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Ultimate Guide to Alaska Sales Tax | TaxHero

Home to 17 beautiful mountains with the tallest peaks, Alaska is a breathtaking place to visit. In Alaska, you can also climb to the top and conquer the business market when equipped with the right knowledge. The first step is learning how sales tax in Alaska works.

This guide breaks down everything you need to know about Alaska, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand Alaska’s unique tax regulations with confidence and ease.

Is There Sales Tax in Alaska?

Alaska has no statewide sales tax. However, Alaska allows its local municipalities to levy a sales tax. There are at least 107 jurisdictions that have different rates and rules regarding the imposition of the said tariff.

This brings the question: Why is there no statewide sales tax in Alaska?

The Last Frontier generates sufficient income from multiple sources, enough to relieve the need for a sales tax. Alaska’s main source of revenue is its thriving oil and gas industry, covering over 85% of the state’s finances.

Thanks to its earnings from the oil industry, Alaska developed a notable system called the Permanent Fund Dividend (PFD). This system provides Alaskans a direct economic advantage through its annual dividend returns, effectively balancing the lack of statewide sales tax.

The tourism industry is another huge contributor to Alaska’s finances. Without a statewide sales tax, Alaska ends up attracting more tourists. This strategy creates more income and other opportunities for the state’s economy.

Additionally, Alaska also relies on the following industries:

Fishing
Timber
Mining
Agriculture

It’s also believed that the Last Frontier has strong values regarding freedom and limited governance. With this nature, it’s no surprise for Alaskans to have a flexible, multifaceted system when it comes to their taxes.

Alaska Local Sales Tax

Alaska has about 107 municipalities that levy a local sales tax with rates ranging from 1.00% to 7.00%. Since every city has its distinctive rules, doing business in Alaska means facing a variety of sales and use tax regulations.

After all, the taxability of specific goods and services changes depending on the local jurisdiction. Here’s an example of 2 localities with differing laws:

Petersburg Borough, AK – sales of pull-tab games by licensed or qualified charitable organizations are exempt from sales tax. This rule may be unique to Petersburg, AK, and may not apply to other local jurisdictions.
Ketchikan City, AK – sales of lawful bingo games held by licensed individuals are exempt from sales tax. This rule may also not apply to other local jurisdictions.

To accurately determine the taxability of certain goods and services, Alaska advises businesses to contact the local municipalities for better guidance.

Alternatively, you may also access the Alaska Taxable to view an annual publication documenting all cities and the specific types of taxes they impose. However, this table only provides general information and may not contain every detail your business may need.

Please be advised that failure to comply with each city’s rules may result in different penalties as well. To simplify your transactions in Alaska, avoid all the intricacies by letting experts at TaxHero take care of the legal procedures.

Beyond Alaska Sales Tax: Other Taxes You Should Know

Aside from the local sales and use tax, there are other taxes in Alaska that every business owner should know.

While the list seems overwhelming at first glance, rest assured that only a few of these taxes may potentially impact your business.

To guarantee you find the specific details your business might need, let’s discuss the most relevant tax types below.

Alcoholic Beverage Tax

Alaska is no different from many states when it comes to taxing alcoholic beverages.

The rates for Alaska’s Alcoholic Beverage Tax vary depending on the type and amount of beverage that is sold. Here are the summarized tax rates:

Wine – $2.50
Liquor – $12.80
Beer by Small Breweries – $0.35
Beer (Malt Beverages) – $1.07 per gallon

Filing this tax must be done monthly, while returns are due by the last day of the month following the month of sale or transaction.

Commercial Passenger Vessel (CPV) Excise Tax

Effective since December 17, 2006, a $34.50 tax is imposed on every passenger for each voyage. This tariff should be collected by the person or corporation providing the traveling service through commercial vessels.

Exemption: Only applies to passengers onboarding commercial vessels not anchoring or mooring in state marine waters with intent to allow disembarking passengers.

The collected tax is due on the last day of the month following the month of sales. Filing and remitting the Commercial Passenger Vessel Excise Tax should be done monthly.

Corporate Income Tax

Any business in Alaska is bound to deal with the state’s Corporate Income Tax. Enterprises with a total taxable income worth $222,000 or more are subject to a 9.40% corporate income tax.

Here are more details to keep you prepared.

Returns are due 30 days after the federal due date.
Due dates cannot be extended. You must pay your corporate income tax on or before the 15th of the 4th month after the tax year closes.
Amount due $100,000 to $150,000 or beyond must be paid online, through Alaska’s Revenue Online website, or by a wire transfer.

Fisheries Related Tax

The fishing industry is one of the top sources of revenue in Alaska; hence why the Last Frontier has various taxes related to fishing.

Fisheries Business Tax – also known as “raw fish tax.” Applies to all processed fish in Alaska or unprocessed exported fish from Alaska. Rates vary between 1% to 5%. Fishermen who process the fish on board their ships and sell to licensed processors are exempt.
Salmon Enhancement Tax
Fishery Resource Landing Tax – Alaska imposes a 3% tax on established fisheries and a 1% tax on developing fisheries.
Seafood Marketing Assessment Tax – The rate is 0.5% of the assessed value of seafood processed first in Alaska or exported from Alaska. Fishermen or processors producing less than $50,000 value of seafood are exempt from this tax.
Regional Seafood Development Tax – A 1% tax is imposed on fish caught using drift or set gillnets that are sold in or exported from seafood regions (i.e, Prince William Sound and Bristol Bay).
Dive Fishery Management Assessment – A 1% tax is levied on sea urchins and sea cucumbers. Meanwhile, a 7% tax is imposed on geoducks.

Large Passenger Vessel Gambling Tax

Businesses providing gaming or gambling services on large passenger vessels sailing within the territorial waters of Alaska are subject to the Large Passenger Vessel Gambling Tax (LPV).

The rate is 33% on the adjusted estimated revenue generated by gaming or gambling activities inside a ship in Alaska.

Other Resources Tax

Aside from taxing its fishing industry, Alaska also has other resources that are subject to tax.

Mining License Tax – Businesses engaged in the mining industry in Alaska must pay the mining license tax. The tax is based on the business’s income, with rates ranging between 3% to 7%.
Motor Fuel Tax – Varying tax rates are imposed on motor fuels. Gasoline used for heating by federal, state, or local government agencies, foreign flights, exports, or charities is exempt from local sales and use tax.
Oil and Gas Production Tax – Alaska’s biggest source of revenue is its oil resources. Producing oil results in a 35% tax based on the value. On January 1, 2022, the rate for produced gas is 13% of the estimated value at the point of production.

Tobacco & Marijuana Tax

Since November 4, 2024, Alaska began taxing the production, sale, and use of marijuana within the state. Licensed marijuana cultivators or facilities must pay the following rates:

$50 per ounce of marijuana
$25 per ounce of immature or abnormal buds
$15 per ounce of trimmed marijuana flower buds and
$1 per clone of marijuana flower buds

As for tobacco, Alaska charges 75% of the wholesale price of tobacco products. This also applies to tobaccos imported within the state.

Tire Fees

Each sale of new tires made to be used on highways and sold in Alaska is subject to a $2.50 tire tax. An additional $5 fee is applied for tires with heavy studs (weighing more than 1.1 grams each).

Tire fee taxes must be filed quarterly and are due 30 days following the filing period. Tire sellers are allowed to keep at least 5% of the amount collected, with a maximum limit of $600 per quarter.

Exemptions: Sales to the government (federal, state, or local) for official use are exempt from tire fees. Sales to resellers with resale certificates can also exempt the buyer from tire fees.

Vehicle Rental Tax

Businesses engaged in leasing or vehicle rental services are subject to a 10% vehicle rental tax in Alaska. For recreational vehicle rentals, the rate is 3%. This applies if the lease or rental period doesn’t last longer than 90 consecutive days.

Exemptions apply to the following:

Taxicab rentals by taxicab drivers
Leases or rentals that exceed 90 consecutive days
Trucks rented by individuals moving their personal property
Lease or rentals used by government (federal, state, or local) agencies or employees
Vehicles provided by automobile dealers as a means of replacement transportation during a buyer’s warranty, recall, or service repairs

Utility Taxes

Some utility services are also subject to various taxes in Alaska.

Electric Cooperative Tax – Applies to qualified electric cooperatives recognized under AS 10.25. The rate is $0.00025 per kilowatt hour for furnished electric energy and power to consumers lasting less than 5 years. For energy that lasts beyond 5 years, the rate is $0.0005 per kilowatt hour.
Recovery Cost Charges – Alaska imposes regulatory cost charges on actively maintained utilities. The rates may vary depending on the city. For a complete list of all tax rates available in Alaska, visit the Alaska Regulatory Commission.
Telephone Cooperative Tax – Qualified telephone cooperatives under AS 10.25 are subject to a 1% tax. This applies to furnished telephone services lasting less than 5 years. For furnished telephone services lasting longer than 5 years, the rate is 2%.

Alaska and Remote Sellers

Being the only NOMAD state with local sales taxes, Alaska is fully prepared for remote seller activities within the state. The Alaska Remote Seller Sales Tax Commission (ARSSTC) was established specifically to guide remote sellers.

Through the ARSSTC, the “Remote Sellers Sales Tax Code” was created. This uniform code declares the rules that every out-of-state seller must comply with, effectively clearing the sales tax collection process in Alaska.

So, how can a remote seller identify whether they are liable to collect sales tax in Alaska? And what if you are a remote seller in Alaska who’s doing business in other states that have a sales tax?

The main defining factor is whether you have a sales tax nexus in a state or not.

