How to Pay Sales Tax for Small Business

One of the best things about starting a new business is the taxes. Just kidding. But you will indeed have to deal with taxes, likely including sales tax at some point. Collecting and paying sales taxes tends to be arduous, but it’s a process you’ll need to know to keep running your business. 

Use our Sales Tax Calculator to determine your exact sales tax rate and total purchase amount. 

1. Determine if your business is a subject to sales tax

The crucial first step is finding out whether your goods and services are subject to sales tax. State sales tax requirements vary, but generally, sales of tangible goods are subject to sales tax, as are some services. Even if your state does not impose a sales tax, your locality may, so check with your state and local governments.

2. Register with your state’s taxing agency 

Your business is subject to sales tax? Then you must register for sales tax to be able to collect and pay them. At the state level, this is usually done with the state’s Department of Revenue. You can usually register online; sometimes a fee is involved. If your locality also imposes a sales tax, be sure to register with your local government as well. 

The following five states currently have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon.

Alabama

All retail sales of tangible goods are subject to sales tax in Alabama. Services are rarely subject to sales tax. Prescription drugs and gasoline are exempt from sales tax in Alabama.

The state sales tax rate in Alabama is 4%.

Alabama sales tax rates vary depending on which county and city you’re in. Check Alabama Department of Revenue site for the exact rates.

In Alabama, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the My Alabama Taxes website. 
2. Register for an account.
3. Fill out the business tax registration form.

Arizona

In Arizona, sales tax is called a transaction privilege tax (TPT). Sales of tangible goods are subject to TPT tax in Arizona. Telecommunications services, amusement services, and construction contracting are also subject to TPT tax. Groceries and gasoline are also subject to TPT tax. 

The sales tax rate in Arizona is 5.6%.

Arizona sales tax rates vary depending on which county and city you’re in. Check Arizona Department of Revenue site for the exact rates.

In Arizona, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the Arizona Tax website.
2. Register for an account.
3. Fill out the TPT registration form.
4. Pay the $12 fee.

Arkansas

Sales of tangible goods are subject to sales tax in Arkansas. Utilities, gasoline, and telecommunications services are also subject to sales tax. Machinery and equipment used in manufacturing are exempt from sales tax. 

The state sales tax rate in Arkansas is 6.5%.

Arkansas sales tax rates vary depending on which county and city you’re in. Check Arkansas Department of Finance and Administration site for the exact rates.

In Arkansas, acquire a seller’s permit by following the Department of Finance and Administration’s detailed instructions for registration: 

1. Go to the Arkansas Taxpayer Access Point website. 
2. Register for an account.
3. Fill out the registration for sales tax form.
4. Pay the $50 fee.

California

The sale and rental of tangible property are subject to sales tax in California. Some labor services and associated costs are subject to sales tax if they are involved in the creation or manufacturing of new personal property. Groceries, prescription medication, and some medical devices are exempt from sales tax in California.

The state sales tax rate in California is 7.25%. 

California sales tax rates vary depending on which county and city you’re in. Check California Department of Tax and Fee Administration site for the exact rates.

In California, acquire a seller’s permit by following the detailed instructions for registration: 

1. Visit the business online services website. 
2. Register for an account.
3. Fill out the sales tax permit application.
4. There is no fee to apply for a sales tax permit in California.

Colorado

Retail sales of tangible property are subject to sales tax in Colorado. Services subject to sales tax include telephone services, accommodations, some utilities, and prepared foods. Prescription drugs, insulin and insulin supplies, and prosthetic and medical supplies are exempt from sales tax. 

The state sales tax rate in Colorado is 2.9%.

Colorado sales tax rates vary depending on which county and city you’re in. Check Colorado Department of Revenue site for the exact rates.

In Colorado, acquire a seller’s permit by following the detailed instructions for registration: 

1. Visit the My Biz Colorado website. 
2. Fill out the business sales tax registration form.
3. Pay the $16 fee.

Connecticut

Sales of tangible goods are subject to sales tax in Connecticut. Services subject to sales tax include advertising, contractor services, cable, dry cleaning and laundry, and maintenance to real estate property. Bicycle helmets, child car seats, college textbooks, and medical goods and equipment are exempt from sales tax in Connecticut. 

The state sales tax rate in Connecticut is 6.35%.

Connecticut sales tax rates vary depending on which county and city you’re in. Check Connecticut Department of Revenue Services site for the exact rates.

