Receivables · compared across 51 jurisdictions
Which states tax SaaS
26 of 51: Arizona, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, New Mexico, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington and West Virginia. Every other state: SaaS not taxed, or unsettled. Each row below links to the state’s receivables guide, where the figure is sourced to the agency.
- Taxes SaaS
- 26
- Not
- 25
- Checked
- October 13, 2026
SaaS taxable, at least in part · 26
| State | Taxes SaaS | Sales tax | Economic nexus | What the guide says |
|---|---|---|---|---|
| AZArizona | Yes | TPT 5.6% + city and county | $100,000 in retail sales | Taxable Snell & Wilmer — SaaS remains subject to TPT in Arizona (ADP v. ADOR) |
| COColorado | In part | 2.9% + local; home-rule cities separate | $100,000 in sales | — |
| CTConnecticut | In part | 6.35%; SaaS to businesses 1% | $100,000 and 200 sales | — |
| DCDistrict of Columbia | Yes | 6% (7% postponed) | $100,000 or 200 sales | — |
| HIHawaii | Yes | GET 4% (4.5% with county surcharge) | $100,000 or 200 transactions | — |
| ILIllinois | In part | 6.25% + local | $100,000 in sales | — |
| IAIowa | In part | 6% + local option | $100,000 in gross revenue | Partly taxable Iowa Department of Revenue — Taxation of Specified Digital Products, Software, and Related Services |
| KYKentucky | Yes | 6% (no local) | $100,000 in gross receipts | Taxable KRS 139.200 — imposition of sales tax (taxable services) |
| LALouisiana | Yes | 5% + parish | $100,000 in sales | — |
| MDMaryland | In part | 6% (3% on SaaS and IT services) | $100,000 or 200 transactions | — |
| MAMassachusetts | Yes | 6.25% | $100,000 in sales | — |
| MNMinnesota | In part | 6.875% + local | $100,000 or 200 sales | — |
| MSMississippi | In part | 7% + some local | $250,000 in sales (12 months) | — |
| NMNew Mexico | Yes | GRT 4.875% + local | $100,000 in taxable receipts | Taxable New Mexico TRD — Gross Receipts Tax Overview |
| NYNew York | Yes | 4% state; 8⅞% in NYC | Over $500,000 and over 100 sales | — |
| OHOhio | Yes | 5.75% + county | $100,000 or 200 transactions | — |
| PAPennsylvania | Yes | 6% (+1% Allegheny, +2% Philadelphia) | $100,000 in sales | — |
| RIRhode Island | Yes | 7% | $100,000 or 200 transactions | — |
| SCSouth Carolina | Yes | 6% + local | $100,000 in gross revenue | Taxable SCDOR — Private Letter Ruling #20-4, online software subscription service |
| SDSouth Dakota | Yes | 4.2% + municipal (4.5% from Jul 2027) | $100,000 in gross revenue | — |
| TNTennessee | Yes | 7% + local | $100,000 in sales (12 months) | Taxable Tennessee DOR — Application for Remotely Accessed Software Direct Pay Permit |
| TXTexas | Yes | 6.25% + up to 2% local | $500,000 in Texas revenue | Taxable on 80% of the charge Texas Comptroller — Taxable Services (Pub. 96-259) |
| UTUtah | Yes | 4.85% + local | $100,000 in sales | Taxable Utah State Tax Commission — Publication 64 (software) |
| VTVermont | Yes | 6% (+1% local option) | $100,000 or 200 transactions | — |
| WAWashington | Yes | 6.5% + local | $100,000 in gross receipts | Taxable WA DOR — Digital products including digital goods |
| WVWest Virginia | In part | 6% (+ up to 1% municipal) | $100,000 or 200 transactions | — |
9 of 26 answers carry their agency source inline; the rest are sourced on the state’s guide.
SaaS not taxed, or unsettled · 25
Compare the states another way.
- Federal baselineFederal receivablesFederally, receivables are governed by accounting standards and information reporting, not tax collection: ASC 606 for revenue, ASC 326 for expected credit losses, Form 1099-K from your processor, and the bad-debt deduction. There is no federal sales tax; that lives with the states.
- PayrollStates with no state income tax on wages9 of 51 — no state income tax on wages.
- PayrollStates with a paid leave or disability payroll program16 of 51 — state paid leave or disability program.
- PayrollStates with city, county or district payroll taxes14 of 51 — city, county or district taxes on wages.
- AccountingStates with no corporate income tax6 of 51 — gross receipts tax or none.
- ComplianceStates with a franchise or capital-stock tax17 of 51 — franchise or capital-stock tax.
Or see every headline figure for every state in one table on the state guides index.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.