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 Status |
|---|---|---|---|
| California | No | 7.25% | Yes |
| Delaware | No | 0% | No |
| Florida | No | 6% | Yes |
| Georgia | No | 4% | Yes |
| Illinois | No | 6.25% | Yes |
| Kansas | No | 6.5% | Yes |
| Massachusetts | No | 6.25% | Yes |
| Michigan | No | 6% | Yes |
| Missouri | No | 4.23% | Yes |
| Montana | No | 0% | No |
| Nevada | No | 6.85% | Yes |
| New Hampshire | No | 0% | No |
| New York | No | 4% | Yes |
| North Dakota | No | 5% | Yes |
| Oklahoma | No | 4.5% | Yes |
| Oregon | No | 0% | No |
| South Carolina | No | 6% | Yes |
| Virginia | No | 5.3% | Yes |
| West Virginia | No | 6% | Yes |
| Alabama | Yes | 4% | Yes |
| Alaska | Yes | 0% | No |
| Arizona | Yes | 5.6% | Yes |
| Arkansas | Yes | 6.5% | Yes |
| Colorado | Yes | 2.9% | Yes |
| Connecticut | Yes | 6.35% | Yes |
| Hawaii | Yes | 4% | Yes |
| Idaho | Yes | 6% | Yes |
| Indiana | Yes | 7% | Yes |
| Iowa | Yes | 6% | Yes |
| Kentucky | Yes | 6% | Yes |
| Louisiana | Yes | 4.45% | Yes |
| Maine | Yes | 5.5% | Yes |
| Maryland | Yes | 6% | Yes |
| Minnesota | Yes | 6.88% | Yes |
| Mississippi | Yes | 7% | Yes |
| Nebraska | Yes | 5.5% | Yes |
| New Jersey | Yes | 6.63% | Yes |
| New Mexico | Yes | 5.13% | Yes |
| North Carolina | Yes | 4.75% | Yes |
| Ohio | Yes | 5.75% | Yes |
| Pennsylvania | Yes | 6% | Yes |
| Rhode Island | Yes | 7% | Yes |
| South Dakota | Yes | 4.5% | Yes |
| Tennessee | Yes | 7% | Yes |
| Texas | Yes | 6.25% | Yes |
| Utah | Yes | 6.1% | Yes |
| Vermont | Yes | 6% | Yes |
| Washington | Yes | 6.5% | Yes |
| Wisconsin | Yes | 5% | Yes |
| Wyoming | Yes | 4% | Yes |