In Connecticut, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Visit the Department of Revenue services website. 
2. Fill out the business registration form.
3. Pay the $100 fee to apply for a sales tax permit.

Florida

Each sale, admission, storage, or rental in Florida is subject to sales tax. Detective or burglar protection, non-residential cleaning, and non-residential pest control services are also taxable. Groceries and prescription drugs are exempt from sales tax in Florida. 

The state sales tax rate in Florida is 6%.

Florida sales tax rates vary depending on which county and city you’re in. Check Florida Department of Revenue site for the exact rates.

In Florida, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go the revenue department’s business tax registration page. 
2. Register for an account.
3. Fill out the business tax registration form. 
4. There is no fee to register for business taxes online. If you register by mail, the fee is $5.

Georgia

The sales of tangible goods are subject to sales tax in Georgia. Services subject to sales tax include accommodations, transportation, admissions, and amusement activities. Groceries and some medical devices are exempt from sales tax in Georgia.

The state sales tax rate in Georgia is 4%.

Georgia sales tax rates vary depending on which county and city you’re in. Check Georgia Department of Revenue site for the exact rates.

In Georgia, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Visit the Georgia tax center website.
2. Register for an account
3. Fill out the business tax registration form.
4. There is no fee to obtain a sales tax license number in Georgia.

Hawaii

There is no sales tax in Hawaii. Instead, there is a general excise tax (GET), which is a tax imposed on businesses. Businesses generally pass the GET on to their customers.

In Hawaii, wholesaling goods, manufacturing, producing, providing wholesale services, and business activities of disabled people are subject to an excise tax of 0.5%. Selling retail goods and services, renting, leasing real property, construction contracting, and earning commissions are subject to a GET of 4-4.5%. 

In Hawaii, register for GET by following the tax department’s detailed instructions for registration: 

1. Go to the Hawaii tax online website.
2. Fill out the registration form.
3. Pay the $20 fee.

Idaho

Sales of tangible property are subject to sales tax in Idaho. Admissions to certain recreational events, hotel accommodations, and labor to produce tangible property are also taxable. Most drugs and medical equipment are exempt from sales tax in Idaho. 

The state sales tax rate in Idaho is 6%.

Idaho sales tax rates vary depending on which county and city you’re in. Check Idaho State Tax Commission site for the exact rates.

In Idaho, acquire a seller’s permit by following the tax commission’s detailed instructions for registration: 

1. Go to the Idaho business registration website. 
2. Register for an account.
3. Fill out the business registration form.
4. There is no fee to register your business for taxes in Idaho.

Illinois

Sales of tangible property are subject to sales tax in Illinois. Groceries are also subject to sales tax. Most services in Illinois are exempt from sales tax. 

The state sales tax rate in Illinois is 6.25%.

Illinois sales tax rates vary depending on which county and city you’re in. Check MyTax Illinois site for the exact rates.

In Illinois, acquire a seller’s permit by following the Department of Revenue’s instructions: 

1. Go to the My Tax Illinois website. 
2. Register for an account.
3. Fill out the business tax registration form.
4. There is no fee for business tax registration in Illinois.

Indiana

Sales of tangible property are subject to sales tax in Indiana. Hotel accommodations are also subject to sales tax, as is gasoline. Groceries and some drugs and medical equipment are exempt from sales tax in Indiana. 

The state sales tax rate in Indiana is 7%.

Indiana sales tax rates vary depending on which county and city you’re in. Check Indiana Department of Revenue site for the exact rates.

In Indiana, acquire a seller’s permit by following the instructions for registration: 

1. Go to the Indiana business portal website. 
2. Register for an account.
3. Fill out the business registration form.
4. Pay the $25 business registration fee. 

Iowa

Sales of tangible personal property are subject to sales tax in Iowa. Taxable services include the repair of most tangible property, carpet cleaning, dry cleaning, moving, and a host of other services you can find here. Most groceries are tax exempt in Iowa, as are most medical devices and prescription medications. 

The state sales tax rate in Iowa is 6%.

Iowa sales tax rates vary depending on which county and city you’re in. Check Iowa Department of Revenue site for the exact rates.

In Iowa, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the Connect Iowa website.
2. Register for an account.
3. Fill out the business registration form.
4. There is no fee to apply for a seller’s permit in Iowa.