Sales Tax Nexus

Establishing a sales tax nexus in a state means that you’re actively engaged in business in that state. Sales tax nexus has 2 principal types:

Physical nexus or
Economic nexus

When a business creates one of these nexus, it is required to collect sales tax in most states, including Alaska.

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.

In Alaska, the factors that determine a physical nexus are highly similar to many other states. But to be specific, here are the qualifications you must meet:

Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in a state.
Inventory in the State: This covers situations where you store your products within a state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating within a state on your behalf.
Business Operations: Includes farming and fishing operations in the state of Alaska.
Owning any leased or mobile property and intangible property (e.g., patents, copyrights, trademarks, franchises, stocks, bonds, notes, and bank deposits) can also create a 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.

Generally, this law does not apply to states without sales tax, but Alaska is a unique case. With only local sales taxes, municipalities in Alaska still follow the standard practices of economic nexus regulations:

Beginning April 1, 2020, the threshold for economic nexus in Alaska is $100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.

While the nexus criteria mentioned above typically apply to most businesses, additional methods may exist for establishing a sales tax nexus.

Business Compliance Obligations in Alaska

Though Alaska has no general sales tax permit, Alaska still requires sellers to register for a business license once they have a sales tax nexus in the state.

You can apply for an Alaska business license at the Alaska Department of Commerce website. Depending on the type of business you own, the registration steps may vary. Ensure you have specific information on hand, including, but not limited to:

Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
IndustryActivity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start date)
Alaska Professional License, other required Alaska licenses, and permits
Alaska Registered Agent for Business Entities
Alaska NAICS Code

Registration Fee
There is a $50 annual fee to register for a Business License in Alaska.

Senior and Disabled Veteran Discount: Senior citizens and disabled veterans who are sole owners of their businesses only need to pay $25 for a Business License in Alaska.

Renewal

In Alaska, you have to renew your Business License annually. All business licenses expire on the last day of the year, regardless of the date the license was issued.

For instance, Business licenses issued on March 1, 2025, will expire on December 31, 2025, of the same year. Exceptions only apply to licenses issued after October 1st. Any Business License issued after October will only expire in the following year.

Other Licenses in Alaska

There are also other licenses you might need to keep your business running smoothly in Alaska, such as:

Alcoholic Beverage License
Tobacco Products License

Since the varying application process can be complicated, it’s best to consider the help of tax compliance experts. At TaxHero, we can process the license registrations so you can sit back and focus on growing your business.

Conclusion

Despite having no statewide sales tax, understanding relevant tax obligations in Alaska is always crucial to keep your business running smoothly. Remote sellers from Alaska 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 Colorado Sales Tax | TaxHero

Nestled in the majestic Rocky Mountains, Colorado’s stunning natural beauty and business-friendly policies make it a premier destination for entrepreneurs. However, successfully launching and running an enterprise here requires grappling with the complexities of the state’s sales tax codes. For both existing and aspiring business owners, having a handle on sales tax in Colorado is crucial for smooth sailing.

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

Sales Tax Nexus in Colorado

It is important to understand that Colorado is a home-rule state. This means that many of its cities and counties have the authority to set their own sales tax rates and regulations independently of the state’s rules. As of January 1, 2024, Colorado has 66 home-rule cities and two home-rule counties (Denver County and Bloomfield County). As a result, businesses operating in multiple home-rule jurisdictions within the state may find it challenging to navigate these varied regulations. Moreover, when a business establishes either a physical or economic nexus, it is required to collect sales tax in Colorado.

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 Colorado include:

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Presence at Trade Show: If you’re selling at a special event, you need to collect and pay sales taxes to the state. You can either pay these taxes directly to the Department or to the event organizer if they have a special event license. This option is available even if you have your own special event license. Before the event, make sure to get a special event license from the Department. Also, check with the event organizer or local government for any additional local sales tax rules.

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 December 1, 2018, the threshold for economic nexus in Colorado is $100,000 in gross revenue in the previous or current calendar year’s sales.

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

Colorado 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 Colorado.

Tangible Products

Almost all goods are taxable in Colorado, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Personal Hygiene – Items such as soaps, paper products, and grooming items are taxable

The goods that are exempt from sales tax are:

Groceries – Most food for home consumption is exempt from state sales tax. However, prepared food, dietary supplements, soft drinks, and liquor are examples of grocery items that are taxable. Additionally, while food items paid for with funds issued by the federal Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) or with food stamps are tax-exempt, any non-food grocery items purchased under these programs are still subject to sales tax. Finally, grocers must consider factors like the temperature at which items are sold to determine if they qualify as tax-exempt “food for home consumption” under Colorado law. Note: Although there is no state-imposed sales tax on grocery food, cities and counties may levy local sales taxes at their discretion (e.g., Denver).
Feminine Hygiene Products – Products such as tampons, menstrual cups and sanitary napkins, pantiliners, etc. are exempt from sales tax in Colorado.
Diapers – In Colorado, as of January 1, 2023, incontinence products and diapers are not subject to state sales and use taxes. This exemption includes various types of diapers and incontinence pads but does not extend to items like clothing or general hygiene products.
Prescription Medications – Prescription and nonprescription drugs, certain medical supplies, and durable medical equipment prescribed by a licensed practitioner are exempt from state sales tax. However, vitamins, dietary supplements, and other non-prescription medicines are taxable.
Agricultural Supplies – Seeds, fertilizers, and machinery used directly in farming are exempt from sales tax.
School-related items – Sales by schools and student organizations are exempt from state sales tax if proceeds benefit the school or approved student groups.

Services

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

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

Telephone and telegraph services
Room and accommodation services
Gas and electric services
Certain utility services

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

SaaS is not taxable in the state of Colorado.

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

Shipping/Handling

Shipping and handling charges in Colorado are not taxable as long as both are separately stated in the customer invoice. However, retailers must collect a $0.27 Retail Delivery Fee on all deliveries by motor vehicle that include at least one item of taxable tangible personal property. This fee applies to each sale and is in addition to any other state sales or use taxes.

Sales Tax Permits and Licenses in Colorado

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Colorado, the next important step is getting your Colorado Seller’s Permit, also known as a sales tax permit. Home rule refers to the authority granted to local jurisdictions, like cities and counties, to enact and administer their own sales and use taxes independently of state tax laws.

Colorado simplified sales tax permit regulations for remote sellers. Previously, businesses without a physical presence had to obtain separate licenses in each of Colorado’s home-rule cities. From July 1, 2022, these businesses can register statewide, avoiding the need for multiple local licenses with full effect on July 1, 2023.

Seller’s Permit

The registration process varies depending on the location of the business’s incorporation.

In-state businesses

Standard Retail License (Sales Tax License) – for businesses that make retail sales in Colorado.
Single Special Event License – for businesses with a temporary location other than their regular business location and valid for only one event with three or more vendors. This two-year license is free to all standard sales tax license holders.
Multiple Special Event License – for businesses attending more than one special event. This two-year license is free to all standard sales tax license holders. It covers a two-year period when three or more vendors are at the event.
Mobile Vendors – businesses selling out of a truck or other vehicle must have a sales tax license for their main office location. They should add jurisdiction “sites” to their sales tax license. There is no additional fee for these sites.

Out-of-state businesses

You can register for a Sales Tax License online through the Colorado Revenue Online or follow our detailed step-by-step guide for assistance.

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

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

Registration fee
The registration fee for a Colorado sales tax permit varies based on the time of application:

$16 for January-June and $12 for July-December in the first year, and
$8 for January-June, and $4 for July-December in the second year.

Additionally, new accounts must include a $50 deposit with the application, refundable after the business has collected and remitted $50 in state sales taxes.

Renewal
In Colorado, you can renew your sales tax permit every two years through the Renewal Application for Sales Tax License form. Applicants must pay a $16 fee, which is prorated based on the issuance date. Wholesale licenses expire on December 31st of odd-numbered years (e.g., 2023, 2025, 2027) unless revoked sooner by the CO Department of Revenue.

Resale Certificate

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

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

Businesses that plan to purchase items for resale without paying sales tax should obtain a Colorado sales tax account/license by completing the CR 0100 form. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in Colorado

Sales Tax Computation

In Colorado, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs. Additionally, the tax rate and rules can vary significantly in home rule jurisdictions, where local governments set and administer their own sales and use taxes independently. Use TaxHero’s Colorado Sales Tax Calculator to compute for sales tax.

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in California and sells to a customer in the home-rule city of Denver, CO, with a ZIP code of 80201. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Colorado	2.90%
County:	Denver	0.00%
District:	Seventh District	1.10%
City:	Denver	4.81%
Combined Sales Tax Rate =		8.81%*

*includes a fixed-amount Retail Delivery Fee

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.

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

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

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

Filing and Remitting Sales Tax Returns in Colorado

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

Annual Filing: If you collect sales tax of $15 or less per month
Quarterly Filing: If you collect sales tax of between $15 and $300 per month
Monthly Filing: If you collect sales tax of more than $300 per month

It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Colorado sales tax regulations. Meanwhile, in self-collecting home rule cities, different filing requirements and guidelines may apply. For specific information on these jurisdictions, you may contact the respective local cities directly.

Due Dates

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

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

Filing Sales Tax Returns

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

File online through the Revenue Online portal.
File by mail – Complete DR 0100 and mail it to the Colorado Department of Revenue.
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. Colorado’s timely filing discount allows filers to retain 4.00% of their sales tax due or up to $1,000 per filing period. However, businesses with sales tax collections over $1,000,000 are not eligible for the filing discount.

Sales Tax Holiday

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

Colorado Sales Tax Penalties

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

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

Civil penalties amounting to 10% of the unpaid tax, plus an additional 0.5% for each month the tax remains unpaid, up to a maximum total penalty of 18%;
On the criminal side, offenses can be classified as either misdemeanors or Class 5 Felonies, depending on the severity and specific circumstances.

