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SaaS sales tax · Free estimator

SaaS Sales Tax & Nexus Estimator

Estimate US economic nexus exposure, sales tax owed, and uncollected liability for SaaS and digital-product businesses across multiple states.

Estimates only — not tax advice. Tax brackets shown are for 2025 (United States). Federal + state income tax (all 50 states + DC). Rates reviewed for 2025. Always confirm with a qualified accountant or tax professional before filing.Need a referral?
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$600,000
18
9

About 20 US states tax SaaS as a digital service. Check Avalara/TaxJar for current list.

6.5%
How it's calculated

Economic nexus + SaaS taxability

After South Dakota v. Wayfair (2018), states require remote sellers to collect sales tax once they cross an economic threshold. About 20 US states classify SaaS as a taxable digital service.

Nexus = (state revenue ≥ $100k) OR (transactions ≥ 200)
Liability = taxable revenue × state rate × months uncollected
Exposure = liability + (liability × penalty rate)

How US economic nexus works

Each state sets its own threshold, but most landed on $100,000 in revenue OR 200 transactions per year. Once you cross either, you must register with that state's department of revenue, collect tax going forward, and file regular returns.

  • • Thresholds are usually 'previous or current calendar year'.
  • • Some states (e.g. California) only use the revenue threshold.
  • • B2B sales to resale-certificate holders are usually exempt.

Which US states tax SaaS

Roughly 20 states tax SaaS, including New York, Texas, Pennsylvania, Washington, Massachusetts (with conditions), and Tennessee. Some tax it as 'tangible personal property', others as 'digital services'. Always verify with current Avalara/TaxJar guidance — rules change every year.

What to do if you're already over

Don't just start collecting going forward and hope nobody notices — back-tax + penalty exposure compounds. Most states offer Voluntary Disclosure Agreements (VDAs) that waive penalties and limit lookback to 3–4 years.

FAQ

Does this cover EU VAT or UK VAT?

Not yet. EU/UK VAT for digital services has different rules (MOSS / OSS scheme, customer-location based, no minimum threshold for cross-border B2C). We'll add a dedicated VAT calculator next.

Are B2B SaaS sales taxable?

Often not — most states exempt sales for resale, and many exempt B2B SaaS specifically. But you still have to collect a resale certificate and file a return showing the exemption.

Should I use Stripe Tax / TaxJar / Avalara?

Once you have nexus in 5+ states, automated sales tax software pays for itself. Below that, Stripe Tax is usually the simplest add-on.

Important: this is not tax advice

Calculations use simplified, current published brackets for United States (2025). US estimates layer the selected state's 2025 income tax rate on top of federal — local city taxes (e.g. NYC, Philadelphia) and progressive within-state brackets are not modelled.They do not account for credits, alternative minimum tax, the Net Investment Income Tax, foreign income, R&D credits, or your personal circumstances. Always confirm with a licensed CPA, chartered accountant, or registered tax agent before filing.