Kansas

The sale, rental, or lease of tangible personal property is subject to sales tax in Kansas. Groceries are subject to sales tax in Kansas. Services to repair, alter, or maintain tangible personal property are also subject to sales tax. Services performed to install or apply tangible personal property are exempt from sales tax when the services involve the original construction, reconstruction, restoration, remodeling, renovation, repair, or replacement of a residence. 

The state sales tax rate in Kansas is 6.5%.

Kansas sales tax rates vary depending on which county and city you’re in. Check Kansas Department of Revenue site for the exact rates.

In Kansas, acquire a seller’s permit by following the revenue department’s detailed instructions for registration: 

1. Go to the state’s Customer Service Center website.
2. Register for an account on the site.
3. Fill out the business tax registration form.
4. There is no fee to register for business tax.

Kentucky

Sales of both tangible and digital property are subject to sales tax in Kentucky. Labor for repair and installation of taxable tangible personal property is also subject to sales tax, as are communications services. Sales of any prepared food, including prepared food sold in grocery stores, is subject to sales tax. Other groceries are tax-exempt. 

The state sales tax rate in Kentucky is 6%.

Kentucky sales tax rates vary depending on which county and city you’re in. Check Kentucky Department of Revenue site for the exact rates.

In Kentucky, acquire a seller’s permit by following the revenue department’s detailed instructions for registration: 

1. Go to the Kentucky business one stop portal. 
2. Register for an account.
3. Fill out the business tax registration form.
4. There is no fee to register for business taxes.

Louisiana

The sale, lease, or rental of tangible personal property are subject to sales tax in Louisiana. Services subject to sales tax include hotel accommodations, printing, laundry, telecommunications, and the repair of tangible property. Groceries, utilities, and prescription drugs are exempt from sales tax in Louisiana. 

The state sales tax rate in Louisiana is 4.45%.

Louisiana sales tax rates vary depending on which county and city you’re in. Check Louisiana Department of Revenue site for the exact rates.

In Louisiana acquire a seller’s permit by following the revenue department’s detailed instructions for registration:

1. Go to the revenue department’s taxpayer access point. 
2. Fill out the taxpayer registration form.
3. There is no fee for taxpayer registration in Louisiana.

Maine

Sales of tangible property are subject to sales tax in Maine. Services subject to sales tax include rent to purchase items, telecommunications, cable services, and home support services. Groceries and prescription drugs are exempt from sales tax in Maine. 

The state sales tax rate in Maine is 5.5%.

Maine sales tax rates vary depending on which county and city you’re in. Check Maine Revenue Services site for the exact rates.

In Maine, acquire a seller’s permit by following the revenue department’s detailed instructions for registration: 

1. Visit the Maine revenue department’s e-business services website. 
2. Fill out the sales and use tax registration form.
3. There is no fee to register for sales and use tax in Maine.

Maryland

The sales of tangible goods are subject to sales tax in Maryland. Services subject to sales tax include telecommunications services, laundry services, and security services. Groceries, medical supplies, and medicine are exempt from sales tax in Maryland. 

The state sales tax rate in Maryland is 6%.

Maryland sales tax rates vary depending on which county and city you’re in. Check Comptroller of Maryland site for the exact rates.

In Maryland, acquire a seller’s permit by following the comptroller department’s detailed instructions for registration: 

1. Go to the comptroller’s interactive web services site.
2. Fill out the sales and use tax application.
3. There is no fee to apply for a sales and use tax license in Maryland

Massachusetts

Personal property sold or rented in Massachusetts is subject to sales tax. Telecommunications services are also taxable. Groceries and prescription medications are exempt from sales tax in Massachusetts. 

The state sales tax rate in Massachusetts is 6.25%.

Massachusetts sales tax rates vary depending on which county and city you’re in. Check Massachusetts Department of Revenue site for the exact rates.

In Massachusetts, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the Mass Tax Connect website. 
2. Fill out the business tax registration form.
3. There is no fee to obtain a sales tax permit in Massachusetts.

Michigan

Tangible property sold in Michigan is subject to sales tax. Telecommunications, utilities, hotel services, and industrial laundry services are also subject to sales tax. Groceries and prescription drugs are exempt from sales tax.

The sales tax rate in Michigan is 6%.

Michigan sales tax rates vary depending on which county and city you’re in. Check Michigan Department of Treasury site for the exact rates.

