State-by-state guide to charging sales tax on services

Are services taxable in Colorado?

Colorado doesn’t generally impose sales tax on services.

Business services impacted by taxation:

However, if tangible personal property and services are bundled in a sale, the entire purchase price may be subject to sales tax.

Additional resources: Colorado Department of Revenue

Are services taxable in Connecticut?

Many services are subject to sales and use tax in Connecticut.

Business services impacted by taxation:

Taxable services in Connecticut include some services to tangible personal property, services to real property, business services, personal services, and amusement/recreation services. Taxable services in Connecticut include:

• Advertising and public relations
• Admission to places of amusement, recreation, and entertainment, and participation in these activities
• Business analysis and management consulting excluding environmental consulting or services rendered in connection with aircraft leased or owned by a certified air carrier
• Car washing
• Computer and data processing services, including website creation and hosting
• Contractor services to real property
• Cosmetic medical procedures
• Dry cleaning and laundry
• Employment agency services
• Exterminating
• Flight instruction
• Health and athletic clubs
• Intrastate transportation
• Janitorial services
• Landscaping
• Lobbying
• Locksmith services
• Maintenance
• Painting and lettering
• Parking
• Personal services, spa services, and nail services (excludes massage)
• Pet grooming, boarding, and obedience training
• Photography studios
• Private investigation, patrol work, guard, and armored car services
• Real property services including management, electrical, plumbing, painting, and carpentry with certain exclusions
• Repair or maintenance services to tangible personal property
• Stenographic services
• Swimming pool cleaning and maintenance
• Towing
• Vehicle repair
• Window cleaning

Additional resources: Connecticut State Department of Revenue Services

Are services taxable in Delaware?

Delaware doesn’t have sales tax but imposes gross receipts tax on the seller of certain services.

Business services impacted by taxation:

Check with the Delaware Division of Revenue to learn the services impacted by gross receipts tax.

Additional resources: Delaware Division of Revenue

Are services taxable in Florida?

Some services are taxable in Florida including business services, services to tangible personal property, services to real property, amusement/recreation services, and professional services. 

Business services impacted by taxation:

Taxable services in Florida include but aren’t limited to:

• Admission to amusement and recreation places and sports events
• Investigative and crime protection services
• Nonresidential cleaning services
• Nonresidential pest control
• Operating vending or amusement machines
• Renting or leasing personal property such as machinery, equipment, or other goods
• Renting or leasing real property such as commercial office space or mini warehouses
• Repairs or alterations of tangible personal property
• Selling service warranty contracts

Additional resources: Florida Department of Revenue

Are services taxable in Georgia?

Most services are exempt from sales tax in Georgia but there are exceptions including amusement services.

Business services impacted by taxation:

Services subject to sales and use tax in Georgia include:

• Admission to amusement places and participation in games and amusement
• Costs necessary to complete the sale of taxable property (for example, if a seller charges $20 for a shirt and $5 to deliver the shirt, sales tax is imposed on $25)
• In-state transportation of individuals such as transportation via taxis and limousines

Additional resources: Georgia Department of Revenue

Are services taxable in Hawaii?

Hawaii has a general excise tax (GET) instead of traditional sales tax. Hawaii taxes services by default unless specifically exempt. 

Business services impacted by taxation:

Services subject to GET in Hawaii include but aren’t limited to:

• Business interest income
• Construction contracting
• Farming
• Manufacturing and producing goods
• Operating theaters and other amusement places
• Renting personal or real property

Additional resources: Hawaii Department of Taxation

Are services taxable in Idaho?

Some services are taxable in Idaho including services to tangible personal property and amusement services.

Business services impacted by taxation:

Examples of services subject to sales tax in Idaho include:

• Admission to events or places and recreation fees
• Facilities for recreation, including renting a park for a picnic and golf course green fees
• Fitness and health club memberships
• Labor to produce, process, or fabricate tangible personal property such as embroidering a logo or assembling a bicycle
• Labor for custom-made tangible personal property such as a custom-made desk, made-to-order dress, or commissioned art
• Printing and imprinting such as engraving a trophy
• Renting or leasing tangible personal property such as leasing a car

Additional resources: Idaho State Tax Commission

Are services taxable in Illinois?

