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What you should know about sales tax in 5 key states

Certain states can be audit hot spots for software-as-a-service (SaaS) companies.

Anrok | Streamlined sales tax for SaaS

Want to figure out sales tax in New York? Questions about tax in Texas? Read on for a roundup of sales tax rates, nexus details, and things you should know about 5 popular states that tax SaaS.

Did you know:

  • Connecticut has a special 1.00% tax rate for B2B computer and data processing services (which includes SaaS)
  • New York requires an exact pre-payment prior to the sales tax filing
  • Pennsylvania allows you to pro-rate the tax charged based on how many people are using the software in the state
  • Only 80% of the software sale is taxable in Texas
  • Washington has one of the highest average combined tax rates in the country

This guide covers sales tax rate by state and some of the intricacies of tax on software in Connecticut, New York, Pennsylvania, Texas, and Washington.

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