What is taxable, and where.
Category guides for the products that trip up multi-state sellers.
- SaaS & Cloud SoftwareWhether subscription software is taxable depends on the state, and often on whether the buyer is a business or a consumer.
- Digital Goods & E-booksDownloaded music, books, video and apps are taxed in some states and exempt in others, with different rules for streaming versus permanent downloads.
- Apparel & FootwearSeveral states exempt clothing entirely or below a price threshold. Getting this wrong is one of the most common sources of over-collection.
- Dietary Supplements & Health ProductsSupplements sit between food and general merchandise, and states disagree on which side they fall.
- Food, Groceries & Prepared MealsGroceries are exempt or reduced in many states, while prepared food and candy are often fully taxable.
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