Sales tax by state

Each state’s statewide sales-tax rate, and guides to charging it on your invoices.

Each guide says who owes the tax, what to do about a tax line on your invoice, and how the state treats the services the guide covers. Many cities and counties add their own tax to the state rate shown here.

Which states tax labor?

Statewide base rates from each state’s revenue department; each guide shows its date and sources.

Alabama
4%
Alaska
No statewide sales tax
Arizona
5.6%
Arkansas
6.5%
California
7.25%
Colorado
2.9%
Connecticut
6.35%
Delaware
No statewide sales tax
District of Columbia
6%
Florida
6%
Georgia
4%
Hawaii
4%
Idaho
6%
Illinois
6.25%
Indiana
7%
Iowa
6%
Kansas
6.5%
Kentucky
6%
Louisiana
5%
Maine
5.5%
Maryland
6%
Massachusetts
6.25%
Michigan
6%
Minnesota
6.875%
Mississippi
7%
Missouri
4.225%
Montana
No statewide sales tax
Nebraska
5.5%
Nevada
6.85%
New Hampshire
No statewide sales tax
New Jersey
6.625%
New Mexico
4.875%
New York
4%
North Carolina
4.75%
North Dakota
5%
Ohio
5.75%
Oklahoma
4.5%
Oregon
No statewide sales tax
Pennsylvania
6%
Rhode Island
7%
South Carolina
6%
South Dakota
4.2%
Tennessee
7%
Texas
6.25%
Utah
6.1%
Vermont
6%
Virginia
5.3%
Washington
6.5%
West Virginia
6%
Wisconsin
5%
Wyoming
4%

Which states tax labor?

  • In most states with a sales tax, the tax on work that becomes part of a building falls on the materials, not the labor. Usually you pay it when you buy them and charge your customer no sales tax.
  • New Jersey, New York, North Carolina and West Virginia tax the labor on repair and maintenance work; a capital improvement is generally not taxed. Some other states tax labor depending on the property or the kind of job.
  • Hawaii, New Mexico and South Dakota tax what the contractor takes in, labor included, each under a tax of its own. In Washington the prime contractor collects retail sales tax on the full price of custom construction.
  • Alaska, Delaware, Montana, New Hampshire and Oregon have no general state sales tax.
  • Lawn care, cleaning and pressure washing are services, and several states tax them even where construction labor is untaxed.

Your state’s guide has its rule and its sources.

General information, not tax or legal advice. Check with your state.

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