What is the Seller’s Permit Cost in each state?

Getting your seller’s permit is vital, but the application can be exhausting. It is also known as a sales tax permit and is the prerequisite for retailers and business owners to collect and remit sales tax. Besides the five states in the USA (Alaska, Delaware, Montana, Oregon, and New Hampshire), the seller’s permit cost varies depending on the state.

How much does the seller’s permit cost? Most states offer it for free, while others charge a registration fee between $5 and $100.

Let’s look at the cost of getting a sales tax permit in different states.

 

Why do you need a Seller’s Permit?

A seller’s permit or sales tax permit allows sellers to collect and remit sales tax from customers to the state. Some states charge permit fees and security deposits, while others don’t. Depending on the state, you may need to renew your sales tax permits at least once every few years. If your state charges sales tax, you can apply for a seller’s permit by submitting the required documents.

Check out our blog to learn everything you need to know about a seller’s permit as an ecommerce seller in detail.

 

How much does a Seller’s Permit Cost in Each State?

Here is a table stating how much a seller’s permit costs in each state:

STATE SALES TAX PERMIT COST REMARKS Alabama $0 There is no security deposit requirement for a seller’s permit. Alaska $0 The state does not charge any sales tax, but some cities may impose a local sales tax.  Arizona $12 Clothing is taxable, while food and shipping are not taxable. Some towns may charge an additional fee for seller’s permits.  Arkansas  $50 Shipping, clothing, and food are taxable in this state. The state charges a non-refundable registration fee.  California $0 The state may charge a security deposit. Clothing is taxable in this state, while food and shipping are exempt from taxes.  Colorado  $12 – $16 A $50 refundable security deposit is also required. You need to renew the permit every two years on payment of a fee. Connecticut $100 The state charges a one-time registration fee leading to a sales permit valid for two years. It renews automatically if you keep your sales account active. Delaware  n/a Delaware has no sales tax and, therefore, no cost is associated. Florida $0 (online application) and $5 (mail-in application) The state charges seller’s permit fees only for mail-in applications. No security deposit is required.  Georgia  $0 No bond or security deposit requirement in this state.  Hawaii $20 The state charges a one-time general excise tax license fee.  Idaho  $0 You can get a seller’s permit at no cost. Illinois $0 You can get a seller’s permit for free, except for some businesses that need to pay license fees.  Indiana  $25 The state charges a one-time Registered Retail Merchant Certificate fee that is valid for two years. It updates automatically. Iowa $0 Sales tax permits are free in this state.  Kansas  $0 The state does not charge any security deposit either. Kentucky $0 Free sales tax permit registration.  Louisiana  $0 You can register for a sales tax certificate for free, while the local government may charge a fee.  Maine $0 There is no permit fee, security deposit, or bond deposit.  Maryland  $0  Free seller’s permit registration.  Massachusetts $0 Free seller’s permit registration.  Michigan  $0 Free seller’s permit registration.  Minnesota $0 Free seller’s permit registration.  Mississippi  $0 Registering for a sales tax permit is free. It doesn’t expire or require renewal except when the business changes location, ownership, etc. Missouri $0 Free sales tax permit registration; however, the retailer needs to post a bond.  Montana  n/a The state does not charge sales tax.  Nebraska $0 Free sales tax permit registration with separate permits for each location. Nevada $15 A security deposit is required for businesses having a tax collection of more than $1,000.  New Hampshire n/a The state does not charge sales tax.  New Jersey  $0 Free sales tax permit registration.  New Mexico $0 Free sales tax permit registration. New York  $0 Free sales tax permit registration. North Carolina $0 Free sales tax permit registration. North Dakota  $0 The permit remains viable until the seller cancels it.  Ohio $0 (out-of-state sellers); $25 (in-state sellers) The sellers must apply for separate permits for each location if in-state.  Oklahoma $20 The seller must pay an additional $10 for each location, with renewal required every three years.  Oregon n/a The state does not charge sales tax.  Pennsylvania  $0 Free sales tax permit registration.  Rhode Island $10 The seller needs to renew the permit each year.  South Carolina  $50 Every location requires a separate retail license, valid until the seller operates the business at the same location.  South Dakota $0 Free sales tax permit registration.  Tennessee  $0 Free sales tax permit registration, but some businesses may require a business license that costs $15. Texas $0 Sellers may have to post a security bond.  Utah  $0 Free sales tax permit registration. Vermont $0 Free sales tax permit registration. Virginia  $0 Free sales tax permit registration. Washington $0 There is neither a sales permit fee nor a security deposit requirement.   West Virginia $30 The sellers are required to post a security bond, deposit, or letter of credit).  Wisconsin $20 Besides the one-time permit fee, additional tax permits are free.  Wyoming  $60 Besides the one-time license fee, businesses may have to pay registration fees. The license doesn’t need renewal.

Bottomline 

The seller’s permit cost varies depending on the state. Applying for a sales tax permit can be overwhelming and hectic for online retailers.

Book a call and talk to our CEO to understand our all-inclusive full-stack sales tax solution and get your seller’s permit in all states right away.