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Resources and Insights

Explore our in-depth articles and resources on all aspects of sales tax, crafted by industry experts to provide you with the insights and guidance you need. From fundamental principles to complex scenarios, our content covers every angle, helping you navigate the nuances of sales tax confidently.

How to Determine Economic Nexus with Every State for Your Ecommerce Store

Confused on the economic nexus thresholds for each state? Here's how you can determine economic nexus for every state.

By
Sam Ross
Reviewed by
Sam Ross
Co-founder, Numeral

Prior to Numeral, Sam started numerous e-commerce businesses that have generated over $50M in revenue. However, the headache of filing sales taxes across many states became the basis for starting Numeral. Thousands of filings later, Sam's a pro at ecommerce sales tax.

Updated
September 11, 2024
 Reviewed by 
Kevin Liu
Reviewed by
Kevin Liu
Co-founder, Numeral

Kevin is a licensed CPA in the state of California. Prior to Numeral, Kevin operated multiple ecommerce businesses and worked at KPMG as a tax advisor.

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SaaS

Is SaaS Taxable in Washington?

Yes. SaaS (software as a service) sales are nearly always taxable in Washington. The current state-level tax rate is 6.5%. Many local jurisdictions (such as cities and counties) in Washington impose their own sales tax as well. Staying informed about both state and local tax rates is key to ensuring compliance.

Sales Tax

Sales Tax on Digital Goods: State by State (2025)

Sales of digital goods are taxed in most states and jurisdictions (table below). Here is what you need to know about sales tax if you sell digital goods in 2025.

Sales Tax

Sales Tax vs. VAT: What Is the Difference?

Sales tax and VAT (value-added tax) are similar in principle: they are taxes, imposed by governments, on consumer goods and services. In the U.S., sales tax is the primary form of taxation on consumer goods. VAT can be considered a sales tax equivalent; it’s used by more than 170 other countries.

SaaS

Is SaaS Taxable in Colorado? 

Yes, in some parts of the state. SaaS (software as a service) is considered “non-tangible” under Colorado law, meaning that it’s not taxable at the state level. However, some local jurisdictions in Colorado have their own taxation rules regarding SaaS products and services. So in certain areas, including Denver, some SaaS offerings are taxable.

SaaS

Is SaaS Taxable in Maryland?

Yes. In Maryland, SaaS (software as a service) is considered a digital product, which means that most B2C (business-to-consumer) sales are taxed. However, there are several exemptions and exceptions, and most B2B (business-to-business) sales are not taxed.

SaaS

Is SaaS Taxable in West Virginia?

Yes. West Virginia taxes SaaS (software as a service) at a rate of 6%. With local taxes added, the average combined tax rate is 6.57%. This tax applies when a seller has nexus in West Virginia (a physical or economic connection to the state — more on nexus in a bit). 

Sales Tax

Sales Tax Due Dates 2025: State By State

Managing sales tax is far from the most glamorous part of running a business, but it’s one of those things you can’t afford to overlook. Missing a deadline can quickly land you in hot water, racking up fines, penalties, and audits that are a real drain on your time. In the worst cases, you can even get your business license suspended. Ouch. 

Sales Tax

Sales Tax Exemption Certificates: How do they work?

This guide explains everything buyers and sellers must know about sales tax exemption certificates so buyers don't overpay or underpay and sellers don't find themselves with exposure.

Sales Tax

6 Essential Steps for Managing Sales Tax Compliance

Any company that's required to collect sales tax must ensure they comply with the rules. Failure to collect taxes due, file required tax forms, or remit payments can have serious financial consequences, leading to failed audits, back taxes, fines, and penalties.

Sales Tax

Sales Tax Amnesty Programs: 2025 Edition

States will offer sales tax amnesty programs from time to time. For non-compliant businesses, these programs provide a path to getting back into compliance and often allow for reduced or eliminated interest, fines, and penalties.

SaaS

Is SaaS Taxable in Washington D.C.?

Yes. Software as a service (SaaS) is taxable in Washington D.C. The District applies a 6% sales tax rate to SaaS transactions, categorizing them as digital goods or data processing services. 

SaaS

Is SaaS Taxable in South Dakota?

Yes. In South Dakota, software as a service (SaaS) is taxable. The state imposes a 4.2% base sales tax rate, with some local jurisdictions applying their own, additional, sales tax. 