In Michigan, acquire a seller’s permit by following the Department of the Treasury’s detailed instructions for registration: 

1. Visit the Michigan Treasury online website. 
2. Register for an account on the site.
3. Complete the business tax registration form.
4. There is no fee for a sales tax permit in Michigan.

Minnesota

The sale, lease, or rental of tangible property is subject to sales tax in Minnesota. Admissions to amusement facilities and fitness clubs are also taxable, as are construction and installation labor. Groceries, clothing, and prescription drugs are exempt from sales tax. 

The state sales tax rate in Minnesota is 6.875%.

Minnesota sales tax rates vary depending on which county and city you’re in. Check Minnesota Department of Revenue site for the exact rates.

In Minnesota, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Visit the department of revenue’s online business registration form. 
2. Fill out the business registration form.
3. There is no fee to register your business for sales tax. 

Mississippi

All sales of tangible property are subject to sales tax in Mississippi unless specifically exempted. Amusement services are subject to sales tax. Gasoline is exempt from sales tax in Mississippi. 

The state sales tax rate in Mississippi is 7%.

Mississippi sales tax rates vary depending on which county and city you’re in. Check Mississippi Department of Revenue site for the exact rates.

In Mississippi, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Register for an account on the state’s taxpayer access website.
2. Fill out the business tax registration form.
3. There is no fee for business tax registration in Mississippi.

Missouri

All sales of tangible property are subject to sales tax in Missouri unless specifically exempted. Services subject to sales tax include telecommunications, some utilities, and the rental or lease of tangible personal property. Exemptions from sales tax include some prescription medication and medical devices. 

The state sales tax rate in Missouri is 4.225%.

Missouri sales tax rates vary depending on which county and city you’re in. Check Missouri Department of Revenue site for the exact rates.

In Missouri, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the Missouri Department of Revenue business portal. 
2. Fill out the business tax registration form.
3. There is no fee for business tax registration in Missouri.

Nebraska

Sales of tangible goods are subject to sales tax in Nebraska. Services subject to sales tax include pest control, building cleanup and maintenance, and towing. Exemptions from sales tax in Nebraska include groceries, prescription medications, and most medical equipment.

The state sales tax rate in Nebraska is 5.5%.

Nebraska sales tax rates vary depending on which county and city you’re in. Check Nebraska Department of Revenue site for the exact rates.

In Nebraska, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Register for an account on the Nebraska business portal. 
2. Fill out the business registration form.
3. There is no fee for a sales tax permit in Nebraska.

Nevada

Tangible property that is transferred for value is subject to sales tax in Nevada, as are services required to transfer tangible property. Unprepared food, farm machinery and equipment, and newspapers are exempt from sales tax. 

The state sales tax rate in Nevada is 4.6%.

Nevada sales tax rates vary depending on which county and city you’re in. Check Nevada Department of Taxation site for the exact rates.

In Nevada, acquire a seller’s permit by following the department of taxation’s detailed instructions for registration: 

1. Register for an account on the Nevada Tax Center website. 
2. Fill out the business registration form.
3. Pay the $15 fee. 

New Jersey

The retail sales of tangible goods are subject to sales tax in New Jersey, as are most services on tangible personal property. Exemptions from sales tax include grocery items, most clothing and footwear, disposable paper products, prescription drugs, and over-the-counter drugs.

The state sales tax rate in New Jersey is 6.625%.

New Jersey sales tax rates vary depending on which county and city you’re in. Check New Jersey Division of Taxation site for the exact rates.

In New Jersey, acquire a seller’s permit by following the division of revenue and enterprise services’ detailed instructions for registration: 

1. Fill out the registration form on the state’s business portal. 
2. Pay the $125 business registration fee. There is no fee for the sales tax permit. 

New Mexico

In New Mexico, there is no sales tax. Businesses are subject to a gross receipts tax instead, which is passed on to the customer, so it works in essentially the same way. Most sales and services are subject to the gross receipts tax. Exemptions include gasoline and mobile services. 

The gross receipts tax rate in New Mexico varies throughout the state from 5.125% to 8.8675%.

In New Mexico, acquire a seller’s permit by following the department of tax and revenue’s detailed instructions for registration: 

1. Register for an account on the state’s taxpayer access point.
2. Fill out the form to request a business identification number.
3. There is no fee to register for a business identification number. 

New York

Tangible goods sold are subject to sales tax in New York. Services subject to sales tax include motor vehicle repair, appliance repair, and computer repair. The repair and maintenance of real property are also subject to sales tax. Groceries and prescription medicines are exempt from sales tax.