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

Ultimate Guide to Delaware Sales Tax | TaxHero

Delaware is a haven for both shoppers and business owners, thanks to its unique tax-friendly policies.

With no state or local sales tax in Delaware, residents and visitors can enjoy tax-free shopping on a wide range of items, from clothing to electronics.

This also makes the First State an attractive destination for businesses looking to maximize profits and consumers eager to save money.

This guide breaks down everything you need to know about Delaware, one of the five states that do not have a sales tax. By the end of this comprehensive guide, you’ll understand Delaware’s unique sales tax regulations with confidence and ease.

Is There Sales Tax in Delaware?

No, Delaware does not impose a statewide sales tax. It’s one of five U.S. states without a general sales tax, making it an attractive location for consumers and businesses.

Historically, Delaware’s tax-free status has been in place for decades, supporting the state’s goal of remaining business-friendly. This has turned Delaware into a popular destination for tax-free shopping, helping to reduce overhead for local retailers.

Beyond Delaware Sales Tax: Other Taxes You Should Know

While Delaware skips sales tax, that doesn’t mean it’s tax-free. One of the most important taxes for businesses in Delaware is the Gross Receipts Tax (GRT).

Unlike sales tax, which is collected from customers, the gross receipts tax is a tax on the business’s total revenue. Rates vary depending on your industry and range from 0.0945% to 1.9914%.

Aside from gross receipts tax, Delaware also imposes the following tax types:

Corporate Income Tax

Delaware imposes an 8.7% corporate income tax on federal taxable income that is apportioned to the state. As of January 1, 2020, the apportionment is based solely on sales within Delaware.

All domestic and foreign corporations must file an annual return (Form CIT-TAX), regardless of income, and cannot file consolidated returns.

There is no minimum corporate income tax, but net operating losses can be carried back up to $30,000 for two years or carried forward for 20 years.

Franchise Tax

Corporations incorporated in Delaware, regardless of where they operate, must still file an Annual Franchise Tax Report and pay Franchise Tax for the privilege of incorporating in the state.

This requirement applies even if the corporation doesn’t do business in Delaware.

The minimum tax is $175 for corporations using the Authorized Shares method and $400 for those using the Assumed Par Value Capital Method.

Most corporations face a maximum tax of $200,000, unless classified as Large Corporate Filers, who are subject to a $250,000 tax.

Corporations owing $5,000 or more must pay estimated taxes in quarterly installments:

40% by June 1
20% by September 1
20% by December 1, and
remaining 20% by March 1

In case of failure to file on time, you will incur a $200 penalty plus 1.5% monthly interest on unpaid balances.

Other entities, such as Limited Partnerships, Limited Liability Companies (LLCs), and General Partnerships formed in Delaware, do not file annual reports but are required to pay a $300 annual tax, due by June 1.

Late payments incur a $200 penalty and accrue interest at a rate of 1.5% per month.

The Franchise Tax and Annual Report are due by March 1 each year, and filings must be done electronically through the Delaware Division of Corporations. Exempt domestic corporations do not pay tax but are still required to submit an Annual Report.

Withholding Tax

If you run a business in Delaware and have employees, whether they live in the state or not, you’re generally required to withhold Delaware income tax from their wages. This applies as long as those wages are also subject to federal income tax withholding.

To do this, you’ll need to register with the Delaware Division of Revenue as a withholding agent and regularly send the withheld taxes to the state.

Delaware and Remote Sellers

Delaware does not have economic nexus laws for sales tax, which means remote sellers are not required to collect or remit sales tax in the state.

However, Delaware-based businesses selling to customers in other states can still trigger a physical nexus, which may require them to register, collect, and remit sales tax according to each state’s specific rules.

Income Tax Nexus

Delaware’s income tax nexus standard is based on whether a business’s income-producing activities are connected to the state, rather than solely on physical, economic, or factor presence.

Instead, Delaware determines tax nexus on a case-by-case basis using a nexus questionnaire submitted by taxpayers.

Nexus-creating activities include:

Owning or leasing property
Using local banking services
Shipping goods
Extending credit
Performing installations or repairs
Employing agents
Advertising, soliciting sales, handling inventory, and
Conducting credit checks in Delaware.

Business Compliance Obligations in Delaware

Operating a business in Delaware involves several key compliance requirements.

All business entities in Delaware must obtain a State of Delaware Business License from the Delaware Division of Revenue. Also, this license is typically $75 for the first location and must be renewed annually.

Separate licenses are required for each business activity. Businesses can apply for or renew licenses through Delaware’s One Stop Business Licensing and Registration Service.

Conclusion

Delaware doesn’t require businesses to collect state sales tax, but you still need to follow other tax rules and policies for compliance.

From the gross receipts tax to potential sales tax obligations in other states, it’s essential to stay informed about these matters.

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:

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.
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.
Employees, independent contractors, agents, or other representatives operating in Oregon on your behalf or under your business name.
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.

Vehicle Taxes
Property Taxes
Business Taxes
Corporate Activity Tax (CAT)
Local Sales Taxes – Only in Ashland City, OR
Cigarette Taxes – $3.33 per stamp for a pack of 20 cigarettes
Bicycle Excise Taxes – a fixed $15 tax is applied on each sale of a taxable bicycle

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.

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

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:

Have a 7,500-mileage or less
Sold with an MSO/MCO if there’s no odometer
Purchased on January 1, 2018, or at a later date
Weighing 26,000 pounds or less in gross vehicle weight rating (GVWR)
Never registered or titled in the state of Oregon (exceptions apply to dealer demonstrators)

Vehicle Use Tax

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:

Corporate Income Tax – applies to remote sellers with a substantial nexus in Oregon
Corporate Excise Tax – imposed on Oregon-based businesses, has a minimum of $150

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:

Revenue from Corporate Activity Tax: Used for funding schools, learning programs, and the K-12 agenda.
Businesses are allowed to recover the expenses for Corporate Activity Tax: The total price charged must be disclosed in the business’s commercial activity.
A business with a total income of $750,000 must register for the Corporate Activity Tax within 30 days of achieving this threshold. Failure to register leads to a penalty fee of $100 monthly or $1,000 yearly.

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:

Takeouts and
Food deliveries

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:

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.
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:

200 total transactions within the state and/or
$100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.

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.

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.

Check the state’s license directory – With over 1,100 license types, it’s best to directly identify which one your business needs.
Reach out to local municipalities – Verify if the city requires any business permits or licenses. For instance, Adams City requires a local business license. Meanwhile, Adair City only requires building permits.
Sign up for the state’s tax programs – You must register your business if you are liable for Oregon taxes, such as the Corporate Activity Tax, business taxes, vehicle taxes, and more.
Collect, file, and remit the appropriate taxes – Knowing the different taxes in Oregon, you must fulfill your legal obligations to avoid tax-related penalties.
Register your business in other states – Oregon remote sellers with a sales tax nexus in other states must follow the sales and use tax regulations of the states where they are engaged in business.

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.

Ultimate Guide to Montana Sales Tax | TaxHero

Montana is known for its wide-open spaces, rugged mountains, and one rare financial perk: no statewide sales tax. That’s right, sales tax in Montana doesn’t apply to most purchases, making it a shopper’s dream.

But while the Treasure State skips this common tax, there are still a few cases where you might pay extra charges on specific purchases.

This guide breaks down everything you need to know about Montana, one of the five states that do not have a sales tax. By the end of this comprehensive guide, you’ll understand Montana’s unique sales tax regulations with confidence and ease.

Is There Sales Tax in Montana?

If you plan to start a business in Montana, you may wonder whether the state imposes a sales tax. The short answer? Montana does not have a statewide sales tax.

Montana is one of only a few states in the U.S. that have chosen not to implement a general sales tax.

This policy dates back decades, with voters consistently rejecting proposals to implement a sales tax. The result is a tax-friendly environment for both residents and local businesses.

While the lack of a sales tax may sound like a break for businesses and consumers, it doesn’t mean there are no tax-related responsibilities for Montana business owners.

Beyond Montana Sales Tax: Other Taxes You Should Know

While you won’t be charging your customers a general sales tax, there are other tax types to keep in mind as a business owner in Montana.

Corporate Income Tax

Montana imposes a corporate income tax on corporations that conduct business or derive income within the state.

It’s designed to capture a fair share of taxes from corporations that benefit from Montana’s infrastructure and services, while also addressing the complexities associated with multi-state and international business operations.

The standard tax rate is 6.75%, with the option for corporations to elect using the water’s-edge method, which focuses taxation on US-based income and specific foreign sources, at a slightly higher rate of 7%.

This approach aims to prevent profit shifting to low-tax jurisdictions by requiring combined reporting of income from all entities within a unitary business, unless the water’s-edge election is made.

Mineral Royalty Withholding Tax

The Montana Mineral Royalty Withholding Tax is a state income tax requirement that mandates withholding on certain mineral royalty payments.

Specifically, when mineral royalties are paid from Montana-based production to nonresident individuals or out-of-state business entities, the payer, referred to as the “remitter,” must withhold 6% of the net royalty amount.

This withholding applies regardless of the recipient’s business structure, including individuals, trusts, partnerships, or corporations.

Remitters are required to register with the Montana Department of Revenue and comply with specific filing obligations. These include:

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

The withheld amounts are considered trust funds held on behalf of the state, and remitters remain liable for proper withholding and reporting, even if they use third-party accounting services.