SaaS

Is SaaS Taxable in Utah?

Yes. Utah taxes software as a service (SaaS). Companies that have nexus in Utah need to collect and remit sales tax on sales to Utah-based customers. Utah’s current statewide base sales tax rate is 4.85%, and in some Utah cities and counties, an additional local sales tax is applied.

SaaS

Is SaaS Taxable in Texas?

Yes. SaaS (software as a service) is subject to a 6.25% sales tax in Texas. Several related services are also taxable if they are packaged with SaaS offerings. There are, however, several factors that determine the final tax rate. For example, some software and digital services qualify for a 20% tax exemption.

SaaS

Is SaaS Taxable in Georgia in 2025?

No. In Georgia, SaaS (software as a service) isn't directly taxable. However, many digital goods are. At the beginning of 2024, Georgia began taxing some digital goods and services, including video games and e-books. Currently, however, streaming video and SaaS are not on the list of taxable products. 

SaaS

Is SaaS Taxable in Michigan?

In most cases, no. In Michigan, SaaS (software as a service) is typically not subject to sales tax unless it includes a downloadable component.

SaaS

Is SaaS Taxable in Kentucky?

Yes. As of January 1, 2023, SaaS (software as a service) transactions are subject to Kentucky’s 6% sales and use tax. However, for SaaS to be taxable in Kentucky, certain criteria have to be met, and there are exceptions.

Sales Tax

Dropshipping and Sales Tax: Who collects and when?

Dropshipping is an online retail model in which a retailer doesn't stock or ship products. Instead, when a customer orders an item, the retailer purchases it from a third-party supplier, who then ships it directly to the customer.

SaaS

Is SaaS Taxable in Vermont? 

Yes. As of July 1, 2024, software as a service (SaaS) is taxable in Vermont. With the passage of Act 183 (H.887), a sales and use tax has been applied to prewritten computer software, regardless of how it is delivered or accessed. This includes SaaS.

SaaS

Is SaaS Taxable in Hawaii?

Yes. SaaS (software as a service) is taxable in Hawaii; the state applies its general excise tax, or GET for short, to most SaaS products. 

Sales Tax

Is SaaS Taxable in Ohio?

Yes, many types of SaaS products are taxable in Ohio. Ohio taxes retail sales at a rate of 5.75%. And combined rates (including additional city or county taxes), on average, are 7.24%.‍

Sales Tax

Do You Need to Collect Sales Tax When Selling Online?

Yes. Whether you're selling physical goods, digital goods, or software as a service (SaaS), you likely need to collect and remit sales tax. The specifics depend on where you are, where your customers are, your sales volume, and the type of products you’re selling.

SaaS

Is SaaS Taxable in Massachusetts?

Yes. Massachusetts taxes SaaS (software as a service) under its current rules for prewritten software and digital services. 

Sales Tax

What Is a Sales Tax Audit? 16 Key Questions Answered

Here are some key details about sales tax audits, including information on how they work, how to prepare for an audit, and how to make sure an audit doesn't turn up any issues that could cause problems for your organization.

Sales Tax

Does Shopify Collect and Remit Sales Tax?

If your Shopify store has just started to bring in sales, figuring out your sales tax obligations can be confusing. And as your sales grow, tracking your sales tax nexus across all the states your customers live in, collecting the appropriate tax, filing accurately, and remitting what your business owes to various tax collection agencies can demand a lot of your time and attention — time you’d probably rather be spending on more important tasks. 

Sales Tax

Physical Nexus and Sales Tax: Understand the Basics

As state laws keep evolving and new regulations come into play, maintaining compliance is becoming harder than ever for businesses. One of the most important terms for companies to understand is the concept of “nexus.” 

SaaS

Is SaaS Taxable in Tennessee?

Yes. SaaS (software as a service) is taxable in Tennessee in many situations. Businesses that are transacting with customers in Tennessee must collect and remit sales if they have nexus.

SaaS

Is SaaS Taxable in Rhode Island in 2025?

Yes. Most digital goods and services are subject to a sales tax in Rhode Island. However, a seller is required to collect taxes on SaaS (software as a service) products only if they have nexus in the state.

SaaS

Is SaaS Taxable in Pennsylvania?

