Sales Tax Applicability for Online Services

State	SaaS Tax Applicability	Digital Products Applicability
Alabama	Taxable	Taxable
Alaska	Taxable	Taxable
Arizona	Taxable	Taxable
Arkansas	Non-taxable	Taxable
California	Non-taxable	Non-taxable
Colorado	Non-taxable	Taxable
Connecticut	Taxable	Taxable
Florida	Non-taxable	Non-taxable
Georgia	Non-taxable	Non-taxable
Hawaii	Taxable	Taxable
Idaho	Non-taxable	Taxable if there is a permanent right to use the product. Non-taxable if the product is on lease or rented.
Illinois	Non-taxable	Non-taxable
Indiana	Non-taxable	Taxable
Iowa	Taxable	Taxable
Kansas	Non-taxable	Non-taxable
Kentucky	Non-taxable	Taxable
Louisiana	Taxable	Taxable
Maine	Non-taxable	Taxable
Maryland	Non-taxable	Taxable
Massachusetts	Taxable	Non-taxable
Michigan	Non-taxable	Non-taxable
Minnesota	Non-taxable	Taxable
Mississippi	Non-taxable	Taxable
Missouri	Non-taxable	Non-taxable
Nebraska	Non-taxable	Taxable
Nevada	Non-taxable	Non-taxable
New Jersey	Non-taxable	Taxable
New Mexico	Taxable	Taxable
New York	Taxable	Non-taxable
North Carolina	N/A	Taxable
North Dakota	N/A	Non-taxable
Ohio	Taxable for business use. Non-taxable if for personal use.	Taxable.
Oklahoma	Non-taxable.	Non-taxable.
Pennsylvania	Taxable.	Taxable.
Rhode Island	Taxable.	Taxable.
South Carolina	Taxable.	Non-taxable.
South Dakota	Taxable.	Taxable.
Tennessee	Taxable	Taxable
Texas	80% of transaction is taxable, while 20% is non-taxable.	Taxable
Utah	Taxable	Taxable
Vermont	Non-taxable	Taxable
Virginia	Non-taxable	Non-taxable
Washington	Taxable	Taxable
Washington DC	Taxable	Taxable
West Virginia	Taxable	Non-taxable
Wisconsin	Non-taxable	Taxable
Wyoming	Non-taxable	Taxable

*Digital Product meaning movies, books and eBooks, music, ringtones, magazine and newspaper subscriptions, and photographs.

Five US states do not impose any statewide sales tax on goods or services: New Hampshire, Oregon, Montana, Alaska, and Delaware.