Sales Tax 101

Which states require you to file sales tax online?

by Mark Faggiano

Map of states that require electronic sales tax filing

Updated November 7, 2017

Most of TaxJar’s customers sell online. Many of us probably use other online apps to handle our day-to-day lives. And I know I pay most of my bills online. Handling our business online has become the law of the land lately, so it’s no wonder that most state departments of revenue even want us to file our sales tax online.

The below states will no longer accept paper sales tax returns. So be prepared to file online if you file in one of these states!

Alabama – Sellers are required to file sales tax online

Florida – Sellers are required to file sales tax online if they meet the following conditions:  (1) has paid the tax or fee in the prior state fiscal year (July 1 through June 30) in an amount of $20,000 or more; (2) files a consolidated return; or (3)  has two or more places of business for which the combined tax and/or fee payments equal or exceed $20,000 for the prior state fiscal year.

Georgia – Taxpayers with payments exceeding $500 are required to file sales tax online and pay sales tax online

Indiana – Merchants who registered for an Indiana sales tax permit after December 31, 2009 are required to file and pay sales tax online.

Maryland – Sellers are required to file sales tax online if they meet certain conditions: taxpayer had a combined tax liability in the preceding calendar year of at least $5,000 in wage withholding, state and local room occupancy excise, and sales and use taxes (including sales taxes imposed on meals and telecommunications services). Businesses that registered after August 31, 2003 and taxpayers with zero tax returns must also file electronically. Optional for all other taxpayers.

Massachusetts – Taxpayers who had a combined tax liability in the preceding calendar year of at least $5,000 in wage withholding, state and local room occupancy excise, and sales and use taxes (including sales taxes imposed on meals and telecommunications services) must file sales tax online. Businesses that registered after August 31, 2003 and taxpayers with zero tax returns must also file electronically.

Minnesota – Sellers are required to file sales tax online unless taxpayer’s religious beliefs prohibit using electronics.

Missouri – Sellers are required to file sales tax online if they have made payments of $8,000 or more in the prior tax year. (This started in July 2014 and this threshold will be reduced in future years according to a specified schedule.)

New Jersey – Sellers are required to file sales tax online

New Mexico – Sellers are required to file sales tax online for monthly and quarterly sales tax if they meet these conditions: (1) do not use a tax preparer to prepare the required filings; (2) use a computer to prepare, document or calculate the required filings or related schedules, or is subject to the corporation tax e-file mandate; and (3) have broadband Internet access. Tax preparers are also required to electronically file returns for annual filers.

Oklahoma – Sellers are required to file sales tax online only if they owed an average of $2,500 or more per month in total sales taxes in the previous fiscal year.

Pennsylvania – Sellers are required to file sales tax online only if they followed 10 or more sales tax returns in the previous calendar year.

Rhode Island – Sellers are required to file sales tax online if they meet the following criteria: The seller’s monthly sales and use tax liability in the previous calendar year was $200; and/or Taxpayers paid $15,000 or more for any one filing period during the past year in sales, use, accommodations, local option, or special local taxes

South Dakota – Sellers are required to file sales tax online if a return is $1,000 or more, or if average sales tax liability is $500 or more.

Texas – Sellers are required to file sales tax online if they paid a total of $10,000 or more in a single category of payments (i.e. one category of payments is sales tax) and if the Texas Comptroller reasonably anticipates the taxpayer will pay at least that amount during the current fiscal year.

Virginia – Sellers are required to file sales tax online

Washington – All monthly and quarterly filers are required to file sales tax online

Washington DC – Sellers are required to file sales tax online

West Virginia – Sellers are required to file sales tax online if they have a total annual remittance of any single tax type of $25,000 or more. (“Sales tax” is considered a single tax type.)

How do you file sales tax? Are some states easier than others? Start the conversation in the comments!

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