For royalty owners, the withheld tax can be claimed as a refundable credit against their Montana income tax liability. This information is typically reported on Form 1099-MISC (Box 15) or a Montana Schedule K-1, depending on the nature of the payment.

Natural Resource Tax

Montana collects taxes on natural resources harvested in the state, including coal, metal, oil, and natural gas.

Bentonite Production Tax
Cement and Gypsum Producers License Tax
Coal Gross Proceeds Tax
Coal Severance Tax
Electrical Energy Producers License Tax
Metal Mines Gross Proceeds Tax
Metal Mines License Tax
Micaceous Mineral Mines License Tax
Mineral Royalty Withholding Tax
Miscellaneous Mines Net Proceeds Tax
Oil and Natural Gas Production Tax
Resource Indemnity Trust & Ground Water Assessment Tax
Wholesale Energy Transaction (WET) Tax

Miscellaneous Tax

Montana has several taxes covering specific businesses, services, or locations. These taxes include telecommunications, tobacco, tourism, cannabis, and health care facilities.

Alcohol Taxes
Cannabis Tax
Cigarette Taxes
Consumer Counsel Fee (CCT)
Contractor’s Gross Receipts Tax (CGR)
Emergency Telephone System Fee
General Sales Tax
HELP Entity Fee (HEF)
HELP Integrity Fee (HIF)
Hospital Facility Utilization Fee (HUF)
Intermediate Care Facility Utilization Fee (ICFUF)
Local Resort Tax
Lodging Facility Sales and Use Tax
Moist Snuff Taxes
Nursing Facility Utilization Fee (NFBT)
Opioid Seller’s License
Other Tobacco Product Taxes
Public Service Regulation Fee (PSR)
Rental Vehicle Tax (RVT)
Retail Telecommunications Excise Tax (RTE)
TDD Telecommunications Service Fee
Unclaimed Property Holders
Universal Systems Benefits Programs
Unlocatable Mineral Trusts

Montana and Remote Sellers

Montana does not impose a statewide sales tax, and there are no economic nexus standards for sales tax in the state. This means that out-of-state sellers are not required to collect or remit Montana sales tax on sales to Montana customers.

However, Montana does follow an economic presence standard for corporate income tax.

A business is considered to have nexus for income tax purposes if it is “engaged in business” in Montana, which is broadly defined as any activity carried out for profit.

Additionally, Montana applies the Joyce Rule, which states that only in-state activities conducted by or on behalf of the company can establish income tax nexus.

While Montana sales tax does not apply to in-state transactions, Montana-based businesses that sell to other states may still have sales tax obligations in those states.

If a business has a physical presence in another state, it may trigger physical nexus, requiring sales tax registration and collection.

Therefore, although Montana sales tax laws are minimal, businesses operating from Montana must still be proactive in understanding how multistate nexus laws affect their overall tax compliance.

Business Compliance Obligations in Montana

Just because there’s no sales tax doesn’t mean you can skip registration. If you’re running a business in Montana, you may still need to:

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

You can check the state’s official business registration site to get started and ensure you’re meeting your obligations.

Conclusion

Montana may not have a general sales tax, but that doesn’t mean business owners are exempt from taxes and compliance.

From corporate income tax to potential nexus in other states, understanding your responsibilities and staying compliant is key to staying on the right side of the law.

Ultimate Guide to New Hampshire Sales Tax | TaxHero

Popularly known as the “Granite State,” New Hampshire impresses anyone with its spectacular White Mountains and stunning fall foliage. Aside from its natural wonders, doing business in New Hampshire can also bring positive changes. But before you dive in, you must know how sales tax in New Hampshire works.

This guide breaks down everything you need to know about New Hampshire, one of the five states without sales tax. By the end of this comprehensive guide, you’ll understand New Hampshire’s unique tax regulations with confidence and ease.

Is There Sales Tax in New Hampshire?

Throughout its tariff history, New Hampshire has never had any sales tax. Currently, the state does not have plans to change its tax system anytime soon.

This brings the question: Why is there no sales tax in New Hampshire?

The Granite State remains unclear with its reasoning, but many tax experts speculate that it’s simply part of the state’s frugal nature and the limited government it has.

Implementing sales tax would mean bringing changes to the state constitution. But with New Hampshire’s limited government, even minor changes could lead to immense intricacies. This is what the state may have been avoiding throughout the years.

There had been efforts to change this system, but voters in New Hampshire and the legislature have continuously rejected the idea of imposing sales taxes. In that case, how does the state fund its projects?

The state’s main source of revenue is its property taxes, ranking as the 4th state with the highest property tax rate. For instance, Sullivan County alone has an effective property tax rate of 2.38% as of 2023.

Additionally, New Hampshire also collected revenue from interest and dividend taxes. However, since January 23, 2025, the state has declared that the 3.00% interest and dividend tax has been repealed.

Beyond New Hampshire Sales Tax: Other Taxes You Should Know

Apart from the state’s high property taxes or the repealed interest and dividend taxes, there are still other taxes in New Hampshire that every business owner should know.

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

The list may seem overwhelming at first glance, but don’t worry. Among these various tax types, only a few can directly affect specific businesses in New Hampshire.

Let’s discuss the most relevant tax types below.

Meals & Rental Tax (MRT)

In New Hampshire, hotel patrons or any building that offers lodging or sleeping accommodations with room and meal services are subject to an 8.50% tax. The same also applies to restaurants and motor vehicle rentals.

The tax must be collected and remitted by business owners every 15th of each month.

Meals and Rental Tax are also imposed on the following types of catering businesses:

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

To learn more about Meals and Rental Tax in New Hampshire, you can read the state’s official guidelines in RSA 78-A and Rev 7000.

Timber Tax

Businesses engaged in the wood-cutting industry must be aware of the RSA 79 Forest Conservation and Taxation in New Hampshire. This rule declares that the cutting and selling of wood or timber are subject to a 10.00% timber tax based on the stumpage value.

The wood‘s value will be assessed by a municipal officer after reporting the collected timber through the Form PA-8. This form is provided by the municipal government.

Exemptions only apply if the wood and timber cut is:

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

To learn more about Timber Tax in New Hampshire, you may read the state’s official guidelines in Rev 3400.

Tobacco Tax

New Hampshire also follows many other states when it comes to imposing a tobacco tax. Under RSA 78, various tariff rates are applied to tobacco and cigarette products in general.

There is a $1.78 tax imposed on each package containing 20 cigarettes or small cigars. Any other tobacco product is taxed at a rate of 65.03% of the wholesale sale price.

Additionally, since January 1, 2020, New Hampshire has been taxing electronic cigarettes (e.g, vapes) as well.

A liquid container that can be opened and carries nicotine is subject to an 8.00% tobacco tax. This tax is applied to the wholesale sales price.
Closed cartridges or containers with liquid or substances containing nicotine that are not meant to be opened are taxed at a rate of $0.30 per milliliter of the liquid or substance’s total volume.

To learn more about Tobacco Tax in New Hampshire, you may read the state’s official guidelines in Rev 1000.

Alcohol Tax

Much like tobacco, New Hampshire also enforces RSA 175-180.

With this law, a $0.30 per-gallon tax is charged for every sale of beer within the state. The collected tax will be used for New Hampshire’s Alcohol Abuse Prevention and Treatment Fund program.

Communication Services Tax (CST)

While most services are not taxable in New Hampshire, rental and communication services are an exception. For instance, the Communication Services Tax (CST) has been enforced since 2024.

Under the RSA 82-A, a 7.00% tax is charged on two-way communication services. This includes:

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

To learn more about the rules of Communication Services Tax in New Hampshire, you can read the state’s official guidelines here.

Business Enterprise Tax (BET)

While New Hampshire also has no income tax, the state has introduced a similar tax called the Business Enterprise Tax (BET).

The rate for Business Enterprise Tax is 0.55% of the assessed sum of all expenses paid and accrued by a business enterprise. This is effective for taxable periods ending December 31, 2022.

But for taxable periods beginning January 1, 2025, businesses with more than $298,000 of total revenue from all activities must file a Business Enterprise Tax return. The same applies to businesses with an assessed value tax base of $298,000. The filing period for Business Enterprise Tax is adjusted every two years.

Need more details about Business Enterprise Tax? Read the state’s official rules in RSA 77-E and Rev 2400.

Business Profits Tax (BPT)

Once a business pays off its Business Enterprise Tax, it can be used as credits when it comes to Business Profits Tax (BPT).

But what’s the difference between the two?

Business Profits Tax (BPT) – focused on a business’s marketing activities and income within the state.
Business Enterprise Tax (BET) – based on a company’s expenses and total assessed tax base value established by the compensation, interests, and dividends it has paid or accrued during a taxable period.

The rate for Business Profits Tax is 7.60% for taxable periods ending on or after December 31, 2022. In the following year of 2023, this rate decreased to 7.50%.

For taxable periods beginning on or after January 1, 2025, businesses with a total income of more than $109,000 are required to file a Business Profits Tax return. Similar to Business Enterprise Tax, this filing period is adjusted once every two years.

Filing a return for Business Profits Tax or Business Enterprise Tax can be done through the state’s official site, Granite Tax Connect (GTC). An account must be created first to proceed.

Learn more about Business Profits Tax through the state’s official files: RSA 77-A and Rev 300.

New Hampshire and Remote Sellers

On July 19, 2019, New Hampshire passed SB 242—a bill meant to protect New Hampshire remote sellers from being subject to sales and use tax liabilities in other states.

However, this rule mainly prevents fraudulent sales tax collection. New Hampshire’s Department of Justice (DOJ) requires other states to send a written notice to determine whether a remote seller should charge and collect sales and use tax in another state.