Yes. According to the Pennsylvania Department of Revenue, any property that is tangible is taxable. For the purpose of sales tax, Pennsylvania considers SaaS to be tangible property and therefore taxable.

Sales Tax

9 Best Sales Tax Software Tools for Accountants

Sales tax compliance can be complex, with many different state and local governments each establishing their own rules and requirements. For accountants managing compliance for multiple clients, there's an overwhelming amount of information to keep track of. 

Sales Tax

Understanding Voluntary Disclosure Agreements and Sales Tax

Sales tax is a complicated thing to get your head around. If you're not careful, you can end up owing sales tax when you thought you were in the clear. In these instances, something called a Voluntary Disclosure Agreement (VDA) can help limit the amount you need to pay and keep favor with the tax authorities.

SaaS

Is SaaS Taxable in Iowa?

Yes. Iowa currently imposes a 6% state tax rate on most SaaS (software as a service) transactions, meaning that a business providing SaaS to customers in Iowa typically needs to collect and remit sales tax on each sale. 

SaaS

Is SaaS Taxable in Arizona?

Yes. SaaS (software as a service) revenue and most digital product sales in Arizona are taxable, and this tax money should be remitted to the state's tax agency as part of Arizona's transaction privilege tax (TPT). Arizona charges 5.60% at the state level, and, when combined with local taxes, 8.38% on average.

SaaS

Is SaaS Taxable in South Carolina in 2025?‍

Yes. In South Carolina, software as a service (SaaS) is generally subject to sales and use tax.

SaaS

Is SaaS Taxable in New York?

Yes. New York considers SaaS (software as a service) to be tangible personal property, and it is subject to sales tax at a current rate of 4% at the state level. Including local taxes, SaaS is taxed at an average combined rate of 8.53%. This tax applies if your business has nexus in New York (a physical presence in the state or meeting certain sales thresholds there).

Sales Tax

Avalara vs. Anrok: A Side-by-Side Comparison

If your business operates online, you could find yourself owing sales tax in states across the country. This is true both for e-commerce sites and those offering software as a service -- especially as a growing number of states move to tax software. 

Ecommerce

8 of the Best Sales Tax Apps for Shopify 2025

Sales tax can be incredibly frustrating and sometimes confusing to deal with, especially when you run an online business that can sell its services across the country or even the world! Although Shopify’s in-house tax solution is a great start for basic tax calculations, it’s not very viable when scaling your business.

Sales Tax

Resale Certificates: Who Qualifies and How to Obtain One

In the past, products and services were primarily sold in retail brick and mortar stores, so understanding and applying appropriate local sales tax was usually quite simple. Today, the internet allows individuals and businesses to sell their goods — including goods that they’re reselling — to customers anywhere in the world.

Sales Tax

Managing Sales Tax for Digital Goods on Shopify

If you're selling digital products — such as online courses, ebooks, digital artwork, or subscriptions — on the online platform Shopify, you’ll need to pay attention to sales tax.

Guide

TaxJar vs. Avalara: How to Pick Between the Two

Sales tax compliance has long been a challenge for businesses operating online. Whether you run an eCommerce site or offer Software as a Service, you'll need to comply with sales tax rules across thousands of jurisdictions.

Guide

Sales Tax Compliance Outsourcing for Startups 101

Sales tax is a real pain in the butt for most startups, regardless of whether you’re running an ecommerce store or a SaaS business. But it’s really important to get right from the start. If you don’t, you run the risk of incurring fines and penalties—plus, you can lose the trust of customers and investors. 

Ecommerce

Ecommerce Sales Tax 101: An Online Seller’s Guide to 2025

Selling to customers in multiple states sounds exciting (and lucrative), but it comes with added responsibilities. Recent laws mean you may now be on the hook for paying sales tax in states outside of where your ecommerce business is based.

Ecommerce

10 Best Sales Tax Software for Ecommerce in 2025

The US has over 12,000 state and local tax jurisdictions just waiting to trip up unsuspecting online sellers. Trying to stay compliant in each of them requires you to be switched on 24/7 without any time to focus on your actual business.

SaaS

Sales Tax and SaaS: State By State Breakdown (2025)

Sales tax laws for SaaS are anything but consistent. While some states treat SaaS like a taxable good, others see it as a service and exempt it entirely—or add conditions that make your head spin.