Illinois does not tax services. 

Business services impacted by taxation:

Although Illinois does not typically tax services, services may be taxable in the following situations:

• Labor charges that are part of the selling price of installation services (however, labor charges that are contracted for separately from the sale of tangible personal property aren’t taxable)
• Labor charges when custom-made items are sold at retail
• Tangible personal property when sold as an incident of the service

Additional resources: Illinois Department of Revenue

Are services taxable in Indiana?

Services generally aren’t taxable in Indiana. 

Business services impacted by taxation:

Although services aren’t usually taxable in Indiana, there are some exceptions:

• Photography and video services generally aren’t subject to sales and use tax in Indiana, but when a product is sold as part of photography or video services, labor charges necessary to create the product may be subject to sales tax
• Tax should be collected for preparation, fabrication, alteration, modification, finishing, completion, delivery, or other services performed by a contractor with respect to construction material before the material is transferred or delivered to the contractor’s customer

Additional resources: Indiana Department of Revenue

Are services taxable in Iowa?

Iowa taxes about 75 services, including services to tangible personal property, services to real property, business services, personal services, and amusement/recreation services.

Business services impacted by taxation:

Taxable services in Iowa include:

• Aircraft lease or rental, 60 days or less
• Alteration and garment repair
• Amusement places
• Armored car services
• Bank and financial institution service charges
• Barber and beauty services
• Battery, tire, and allied services
• Boat repair
• Camera repair
• Campground site rentals
• Carpentry repair and installation
• Carpet, rug, and upholstery cleaning and repair
• Communication services, excluding internet access fees
• Dance school and dance studio services
• Dating services
• Demolition
• Dry cleaning, pressing, dyeing, and laundering excluding the use of self-pay washers and dryers
• Electrical and electronic repair and installation
• Employment and executive search agencies
• Engraving
• Excavating and grading
• Extermination services
• Farm implement repair of all kinds
• Flying service and instruction
• Furniture repair and cleaning
• Fur storage and repair
• Garbage collection and disposal (nonresidential only)
• Golf and country clubs and all commercial recreation fees
• Gun repair
• House and building moving
• Household appliance, television, and radio repair
• Information services
• Installing, maintaining, servicing, repairing, operating, upgrading, or enhancing certain digital products
• Investment counseling
• Janitorial and building maintenance or cleaning (nonresidential only)
• Jewelry and watch repair
• Landscaping, lawn care, and tree trimming and removal
• Machine operator fees
• Machine repair of all kinds
• Massages, unless performed by a licensed massage therapist
• Mini-storage
• Motor repair
• Motorcycle, scooter, and bicycle repair
• Office and business machine repair
• Oilers and lubricators on vehicles and machines
• Painting, papering, and interior decorating
• Parking facilities
• Personal transportation
• Pet grooming
• Photography and photo retouching
• Pipe fitting
• Plumbing, including drain cleaning and unclogging toilets, sinks, and sewers
• Printing and binding
• Recapping and retreading tires
• Reflexology
• Renting equipment and tangible personal property
• Retouching photographs
• Roof, shingle, and glass repair
• Security and detective services
• Sewage services, nonresidential commercial only
• Sewing and stitching
• Shoe repair and shoeshine
• Sign construction and installation
• Storage of household goods
• Storage of tangible or electronic files, documents, or other records
• Storage warehouse or lockers of raw agricultural products
• Swimming pool cleaning and maintenance
• Tanning beds or tanning services
• Taxidermy
• Test laboratories, excluding tests on humans and animals and environmental testing
• Tin and sheet metal repair
• Turkish baths and reducing salons
• Vehicle repair
• Vehicle wash and wax
• Video game services and tournaments
• Water conditioning and softening
• Weighing
• Welding
• Well drilling (repair only)
• Wood preparation (for example, stripping, cleaning, sealing)
• Wrapping, packing, and packaging of merchandise other than processed meat, fish, fowl, and vegetables
• Wrecker services and towing
• Vulcanizing

Additional resources: Iowa Department of Revenue

Are services taxable in Kansas?