After 45 days, the DOJ will confirm if a business should comply with the sales and use tax policies of another state.

In that case, how do you know if you’re liable to collect and remit sales tax in other states? The determining factor is whether you have a sales tax nexus or not.

Sales Tax Nexus

Establishing a sales tax nexus in a state means that you’re actively engaged in business in that state. Sales tax nexus has 2 principal types:

Physical nexus
Economic nexus

When a business creates one of these nexus, it is required to collect sales tax in most states.

But since New Hampshire has no sales tax, the state has no regulations for creating a physical or an economic nexus. However, a New Hampshire remote seller can still trigger a sales tax nexus in other states despite the existence of SB 242.

Once a nexus is established and a written notice has been approved by the New Hampshire DOJ, remote sellers will be required to register and collect sales tax in other states.

Below are the factors that define whether you have a physical or an economic nexus in another state.

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. Here are the common factors that determine a physical nexus in most states:

Physical Location: Having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business in a state.
Inventory in the State: This covers situations where you store your products within a state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
Employees, independent contractors, agents, or other representatives operating within a state on your behalf.
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.
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:

200 total transactions within the state and/or
$100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.

Once you meet these thresholds in other states, even remote sellers from New Hampshire can still have the responsibility of collecting sales tax.

Business Compliance Obligations in New Hampshire

Without a sales tax, businesses in New Hampshire aren’t required to register for a sales tax permit. However, there are still other legal duties you must follow to stay compliant with the Granite State.

In New Hampshire, businesses must register for specific licenses, such as:

Local Business Permits – New Hampshire advises business owners to contact the city or town clerk for municipal permits and licenses.
Tobacco Tax Operator’s License – Apply for a Tobacco License through the Granite Tax Connect state website.
Meals & Rooms (Rentals) License – Also called an “Operator’s License.” You can apply for this license via the Granite Tax Connect state website.
Communication Services Retailer’s Tax License – Also called “Registration Number.” You can apply for this license through the Granite Tax Connect state website.
Liquor License – You can apply for this license via the New Hampshire Liquor Commission (NHLC) government website.

Conclusion

Despite having no sales tax, understanding relevant tax obligations in New Hampshire is always crucial to keep your business running smoothly. Remote sellers from New Hampshire 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.

Ultimate Guide to Mississippi Sales Tax | TaxHero

Mississippi, known for its Southern charm and rich heritage, has a tax system that’s straightforward to navigate. Understanding what is sales tax in Mississippi is as simple as enjoying its famous hospitality and warm traditions.

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

Sales Tax Nexus in Mississippi

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Presence at Trade Show: If you’re attending conventions or trade shows in Mississippi, you might need to collect and pay Mississippi use tax on any orders you take or sales you make at the event.
Mail order sales: Businesses must collect Mississippi use tax on mail order sales if they operate, have a presence, or deliver goods under contracts accepted in the state.

To stay informed about the current criteria for establishing a physical sales tax nexus in Mississippi, 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 September 1, 2018, the threshold for economic nexus in Mississippi is $250,000 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 Mississippi.

Mississippi 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 Mississippi.

Tangible Products

Almost all goods are taxable in Mississippi, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods
Groceries

The goods that are exempt from sales tax are:

Diapers
Feminine Hygiene Products (i.e. napkins, tampons)
Prescription Medications – Prescription drugs dispensed by a licensed pharmacist with a valid prescription are exempt from sales tax. Over-the-counter medications are generally taxable, regardless of a physician’s prescription.
Textbooks
Medical Devices
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt

Services

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

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

Air conditioning installation or repairs
Shoe repairing
Welding
Woodworking or wood turning shops
Computer software services performed within Mississippi

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Mississippi.

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

Shipping/Handling

Shipping and handling charges in the state of Mississippi are included. Sales or use tax on delivery charges depends on the tax status of the item being delivered. Delivery charges are tax-exempt if the delivered item is exempt.

Sales Tax Permits and Licenses in Mississippi

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

Seller’s Permit

You can register for a Mississippi sales tax permit online at the Department of Revenue State of Mississippi TAP website.

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

Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
Copy of your IRS Notice Letter CP 575/EIN Confirmation Letter
NAICS code

Registration fee

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

Renewal

In Mississippi, 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 Mississippi, 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.

Streamlined Sales Tax (SST)

The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Mississippi 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 Mississippi Revenue Services for the most current information on Mississippi’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Mississippi

Sales Tax Computation

In Mississippi, 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 Mississippi and sells to a customer in Jackson, MS, with a ZIP code of 39202. 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:	Mississippi	6.50%
County:	Hinds County	0.00%
District:	Second District	0.00%
City:	Jackson	1.00%
Combined Sales Tax Rate =		8.00%

Origin-based vs. Destination-Based

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

Mississippi is an origin-based state, meaning sales tax is determined based on the seller’s location. That means for a Mississippi-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 Texas to a customer in Gulfport, Mississippi, where you have nexus, you’d apply Gulfport’s sales tax rate to that sale.

Filing and Remitting Sales Tax Returns in Mississippi

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

Monthly returns: required if your annual remittance is $3,600 or more.
Quarterly returns: must be filed if your annual remittance falls between $600 and $3,599.
Annual returns: apply if your annual remittance is less than $600.

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

Due Dates

In Mississippi, 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.

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.

Mississippi Pre-pay Sales Tax on a Vehicle lets vehicle buyers pay sales tax before titling or registering, avoiding penalties while awaiting dealership paperwork. Dealers can also use it to pay a customer’s sales tax.

Filing Sales Tax Returns

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

File online through the Mississippi Department of Revenue.
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 businesses a discount for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Since July 2019, the DFA has provided a 2% discount for timely filings, capped at $1,000 monthly. Local jurisdictions may also offer a 2% discount, up to $4,000 per city or county.

Sales Tax Holiday

Currently, for 2024 – 2025, the planned sales tax holidays in Mississippi are:

DATE	TYPE	ELIGIBLE MERCHANDISE
July 11, 2025 – July 13, 2025	Back-to-School Sales Tax Holiday	any article of clothing with a taxable value of $100 or less; Footwear (less than $100)
August 29-31, 2025	Second Amendment	Firearms Ammunition Hunting supplies (tangible personal property used for hunting, including, and limited to, archery equipment, firearm and archery cases, firearm and archery accessories, hearing protection, holsters, belts, and slings.)

Mississippi Sales Tax Penalties

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

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

Failure to File or Pay: A penalty of 10% of the tax due for the first offense if the failure is persistent, willful, or recurring.
Repeated Offenses: The penalty is 10% of the tax due for the first offense, 15% for the second offense, 25% for the third offense, and 50% for any subsequent offense.
Failure to Pay After Notice: The penalty is 15% of the tax due for the first offense, 25% for the second offense, and 50% for any subsequent offense.

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

Ultimate Guide to Wyoming Sales Tax | TaxHero

Wyoming, one of the most tax-friendly states, also known as a “tax haven,” is an outstanding place for business owners. Even if you spend less in Wyoming, you can still earn more, thanks to how business-friendly the state is. To ensure your success, you must first understand the rules of sales tax in Wyoming.

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

Sales Tax Nexus in Wyoming

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: An out-of-state seller without a physical presence in Wyoming may still have a nexus if the seller has an affiliate. This applies to affiliates with a physical presence in Wyoming who act on behalf of the seller.
Presence at Trade Shows: You must collect sales tax if you exhibit at more than four Wyoming trade shows in 12 months. Once you establish a nexus and obtain a license, sales tax applies to all sales in Wyoming, including those outside trade shows.

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

Economic Nexus

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

Beginning July 1, 2024, the threshold for economic nexus in Wyoming is $100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.

Wyoming 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 Wyoming.

Tangible Products

Almost all goods are taxable in Wyoming, including:

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

The goods that are exempt from sales tax are:

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

Services

In Wyoming, most service-based transactions such as professional services and sanitary services (i.e., garbage hauling and latrines) are generally exempt from sales tax.

However, sellers must separate the exempt charges when a taxable transfer of tangible personal property is involved in a non-taxable service. Otherwise, the whole transaction becomes subject to sales tax.

There are also specific situations where certain services are taxable in Wyoming. For instance, taxable services are:

Telecommunications services
Laundry, dry cleaning, or pressing
Lodging service for transient guests
Intrastate transportation of passengers
Repairing, changing, or improving tangible personal property
Utility services such as gas, electricity, or heat for domestic, industrial, and commercial consumption

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in Wyoming. This only applies if the transaction does not involve obtaining tangible property or itemized service within the product.

Access to digital products through streaming or subscription services is taxable. This applies if the service does not grant the buyer permanent use and access to the item.

Shipping/Handling

Shipping and handling charges in the state of Wyoming are generally not taxable. This applies when the shipping or handling fees are listed separately on the invoice.

However, if the fees are included in the total price of a taxable product, the shipping or handling charges become subject to sales tax.

Sales Tax Permits and Licenses in Wyoming

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

Seller’s Permit

You can register for a Wyoming sales tax permit online at the Wyoming Internet Filing System for Business (WYIFS) or follow our detailed step-by-step guide for assistance.

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

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

Registration fee

There is a $60 fee to register for a sales tax permit in Wyoming. The state charges a non-refundable registration fee.

Renewal

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

Resale Certificate

In Wyoming, 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 fill out Wyoming Sales Tax Exemption Certificate provided by the state of Wyoming 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. Wyoming is a party to the program, meaning it follows the uniform rules and definitions established by SST.