Sales Tax

The Step-by-Step Guide to Setting Up Sales Tax on your Shopify Store

In this guide, we'll walk you through everything you need to know about correctly setting up sales tax on Shopify. We'll cover determining if you need a sales tax ID, how to acquire one, and the step-by-step process of configuring your tax settings in Shopify.

Sales Tax

How to File Sales Tax in Maryland?

This guide will walk you through the step-by-step process of filing your Maryland sales tax return using the state's online filing system, bFile.

Sales Tax

How to File a Sales Tax Return in Michigan?

This guide will walk you through the step-by-step process of filing your Michigan sales tax return, ensuring that you stay compliant with state regulations.

Sales Tax

How to File a Sales Tax Return in Iowa?

Filing your sales tax return correctly and on time is critical to avoid fines and stay in line with state rules. In this complete guide, we'll take you through each step of filing your Iowa sales tax return in 2024.

Sales Tax

Massachusetts Sales Tax Guide 2023: Compliance, Rates, and Regulations for Businesses

Sales tax is more straightforward in Massachusetts. There is a single 6.25% sales tax across all cities and counties. This guide to the Massachusetts sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.

Sales Tax

How to File Sales Tax in Texas: A Step-By-Step Guide (2024)

Running an ecom business in Texas requires you to file sales tax mandatorily. Here's a step-by-step guide to file your sales tax in Texas.

Sales Tax

West Virginia Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses

Get ahead of the curve with our West Virginia Sales Tax Guide, providing essential information on compliance, rates, and business regulations

Sales Tax

North Dakota Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses

Stay ahead of the tax game in 2023 with our North Dakota Sales Tax Guide, offering valuable insights into compliance, rates, and business regulations

Sales Tax

Ohio Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses

Navigate Ohio's sales tax landscape with our comprehensive guide, focusing on compliance, rates, and business regulations

Sales Tax

Oklahoma Sales Tax Guide 2024: Compliance, Rates, Regulations, and Exemptions for Businesses

Calculate your Oklahoma sales tax rates and amounts with ease using our comprehensive guide.

Sales Tax

Rhode Island Sales Tax Guide 2024: Compliance, Rates, Regulations, and Exemptions for Businesses

Stay tax-savvy in 2024 with our Rhode Island Sales Tax Guide, your comprehensive resource for compliance, rates, regulations, and business exemptions

Sales Tax

South Dakota Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay compliant and informed with our South Dakota Sales Tax Guide, covering everything businesses need to know about compliance, rates, and regulations

Sales Tax

Tennessee Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Navigate Tennessee's sales tax landscape with our comprehensive guide, covering compliance, rates, and regulations to keep your business on track.

Sales Tax

Vermont Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Master Vermont's 2023 sales tax landscape with our guide, covering compliance, rates, and business regulations

Sales Tax

Wisconsin Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay tax-savvy with our Wisconsin Sales Tax Guide, your resource for compliance, rates, and business regulations

Sales Tax

Wyoming Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay in the know with our Wyoming Sales Tax Guide, offering insights into compliance, rates, and business regulations to keep your business on track

Sales Tax

New Mexico Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Get a grip on New Mexico's tax landscape with our Sales Tax Guide, providing essential information on compliance, rates, and business regulations

Sales Tax

Nevada Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Navigate Nevada's tax landscape with ease with our comprehensive Sales Tax Guide, covering compliance, rates, and essential business regulations.

Sales Tax

Missouri Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay informed and compliant with our Missouri Sales Tax Guide, offering expert insights into compliance, rates, and business regulations

Sales Tax

Michigan Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay ahead of the curve in 2024 with our Michigan Sales Tax Guide, providing valuable insights into compliance, rates, and business regulations

Sales Tax

Mississippi Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Gear up for 2024 with our Mississippi Sales Tax Guide, your go-to resource for staying compliant, understanding rates, and navigating business regulations.

Sales Tax

Minnesota Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay ahead of the tax game in 2024 with our Minnesota Sales Tax Guide, offering comprehensive coverage of compliance, rates, and business regulations.

Sales Tax

Maryland Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Get ahead of the curve with our Maryland Sales Tax Guide, offering insights into compliance, rates, and business regulations.

Sales Tax

Maine Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Master Maine's sales tax landscape with our guide, covering compliance, rates, and business regulations.