Many services are subject to sales and use tax in Kansas including services to tangible personal property, amusement/recreation services, and business services. 

Business services impacted by taxation:

Taxable services in Kansas include but aren’t limited to:

• Admission to places of amusement, entertainment, and recreation
• Boat washing, polishing, and detailing
• Car washing and waxing
• Certain advertising services
• Certain photography services
• Dry cleaning, pressing, dyeing, and laundry
• Engraving, glass etching, and gift wrapping
• Fitness and weight control center memberships
• Funeral and memorial services
• Installing, replacing, or repairing plumbing, wiring, built-in cabinets, and other fixtures
• Labor services to modify, alter, update, or maintain software
• Linen services
• Maintenance agreements for taxable products and services
• Pest control
• Pet grooming
• Pro shop services such as drilling and repairing bowling balls
• Renting or leasing tangible personal property including DVDs and video games
• Renting portable storage containers (renting storage space is tax exempt in Kansas)
• Repairing, remodeling, and maintaining existing buildings, facilities, and covered structures
• Repairing, servicing, altering, and maintaining tangible personal property such as computers, printers, vehicles, or forklifts
• Telephone answering and beeper services
• Waxing and polishing floors (most janitorial services are tax exempt in Kansas)

Additional resources: Kansas Department of Revenue

Are services taxable in Kentucky?

Many services are subject to sales and use tax in Kentucky including business services, personal services, amusement/recreation services, professional services, services to tangible personal property, and services to real property. 

Business services impacted by taxation:

Taxable services in Kentucky include:

• Admission to sports events, entertainment events, gymnasiums, golf courses, museums, fairgrounds, and similar
• Bodyguards
• Catering services
• Cosmetic surgery
• Dry cleaning and laundry except coin-operated and industrial laundry services
• Executive employment recruitment
• Extended warranties to cover taxable tangible personal property or digital property
• Housing moving services
• Installing taxable tangible personal property, digital property, or services; stand-alone labor and installation services are not subject to sales and use tax unless specified in law
• Interior decorating and design
• Janitorial services
• Labor to repair or alter apparel, footwear, watches, or jewelry when no tangible personal property is sold
• Labor to repair or alter commercial refrigeration when no tangible personal property is sold
• Landscaping, lawn care, and tree trimming
• Lapidary services
• Leisure, recreational, and athletic instruction
• Linen supply
• Lobbying
• Marketing
• Massage except when medically necessary
• Parking including valet service
• Personal background checks
• Personal fitness training
• Pet grooming, boarding, pet sitting, and obedience training
• Photography and photo finishing
• Prewritten computer software access
• Private investigation
• Private mailroom services including private mailbox rentals
• Process server services
• Public opinion and research polling
• Recreational camp tuition and fees
• Renting space for meetings, conventions, short-term business, entertainment events, weddings, banquets, parties, and other short-term social events
• Renting tangible personal property
• Repossession of tangible personal property
• Security system monitoring
• Social event planning and coordination
• Specialized design services including clothing, furs, jewelry, shoes, textiles, and lighting
• Tanning
• Tattooing and body modification
• Telemarketing
• Testing except for medical, educational, and veterinary reasons (however, small animal veterinarian testing is taxable)
• Travel and road services provided by automobile clubs
• Ride-sharing (subject to excise tax instead of sales tax)
• Website design, development, and hosting
• Weight loss and diet services except medical

Additional resources: Kentucky Department of Revenue

Are services taxable in Louisiana? 

Some services are subject to sales and use tax in Louisiana. 

Business services impacted by taxation:

Taxable services in Louisiana include certain services to tangible personal property and amusement/recreation services:

• Admission to amusement places, recreational facilities, and athletic and recreational events
• Furnishing of storage or parking privileges by parking lots and auto hotels
• Laundry, cleaning, pressing, and dyeing
• Printing and overprinting
• Providing and preparing cold storage
• Renting or leasing tangible personal property
• Repairs to tangible personal property
• Using, consuming, distributing, or storing any tangible personal property

Additional resources: Louisiana Department of Revenue

Are services taxable in Maine? 

Maine has both a service provider tax and sales tax. 

Business services impacted by taxation:

Taxable services in Maine include some services to tangible personal property:

• Audio and video media and equipment rentals
• Fabrication services
• Furniture rentals
• Photography
• Publishing, printing, imprinting, engraving, and photocopying
• Video media and video equipment rentals

Additional resources: Maine Revenue Services

Are services taxable in Maryland? 

Some services are taxable in Maryland including services to tangible personal property, services to real property, business services, and amusement/recreation services. 

Business services impacted by taxation:

Taxable services in Maryland include:

• Admission to places of amusement and entertainment, and recreational and sports equipment rentals (Maryland imposes an admissions and amusement tax separate from sales tax)
• Cleaning of commercial or industrial buildings
• Commercial cleaning and laundering of textiles
• Credit reporting
• Fabrication, printing, or production of tangible personal property by special order
• Security, detective, and alarm services

Additional resources: Comptroller of Maryland

Are services taxable in Massachusetts? 

Services in Massachusetts are generally not taxable.

Business services impacted by taxation:

Although services in Massachusetts are not usually taxable, businesses that rent or lease tangible personal property in Massachusetts may need to collect and remit sales and use tax.

Additional resources: Massachusetts Department of Revenue

Are services taxable in Michigan? 

Services in Michigan are generally not taxable.

Business services impacted by taxation:
While services are not typically taxable in Michigan, delivery and installation services remain subject to sales and use tax unless separately itemized on the customer’s invoice and properly recorded by the seller.

Additional resources: Michigan Department of Treasury

Are services taxable in Minnesota? 

Some services are taxable in Minnesota including certain services to tangible personal property, services to real property, business services, personal services, or amusement/recreation services. 

Business services impacted by taxation:

Services subject to sales and use tax in Minnesota include:

• Admission to places of amusement, recreational areas, and athletic events
• Building cleaning and maintenance
• Car washing, wading, rustproofing, and cleaning
• Detective, security, and alarm services
• Health clubs and sports facility memberships
• Laundry, dry cleaning, and alterations
• Lawn, garden, and tree services
• Massage
• Parking
• Pet grooming, boarding, and care
• Reducing salons
• Spas and steam baths
• Tanning facilities
• Towing

Additional resources: Minnesota Department of Revenue

Are services taxable in Mississippi? 

Many services are subject to sales and use tax in Mississippi. 

Business services impacted by taxation:

Taxable services in Mississippi include these services to tangible personal property, services to real property, business services, and amusement/recreation services:

• Admission to places of amusement, sport events, or recreation facilities
• Alarm services
• Car washing
• Charges for admission to an amusement, sport, or recreation
• Computer software services
• Contracting
• Custom creosoting or treating (wood protection)
• Custom meat processing
• Custom planning
• Custom sawing
• Dry cleaning
• Elevator services
• Film developing or photo finishing
• Furniture repair and upholstering
• General repairs
• Grading, excavating, ditching, and dredging
• Insulating services or repairs
• Jewelry or watch repairing
• Landscaping
• Laundering, cleaning, pressing, or dyeing
• Marina services
• Mattress renovating
• Office and business machine repairing
• Parking
• Pest control
• Plumbing, electrical work, and heating and air conditioning work
• Public storage warehouses
• Radio or television installing, repairing, or servicing
• Refrigerating equipment repairing
• Renting and leasing personal property, like equipment
• Repairs of tangible personal property
• Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of oil, gas, water, and other mineral resources
• Shoe repairing
• Storage locker rentals
• Telephone answering or paging services
• Tin and sheet metal work
• Vulcanizing, repairing, or recapping of tires or tubes
• Welding
• Woodworking

Additional resources: Mississippi Department of Revenue

Are services taxable in Missouri? 

