# Is SaaS taxable? State by state

> Whether software sold as a service is taxable depends on the state; nexus alone doesn't answer it.

Source: https://lopifi.com/learn/how-to-register-collect-and-file-sales-tax/is-saas-taxable
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**Is SaaS subject to sales tax?** Whether software sold as a service is taxable depends on the state; nexus alone doesn't answer it.

Goods are taxable almost everywhere a sales tax exists. Software sold as a service isn't settled the same way: some states tax SaaS, some don't, some tax part of it or only business use, and a few have no clear rule. A SaaS company crossing a state's threshold has to check whether what it sells is taxable there before it has anything to collect. When a seller didn't charge tax that was due, the buyer owes [use tax](https://lopifi.com/md/glossary/use-tax) instead.

| State | SaaS to a business | Statewide sales tax |
| --- | --- | --- |
| California | Not taxable | Yes |
| New York | Taxable | Yes |
| Texas | Taxable | Yes |
| Washington | Taxable | Yes |
| Florida | Not taxable | Yes |
| Massachusetts | Taxable | Yes |
| Delaware | Not taxable | No |
| South Dakota | Taxable | Yes |

SaaS sold to a business, by state, from the state guides (last verified 2026-10-13).

**Use case — Nexus in two states, tax in one.** A SaaS company crosses New York's threshold (over $500,000 and over 100 sales) and Florida's ($100,000 in taxable remote sales). The state guides mark SaaS sold to a business as taxable in New York and not taxable in Florida: it registers and collects in one, and has nothing to collect in the other.

## Read further

- https://lopifi.com/md/accounting/sales-tax-nexus

- **Track:** [Compliance & tax](https://lopifi.com/md/learn/compliance)
- **Part of:** [Registering, collecting and filing sales tax](https://lopifi.com/md/learn/how-to-register-collect-and-file-sales-tax) — 4 min
- **Terms taught:** [Use tax](https://lopifi.com/md/glossary/use-tax)
- **Previous:** [Registering, collecting and filing sales tax](https://lopifi.com/md/learn/how-to-register-collect-and-file-sales-tax)
- **Next:** [Information returns: 1099-NEC and 1099-MISC, Compliance · Lesson 8](https://lopifi.com/md/learn/1099-nec-and-1099-misc-deadlines)
- **The course:** https://lopifi.com/md/learn