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Research & Decision-Support Tool Only. The analysis, conclusions, and recommended actions in this platform are based on general research and are provided for informational purposes only. They do not constitute legal or tax advice, do not reflect the official position of any taxing authority, and do not replace a state-specific technical review by a qualified tax professional. Tax laws change frequently. All conclusions should be independently verified before acting.
State Taxability Matrix
SaaS taxability treatment by state, with nuanced determinations based on statute and practice
| State | SaaS Treatment | Basis / Authority | B2B Exception | Data Processing | Bundled Txns | Confidence | |
|---|---|---|---|---|---|---|---|
CA California | Generally Exempt | California generally does not tax SaaS if no tangible personal property is transferred | N/A | Generally exempt | None | Medium | |
TX Texas | Taxable | Texas taxes SaaS as data processing services (20% exemption available) | 20% of charge exempt as data processing | Taxable at 80% | None | High | |
UT Utah | Taxable | Utah taxes SaaS as prewritten software Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
AL Alabama | Depends on Facts Review required | Alabama taxes SaaS as a service, but downloaded software is taxable as tangible personal property Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
KY Kentucky | Taxable | Kentucky taxes SaaS as prewritten computer software Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
LA Louisiana | Taxable | Louisiana taxes SaaS as taxable sales of tangible personal property or licenses Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
ME Maine | Generally Exempt | Maine generally exempts SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
NY New York | Taxable | New York taxes SaaS as prewritten software | No | May be exempt if separately stated | None | High | |
OK Oklahoma | Generally Exempt | Oklahoma does not impose sales tax on SaaS. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
GA Georgia | Generally Exempt | Georgia generally exempts remotely accessed software | N/A | Exempt if no download | None | Medium | |
NV Nevada | Generally Exempt | Nevada generally does not tax SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
VA Virginia | Generally Exempt | Virginia generally exempts SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
NM New Mexico | Taxable | New Mexico's gross receipts tax broadly taxes most services including SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
WA Washington | Taxable | Washington taxes SaaS under its B&O tax and retail sales tax as digital automated services | No general exemption | Taxable | None | High | |
HI Hawaii | Taxable | Hawaii's GET broadly taxes all services including SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
IA Iowa | Taxable | Iowa taxes SaaS as enumerated services Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
KS Kansas | Generally Exempt | Kansas Department of Revenue has clarified that charges for hosted software services accessed remotely and not downloaded are generally not subject to sales tax. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
WI Wisconsin | Generally Exempt | Wisconsin generally exempts SaaS accessed remotely Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
AK Alaska | Exempt | No state sales tax. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
MI Michigan | Generally Exempt | Michigan generally exempts SaaS that is accessed remotely Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
MO Missouri | Generally Exempt | Missouri does not currently tax any digital goods or services including SaaS under current law. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
NJ New Jersey | Taxable | New Jersey taxes SaaS as prewritten software Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
PA Pennsylvania | Taxable | Pennsylvania taxes SaaS as canned software and as help supply services Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
WV West Virginia | Taxable | West Virginia taxes SaaS as prewritten software Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
DE Delaware | Exempt | No state sales tax Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
IL Illinois | Generally Exempt | Illinois generally does not tax SaaS but does tax downloaded software Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
MN Minnesota | Generally Exempt | SaaS is not taxable in Minnesota unless it includes transfer of prewritten software or tangible personal property. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
NE Nebraska | Taxable | Nebraska taxes SaaS and cloud computing services Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
NC North Carolina | Generally Exempt | North Carolina does not impose sales or use tax on charges for cloud-based SaaS accessed electronically over a network as long as the software is not downloadable. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
CT Connecticut | Taxable | Connecticut taxes SaaS as computer and data processing services. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
NH New Hampshire | Exempt | No state sales tax Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
OH Ohio | Taxable | Ohio commonly treats SaaS as taxable computer services and automatic data processing under its CAT and sales tax. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
MT Montana | Exempt | No state sales tax Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
IN Indiana | Generally Exempt | Indiana does not impose sales tax on cloud-based software accessed remotely via the internet. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
MD Maryland | Depends on Facts Review required | Maryland imposes 6% sales tax on SaaS for personal or consumer use (B2C). Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
MS Mississippi | Taxable | Mississippi taxes SaaS as computer software or service Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
CO Colorado | Generally Exempt | Colorado generally does not tax SaaS but local jurisdictions may vary Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
ND North Dakota | Generally Exempt | North Dakota generally exempts SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
SC South Carolina | Taxable | South Carolina generally exempts electronically delivered software and digital products. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
SD South Dakota | Taxable | South Dakota broadly taxes SaaS and digital products Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
AZ Arizona | Taxable | Arizona broadly taxes SaaS under its TPT as a sale of tangible personal property Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
DC District of Columbia | Taxable | DC taxes SaaS as digital goods Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
FL Florida | Generally Exempt | Florida generally exempts SaaS unless it qualifies as communication services | N/A for exempt SaaS | Generally exempt | None | Medium | |
ID Idaho | Generally Exempt | Idaho generally does not tax SaaS Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
OR Oregon | Exempt | No state sales tax Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
RI Rhode Island | Taxable | Rhode Island taxes SaaS as prewritten software and digital goods Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
AR Arkansas | Taxable | Arkansas taxes SaaS as specified digital products Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
TN Tennessee | Taxable | Tennessee taxes SaaS as specified digital products Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High | |
VT Vermont | Taxable | Vermont taxes SaaS as prewritten software Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
WY Wyoming | Generally Exempt | Wyoming does not impose sales tax on SaaS products. Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | Medium | |
MA Massachusetts | Taxable | Massachusetts taxes SaaS as prewritten software transferred electronically Subscribe to see full analysis and citations. | Subscribe | Subscribe | Subscribe | High |