Whether SaaS is subject to sales tax depends on the customer's state. Some states tax remotely accessed software outright, some exempt it, and several tax it only for certain customers, certain uses, or where the seller also delivers something tangible. The table below gives the position for every state and the District of Columbia, the classification or condition the state uses, the economic nexus threshold that would require a remote seller to register, and a link to the state authority for each row.
How to read the table
- Treatment is the state's position on a pure remote-access subscription with no download, no tangible media and no bundled services. Bundles, downloads, APIs and local clients can change the answer.
- Economic nexus threshold is the remote-seller test. Physical presence (an employee, office or inventory) creates nexus regardless of the threshold. "Sales" means the measure the state uses, which is not always taxable sales; the notes say where SaaS revenue does or does not count.
- Rows marked Needs SaaS-specific verification are states where the tax authority's material we reviewed covers software generally (for example, electronically delivered prewritten software) but does not expressly address remote-access SaaS, or where we could not retrieve the authority's material at all. The explanation records what the official source does say. Do not treat those rows as a taxable or not-taxable answer.
- Rates are not listed. Use each state's official rate lookup; combined local rates change often and depend on the customer's exact address.
- Last reviewed against the sources linked in each row: September 22, 2026.
For how nexus, sourcing and the compliance workflow fit together, see the SaaS sales tax guide. For detailed state guides, see New York, Texas and California.
SaaS sales tax by state
| State | Treatment of SaaS | Classification and conditions | Economic nexus threshold (remote sellers) | State authority |
|---|---|---|---|---|
| Alabama | Needs SaaS-specific verification | Software is tangible personal property and its sale or licence is taxable "regardless of its function or form of transmission" (Rule 810-6-1-.37); remote access is not expressly addressed. Separately stated programming services are not taxable. | More than $250,000 in total retail sales into Alabama in the previous calendar year; remote sellers may use the Simplified Sellers Use Tax program (flat 8%). No transaction test. | ADOR Rule 810-6-1-.37; ADOR remote sellers FAQ |
| Alaska | No state sales tax; local tax possible | No statewide sales tax. Member municipalities of the Alaska Remote Seller Sales Tax Commission tax remote sales under their own codes; whether SaaS is taxable depends on the municipality. | $100,000 or more in statewide gross sales in the current or previous calendar year (ARSSTC uniform code). The 200-transaction test was repealed effective January 1, 2025. | ARSSTC; Threshold change notice |
| Arizona | Conditional (transaction privilege tax) | Remote-access software is taxable under the personal property rental classification where the customer has sufficient use and control of the software (LR17-001); a nontaxable service where the provider controls the system and the licence is inconsequential (LR20-001). Fact-dependent. Cities impose their own TPT. | More than $100,000 in gross sales into Arizona in the current or previous calendar year. No transaction test. Note: a draft ADOR ruling states the threshold applies to the retail classification only. | ADOR LR17-001; ADOR LR20-001; ADOR economic threshold |
| Arkansas | Needs SaaS-specific verification | Prewritten software delivered electronically is taxable. We did not locate a DFA opinion on remote-access SaaS. | More than $100,000 in sales or 200 or more transactions of tangible personal property, taxable services, digital codes or specified digital products in the current or previous calendar year. Transaction test still applies. | DFA remote sellers |
| California | Not taxable | Prewritten software transferred by remote telecommunications with no tangible personal property is not a taxable sale (Reg. 1502(f)(1)(D)); remote access to a computer is not a taxable lease. | More than $500,000 in total combined sales of tangible personal property delivered into California in the current or preceding calendar year. Charges for services, including SaaS, do not count toward the threshold. No transaction test. | CDTFA Reg. 1502; CDTFA Wayfair FAQ |
| Colorado | State: not taxable. Home-rule cities: may be taxable | Software delivered through an application service provider is excluded from the state tax base (C.R.S. 39-26-102(15)(c)(I)(C)). Self-collecting home-rule cities apply their own definitions and several tax software delivered in any manner; check the customer's city code. | More than $100,000 in retail sales (taxable and exempt) into Colorado in the current or previous calendar year; licence required by the first day of the month at least 90 days after exceeding. No transaction test. | CO DOR: Computer Software; CO DOR out-of-state businesses |
| Connecticut | Taxable, at two rates | Electronically accessed canned software bought by a business for business use is taxed at the 1% computer and data processing services rate; personal use is taxed at 6.35%; software sold with any tangible personal property is 6.35%. No local tax. | 200 or more retail sales into Connecticut and at least $100,000 in gross receipts during the 12-month period ending the preceding September 30. Both tests must be met. | CT DRS SN 2019(8); CT DRS registration |
| Delaware | No sales tax | No state or local sales tax. Delaware imposes a gross receipts tax on the seller of goods or services. | Not applicable. | DE Division of Revenue |
| District of Columbia | Taxable | Software, including software delivered electronically or accessed remotely, is taxable as a data processing service (9 DCMR 474.4); digital goods taxable from January 1, 2019. 6% rate. | More than $100,000 in gross receipts from retail sales delivered into DC or more than 200 separate retail sales in the previous or current calendar year. Transaction test still applies. | OTR digital goods notice; OTR sales tax FAQ |
| Florida | Not taxable | Software delivered or accessed electronically is not taxable unless it is sold as part of a sale of tangible personal property (Rule 12A-1.032; TAA 10A-028). | More than $100,000 in taxable remote sales of tangible personal property delivered into Florida in the previous calendar year (from July 1, 2021). SaaS revenue is not a "remote sale" for this test. No transaction test. | FL DOR TAA 10A-028; FL DOR TIP 21A01-03 |
| Georgia | Not taxable | Electronically delivered prewritten software is exempt (O.C.G.A. 48-8-3(91)) and cloud subscription services are not an enumerated taxable service (LR SUT-2014-01). Keep documentation of electronic delivery. | More than $100,000 in gross revenue from retail sales of tangible personal property delivered into Georgia or 200 or more separate retail sales in the previous or current calendar year. Transaction test still applies. | GA DOR LR SUT-2014-01; GA DOR PB SUT-2019-02 |
| Hawaii | Taxable (general excise tax) | Hawaii has no sales tax; the general excise tax applies to gross income from virtually all business activity, including SaaS revenue, at 4% plus county surcharge (up to 0.5%). | $100,000 or more in gross income or 200 or more transactions sourced to Hawaii in the current or preceding calendar year (Act 41, July 1, 2018). | Hawaii DOTAX GET; GET FAQ |
| Idaho | Generally not taxable | Remotely accessed computer software is excluded from tangible personal property (Idaho Code 63-3616(b)); software delivered electronically is not taxable. Confirm your product fits the statutory exclusion. | More than $100,000 in total sales into Idaho in the current or previous calendar year (June 1, 2019). No transaction test. | Idaho STC retailers guide; Idaho STC online sellers |
| Illinois | State: not taxable. Chicago: separate city tax | Software accessed remotely and never downloaded is not a taxable transfer (86 Ill. Adm. Code 130.1935; GIL ST 25-0045). Providing an API, applet, desktop agent or remote-access agent is a transfer of software and taxable unless the five-part licence test is met. Separately, the City of Chicago's Personal Property Lease Transaction Tax applies to "nonpossessory computer leases", which the city's Ruling #12 reads to include SaaS accessed from Chicago (current rates on the city's site). | $100,000 in cumulative gross receipts from sales of tangible personal property to Illinois purchasers over the preceding 12 months, reviewed quarterly. The 200-transaction test was repealed effective January 1, 2026 (P.A. 104-0006). | IDOR GIL ST 25-0045; IDOR FY 2026-12; Chicago Lease Tax Ruling #12 |
| Indiana | Not taxable | Remotely accessed software is not taxable where the customer has no ownership, possession or control of the software (Sales Tax Information Bulletin #8). Prewritten software delivered electronically is taxable. 7%, no local tax. | More than $100,000 in gross revenue from sales of tangible personal property, electronically transferred products or services into Indiana in the current or preceding calendar year. The 200-transaction test was removed effective January 1, 2024. | IN DOR SIB #8; IN DOR SIB #89 |
| Iowa | Conditional | SaaS is an enumerated taxable service, but it is exempt when sold to a "commercial enterprise" for its exclusive use (Iowa Code 423.3(104), from January 1, 2019); the purchaser must provide an exemption certificate. Non-profits generally do not qualify. | $100,000 or more in gross revenue from Iowa sales (including exempt sales) in the current or prior calendar year. No transaction test. | Iowa DOR: digital products and software; Iowa DOR remote sellers |
| Kansas | Not taxable | Software or databases accessed via the internet and not installed on the customer's owned or leased computers are exempt; prewritten software delivered to the customer is taxable. | More than $100,000 in cumulative gross receipts from sales to Kansas customers in the current or preceding calendar year (July 1, 2021). No transaction test. | KDOR fact sheet; KDOR Notice 21-17 |
| Kentucky | Taxable | "Prewritten computer software access services" have been an enumerated taxable service since January 1, 2023 (KRS 139.200). 6%, no local tax. Custom software is exempt only if separately stated and exclusive to one customer. | $100,000 in gross receipts in the previous or current calendar year. The 200-transaction test was removed effective August 1, 2026. | KY DOR Sales Tax Facts (Winter 2025–26); KY DOR Sales Tax Facts (Summer 2026) |
| Louisiana | Taxable (state and local) since January 1, 2025 | Act 10 of the 2024 Third Extraordinary Session made digital products, "prewritten computer software access services" (SaaS) and information services subject to state and local sales tax from January 1, 2025. Parish rates apply in addition to the state rate. | More than $100,000 in gross revenue from sales delivered into Louisiana in the previous or current calendar year (La. R.S. 47:301(4)). The 200-transaction test was repealed by Act 15 of 2023, effective August 1, 2023. Remote sellers register with the Sales and Use Tax Commission for Remote Sellers. | LDR: prewritten software access services; LDR: what is a remote seller; Act 15 of 2023 |
| Maine | Not taxable | Prewritten software accessed remotely with no download is not taxable (Rule 326 §9.3.B, effective January 1, 2025); downloadable prewritten software is taxable. 5.5%, no local tax. | More than $100,000 in gross sales of tangible personal property or taxable services into Maine in the previous or current calendar year. The 200-transaction test was repealed effective January 1, 2022. | MRS Rule 326; MRS bulletin on threshold change |
| Maryland | Taxable, at two rates (from July 1, 2025) | SaaS for use in an enterprise computer system (commercial use) is taxed at 3% as a data or IT service; SaaS for individual use is a digital product taxed at 6%. The customised-software exemption was repealed July 1, 2025 (TB-56). Multiple-points-of-use certificate available. | More than $100,000 in gross revenue from tangible personal property or taxable services delivered into Maryland, or 200 or more separate transactions, in the previous or current calendar year. Transaction test still applies. | MD Comptroller TB-56; MD Comptroller: out-of-state vendors |
| Massachusetts | Taxable | Charges to access or use prewritten software on a remote server are taxable (830 CMR 64H.1.3), except where there is no charge for the software and the object of the transaction is other goods or services. 6.25%, no local tax. Multiple-points-of-use apportionment available. | More than $100,000 in Massachusetts sales in the prior or current calendar year (830 CMR 64H.1.9; October 1, 2019). No transaction test. | 830 CMR 64H.1.3; MA DOR remote seller FAQ |
| Michigan | Not taxable (pure remote access) | Remote access with no code delivered to the customer is not a sale of prewritten software (RAB 2023-10; Auto-Owners). If a desktop agent or local client is delivered, the "incidental to service" test applies. 6%, no local tax. | More than $100,000 in gross sales or 200 or more separate transactions into Michigan in the previous calendar year (RAB 2021-21). Transaction test still applies. | MI Treasury RAB 2023-10; MI Treasury RAB 2021-21 |
| Minnesota | Not taxable | "Subscriptions to use online-hosted software are not taxable." Prewritten software delivered by any means is taxable. | More than $100,000 in retail sales or 200 or more retail sales shipped into Minnesota over the prior 12 months. Transaction test still applies. | MN DOR: computer software and digital products; MN DOR remote seller FAQ |
| Mississippi | Conditional | Computer software and software services are taxable at 7%, but SB 2449 (effective July 1, 2023) exempts software provided as a service that is accessed remotely and hosted on servers outside Mississippi. PaaS and IaaS are excluded from "computer software". | More than $250,000 in sales into Mississippi over any 12-month period (July 1, 2018). No transaction test. | MS DOR 2023 legislation; MS DOR Notice 72-23-12 |
| Missouri | Not taxable | "The sale of software as a service is not subject to tax" (12 CSR 10-109.050(2)(I); LR 8250). Canned software delivered electronically is also not taxable. | More than $100,000 in gross receipts from taxable sales of tangible personal property delivered into Missouri in the previous or current calendar year (from January 1, 2023). SaaS revenue does not count. No transaction test. | MO DOR LR 8250; MO DOR remote seller FAQ |
| Montana | No sales tax | No general state sales tax. | Not applicable. | Montana DOR |
| Nebraska | Needs SaaS-specific verification | REG-1-088 provides that gross receipts from furnishing software are taxable "regardless of the manner in which it is conveyed". We did not locate Nebraska DOR guidance addressing remote-access SaaS specifically; third-party summaries describe SaaS as not taxable, which we could not confirm. | More than $100,000 in Nebraska retail sales or 200 or more separate transactions in the prior or current calendar year (April 1, 2019). Transaction test still applies. | NE DOR Reg-1-088; NE DOR remote seller FAQ |
| Nevada | Needs SaaS-specific verification | Products delivered electronically, including software, are not subject to sales tax per the Department's FAQ. SaaS is not expressly addressed. | More than $100,000 in retail sales or 200 or more separate retail transactions for delivery into Nevada in the previous or current calendar year (October 1, 2018). Transaction test still applies. | NV DOTAX sales tax FAQ; NV DOTAX remote sellers |
| New Hampshire | No sales tax | No general sales tax. | Not applicable. | NH DRA FAQ |
| New Jersey | Not taxable, with an exception | SaaS is not "delivered electronically" and so is not taxable prewritten software (TB-72), unless the product is an "information service", which is taxable. 6.625%, no general local tax. | More than $100,000 in gross revenue from tangible personal property, specified digital products or taxable services delivered into New Jersey, or 200 or more separate transactions, in the current or prior calendar year. Transaction test still applies. | NJ Division of Taxation TB-72; NJ remote sellers |
| New Mexico | Taxable (gross receipts tax) | New Mexico imposes a gross receipts tax rather than a sales tax; receipts from licensing software for use in New Mexico and from most services are taxable. State rate plus local increments. | At least $100,000 in taxable gross receipts sourced to New Mexico in the previous calendar year (July 1, 2019). No transaction test. | NM TRD: determining nexus; NM TRD decision: PST Services |
| New York | Taxable | Prewritten software is tangible personal property and taxable however it is accessed, including remotely (TB-ST-128). Sourced to the location from which the purchaser uses it; apportionment for users outside New York. Exempt services must be reasonable and separately stated. 4% state plus local, 7% to 8.875% combined. | More than $500,000 in gross receipts from sales of tangible personal property delivered into New York and more than 100 such sales, in the immediately preceding four sales tax quarters. Both tests must be met. | NY TB-ST-128; NY DTF nexus guidance |
| North Carolina | Not taxable | Remote access to software (SaaS) is not taxable (SUPLR 2021-0005); prewritten software delivered electronically is taxable as certain digital property. | More than $100,000 in gross sales sourced to North Carolina in the previous or current calendar year. The 200-transaction test was repealed effective July 1, 2024 (Directive 24-1). | NCDOR SUPLR 2021-0005; NCDOR Directive 24-1 |
| North Dakota | Needs SaaS-specific verification | Prewritten software is taxable including when delivered electronically, and the digital products exemption expressly excludes prewritten software. Remote-access SaaS is not addressed in the guideline we reviewed. | More than $100,000 in taxable sales into North Dakota in the current or previous calendar year. No transaction test. | ND Tax: Computers guideline; ND Tax: sales and use tax |
| Ohio | Conditional (business use) | Automatic data processing, computer services and electronic information services are taxable when provided for use in business (R.C. 5739.01(B)(3)(e)); not taxable for personal use. True-object test applies where such services are incidental to professional services. | More than $100,000 in Ohio sales or 200 or more separate transactions in the current or previous calendar year. Transaction test still applies. | Ohio DOT taxability; Ohio DOT sales and use tax |
| Oklahoma | Not taxable | Prewritten software delivered electronically is exempt (68 O.S. § 1357(32)); subscription charges for remote access to a hosted software platform with no tangible medium are exempt (LR-26-012). | $100,000 or more in aggregate sales of taxable products delivered into Oklahoma in the preceding or current calendar year (November 1, 2019). No transaction test. | OTC LR-26-012; OTC business help center |
| Oregon | No sales tax | No general sales or use tax (the Corporate Activity Tax is not a transaction tax). | Not applicable. | Oregon DOR |
| Pennsylvania | Taxable | Canned software, including software accessed remotely, is taxable when the user is in Pennsylvania (SUT-12-001). A Pennsylvania billing address is presumed to mean all users are in the state unless rebutted (REV-1220). 6% plus 1% Allegheny County or 2% Philadelphia. | More than $100,000 in Pennsylvania gross sales in the previous 12 months (Act 13 of 2019; July 1, 2019). No transaction test. | PA DOR: canned software and digital goods; PA DOR: online retailers |
| Rhode Island | Taxable | Vendor-hosted prewritten computer software (SaaS) has been taxable at 7% since October 1, 2018 (ADV 2018-38). No local tax. | $100,000 or more in gross revenue or 200 or more separate transactions into Rhode Island in the previous calendar year. Transaction test still applies. | RI DOT ADV 2018-38; RI DOT remote sellers |
| South Carolina | Taxable (as communications services) | Electronically delivered software is not tangible personal property and is not taxable as such, but charges to access software hosted by an application service provider are taxable as "communications services" (Code 12-36-910(B)(3); RR 12-1). Data processing charges are excluded. 6% plus local. | More than $100,000 in gross revenue from tangible personal property, electronically transferred products and services delivered into South Carolina in the previous or current calendar year (RR 18-14; November 1, 2018). No transaction test. | SC DOR: electronically delivered software; SC DOR RR 18-14 |
| South Dakota | Needs SaaS-specific verification | Products transferred electronically, including software, are subject to sales tax (state plus municipal). The Department's material lists software; remote-access SaaS is not expressly named, so confirm classification for your product. | More than $100,000 in gross sales into South Dakota in the previous or current calendar year. The 200-transaction test was repealed effective July 1, 2023 (SB 30). | SD DOR: products transferred electronically; SD DOR 2023 legislative update |
| Tennessee | Taxable | Access to software that remains in the dealer's possession is deemed a sale of software when the customer accesses it from a Tennessee location (Tenn. Code § 67-6-231(a)(2), 2015). Allocation by user location for multistate users; a Remotely Accessed Software Direct Pay Permit is available. Information services and data storage remain non-taxable. | More than $100,000 in sales to Tennessee customers in the previous 12 months (since October 1, 2020; previously $500,000). Register by the first day of the third month after meeting the threshold. No transaction test. | TN DOR Letter Ruling 16-01; TN DOR SUT-5 |
| Texas | Taxable (data processing; 20% exempt) | SaaS is a taxable data processing service; 20% of the charge is exempt (Tex. Tax Code § 151.351) so 80% is taxed at 6.25% plus local (cap 8.25%). Multistate use may be allocated with an exemption certificate. Rule 3.330 was amended effective April 2, 2025 (ancillary-service analysis for bundles). | More than $500,000 in total Texas revenue (taxable, non-taxable, resale and exempt sales) in the preceding 12 calendar months; permit due by the first day of the fourth month after the month the threshold is exceeded. No transaction test. | Comptroller Pub. 94-127; Comptroller: remote sellers |
| Utah | Taxable | Prewritten software is taxable however delivered, including remotely accessed software used in Utah (Publication 64); multiple-points-of-use allocation with a reasonable, consistent method. | More than $100,000 in gross revenue from tangible personal property, electronically transferred products or services in Utah in the previous or current calendar year. The 200-transaction test ended July 1, 2025. | USTC Publication 64; USTC out-of-state sellers |
| Vermont | Taxable (from July 1, 2024) | Prewritten software accessed remotely has been taxable since July 1, 2024 (Act 183 of 2024); it was exempt from July 1, 2015 to June 30, 2024. 6% plus 1% local option in some municipalities. | At least $100,000 in sales or 200 or more individual sales transactions into Vermont during any preceding 12-month period. Transaction test still applies. | VT DOT: prewritten computer software; VT DOT Wayfair FAQ |
| Virginia | Not taxable | Electronically delivered software and SaaS are exempt under Va. Code § 58.1-609.5(1) (P.D. 20-65; P.D. 25-98). Retain documentation of electronic delivery. | More than $100,000 in gross revenue from retail sales or 200 or more separate retail sales transactions in the previous or current calendar year (July 1, 2019). Transaction test still applies. | VA Tax P.D. 20-65; VA Tax: remote sellers |
