States sales tax guide in us

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Sales tax makes everything you buy a little more expensive – and it’s not just state sales tax that takes money from you; often counties and cities take in taxes too, which can make calculating a sales tax rate even harder. Here, we’ve summarised basic tax information about some states, to help you decide which one may be a good state to have your business in – by including information such as tax rates, ease of filing, and nexus requirements, as well as which have the lowest or highest tax rates.

SALES TAX CALCULATOR

Wisconsin 

Sales tax rate: 5%

Maximum local and county rates: 0.6%

Taxable goods or services: 

  • Physical property, like furniture, motor vehicles and home appliances
  • Services: visit the Wisconsin Department of Revenue
  • Digital goods like an iTunes album or a film from Amazon

Registering for sales tax: you will need to get a seller’s permit and the fee is $20 – no expiration. You need to have basic information about your business at hand as this is required.

Getting a resale certificate is also an option, and it will help keep you away from having to pay sales taxes when purchasing goods for resale.

Sales:

  • Wisconsin follows a destination-based sales tax policy – meaning long-distance sales are taxed according to the buyer’s address.
  • Store sales are easy to tax: based on the location of the store
  • Only need to pay out-of-state sales tax if you have a nexus in that state.

You are required to file sales tax returns and submit sales tax payments online. How often you should file depends on how much sales tax your business collects. There is a $20 late filing fee.

Wyoming

Sales tax rate: 4%

Maximum local and county tax rates: 2%

Taxable goods and services:

  • Physical property: furniture and home appliances
  • Services: visit the Wyoming taxpayers page
  • Electronically delivered goods or services

Registering for sales tax: there’s a $60 fee to get a seller’s permit, and you need to provide your EIN, SSN, date of first sale and information about items you plan to sell.

Resale certificate is available 

Sales:

  • Store sales are based on the location of the store
  • Wyoming taxes on a destination-based sales policy for all long-distance in-state sales
  • Only need to pay out-of-state sales tax if you have a nexus there

Filing: how often you file depends on your sales tax revenue. There is a $10 late filing fee.

Louisiana

This state has one of the highest sales tax rates overall. The sales tax rate itself is 4.45% but maximum local county rates are 7%.

Taxable goods and services remain similar to the above states.

Registering for sales tax: there is no fee and no expiration date. You’ll need things like your SSN and business’ EIN with other general information.

Sales: Louisiana follows the same procedures as the above states.

Resale certificates are available 

Filing is required to be done online and how often depends on your collected sales tax. 

Tennessee

Sales tax rate: 7%

Maximum local and county tax rates: 2.75%

Taxable goods ans services are the same as for other states.

Seller’s permit: Tennessee requires a lot more than other states, including:

  • Name, address and phone number of the business
  • SSNs of owners and partners
  • Description of the business
  • The signature of someone in the corporation
  • Estimated yearly gross sales

There is no fee and no expiration date.

Sales:

  • Store sales are taxed at the rate based on the location of the store
  • Tennessee is origin-based, meaning long-distance sales are taxed according to the address of the seller
  • Businesses only need to pay out-of-state sales if there is a nexus

All businesses must file taxes on a monthly basis

Sales taxes are only one of several ways a government can tax you. Some states do take but give back again too, so while it may seem they take a lot of sales tax you could be saving in another area. Be sure to check other things out while looking at states to do business in.

TRUiC has a useful general tax guide. Visit their side for more.