Sales Tax

Kentucky Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay tax-savvy in 2023 with our Kentucky Sales Tax Guide, your resource for compliance, rates, and business regulations.

Sales Tax

Indiana Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay compliant and informed in 2023 with our Indiana Sales Tax Guide, covering everything businesses need to know about compliance, rates, and regulations.

Sales Tax

Kansas Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Navigate Kansas' 2023 sales tax rules with our guide, focusing on compliance, rates, and business regulations

Sales Tax

Idaho Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Master Idaho's 2023 sales tax landscape with our guide, covering compliance, rates, and business regulations.

Sales Tax

Hawaii Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay tax-savvy in 2023 with our Hawaii Sales Tax Guide, your resource for compliance, rates, and business regulations.

Sales Tax

Connecticut Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Sales tax can get confusing. This guide on Connecticut's sales tax provides everything you need to know about the laws and regulations.

Sales Tax

Arkansas Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Stay compliant and informed in 2023 with our Arkansas Sales Tax Guide, covering everything businesses need to know about compliance, rates, and regulations

Sales Tax

Arizona Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

A comprehensive overview of Arizona's 2023 sales tax landscape, covering compliance, rates, and regulations for businesses.

Sales Tax

Alabama Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Navigate Alabama's 2023 sales tax landscape with our comprehensive guide, covering compliance, rates, and regulations to keep your business on track.

Guide

Remit Sales Tax: The Ultimate Guide to Avoid Costly Mistakes

A detailed and thorough resource designed to help businesses navigate the complexities of remitting sales tax effectively.

Sales Tax

Nebraska Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses

A comprehensive resource on Nebraska's 2023 sales tax compliance, rates, and regulations for e-commerce businesses.

Sales Tax

Pennsylvania Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

An in-depth reference for businesses in 2023, offering insights into Pennsylvania sales tax compliance, rates, and regulations.

Sales Tax

Iowa Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

A comprehensive resource on Iowa sales tax for businesses in 2023, covering compliance, rates, and regulations.

Sales Tax

Illinois Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Starting a business in Illinois? This guide will help you get started with understanding the sales tax systems quickly.

Sales Tax

Louisiana Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Louisiana can be an expensive for do businesses. But if you do business here, this guide will help you navigate the taxation system.

Sales Tax

North Carolina Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

North Carolina is a great location to start an ecommerce business. But you need to understand the taxation laws before you begin.

Sales Tax

Florida Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Florida is one of the best locations to start an ecommerce business with it's great weather and friendly business laws.

Sales Tax

New Jersey Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

This guide to the New Jersey sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.

Sales Tax

Georgia Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses

This guide to the Georgia sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.

Sales Tax

New Hampshire Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

New Hampshire, just like four other states is one which doesn't levy a hefty sales tax for remote and ecommerce sellers.

Sales Tax

Montana Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

This guide to the Montana sales tax will help you understand their tax system and why businesses prefer to operate here.

Sales Tax

Delaware Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Delaware, the state where almost all businesses register to benefit from relaxed sales tax laws.

Sales Tax

Alaska Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Alaska is the only state where the state doesn't levy a sales tax for ecommerce sellers but the local government does.

Sales Tax

South Carolina Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

This guide to the South Carolina sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.

Sales Tax

Texas Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses 

This comprehensive Texas sales tax guide offers all the information you need to properly collect and remit taxes and avoid paying penalties.

Sales Tax

Utah Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

This Utah sales tax guide will help you understand the state tax system to avoid paying penalties due to incorrect filings.

Sales Tax

Virginia Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

If you run a business in Virginia, this guide will walk you through all the information you need to collect and remit your taxes on time.

Sales Tax

Washington Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

This guide to the Washington sales tax is perfect if you have a business and want to understand their tax system to avoid paying penalties.

Sales Tax

California Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

This guide to the California sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.

Sales Tax

Oregon Sales Tax Guide 2024: Compliance, Rates, and Regulations for Businesses

Oregon is the one of the five US states that doesn't have a statewide sales tax which is especially advantageous for ecommerce sellers.

Sales Tax

New York Sales Tax Guide 2024: Compliance, Rates, and Regulations for Ecommerce Businesses

This guide will explain New York's sales tax system in simple terms to help you file correctly and avoid penalties.

Sales Tax

How to Speak to a State's Revenue Department about Sales Tax

Need to contact a state for sales tax? This list comes in handy with their contact details.

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