Services in Missouri generally aren’t subject to sales and use tax but there are a few exceptions. 

Business services impacted by taxation:

Businesses may need to collect and remit sales tax on certain services to tangible personal property and amusement/recreation services:

• Admission and seats at places of amusement, entertainment, and recreation, as well as games and athletic events
• Labor used to fabricate a product that will be sold at retail
• Leasing and renting tangible personal property unless either the lessor paid tax on the purchase of the property or the sale of the tangible personal property would be exempt

Additional resources: Missouri Department of Revenue

Are services taxable in Montana? 

Montana doesn’t have a state sales tax, so services generally aren’t taxable.

Business services impacted by taxation:

Check with the Montana Department of Revenue for any taxed services.

Additional resources: Montana Department of Revenue

Are services taxable in Nebraska? 

Some services are subject to sales and use tax in Nebraska. 

Business services impacted by taxation:

Taxable services in Nebraska include these services to tangible personal property, services to real property, business services, and amusement/recreation services:

• Admission to places of amusement, entertainment, and recreation as well as coin-operated amusement machines
• Alterations and mending
• Building cleaning and maintenance
• Computer software training when sold with software
• Gunsmith services
• Labor to install tangible personal property
• Machinery and equipment recalibration and repairs (services performed to merely test that machinery and equipment are functioning properly aren’t taxable unless repairs are made)
• Pest control
• Pet grooming, boarding, and training
• Recreational vehicle (RV) park services
• Repairs and maintenance to certain tangible personal property such as lawn mowers, computers, or jet skis
• Restoring or refinishing tangible personal property such as appliances, musical instruments, and furniture
• Security, licensed private detective, and alarm services
• Tire retreading, recapping, and repairing
• Towing
• Vehicle painting, washing, and waxing

Additional resources: Nebraska Department of Revenue

Are services taxable in Nevada? 

Most services aren’t taxable in Nevada but services to tangible personal property are taxable. 

Business services impacted by taxation:

Services subject to sales and use tax in Nevada include:

• Fabrication labor involved in creating tangible personal property
• Handling, packaging, crating, and other services related to delivery (however, delivery charges including freight and transportation aren’t taxable)
• Renting or leasing tangible personal property
• Services necessary to complete the sale of tangible personal property (however, installation, repair, and reconditioning services aren’t taxable if listed separately on the customer’s invoice)
  

Additional resources: Nevada Department of Taxation

Are services taxable in New Hampshire? 

Services aren’t taxable in New Hampshire because the state doesn’t have a sales tax.

Business services impacted by taxation:

Even though New Hampshire doesn’t have a statewide sales tax, check with the New Hampshire Department of Revenue Administration for exceptions to the taxability of services.

Additional resources: New Hampshire Department of Revenue Administration

Are services taxable in New Jersey? 

Many services are taxable in New Jersey including services to tangible personal property, services to real property, business services, some personal services, and amusement/recreation services. However, some services are exempt in New Jersey including professional services such as those provided by accountants, lawyers, and doctors and certain personal services such as those provided at barber shops and beauty parlors. 

Business services impacted by taxation:

Common services subject to sales and use tax in New Jersey include:

• Admission to places of amusements, craft shows, and sports events
• Alarm monitoring, armored car, detective services, security guard
• Animal boarding and grooming
• Appliance repair
• Boat storage (however, slip rentals are exempt)
• Calligraphy
• Car washing
• Carpet cleaning
• Computer repair
• Credit reporting
• Dry cleaning
• Gift wrapping
• Health, fitness, and sports clubs
• Information services
• Janitorial services
• Jewelry cleaning, engraving, and sizing
• Landscaping and lawn mowing
• Mail processing for advertising and promotional materials distributed in-state
• Massage
• Pager and fax services
• Pest control
• Photocopying, printing, and scanning
• Photography and videography
• Safe deposit box rentals
• Shoe repair
• Shopping clubs
• Silk-screening, monogramming, and embroidering without clothing purchase
• Snow removal
• Storage
• Tanning
• Tattooing
• Vehicle repair
• Window washing

Additional resources: New Jersey Division of Taxation

Are services taxable in New Mexico? 

