Introduction
States have always been able to levy taxes on the sale of goods. However, with the rise of the internet, states have been divided on whether to levy sales taxes on internet sales as well. The federal government is unable to levy any form of sales tax, including for internet sales, and would require a constitutional amendment in order to do so (such as with the Sixteenth Amendment that allows Congress to lay and collect taxes on incomes).
States have noticed the increasing amount of commerce done through the internet and found internet sales to be a supple ground for taxation and raising revenue. However, with internet sales, states are required to answer additional questions they otherwise would not have to, such as what is sufficient to be within a state’s jurisdiction to tax.
In 2018, the U.S. Supreme Court decided in the South Dakota v. Wayfair, Inc. case that each state may individually decide if they want to implement taxes on sales made out of the state by online or remote sellers. After this decision, many states placed a tax on internet sales, seeing it as an opportunity to collect additional tax revenue that would fund various states’ projects.
Learn more about states with internet sales taxes by exploring the charts.
| State | Internet Sales Tax Status | Sales Tax Rate | Sales Tax |
|---|---|---|---|
| California | No | 7.25% | |
| Delaware | No | 0% | No |
| Florida | No | 6% | |
| Georgia | No | 4% | |
| Illinois | No | 6.25% | |
| Kansas | No | 6.5% | |
| Massachusetts | No | 6.25% | |
| Michigan | No | 6% | |
| Missouri | No | 4.23% | |
| Montana | No | 0% | No |
| Nevada | No | 6.85% | |
| New Hampshire | No | 0% | No |
| New York | No | 4% | |
| North Dakota | No | 5% | |
| Oklahoma | No | 4.5% | |
| Oregon | No | 0% | No |
| South Carolina | No | 6% | |
| Virginia | No | 5.3% | |
| West Virginia | No | 6% | |
| Alabama | Yes | 4% | |
| Alaska | Yes | 0% | No |
| Arizona | Yes | 5.6% | |
| Arkansas | Yes | 6.5% | |
| Colorado | Yes | 2.9% | |
| Connecticut | Yes | 6.35% | |
| Hawaii | Yes | 4% | |
| Idaho | Yes | 6% | |
| Indiana | Yes | 7% | |
| Iowa | Yes | 6% | |
| Kentucky | Yes | 6% | |
| Louisiana | Yes | 4.45% | |
| Maine | Yes | 5.5% | |
| Maryland | Yes | 6% | |
| Minnesota | Yes | 6.88% | |
| Mississippi | Yes | 7% | |
| Nebraska | Yes | 5.5% | |
| New Jersey | Yes | 6.63% | |
| New Mexico | Yes | 5.13% | |
| North Carolina | Yes | 4.75% | |
| Ohio | Yes | 5.75% | |
| Pennsylvania | Yes | 6% | |
| Rhode Island | Yes | 7% | |
| South Dakota | Yes | 4.5% | |
| Tennessee | Yes | 7% | |
| Texas | Yes | 6.25% | |
| Utah | Yes | 6.1% | |
| Vermont | Yes | 6% | |
| Washington | Yes | 6.5% | |
| Wisconsin | Yes | 5% | |
| Wyoming | Yes | 4% |
Internet Sales Tax Status by State
Alabama
Internet Sales Tax Status
Yes
Ranked in the US
#7
Alaska
Arizona
Internet Sales Tax Status
Yes
5.6%
Ranked in the US
#23
Arkansas
Internet Sales Tax Status
Yes
6.5%
Ranked in the US
#41
California
Internet Sales Tax Status
No
7.25%
Ranked in the US
#51
Colorado
Internet Sales Tax Status
Yes
2.9%
Ranked in the US
#6
Connecticut
Internet Sales Tax Status
Yes
6.35%
Ranked in the US
#40
Delaware
Florida
Internet Sales Tax Status
No
Ranked in the US
#26
Georgia
Internet Sales Tax Status
No
Ranked in the US
#8
Hawaii
Internet Sales Tax Status
Yes
Ranked in the US
#9
Idaho
Internet Sales Tax Status
Yes
Ranked in the US
#27
Illinois
Internet Sales Tax Status
No
6.25%
Ranked in the US
#37
Indiana
Internet Sales Tax Status
Yes
Ranked in the US
#47
Iowa
Internet Sales Tax Status
Yes
Ranked in the US
#28
Kansas
Internet Sales Tax Status
No
6.5%
Ranked in the US
#42
Kentucky
Internet Sales Tax Status
Yes
Ranked in the US
#29
Louisiana
Internet Sales Tax Status
Yes
4.45%
Ranked in the US
#13
Maine
Internet Sales Tax Status
Yes
5.5%
Ranked in the US
#21
Maryland
Internet Sales Tax Status
Yes
Ranked in the US
#30
Massachusetts
Internet Sales Tax Status
No
6.25%
Ranked in the US
#38
Michigan
Internet Sales Tax Status
No
Ranked in the US
#31
Minnesota
Internet Sales Tax Status
Yes
6.88%
Ranked in the US
#46
Mississippi
Internet Sales Tax Status
Yes
Ranked in the US
#48
Missouri
Internet Sales Tax Status
No
4.23%
Ranked in the US
#12
Montana
Nebraska
Internet Sales Tax Status
Yes
5.5%
Ranked in the US
#22
Nevada
Internet Sales Tax Status
No
6.85%
Ranked in the US
#45
New Hampshire
New Jersey
Internet Sales Tax Status
Yes
6.63%
Ranked in the US
#44
New Mexico
Internet Sales Tax Status
Yes
5.13%
Ranked in the US
#19
New York
Internet Sales Tax Status
No
Ranked in the US
#10
North Carolina
Internet Sales Tax Status
Yes
4.75%
Ranked in the US
#16
North Dakota
Internet Sales Tax Status
No
Ranked in the US
#17
Ohio
Internet Sales Tax Status
Yes
5.75%
Ranked in the US
#24
Oklahoma
Internet Sales Tax Status
No
4.5%
Ranked in the US
#14
Oregon
Pennsylvania
Internet Sales Tax Status
Yes
Ranked in the US
#32
Rhode Island
Internet Sales Tax Status
Yes
Ranked in the US
#49
South Carolina
Internet Sales Tax Status
No
Ranked in the US
#33
South Dakota
Internet Sales Tax Status
Yes
4.5%
Ranked in the US
#15
Tennessee
Internet Sales Tax Status
Yes
Ranked in the US
#50
Texas
Internet Sales Tax Status
Yes
6.25%
Ranked in the US
#39
Utah
Internet Sales Tax Status
Yes
6.1%
Ranked in the US
#36
Vermont
Internet Sales Tax Status
Yes
Ranked in the US
#34
Virginia
Internet Sales Tax Status
No
5.3%
Ranked in the US
#20
Washington
Internet Sales Tax Status
Yes
6.5%
Ranked in the US
#43
West Virginia
Internet Sales Tax Status
No
Ranked in the US
#35
Wisconsin
Internet Sales Tax Status
Yes
Ranked in the US
#18
Wyoming
Internet Sales Tax Status
Yes
Ranked in the US
#11
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