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Sales Tax Applicability for Online Services

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State

SaaS Tax Applicability

Digital Products Applicability

Alabama

Taxable

Alaska

Taxable

Arizona

Taxable

Arkansas

Non-taxable

Taxable

California

Non-taxable

Colorado

Non-taxable

Taxable

Connecticut

Taxable

Florida

Non-taxable

Georgia

Non-taxable

Hawaii

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

Indiana

Non-taxable

Taxable

Iowa

Taxable

Kansas

Non-taxable

Kentucky

Non-taxable

Taxable

Louisiana

Taxable

Maine

Non-taxable

Taxable

Maryland

Non-taxable

Taxable

Massachusetts

Taxable

Non-taxable

Michigan

Non-taxable

Minnesota

Non-taxable

Taxable

Mississippi

Non-taxable

Taxable

Missouri

Non-taxable

Nebraska

Non-taxable

Taxable

Nevada

Non-taxable

New Jersey

Non-taxable

Taxable

New Mexico

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.

Pennsylvania

Taxable.

Rhode Island

Taxable.

South Carolina

Taxable.

Non-taxable.

South Dakota

Taxable.

Tennessee

Taxable

Texas

80% of transaction is taxable, while 20% is non-taxable.

Taxable

Utah

Taxable

Vermont

Non-taxable

Taxable

Virginia

Non-taxable

Washington

Taxable

Washington DC

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.