Most services are taxable in New Mexico. New Mexico has a gross receipts tax that functions similarly to a sales tax. According to the New Mexico Taxation and Revenue website, “Although the gross receipts tax is imposed on businesses, it is common for a business to pass the gross receipts tax on to the purchaser either by separately stating it on the invoice or by combining the tax with the selling price.”

Business services impacted by taxation:

Taxable services in New Mexico include services to tangible personal property, services to real property, business services, personal services, professional services, and amusement/recreation services.

Some services are exempt from the New Mexico gross receipts tax including:

• Feeding, handling, pasturing, or training livestock
• Receipts of insurance companies or agents for premiums or receipts of property bondsmen from bail bond securities

Additional resources: New Mexico Taxation and Revenue

Are services taxable in New York? 

Services are generally exempt from New York sales tax but there are exceptions. 

Business services impacted by taxation:

Taxable services in New York include some services to tangible personal property, services to real property, business services, and amusement/recreation services, as well as certain personal services performed in New York City. 

Services subject to sales and use tax in New York state include:

• Admission to places of amusement
• Certain information services
• Interior decorating and design
• Maintaining, installing, servicing, and repairing tangible personal property
• Maintaining, servicing, and repairing real property
• Parking and vehicle storage
• Passenger transportation services including limousines
• Processing, fabricating, printing, or imprinting tangible personal property for a customer who furnishes the property and doesn’t plan to resell it
• Protective and detective services
• Social and athletic clubs
• Storing tangible personal property
• Telephone answering services

Services subject only to New York City sales tax include:

• Barbershops, beautician services, and hair restoring
• Electrolysis
• Gymnasiums, health and weight control salons, Turkish and sauna baths, and similar facilities
• Manicures and pedicures
• Massage
• Tanning
• Written or oral credit reporting services 

Additional resources: New York State Department of Taxation and Finance

Are services taxable in North Carolina? 

Few services in North Carolina are taxable but there are exceptions for certain services to tangible personal property and entertainment services. 

Business services impacted by taxation:

Businesses may need to collect and remit sales tax on services if they provide these services:

• Admission to entertainment activities
• Dry cleaning and laundry
• Installation, maintenance, and repair of tangible personal property

Additional resources: North Carolina Department of Revenue

Are services taxable in North Dakota? 

Services generally aren’t taxable in North Dakota but there are a few exceptions for amusement/recreation services and certain services to tangible personal property. 

Business services impacted by taxation:

Services subject to sales and use tax in North Dakota include:

• Admission to places of amusement or entertainment and athletic events
• Photo developing and printing
• Renting or leasing tangible personal property such as appliances, camping supplies, formal wear, furniture, or tools
• Tire recapping, retreading, and vulcanizing

Additional resources: North Dakota Office of State Tax Commissioner

Are services taxable in Ohio? 

Many services are taxable in Ohio.

Business services impacted by taxation:

Taxable services in Ohio include services to tangible personal property, services to real property, business services, personal services, professional services, and amusement/recreation services. However, professional and personal services aren’t taxable when they include the transfer of a “small item” of tangible personal property for which no separate charge is made. Services subject to sales and use tax in Ohio include:

