Compendium · Americas · United States
United States: State sales tax on digital services
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Supported (free threshold) · Local term: State and local sales and use tax (no federal VAT)
Last verified: 2026-10-29
The United States has no federal VAT/GST. Sales and use tax on digital products/services is state-by-state after South Dakota v. Wayfair (2018). Typical economic-nexus thresholds are US$100,000 of sales into the state (and/or 200 transactions — many states dropped the transaction prong). Register with each state where nexus is met (or via Streamlined Sales Tax Central Registration System where the state is an SST member). Rates, taxable digital categories, and filing frequencies vary by state — this page cannot list all 45+ taxing states as a single rate
Supported (free threshold)
Per-state economic nexus thresholds; many states allow sales under the threshold without registration. Federal level: no VAT
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Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.
Threshold and rates (State sales tax)
- Free threshold?
- Yes — Per-state economic nexus thresholds; many states allow sales under the threshold without registration. Federal level: no VAT
- Amount / measure
- USD 100,000
Typical economic-nexus threshold ~US$100,000 of sales into a state in the current or prior calendar year (exact statute varies; some states still use 200 transactions). Not a single nationwide figure - Window
- usually current or prior calendar year (state-specific)
- Standard rate
- —
No federal rate. Combined state+local sales tax rates commonly range roughly 0–10%+ depending on jurisdiction and product taxability. Look up each destination state - Who must register
- Remote sellers (and sometimes marketplaces) that meet a state’s economic-nexus or marketplace rules for taxable sales of tangible personal property, digital goods, or taxable services as defined by that state
- Evidence of location
- Buyer’s state (ship-to / billing / location indicators used under state sourcing rules). SST and state guides specify sourcing; keep state of customer for each taxable sale
- Invoicing
- Collect the destination state’s sales tax on taxable digital products once registered (or via marketplace facilitator collection where applicable). Invoice rules are state-specific
- Filing
- Per state: monthly, quarterly, or annual depending on volume. SST members may use simplified electronic filing options
- Effective
- Wayfair, 585 U.S. ___ (2018); subsequent state economic-nexus statutes
- Authority
- State tax agencies / Streamlined Sales Tax Governing Board
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels allows sales under a free threshold of USD 100,000 (usually current or prior calendar year (state-specific)). Above that, destination tax and local registration apply.
- Product class
- Digital service
- Support status
- Supported (free threshold) — Per-state economic nexus thresholds; many states allow sales under the threshold without registration. Federal level: no VAT
How to register
- Self-register online?
- Yes — Yes, but per state (or via SST Central Registration for Streamlined member states). There is no federal VAT and no single US-wide sales-tax registration. No federal fiscal representative is required for remote sales-tax registration
- Resident representative / fiscal agent
- Not generally required for remote sales-tax registration. Registered-agent rules for corporate foreign qualification are separate
- Regime
- Per-state sales/use tax registration for remote sellers that meet economic nexus (commonly ~USD 100k of sales into the state; California / New York / Texas and others use higher figures — see each state page). SST Central Registration covers many member states in one filing. No federal VAT registration
Steps (in order)
- Identify states where your taxable digital / retail sales meet that state's economic-nexus threshold (open each state's compendium page)
- For Streamlined Sales Tax member states, consider SST Central Registration System as a one-stop path — https://www.streamlinedsalestax.org/
- Otherwise register directly with each state's department of revenue / taxation agency (links on state pages)
- Collect, file, and remit per that state's rate, local tax rules, taxability matrix, and filing frequency. Confirm marketplace-facilitator collection on platform channels
Documents
- State registration applications and/or SST central registration — FEIN / business details as each portal requires
- Business identification — FEIN or foreign equivalent
- Official processing time
- State-specific; SST and state agencies do not publish one national SLA. Online registrations are often confirmed within days once complete — confirm per state
- Official fees
- Often low or none at the state sales-tax account level; automation and adviser fees are commercial
- Portal
- https://www.streamlinedsalestax.org/
- Local bank account
- Not generally required; remit in USD via each state's e-pay methods
- Filing frequency
- State-specific (monthly / quarterly / annual by volume)
- Payment currency
- USD
- Input VAT recovery
- N/A — US sales tax is not a VAT. Resale / exemption certificates may apply under state rules
- Portal language
- English
- Penalties
- Per-state penalties and interest for failure to register, late filing or late remittance
Firms offering this service
Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging
- Avalara — Sales-tax automation / registration support
- TaxJar (Stripe) — Sales-tax filing / nexus tools
- KPMG US — Member firm — state and local tax
Official sources
South Dakota v. Wayfair, 585 U.S. (2018)
Streamlined Sales Tax
Last verified: 2026-10-29.
States
Per-state pages summarise economic-nexus amounts. Treat seeded figures as a starting point and verify the statute.
| State | Code | Nexus amount | API decision (short) |
|---|---|---|---|
| Alabama | US-AL | USD 250,000 | Botchannels allows sales under a free threshold of USD 250,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Alaska | US-AK | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Arizona | US-AZ | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Arkansas | US-AR | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| California | US-CA | USD 500,000 | Botchannels allows sales under a free threshold of USD 500,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Colorado | US-CO | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Connecticut | US-CT | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Delaware | US-DE | No state sales tax | Botchannels allows sales under this jurisdiction's free threshold. |
| District of Columbia | US-DC | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Florida | US-FL | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Georgia | US-GA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Hawaii | US-HI | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Idaho | US-ID | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Illinois | US-IL | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Indiana | US-IN | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Iowa | US-IA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Kansas | US-KS | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Kentucky | US-KY | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Louisiana | US-LA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Maine | US-ME | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Maryland | US-MD | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Massachusetts | US-MA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Michigan | US-MI | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Minnesota | US-MN | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Mississippi | US-MS | USD 250,000 | Botchannels allows sales under a free threshold of USD 250,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Missouri | US-MO | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Montana | US-MT | No state sales tax | Botchannels allows sales under this jurisdiction's free threshold. |
| Nebraska | US-NE | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Nevada | US-NV | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| New Hampshire | US-NH | No state sales tax | Botchannels allows sales under this jurisdiction's free threshold. |
| New Jersey | US-NJ | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| New Mexico | US-NM | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| New York | US-NY | USD 500,000 | Botchannels allows sales under a free threshold of USD 500,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| North Carolina | US-NC | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| North Dakota | US-ND | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Ohio | US-OH | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Oklahoma | US-OK | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Oregon | US-OR | No state sales tax | Botchannels allows sales under this jurisdiction's free threshold. |
| Pennsylvania | US-PA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Rhode Island | US-RI | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| South Carolina | US-SC | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| South Dakota | US-SD | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Tennessee | US-TN | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Texas | US-TX | USD 500,000 | Botchannels allows sales under a free threshold of USD 500,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Utah | US-UT | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Vermont | US-VT | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Virginia | US-VA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Washington | US-WA | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| West Virginia | US-WV | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Wisconsin | US-WI | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
| Wyoming | US-WY | USD 100,000 | Botchannels allows sales under a free threshold of USD 100,000 (Per state (varies)). Above that, destination tax and local registration apply. |
FAQ
- Is there a free VAT/GST threshold for foreign digital sellers?
- No nationwide VAT threshold — typical state economic nexus ~US$100,000 (state-specific)
- Is a local tax representative mandatory?
- Not generally for sales-tax registration
- What rate applies?
- No federal rate; state+local rates and taxability vary
- Is this tax advice?
- No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice