Tax
Tax Setup and Nexus
Tax is determined per transaction from the ship-to state: nexus decides whether there is an obligation to collect, and the combined rate is applied to taxable lines plus shipping where that state taxes shipping.
Not for filing. These are representative combined rates. Real returns need an address-level rate service, because local jurisdictions vary below state level and rates change.
Jurisdictions
| State | Name | State rate | Avg local | Combined | Nexus | Ship taxable | Collected |
|---|---|---|---|---|---|---|---|
| CA | California | 6.00% | 1.57% | 7.570% | Yes | No | |
| NY | New York | 4.00% | 4.53% | 8.530% | Yes | Yes | |
| MA | Massachusetts | 6.25% | 0.00% | 6.250% | Yes | No | |
| CO | Colorado | 2.90% | 4.89% | 7.790% | Yes | No | |
| IA | Iowa | 6.00% | 0.94% | 6.940% | Yes | Yes | |
| MI | Michigan | 6.00% | 0.00% | 6.000% | Yes | Yes | |
| TX | Texas | 6.25% | 1.95% | — | No | Yes | |
| FL | Florida | 6.00% | 1.02% | — | No | Yes | |
| WA | Washington | 6.50% | 2.90% | — | No | Yes | |
| IL | Illinois | 6.25% | 2.60% | — | No | Yes | |
| OR | Oregon | 0.00% | 0.00% | 0.000% | Yes | No | |
| NH | New Hampshire | 0.00% | 0.00% | — | No | No | |
| DE | Delaware | 0.00% | 0.00% | — | No | No | |
| MT | Montana | 0.00% | 0.00% | — | No | No |
Item tax categories
- Taxabletaxable
- Non-Taxablenot taxable
- Resale (exempt)not taxableRequires a valid resale certificate on file
- Servicenot taxableServices untaxed in most states; verify per state
- ShippingtaxableTaxability varies by state