Sales Tax Basics for Small Businesses
Updated: October 2026. Rules and rates change; confirm with a professional or official source.
Sales tax is collected from customers and paid to the state; it is not your money. Rules vary a lot by state.
Rates
Rates can include state, county and city taxes. A few states have no statewide sales tax, but local taxes can still apply. Look up your combined rate on your state revenue department's website.
Do you have to collect?
Generally, you must register and collect where you have a physical presence ("nexus"). Since the Supreme Court's 2018 Wayfair decision, many states also require out-of-state sellers to collect once they pass a threshold.
What is taxable?
It depends on the state. Many tax goods but not all services.
Staying compliant
Register, collect the right rate, keep records and file on time. Marketplaces like Etsy or Amazon often collect for you on their sales.
Use the sales tax calculator.
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