The state sales tax rate in New York is 4%.

New York sales tax rates vary depending on which county and city you’re in. Check New York Department of Finance site for the exact rates.

In New York, acquire a seller’s permit by following the department of taxation and finance’s detailed instructions for registration: 

1. Register for an account on the New York business express website. 
2. Fill out the sales tax registration form.
3. There is no fee to register for sales tax in New York.

North Carolina

Any tangible property that is sold, rented, or leased is subject to sales tax in North Carolina. Repair, maintenance, and installation services are also subject to sales tax. Prescription medicines, groceries, and gasoline are all exempt from sales tax. 

The state sales tax rate in North Carolina is 4.75%.

North Carolina sales tax rates vary depending on which county and city you’re in. Check North Carolina Department of Revenue site for the exact rates.

In North Carolina, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Visit the North Carolina department of revenue e-services portal. 
2. Fill out the business registration form.
3. There is no fee to register a business for sales tax purposes with the department of revenue in North Carolina.

North Dakota

Retail sales of tangible goods are subject to sales tax in North Dakota. Transportation services, repair services, hospital and nursing home services, and furnishing services are also taxable. Groceries and prescription drugs are generally exempt from sales tax.

The state sales tax rate in North Dakota is 5%.

North Dakota sales tax rates vary depending on which county and city you’re in. Check North Dakota State Tax Commissioner site for the exact rates.

In North Dakota, acquire a seller’s permit by following the state’s detailed instructions for registration: 

1. Go to the North Dakota business portal. 
2. Fill out the sales and use tax application.
3. There is no fee to obtain a sales tax license in North Dakota.

Ohio

Any tangible property that is transferred or sold to another person is subject to sales tax in Ohio. Services that are subject to sales tax include lodging, landscaping, repair or installation of tangible property, dry cleaning, and several other services. Exemptions from sales tax include groceries, prescription drugs, and some medical equipment. 

The state sales tax rate in Ohio is 5.75%.

Ohio sales tax rates vary depending on which county and city you’re in. Check Ohio Department of Taxation site for the exact rates.

In Ohio, acquire a seller’s permit by following the department of taxation’s detailed instructions for registration: 

1. Register for an account on the Ohio Gateway business portal. 
2. Fill out the vendor’s permit application.
3. Pay the $25 fee.

Oklahoma

The sale or transfer of tangible property is subject to sales tax in Oklahoma, as well as the rental or lease of tangible personal property. Services subject to sales tax include contractor services and repairs of tangible property. Certain medical prescriptions and cable television services are exempt from sales tax.

The state sales tax rate in Oklahoma is 4.5%.

Oklahoma sales tax rates vary depending on which county and city you’re in. Check Oklahoma Tax Commission document for the exact rates.

In Oklahoma, acquire a seller’s permit by following the tax commission’s detailed instructions for registration: 

1. Register for an account on the Oklahoma business portal.
2. Fill out the sales tax license application.
3. Pay the $20 fee.

Pennsylvania

Tangible property that is sold, rented, or leased is subject to sales tax in Pennsylvania. Services on tangible property are also taxable. Tax exemptions include food, clothing, textbooks, and prescription medication. 

The state sales tax rate in Pennsylvania is 6%.

Pennsylvania sales tax rates vary depending on which county and city you’re in. Check Pennsylvania Department of Revenue site for the exact rates.

In Pennsylvania, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Create an account on the department of revenue website. 
2. Fill out the seller’s permit application.
3. There is no fee to apply for a seller’s permit in Pennsylvania.

Rhode Island

Tangible property that is sold, rented, or leased is subject to sales tax in Rhode Island. Telecommunications services and cable television services are also subject to sales tax. Clothing, food, and medical items are generally tax-exempt. 

The state sales tax rate in Rhode Island is 7%.

Rhode Island sales tax rates vary depending on which county and city you’re in. Check Rhode Island Division of Taxation site for the exact rates.

In Rhode Island, acquire a seller’s permit by following the division of taxation’s detailed instructions for registration: 

1. Create an account on the division of taxation website. 
2. Fill out the business registration application. 
3. Pay the $10 fee. 

South Carolina

All retail sales are subject to sale tax in South Carolina. Services that are subject to sales tax include dry cleaning and communications services. Sales tax exemptions include groceries, prescription medicines, and gasoline. 

