: Participating in trade shows, seminars, or similar events to promote or conduct business in Minnesota counts as business activity. Each day involved in these activities contributes to establishing a physical presence for sales tax purposes.

Economic Nexus

States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.

Beginning October 1, 2019, the threshold for economic nexus in Minnesota is $100,000 in gross revenue or 200 transactions in the prior 12 months.

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 Minnesota.

Connect with TaxHero

 

Minnesota Sales Tax on Goods and Services

One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Minnesota.

Tangible Products

Almost all goods are taxable in Minnesota, including:

The goods that are exempt from sales tax are:

 

Services

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

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

 

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Minnesota. However, software is taxable if bought, leased, or licensed to a customer and stored on a server in Minnesota.

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

 

Shipping/Handling

Shipping and handling charges in Minnesota are taxable if the sale of the item is taxable. If the item is exempt, the shipping charge is also exempt. 

 

Sales Tax Permits and Licenses in Minnesota

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

 

Seller’s Permit

A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a seller’s permit. You can register for a Minnesota sales tax permit online at the Minnesota Tax Portal (MTP) or follow our detailed step-by-step guide for assistance.

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

Registration fee

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

Renewal

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

 

Resale Certificate

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

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

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

 

Streamlined Sales Tax (SST)

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

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

 

Calculating and Collecting Sales Tax in Minnesota

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Minnesota and sells to a customer in Rochester, MN, with a ZIP code of 55901. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

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

Origin-based vs. Destination-Based

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

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

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

To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.

 

Filing and Remitting Sales Tax Returns in Minnesota

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

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

Due Dates

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

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.

 

Filing Sales Tax Returns

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

  1. File online through the Minnesota Department of Revenue.
  2. File by phone – To file by touch-tone phone, call 1-800-570-3329. If your sales and use tax liability is $10,000 or more during the state’s fiscal year (July 1 – June 30), you must pay all taxes electronically starting the next calendar year.
  3. File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. However, Minnesota does not offer a discount.

 

Sales Tax Holiday

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

 

Minnesota Sales Tax Penalties

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

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

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