| Washington | Taxable | Remote access software and digital automated services are retail sales subject to retail sales tax and Retailing B&O tax (RCW 82.04.050(8)). From October 1, 2025, certain IT services (custom software, customisation, support for digital products) are also subject to retail sales tax (ESSB 5814). Multiple-points-of-use exemption available. | More than $100,000 in combined gross receipts sourced to Washington in the current or prior calendar year (all income types, including exempt). No transaction test since January 1, 2020. | WA DOR: digital products; WA DOR: remote sellers |
| West Virginia | Needs SaaS-specific verification | West Virginia presumes all sales of goods and services taxable unless an exemption clearly applies. We did not locate a Tax Division publication addressing SaaS specifically. 6% plus municipal up to 1%. | More than $100,000 in gross sales or 200 or more separate transactions into West Virginia (January 1, 2019). Transaction test still applies. | WV Tax Division: sales and use tax; WV Tax Division: remote sellers |
| Wisconsin | Not taxable | SaaS is a non-taxable data processing service where the customer does not operate or control the server and any downloaded software is incidental (Tax 11.71). | More than $100,000 in gross sales into Wisconsin in the previous or current calendar year. The 200-transaction test was eliminated February 20, 2021. | WI DOR computer FAQ; WI DOR remote sellers FAQ |
| Wyoming | Needs SaaS-specific verification | We were unable to retrieve Wyoming Department of Revenue material addressing SaaS or confirming the current remote-seller threshold during our review. | Not verified against a Department source during this review. | WY DOR rules index |
How to use this table
Taxability and nexus are separate tests. A "Taxable" state cannot make you collect until you have nexus there. In a "Not taxable" state, whether you must register once you cross its threshold, and whether a registered seller with only exempt sales has to file returns, depends on that state's rules: some thresholds count only tangible personal property or only taxable sales (so SaaS revenue may not count toward them at all), and registration and filing requirements for sellers with no taxable sales vary by state. Check the threshold cell and the state's registration guidance rather than assuming either way.
Conditional states need a product-level answer. Ohio and Iowa turn on who the customer is; Connecticut and Maryland turn on the rate, not on whether tax applies; Mississippi turns on where your servers are; Illinois and Michigan turn on whether you deliver any code to the customer's machine. Read the linked authority before deciding.
Home-rule states need a city-level answer. Colorado's state exemption does not bind its self-collecting cities; Chicago taxes cloud software under a city ordinance separate from Illinois state law; Alaska has no state tax but its municipalities do. Address-level customer data is what makes these determinable.
Thresholds measure different things. California, Florida and Missouri count only tangible personal property (so SaaS revenue is excluded); New Mexico, North Dakota and Oklahoma count taxable sales only; Texas, Washington and Iowa count all revenue including exempt sales. Read the threshold cell, not just the dollar figure.
Rules move. Vermont began taxing SaaS in July 2024, Louisiana in January 2025, Maryland changed its rates in July 2025, and nine states have dropped transaction-count tests since 2021. The verification date at the top of this page is the date these rows were checked against the linked sources.
What to do with the result
- List the states where your customers are and where your team works.
- For each, read the row above and the linked authority, and note whether the treatment depends on customer type, bundling or local rules.
- Compare your revenue and transaction counts against the threshold cell, using the state's measure (gross, taxable, or tangible-property-only).
- Register where the state's rules require it, collect where the state taxes your product, and where you are registered but your product is exempt, follow that state's filing requirements for sellers with no taxable sales (some require returns, others do not).
For the underlying concepts (nexus, sourcing, bundling, the registration and filing sequence), see the SaaS sales tax guide. If you would rather have this done for you, Taxolio's SaaS sales tax compliance service covers the state-by-state taxability review, registrations and ongoing filings, with a person reviewing each return before it is submitted.