The state sales tax rate in South Carolina is 6%.

South Carolina sales tax rates vary depending on which county and city you’re in. Check South Carolina Department of Revenue site for the exact rates.

In South Carolina, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Fill out the business tax registration form on the South Carolina online business filings site. 
2. Pay the $50 fee. 

South Dakota

Tangible property for sale, lease, or rent is subject to sales tax in South Dakota. Most services are also subject to sales tax. Sales of prescription medicines and gasoline are exempt from sales tax. 

The state sales tax rate in South Dakota is 4.5%.

South Dakota sales tax rates vary depending on which county and city you’re in. Check South Dakota Department of Revenue site for the exact rates.

In South Dakota, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Fill out the state sales tax account application. 
2. There is no fee to apply for a sales tax account in South Dakota.

Tennessee

Tangible goods are subject to sales tax in Tennessee. Services that are subject to sales tax in Tennessee include the installation and repair of tangible property, telecommunications, and lodging. Generally, food is exempt from sales tax in Tennessee. 

The state sales tax rate in Tennessee is 7%.

Tennessee sales tax rates vary depending on which county and city you’re in. Check Tennessee Department of Revenue site for the exact rates.

In Tennessee, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Fill out the taxpayer registration form. 
2. There is no fee to apply for a seller’s permit in Tennessee

Texas

Goods for sale, lease, or rental are subject to sales tax in Texas. Services that are taxable include remodelling and repairs of real property, amusement services, insurance services, personal services, and many others. Most food and health-related items are sales tax exempt in Texas. 

The state sales tax rate in Texas is 6.25%.

Texas sales tax rates vary depending on which county and city you’re in. Check Texas Comptroller of Public Accounts site for the exact rates.

In Texas, acquire a seller’s permit by following the state comptroller’s detailed instructions for registration: 

1. Register for an account on the comptroller’s website. 
2. Fill out the seller’s permit application.
3. There is no fee to apply for a seller’s permit in Texas.

Utah

Sales of tangible personal property in Utah are taxable. Labor to repair, renovate or clean tangible personal property is also taxable. Items that are exempt from sales tax include prescription drugs, medical equipment, and gasoline. 

The state sales tax rate in Utah is 4.85%.

Utah sales tax rates vary depending on which county and city you’re in. Check Utah State Tax Commission site for the exact rates.

In Utah, you can acquire a seller’s permit by following the state tax commission’s detailed instructions for registration: 

1. Fill out the application for a tax account on the Utah taxpayer access point.
2. There is no fee to apply for a tax account.

Vermont

All tangible personal property in Vermont is subject to sales tax with certain exemptions. Clothing is tax-exempt, as are food, feminine hygiene products, and over-the-counter drugs.

The state sales tax rate in Vermont is 6%. 

Vermont sales tax rates vary depending on which county and city you’re in. Check Vermont Department of Taxes site for the exact rates.

In Vermont, acquire a seller’s permit by following the department of taxes’ detailed instructions for registration: 

1. Register for an account on the Vermont business filings website.
2. Fill out the form to open a tax account for sales tax.
3. There is no fee to apply for your tax account for sales tax.

Virginia

In general, all sales, leases, and rentals of tangible personal property in or for use in Virginia, as well as accommodations and certain taxable services, are subject to sales tax, unless an exemption is established. Groceries and certain hygiene items are subject to a reduced sales tax rate of 2.5%.

The state sales tax rate in Virginia is 5.3%.

Virginia sales tax rates vary depending on which county and city you’re in. Check Virginia Department of Taxation site for the exact rates.

In Virginia, acquire a seller’s permit by following the tax department’s detailed instructions for registration: 

1. Register for an account on the Virginia tax department website. 
2. Fill out the sales tax registration form.
3. There is no fee to apply. You will receive your 15-digit sales tax account number and your sales tax certificate after you fill out the form. 

Washington

The sale of any tangible personal property is subject to sales tax in Washington. The sale of services such as installation, repair, cleaning, altering, improving, construction, and decorating are also subject to sales tax. Groceries and prescription drugs are tax-exempt. 

The state sales tax rate in Washington is 6.5%.

Washington sales tax rates vary depending on which county and city you’re in. Check Washington Department of Revenue site for the exact rates.