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

Calculating and Collecting Sales Tax in Wyoming

Sales Tax Computation

In Wyoming, 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 Wyoming and sells to a customer in Cheyenne, WY, with a ZIP code of 82001. 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:	Wyoming	4.00%
County:	Laramie County	2.00%
District:	First District	0.00%
City:	Cheyenne	0.00%
Combined Sales Tax Rate =		6.00%

Origin-based vs. Destination-Based

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.

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

Filing and Remitting Sales Tax Returns in Wyoming

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

Monthly Filing: Required if the average monthly liability is greater than $150.
Quarterly Filing: Needed when the average monthly liability is between $50 and $150.
Annual Filing: Mandatory if the average monthly liability is less than $50.

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 Wyoming’s sales tax regulations.

Due Dates

In Wyoming, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th 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 a quarterly filer, you’re required to submit your returns on or before January 31, April 30, July 31, and October 31 of each calendar year. Meanwhile, annual filers must submit returns on or before January 31 of each calendar year.

Filing Sales Tax Returns

When filing your sales tax return for Wyoming, a few options are available:

File online through the Wyoming Internet Filing System for Business (WYIFS).
File by mail by filling up the Form 41-1 for monthly and quarterly filers or Form 42-1 for annual filers.
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. Wyoming’s timely filing discount amount is determined using specific formulas based on the tax due. On the first $6,250 of your total sales tax, filers can get a 1.95% discount and 1% for any remaining remittance. The maximum allowable discount is $500 for each filing period.

Sales Tax Holiday

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

Wyoming Sales Tax Penalties

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

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

Late Filing Penalty: $10 penalty for failing to file a sales tax return by the due date. This penalty is imposed 30 days after receiving the first notice from the state of Wyoming. A $25 penalty is applied when a seller fails to file a return within the 30-day notice.
Inaccurate Filing Penalty: An incorrect calculation without fraudulent intent leads to a 10% penalty of the missing sales tax with interest. Any fraudulent, inaccurate filing with the intent of tax evasion results in a 25% penalty of the unreported sales tax with added interest.
Fraudulent Tax Collection: Sellers who falsely collect excessive sales tax and fail to remit the accurate amount to the state of Wyoming are deemed guilty of a misdemeanor. This applies if the total amount they collected is less than $500, resulting in a $750 fine. If the collected amount exceeds $500, the criminal offense is raised to a felony charge with a $5,000 fine.
General Violations: Any violation of sales tax laws without any specific penalty is automatically guilty of a misdemeanor. Other charges may be applicable depending on the committed offense.

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

Ultimate Guide to Hawaii Sales Tax | TaxHero

In Hawaii, where lush landscapes and the spirit of aloha shape daily life, even the tax system operates uniquely. What many refer to as Hawaii Sales Tax is actually the General Excise Tax (GET)—a business privilege tax rather than a traditional sales tax.

Unlike sales tax, which is collected from consumers at checkout, GET is imposed directly on businesses for the right to conduct business in the state. Ecommerce businesses in Hawaii including those selling online or out-of-state businesses selling to Hawaii customers must comply with Hawaii’s GE Tax.

This guide covers everything ecommerce businesses need to know about Hawaii sales tax, officially known as GE Tax. From tax rates and exemptions to permit registration and filing requirements, we’ll break down the essentials so you can navigate compliance with confidence.

Sales Tax Nexus in Hawaii

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: An out-of-state seller without a physical presence in Hawaii may still have a nexus in Hawaii if it has an affiliate in the state. This applies when the affiliate has a physical presence in Hawaii and acts on behalf of the seller, such as through shared merchandise exchanges or loyalty programs.
Presence at Trade Shows: Exhibiting at Hawaii trade shows and taking orders creates nexus if the product is accepted in Hawaii. Attending as a consumer or exhibiting without making sales does not create nexus.
Phone Number in Hawaii: A Hawaii phone number is considered part of seller activity in the state and is a factor in establishing nexus within the state.

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

Economic Nexus

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

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

Hawaii 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 Hawaii.

Tangible Products

Almost all goods are taxable in Hawaii, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Groceries

The goods that are exempt from sales tax are:

Feminine Hygiene Products – Beginning July 1, 2025, feminine hygiene products, including sanitary napkins, tampons, panty liners, douches, menstrual cups, and hygiene-related creams and sprays, will be exempt from sales tax.
Diapers
Prescription Medications
Textbooks
Medical Devices – This exemption does not apply to durable medical equipment that has a 4-year lasting period.
Energy-efficient Appliances – Hawaii provides tax exemptions for products that promote energy efficiency.

Services

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

However, there are specific situations where certain services are tax-exempt. For instance, tax-exempt services are:

Call center services
Foster care
Ship building and repair
Nonprofit hospital services

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Hawaii.

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

Shipping/Handling

Shipping and handling charges in the state of Hawaii are taxable. Charges for items shipped outside the state are excluded.

GET Licenses in Hawaii

Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Hawaii, the next important step is getting your license. Hawaii requires businesses to obtain a GET license.

Seller’s Permit

You can register for a Hawaii sales tax permit online at the Hawaii Tax Online or follow our detailed step-by-step guide for assistance.

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

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

Registration fee

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

Renewal

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

Resale Certificate

A resale certificate also known as a Resale Certificate for Goods 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 Certificate for Goods from others looking to buy for resale.

Hawaii uses resale certificates (Forms G-17, G-18, or G-19) to document tax-free sales for resale purposes.

You can fill out the Resale Certificate for Goods provided by Hawaii after you receive your GE Tax License. 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. However, Hawaii 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 Hawaii Revenue Services for the most current information on Hawaii’s participation in the Streamlined Sales Tax initiative.

Calculating and Collecting Sales Tax in Hawaii

Sales Tax Computation

In Hawaii, there is no traditional sales tax. Instead, businesses pay a GE Tax on their gross income. While businesses may pass this tax on to customers, it is still considered a tax on the business rather than a direct sales tax on consumers. The GET rate varies based on the location and type of transaction. The standard state GET rate is 4.00%, but some counties impose an additional surcharge, making the total rate 4.50% in certain areas.

Here’s an example: Suppose an out-of-state seller meets Hawaii’s economic nexus threshold and sells to a customer in Honolulu, HI with a ZIP code of 96813). The seller would need to apply the applicable GET rate as follows:

SALES TAX FORMULA		RATE
State:	Hawaii	4.00%
County:	Honolulu	0.50%
District:	First District	0.21%
City:	Honolulu	0.00%
Combined Sales Tax Rate =		4.71%

Filing and Remitting Sales Tax Returns in Hawaii

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

If your total Hawaii GE Tax payments exceed $4,000 in a year, you must file monthly.
If your total GE Tax payments are $4,000 or less, you can file quarterly.
If your total GE Tax payments are $2,000 or less, you can file 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 Hawaii’s sales tax regulations.

Due Dates

In Hawaii, 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.

Filing Sales Tax Returns

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

File online through the Hawaii Tax Online.
File by mail – You can file and pay using g-45 form by mail.
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, Hawaii does not offer a discount.

Sales Tax Holiday

Hawaii does not offer sales tax holidays because the state imposes a General Excise Tax (GET) instead of a traditional sales tax. Since GET is a tax on businesses rather than consumers, there are no designated periods when it is waived.

Hawaii Sales Tax Penalties

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

The penalty for not filing a return on time is 5% of the unpaid tax per month (or part of a month), up to a maximum of 25% of the total unpaid tax.

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

Ultimate Guide to Kansas Sales Tax | TaxHero

What is sales tax in Kansas? In the Sunflower State, where golden prairies meet historic trails, even the tax system has its own charm. Known for its rich history and Midwestern warmth, Kansas weaves its unique identity into every aspect of life, including its sales tax approach.

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

Sales Tax Nexus in Kansas

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: You could trigger a physical nexus if you have affiliates, whether they operate online or in-person.
Presence at Trade Shows: Retailers from other states who sell goods in Kansas at temporary events, such as trade shows, craft fairs, or similar venues, must collect sales tax and get a permanent registration number.

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

Economic Nexus

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

Beginning July 1, 2021, the threshold for economic nexus in Kansas is $100,000 in gross revenue in the current calendar year’s sales or the previous year.

Kansas 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 Kansas.

Tangible Products

Almost all goods are taxable in Kansas, including:

Cosmetics
Electronics
Clothing – Clothing is taxable, but certain items are tax-free during the back-to-school holiday in August.
Furniture – Taxable, but sales or rentals to entities with valid exemption certificates are not subject to sales tax. Be sure to keep these certificates on file to support any non-taxable transactions.
Jewelry
Home Goods

The goods that are exempt from sales tax are:

Groceries – As of January 1, 2025, Kansas has officially eliminated the state sales tax on food and food ingredients. All local sales and use taxes will still apply.
Prescription Medications – Prescription medicine is exempt from sales tax, except for those used in abortion procedures.
Medical Devices
Energy-efficient Appliances – Kansas provides tax exemptions for products that promote energy efficiency.
Agricultural Supplies: Agribusiness qualifies for exemptions on four specific items: agricultural animals, farm machinery and equipment, propane for agricultural use, and soil erosion prevention materials.

Services

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

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

Dry cleaning and pressing services
Hotel accommodations
Pest control services
Washing and waxing of vehicles
Leases and rentals
Laundry services (excluding coin-operated machines)

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Kansas. However, sales of prewritten software are taxable.

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

Shipping/Handling

Shipping and handling charges in the state of Kansas are not taxable if they are separately stated from the item cost on the invoice. For shipments including both exempt and taxable items, the seller must allocate the delivery charge and tax the portion related to taxable items.

Sales Tax Permits and Licenses in Kansas

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

Seller’s Permit

You can register for a Kansas sales tax permit online at the CR-16 Business Tax Application Rev. 6-22 or follow our detailed step-by-step guide for assistance.

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

Business Identification Information (name, address, phone number, email address)
Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Owner/Partner/Officer Information
Business Activity Details (description of products or services sold, sales volume, date of the first sale or the expected date to start dates)
Annual Kansas sales estimation
Additional questions may focus on your business activities, such as involvement in construction, natural gas, or related industries.
NAICS code

Registration fee

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

Renewal

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

Resale Certificate

In Kansas, 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-28A Resale Exemption Certificate provided by Kansas 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. Kansas is a party to this program, meaning it follows the uniform rules and definitions established by SST.

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

Calculating and Collecting Sales Tax in Kansas

Sales Tax Computation

In Kansas, 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 Kansas and sells to a customer in Wichita, KS, with a ZIP code of 67203. 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:	Kansas	6.50%
County:	Sedgwick	1.00%
District:	Fourth District	0.00%
City:	Wichita	0.00%
Combined Sales Tax Rate =		7.50%

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.

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

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

Filing and Remitting Sales Tax Returns in Kansas

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

Monthly Returns: If your annual sales or use tax liability exceeds $5,000, you must file monthly returns.
Quarterly Returns: If your annual tax liability is $5,000 or less, you must file quarterly returns.
Annual Returns: If your total sales or use tax owed is $1000 or less, you can file an annual return.

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 Kansas’s sales tax regulations.

Due Dates

In Kansas, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.

Filing Sales Tax Returns

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

File online through the Kansas Department of Revenue.
File by mail – You can file and pay using ST-36 Retailers’ Sales Tax Return by mail.
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, Kansas does not offer a discount.

Sales Tax Holiday

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

Kansas Sales Tax Penalties

Like in most states, sales tax is a big part of how Kansas 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 or non-compliance with sales tax regulations in Kansas:

Failure to File: A penalty of $500 to $10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
Failure to Pay: A penalty of $500 to 10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.
Intent to Evade: A penalty of $500 to $10,000 may be imposed, and/or imprisonment for a term ranging from 1 to 6 months.

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

Ultimate Guide to Arkansas Sales Tax | TaxHero

Arkansas, famed for its stunning Ozark Mountains and thriving agriculture, is more than just a natural gem of the South. With its growing business hubs and bustling trade, understanding sales tax in Arkansas is essential for businesses and consumers alike.

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

Sales Tax Nexus in Arkansas

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.

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

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 Arkansas is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.

Arkansas 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 Arkansas.

Tangible Products

Almost all goods are taxable in Arkansas, including:

Cosmetics
Electronics
Clothing – Clothing is taxable, but certain items are tax-free during the back-to-school holiday in August.
Furniture
Jewelry
Home Goods
Groceries – Arkansas reduces the food sales tax rate to 0.125% effective January 1, 2019. Additionally, as of March 2025, there are proposals to eliminate the remaining grocery tax, but these have not yet been enacted
Textbooks – Taxable, but school instructional materials are tax-free during the back-to-school holiday in early August.

The goods that are exempt from sales tax are:

Diapers – Children’s and adult diapers used for bladder or bowel control issues.
Feminine Hygiene Products (i.e. pads, tampons, panty liners, sanitary napkins, and menstrual cups)
Prescription Medications
Medical Devices
Energy-efficient Appliances – Energy-efficient appliances in Arkansas are tax-free, with rebates and credits offered.
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

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

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

Accommodations (lodging) provided to transient guests
Boat storage and docking
Car Washes, Cleaning or janitorial work
Printing

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Arkansas.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are taxable when sold to end users for permanent or temporary use.

Shipping/Handling

Shipping and handling charges in the state of Arkansas are taxable. Freight charges are taxed if tied to taxable goods unless billed by a carrier or for non-taxable goods.

Sales Tax Permits and Licenses in Arkansas

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

Seller’s Permit

You can register for an Arkansas seller’s permit online through the Arkansas Taxpayer Access Point (ATAP) or follow our detailed step-by-step guide for assistance.

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

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

Registration fee

There is a $50 fee to register for a sales tax permit for businesses with a physical presence in the state and free for out-of-state/remote sellers with no physical presence.

Renewal

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

Resale Certificate

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

You can fill out the Arkansas Exemption Certificate (Form ST 391) provided by Arkansas after you receive your sales tax permit. You can also fill out the Streamlined Sales and Use Tax Certificate of Exemption if you would like to get sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in Arkansas

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Arkansas and sells to a customer in Little Rock, AR, with a ZIP code of 72201. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Arkansas	6.50%
County:	Pulaski	1.00%
District:	Second District	0.00%
City:	Little Rock	1.13%
Combined Sales Tax Rate =		8.63%

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.

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

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

Filing and Remitting Sales Tax Returns in Arkansas

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

Monthly Returns: If your total sales tax liability exceeds $100 in any given month, you are required to file and remit your sales tax every month.
Quarterly Returns: If your average tax liability for the previous fiscal year (July 1 – June 30) does not exceed $100 per month.
Annual Returns: If your average tax liability for the previous fiscal year does not exceed $25 per month.

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

Due Dates

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

Monthly Prepayments

Arkansas Pre-pay Sales Tax on a Vehicle lets vehicle buyers pay sales tax before titling or registering, avoiding penalties while awaiting dealership paperwork. Dealers can also use it to pay a customer’s sales tax.

Filing Sales Tax Returns

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

File online through the Arkansas Taxpayer Access Point (ATAP).
File by mail – You can file and pay using Form ET-1 by mail. Contact the Arkansas Department of Finance and Administration at 501-682-7104 to request the form.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Sales Tax Holiday

Currently, for 2024-2025, here is the planned sales tax holiday in Arkansas:

DATE	TYPE	ELIGIBLE MERCHANDISE
August 2-5, 2025	Back-to-School Sales Tax Holiday	Various school-related items, including: Clothing and footwear ($100/item or less) Clothing accessories and equipment ($50/item or less) School supplies

Arkansas Sales Tax Penalties

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

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

Interest on Unpaid Taxes: Charged at 10% per year from the original due date (April 15th for most taxpayers) until payment is made. The same rate applies to underpayments.
Failure to File: 5% of the tax owed per month or part of a month late. Maximum penalty: 35% of the tax owed.
Failure to Pay: 1% of the unpaid taxes per month or part of a month late. Maximum penalty: 35% of the unpaid taxes.

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

Ultimate Guide to Nebraska Sales Tax | TaxHero

Doing business in the Cornhusker State means more than hard work—it also requires understanding tax obligations. Knowing how sales tax in Nebraska works can make the difference between compliance and costly fines.

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

Sales Tax Nexus in Nebraska

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus: A business is considered to be operating in Nebraska if it is owned or controlled by the same interests that own or control a retailer conducting business in the same or related industry within the state.
Presence at Trade Show: A trade show or fair promoter must be licensed as a retailer if they collect taxes for unpermitted sellers or make taxable sales. They must also provide a list of participating sellers to the Department. All sellers, including nonresidents, need a sales tax permit unless the promoter remits tax on their behalf.

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

Economic Nexus

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

Beginning April 1, 2019, the threshold for economic nexus in Nebraska is $100,000 in gross revenue or 200 or more separate transactions in the previous or current calendar year’s sales.

Nebraska Sales Tax on Goods and Services

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

Tangible Products

Almost all goods are taxable in Nebraska, including:

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

The goods that are exempt from sales tax are:

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

Services

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

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

Armored Car Services
Janitorial
Landscaping
Pest Control
Printing Services
Security

Software as a Service (SaaS)/Digital Products

SaaS is not taxable in the state of Nebraska.

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

Shipping/Handling

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

Sales Tax Permits and Licenses in Nebraska

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

Seller’s Permit

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

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

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

Registration fee

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

Renewal

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

Resale Certificate

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

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

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

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in Nebraska

Sales Tax Computation

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

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

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

Origin-based vs. Destination-Based

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

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

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

Filing and Remitting Sales Tax Returns in Nebraska

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

Quarterly Filing: Tax liability of at least $900 but less than $3,000.
Annual Filing: Annual tax liability is under $900; seasonal retailers may receive special approval to submit annual returns.

Due Dates

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

Filing Sales Tax Returns

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

File online through the NebFile for Business.
File by calling 1-800-433-8631 if you don’t have access to a computer
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. In Nebraska, taxpayers can deduct and retain 3% of the first $5,000 in use taxes, which they remit monthly as compensation for collection costs.

Sales Tax Holiday

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

Sales Tax Penalties in Nebraska

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

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

Civil penalties: 10% of unpaid tax or $25 for failure to file or remit by the due date; 25% or $50 if due to fraud or intent to evade tax.
Criminal offenses: Class 4 misdemeanors for general violations, operating without permits, misuse of certificates, and frivolous compliance delays. Class 4 felonies for willful failure to collect, report, or pay sales tax, assisting in fraudulent filings, or intentional tax evasion.

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

Ultimate Guide to Washington Sales Tax | TaxHero

Home to tech giants and breathtaking national parks, Washington thrives on innovation and commerce. But to succeed here, businesses must also navigate sales tax in Washington, ensuring compliance and avoiding costly penalties.

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

Sales Tax Nexus in Washington

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

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 Washington include:

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Presence at Trade Show: An out-of-state seller’s trade show participation in Washington creates a nexus if it establishes or maintains a market. However, attending one convention yearly without making retail sales or taking orders does not count.

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

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.

Effective March 14, 2019, the threshold for economic nexus in Washington is $100,000 in gross revenue in the previous or current calendar year’s sales.

Washington 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 Washington.

