Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search field.

Sales Tax Ramifications For Software-As-A-Service (SaaS) Products

This information provided in this post was updated in November 2023, and now includes an additional 2 states.

Almost every day we receive a call or inquiry from a potential client who has questions about the sales tax ramifications for Software-as-a-Service (SaaS) products. While the laws vary from state to state, the SaaS revenue stream is subject to tax in some form in over 25 different jurisdictions in the US. In some cases, SaaS might not be subject to state level tax, but may be taxed at the local level (see Colorado and Illinois below for further discussion).  To add to the confusion, companies who may deliver a SaaS based product, but also still have some legacy enterprise software that is electronically downloaded may find that the two products are subject to tax differently.

In this article, we’ll shed some light on the rules for both SaaS and electronically downloaded software in 20 key states.  (Sure the title says 18 – but we took our most popular blog of all time and retooled it for our readers – and included a couple more states for your reading enjoyment.)

Have a specific question about sales tax and SaaS, contact us directly at info@milesconsultinggroup.com to set up an appointment.

Here is a quick link to the  taxability of SaaS in your selected state, as discussed in more detail below:
Read More

%d bloggers like this: