The US state of Florida has become the last of the major states to oblige non-resident (‘out of state) sellers to charge and collect sales tax on their local transactions. This follows the 2018 South Dakota vs Wayfair Supreme Court ruling which introduced the economic nexus concept – meaning sellers without a state presence were still within the sales tax net.
The new Florida rules come into place from 1 July 2021. In addition to sellers, they also make marketplaces responsible for taxes on their third-party merchants transactions.
There is sale tax threshold on both sellers and marketplaces of $100,000 per annum.
There are now over 40 states with sales tax laws for foreign sellers.
US Sales Tax rates and selling thresholds
| State | State sales tax rate | Remote seller annual thresholds | Digital services taxable? | |||||
| $ threshold | Transactions threshold | |||||||
| Alabama | 4.0% | 1 Oct 2018 | $250,000 | Yes | ||||
| Alaska | 0% | - | n/a | No state-wide tax | ||||
| Arizona | 5.6% | 1 Oct 2019 | $100,000 | - | Yes | |||
| Arkansas | 6.5% | 1 July 2019 | $100,000 | 200 transactions | Yes | |||
| California | 6.0% | 1 April 2019 | $500,000 | - | No | |||
| Colorado | 2.9% | 1 Dec 2018 | $100,000 | - | Yes | |||
| Connecticut | 6.35% | 1 Dec 2018 | $100,000 | 200 transactions | Yes | |||
| Delaware | 0.0% | - | n/a | No state sales tax | ||||
| Florida | 6.0% | 1 July 2021 | $100,000 | - | No | Communications Tax. E-books exempt | ||
| Georgia | 4.0% | 1 Jan 2019 | $100,000 | 200 transactions | No | |||
| Hawaii | 4.0% | 1 July 2018 | $100,000 | 200 transactions | Yes | General Excise Tax | ||
| Idaho | 6.0% | 1 June 2019 | $100,000 | Yes | Software exempt | |||
| Illinois | 6.25% | 1 Oct 2018 | $100,000 | 200 transactions | No | |||
| Indiana | 7.0% | 1 Oct 2018 | $100,000 | - (since Jan 2024) | Yes | |||
| Iowa | 6.0% | 1 Jan 2019 | $100,000 | - | Yes | |||
| Kansas | 6.5% | 1 July 2021 | $100,000 | - | No | |||
| Kentucky | 6.0% | 1 Oct 2018 | $100,000 | 200 transactions | Yes | |||
| Louisiana | 4.45% | 1 July 2020 | $100,000 | - (since Aug 2023) | Yes | |||
| Maine | 5.5% | 1 July 2018 | $100,000 | - (since 2022) | Yes | |||
| Maryland | 6.0% | 1 Oct 2018 | $100,000 | 200 transactions | Yes | |||
| Massachusetts | 5.6% | 1 Oct 2018 | $100,000 | No | ||||
| Michigan | 6.0% | 30 Sep 2018 | $100,000 | 200 transactions | No | |||
| Minnesota | 6.875% | 1 Oct 2018 | $100,000 | 200 transactions | Yes | |||
| Mississippi | 7.0% | 1 Sep 2018 | $250,000 | - | Yes | |||
| Missouri | 4.225% | 1 Jan 2023 | $100,000 | - | No | |||
| Montana | 0.0% | - | n/a | No state sales tax | ||||
| Nebraska | 5.5% | 1 April 2019 | $100,000 | 200 transactions | Yes | |||
| Nevada | 4.6% | 1 Oct 2018 | $100,000 | 200 transactions | No | |||
| New Hampshire | 0.0% | - | n/a | |||||
| New Jersey | 6.625% | 1 Nov 2018 | $100,000 | 200 transactions | Yes | |||
| New Mexico | 5.0% | 1 July 2019 | $100,000 | - | Yes | |||
| New York | 4.0% | 21 July 2018 | $500,000 | 100 transactions | No | |||
| North Carolina | 4.75% | 1 Nov 2018 | $100,000 | - (since 2024) | Yes | |||
| North Dakota | 5.0% | 1 Oct 2018 | $100,000 | - | No | |||
| Ohio | 5.75% | 1 Aug 2019 | $100,000 | 200 transactions | Yes | |||
| Oklahoma | 4.5% | 1 Nov 2019 | $100,000 | - | No | |||
| Oregon | 0.0% | - | n/a | No state sales tax | ||||
| Pennsylvania | 6.0% | 1 July 2019 | $100,000 | Yes | ||||
| Puerto Rico | 10.5% | 1 Jan 2021 | $100,000 | 200 transactions | Yes | |||
| Rhode Island | 7.0% | 1 July 2019 | $100,000 | 200 transactions | Yes | |||
| South Carolina | 6.0% | 1 Nov 2018 | $100,000 | - | No | |||
| South Dakota | 4.5% | 1 Nov 2018 | $100,000 | - (since Jul 2023) | Yes | |||
| Tennessee | 7.0% | 1 July 2019 | $100,000 | - | Yes | |||
| Texas | 6.25% | 1 Oct 2019 | $500,000 | - | Yes | Only if physcial equivilaent is taxable (e.g. books) | ||
| Utah | 4.7% | 1 Jan 2019 | $100,000 | 200 transactions | Yes | |||
| Vermont | 6.0% | 1 July 2018 | $100,000 | 200 transactions | Yes | |||
| Virginia | 4.3% | 1 July 2019 | $100,000 | 200 transactions | Yes | |||
| Washington | 6.5% | 1 Oct 2018 | $100,000 | - | Yes | |||
| Washington, DC | 6.0% | 1 Jan 2019 | $100,000 | 200 transactions | Yes | |||
| West Virginia | 6.0% | 1 Jan 2019 | $100,000 | 200 transactions | Yes | Streaming services only | ||
| Wisconsin | 5.0% | 1 Oct 2018 | $100,000 | - (since 2021) | Yes | |||
| Wyoming | 4.0% | 1 Feb 2019 | $100,000 | - (since 2024) | Yes | |||