In Washington, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

1. Fill out an application on the state’s business license wizard page. 
2. Pay the $19 fee.

West Virginia

In West Virginia, all sales of goods and services are subject to sales tax unless specifically exempted. Some examples of exemptions are advertising, contracting services, daycare services, prescriptions, personal services, and public services.

The state sales tax rate in West Virginia is 6%.

West Virginia sales tax rates vary depending on which county and city you’re in. Check West Virginia Tax Division site for the exact rates.

In West Virginia, the way to acquire a seller’s permit is to follow the department of taxation’s detailed instructions for registration: 

1. Sign up for an account on the West Virginia online business portal 
2. Fill out the business registration form
3. Pay the $30 fee.

Wisconsin

All personal property is subject to sales tax in Wisconsin. In addition, certain services are subject to sales tax including the repair and service of personal property, parking, laundry and dry cleaning, and lodging. Cable television, internet access, and admission to certain events are also taxable. 

The state sales tax rate in Wisconsin is 5%.

Wisconsin sales tax rates vary depending on which county and city you’re in. Check Wisconsin Department of Revenue site for the exact rates.

In Wisconsin, the way to acquire a seller’s permit is by following the department of revenue’s detailed instructions for registration: 

1. Register for an account on Wisconsin’s online business portal
2. Fill out the sales and use tax application
3. Pay the $20 fee

Wyoming

All personal property is subject to sales tax in Wyoming, as are utilities, lodging, and admissions to certain events and amusement parks. Any services to alter or repair personal property are also taxable. Prescription medicine, gasoline, and groceries are all tax-exempt. 

The state sales tax rate in Wyoming is 4%.

Wyoming sales tax rates vary depending on which county and city you’re in. Check Wyoming Department of Revenue site for the exact rates.

In Wyoming, acquire a seller’s permit by following the revenue department’s detailed instructions for registration: 

1. Create an account on Wyoming’s online business services website
2. Fill out the Sales/Use tax license application
3. Pay the $60 application fee

3. Obtain a sales tax permit 

Once you register for sales tax, you’ll receive your sales tax permit, sometimes called a seller’s permit. Some states send it electronically, while others send it by mail. Turnaround times vary by state, but can be up to a few weeks. You may be required to post your sales tax permit on your business premises.

4. Collect sales tax from your customers 

From now on, be sure to collect the appropriate amount of sales tax from your customers on every sale. A point-of-sale system will of course calculate the sales tax for you. 

5. Keep proper records (accounting books)

Track all collected sales tax in your books so that you know what to report and pay to the government. Accounting software tools, particularly systems that integrate with your POS, make this much easier. Most even print reports you can use to prepare your sales tax returns.

6. Send reports to your state 

Every state has their own forms and requirements to report sales tax collected. It may be monthly or quarterly. Check with your state and local government for all the info. 

7. Pay sales taxes that you have collected 

Finally, you’ll pay the sales tax you’ve collected. When you’re collecting it, it’s a good idea to keep the funds in a separate business bank account so that you have it ready when payments are due. Due dates for payments vary by state and locality, and sometimes by the amount collected, so check with your state and local governments for requirements.

How Online Sales are Taxed

Selling online makes the sales tax process a bit more complicated. Essentially, if you have “nexus” in a state where a sale is made, you must register for and collect and pay sales tax for that state. 

A nexus is defined differently in nearly every state, but basically it’s some sort of connection to that state, such as an employee or an office. So for the vast majority of states, if you have a physical presence or representative in that state, you must collect sales tax.

If your business is located in Ohio and you have no nexus in Texas but make a sale there, for instance, you don’t have to collect and pay sales tax in Texas. But you will need to collect and pay sales tax in Ohio. 

If you make sales through an online website like Etsy and you send your items to the local fulfillment center to be shipped, you may have a nexus in the state where the fulfillment center is located, and would thus be required to pay sales tax there. 

This quickly gets rather complicated, so leaning on accounting software tends to be a wise decision. 

What are Some Common Compliance Pitfalls for Small Businesses? 

A compliance sales tax pitfall to avoid is collecting sales tax before you have registered for sales tax in that state. This can be easy to do if you make online sales. But keep in mind that collecting sales tax without registration can result in significant fines and penalties. 

Another common pitfall is being unfamiliar with the relevant state laws. Certain goods and services are taxable in some states but not others. It’s important to be fully aware of the laws in all states where you have a nexus.

Finally, missing deadlines for sales tax payments is a major no-no that will lead to serious penalties.