Tangible Products

Almost all goods are taxable in Washington, including:

Cosmetics
Electronics
Clothing
Furniture
Jewelry
Home Goods

The goods that are exempt from sales tax are:

Grocery Food
Diapers
Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
Prescription Medications
Medical Devices
Energy-efficient Appliances – Equipment used directly in generating electricity using qualified renewable energy sources.
Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming are exempt.

Services

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

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

Construction services
Installation, cleaning, and repair services
Landscaping and landscape maintenance
Retail recreation services – Fishing charters, day trips for sightseeing, and service charges on tickets to professional sporting events.
Personal services – Personal training at athletic and fitness facilities.
Miscellaneous services – Car wash, catering, personal chefs, extended warranties and maintenance agreements, vehicle towing, and automobile parking.

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Washington.

Digital products (i.e., ebooks, downloadable video content, mobile apps) are also taxable. Washington imposes sales and use tax on downloaded digital goods, digital products, codes, and automated services, including streaming, regardless of ownership rights or payment structure.

Shipping/Handling

Shipping and handling charges in the state of Washington are taxable. Charges incurred after the buyer receives the goods and fees for delivering exempt items are not included.

Sales Tax Permits and Licenses in Washington

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

Seller’s Permit

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

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

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

Registration fee

There is no fee to register for a sales tax permit. However, additional fees may apply based on the endorsement type required for your Business License.

Renewal

In Washington, you have to renew your sales tax permit annually. It must be renewed annually for $5, with a renewal notice sent before expiration.

Resale Certificate

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

Reseller permits issued by the Department are typically valid for 48 months but may be limited to 24 months under certain conditions. The Department may deny or revoke permits due to misuse, tax liabilities, or incomplete applications. Misusing a reseller permit incurs penalties, and sellers must maintain records verifying permit validity.

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

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in Washington

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Washington and sells to a customer in Seattle, WA, with a ZIP code of 98101. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Washington	6.50%
County:	King County	0.10%
District:	Seventh District	0.00%
City:	Seattle	3.75%
Combined Sales Tax Rate =		10.35%

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.

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

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

Filing and Remitting Sales Tax Returns in Washington

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

Annual Filing: If annual tax liability is $1,050 or less
Quarterly Filing: If annual tax liability is between $1,051 and $4,800
Monthly Filing: If annual tax liability is $4,801 or greater

Due Dates

In Washington, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.

Filing Sales Tax Returns

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

File online through the Washington Department of Revenue.
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, Washington does not offer a discount.

Sales Tax Holiday

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

Sales Tax Penalties in Washington

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

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

Civil penalties: 9% of tax due if unpaid by the due date, 19% after one month, 29% after two months (minimum $5 penalty).
Criminal offenses: Classified as either misdemeanors or felonies, depending on the severity and specific circumstances.

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

Ultimate Guide to South Dakota Sales Tax | TaxHero

South Dakota, home to Mount Rushmore and vast open prairies, keeps things simple—including its tax system. Understanding what sales tax is in South Dakota is as straightforward as the state’s wide skies and welcoming communities.

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

Sales Tax Nexus in South Dakota

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: South Dakota retailers have nexus if they share ownership with an in-state business selling similar products or using local facilities or employees to aid sales. Nexus also applies if a related in-state business delivers their products.
Presence at Trade Show: An out-of-state retailer doesn’t have nexus in South Dakota if it attends only one trade show per year, regardless of duration, sales, or activity. Nexus applies if more than one show is attended or other business activities occur.

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

Economic Nexus

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

Beginning July 1, 2023, the economic nexus threshold in South Dakota is more than $100,000 in gross sales in the previous or current calendar year. The 200-transaction threshold is no longer applicable.

South Dakota Sales Tax on Goods and Services

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

Tangible Products

Almost all goods are taxable in South Dakota, including:

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

The goods that are exempt from sales tax are:

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

Services

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

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

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

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of South Dakota.

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

Shipping/Handling

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

Sales Tax Permits and Licenses in South Dakota

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

Seller’s Permit

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

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

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

Registration fee

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

Renewal

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

Resale Certificate

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

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

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in South Dakota

Sales Tax Computation

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

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

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

Origin-based vs. Destination-Based

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

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

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

Filing and Remitting Sales Tax Returns in South Dakota

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

Monthly Filing: Required for businesses with an annual tax liability of $1,000 or more.
Quarterly Filing: Applies to businesses with less than $1,000 in annual tax liability that do not meet the monthly filing threshold.
Annual Filing: Typically for businesses with minimal sales tax liability.

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

Due Dates

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

Filing Sales Tax Returns

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

Pay online through the South Dakota website portal.
File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.

Timely Filing Discount

Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. In South Dakota, electronic filers can receive a 1.5% discount on the gross tax due, capped at $70 per return period.

Sales Tax Holiday

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

South Dakota Sales Tax Penalties

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

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

Late Filing Penalty: A 10% penalty (minimum $10) is applied if a return is not filed within 30 days after the due date. The penalty may be reduced or waived if reasonable cause is shown.
Late Payment Interest: A 1% interest charge (minimum $5) applies for the first month of late payment, increasing by 1% per month thereafter.
Intentional Non-Payment: If tax is unpaid with the intent to evade or delay payment, interest increases to 1.5% per month (minimum $5).

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

Ultimate Guide to Vermont Sales Tax | TaxHero

Vermont, known for its scenic Green Mountains and charming small towns, values simplicity, even in its tax system. Understanding what is sales tax in Vermont is as easy as enjoying a crisp autumn day or a locally made maple syrup.

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

Sales Tax Nexus in Vermont

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

Physical Nexus

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.
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.
Employees, independent contractors, agents, or other representatives operating on your behalf.
Affiliate Nexus or Click-through Nexus: If a remote seller has a referral agreement with a Vermont resident and made over $10,000 in taxable sales in Vermont last year, they must collect and remit Vermont Sales Tax.

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 Vermont is $100,000 in gross revenue or 200 transactions in the prior four calendar quarters.

Vermont 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 Vermont.

Tangible Products

Almost all goods are taxable in Vermont, including:

Cosmetics
Electronics
Furniture
Jewelry
Home Goods
Groceries – Food, food products, and beverages are exempt from Vermont sales tax, except for soft drinks.
Personal Hygiene – Personal hygiene products, including soaps, shampoo, toothpaste, and sunscreen, are taxable in Vermont

The goods that are exempt from sales tax are:

Clothing – Most clothing and footwear are exempt from Vermont sales tax, but tax applies to clothing accessories and equipment.
Diapers – Diapers are exempt from Vermont sales tax as they are classified as clothing.
Feminine Hygiene Products – Menstrual care products are exempt from Vermont sales tax.
Prescription Medications
Medical Devices
Agricultural Supplies – Agricultural machinery and equipment are exempt from Vermont sales tax if used at least 75% of the time for producing agricultural or horticultural commodities for sale.

Services

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

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

Telecommunications
Public utility services
Manufacturing, Processing, Assembling, or Refining – Manufacturers are exempt from sales tax on materials and equipment used in production, but retail sales of tangible goods are taxable.
Directory assistance
Guide services that include access fees – Guide services are not taxable if fees do not include payments to landowners.

Software as a Service (SaaS)/Digital Products

SaaS is taxable in the state of Vermont.

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

Shipping/Handling

Shipping and handling charges in the state of Vermont are taxable when the goods being delivered are taxable. Conversely, if the item is tax-exempt, the associated delivery charges are also exempt. For shipments containing taxable and tax-exempt items, sales tax applies only to the portion of the delivery cost attributable to the taxable items.

Sales Tax Permits and Licenses in Vermont

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

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 Vermont sales tax permit online at the Vermont Department of Tax or follow our detailed step-by-step guide for assistance.

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

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

Registration fee

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

Renewal

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

Resale Certificate

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

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

Streamlined Sales Tax (SST)

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

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

Calculating and Collecting Sales Tax in Vermont

Sales Tax Computation

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

Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Vermont and sells to a customer in Burlington, VT, with a ZIP code of 05401. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:

SALES TAX FORMULA		RATE
State:	Vermont	6.00%
County:	Chittenden	0.00%
District:	Third District District	0.00%
City:	Burlington	1.00%
Combined Sales Tax Rate =		7.00%

Origin-based vs. Destination-Based

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

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

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

Filing and Remitting Sales Tax Returns in Vermont

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

Monthly Filing: Businesses must file monthly returns if their sales and use tax liability exceeds $2,500 for the immediately preceding calendar year.
Quarterly Filing: Businesses whose sales and use tax liability for the preceding calendar year was more than $500 but less than $2,500 must file quarterly returns.
Annual Filing: Businesses with a sales and use tax liability of $500 or less for the preceding calendar year must file one annual payment on or before January 25 of the following year.

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

Due Dates

In Vermont, the due date falls on the 25th day of the following month. For instance, sales tax collected in January is due by February 25th for monthly filers.

However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 25th deadline falls on a holiday or weekend, you’ll have until May 26th, the following business day, to submit.

Filing Sales Tax Returns

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

Pay online through the myVTax portal.
You can mail your payment to the Vermont Department of Taxes at PO Box 1779, Montpelier, VT 05601-1779.
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, Vermont does not offer a discount.

Sales Tax Holiday

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

Vermont Sales Tax Penalties

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

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

Late Filing Penalty: A 5% penalty per month applies if you fail to file a tax return.
60-Day Late Penalty: If your return is more than 60 days late, you’ll be charged a $50 penalty, even if you don’t owe any tax (unless you filed an extension).
Maximum Civil Penalty: The penalty for unpaid taxes can go up to 25% of the amount due.
Fraudulent or Willful Evasion: If you intentionally avoid paying taxes, the penalty is 100% of the unpaid tax.

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