• Automatic data processing, computer services, or electronic information services provided for use in a business; electronic information services include, but are not limited to, internet and email service charges
• Building maintenance and janitorial services totaling at least $5,000 annually
• Dry cleaning and laundry (excluding sales made through coin-operated machines)
• Exterminating
• Installation and repair of tangible personal property (except property exempt from sales tax)
• Landscaping or lawn care totaling at least $5,000 annually
• Personal care services, including skin care, application of cosmetics, manicures, pedicures, hair removal, tattoos, body piercing, tanning, massage and other similar services (however, hair care services aren’t taxable)
• Physical fitness facilities
• Private investigation and security services
• Production of tangible personal property from material supplied by the customer, such as a tailor using fabric furnished by the customer
• Recreation and sports clubs
• Snow removal totaling at least $5,000 annually
• Storage of tangible personal property
• Towing
• Transportation of persons in-state except by public transit systems or commercial airlines
• Vehicle washing (except coin-operated), cleaning, waxing, polishing, or painting

Additional resources: Ohio Department of Taxation

Are services taxable in Oklahoma? 

Some services to tangible personal property and amusement/recreation services are taxable in Oklahoma. 

Business services impacted by taxation:

Businesses may need to collect and remit sales tax on services if their work includes:

• Admission to places of amusement, entertainment, sports, exhibitions, displays, and recreational activities and charges for equipment use
• Advertising
• Dues and fees to clubs including health spas and similar facilities
• Parking lots and auto hotels
• Printing
• Renting or leasing tangible personal property
• Sports participation fees when spectators aren’t charged admission
• Transportation for hire by common carriers including railroads, motor transportation, pullman cars, and airlines

Additional resources: Oklahoma Tax Commission

Are services taxable in Oregon? 

Services aren’t taxable in Oregon because there is no general sales or use tax.

Business services impacted by taxation:

As Oregon has no statewide sales tax, there are no taxable services in Oregon.

Additional resources: Oregon Department of Revenue

Are services taxable in Pennsylvania? 

Some services are taxable in Pennsylvania including services to tangible personal property, services to real property, and business services. 

Business services impacted by taxation:

Services subject to sales and use tax in Pennsylvania include:

• Adjustment services, collection services, and credit reporting
• Applying or installing tangible personal property as a repair or replacement part of other tangible personal property
• Building maintenance or cleaning
• Employment agency services and help supply services
• Lawn care
• Lobbying services
• Pest control and disinfecting
• Printing or imprinting of tangible personal property for a customer
• Repairing, altering, mending, pressing, fitting, dyeing, laundering, dry cleaning, or cleaning tangible personal property other than everyday wearing apparel or shoes (services performed on formal/evening apparel, sports apparel, and fur articles are subject to sales tax)
• Secretarial or editing services
• Self-storage
• Vehicle inspection as required by law
• Vehicle washing, cleaning, waxing, polishing, or lubricating

Additional resources: Pennsylvania Department of Revenue

Are services taxable in Rhode Island? 

Some services are taxable in Rhode Island including services to tangible personal property. 

Business services impacted by taxation:

Services subject to sales and use tax in Rhode Island include but aren’t limited to:

• Pet care services
• Renting or leasing tangible personal property including, but not limited to, home appliances, household furnishings, video tapes, jewelry, stereo and TV equipment, computers, and computer software
• Taxi, limousine, and charter buses services

Additional resources: Rhode Island Division of Taxation

Are services taxable in South Carolina? 

Some services are taxable in South Carolina including amusement/recreation services, business services, and services to tangible personal property. 

Business services impacted by taxation:

Services subject to sales and use tax and admissions tax in South Carolina include:

• Admission to places of amusement (South Carolina imposes an admissions tax)
• Automated answering, fax transmission, voice mail, and email services
• Dry cleaning and hotel laundry services
• Electronic filing of tax returns by someone who didn’t prepare the tax return
• Installation of tangible personal property when not separately stated on the customer’s bill or when not deemed reasonable based on the books and records of the retailer
• Renting or leasing tangible personal property

Additional resources: South Carolina Department of Revenue

Are services taxable in South Dakota? 

Services are taxable by default in South Dakota unless specifically exempted. 

Business services impacted by taxation:

Services subject to sales and use tax in South Dakota include services to tangible personal property, services to real property, business services, personal services, professional services, and amusement/recreation services.

Services exempt from sales and use tax in South Dakota include but aren’t limited to:

• Advertising services
• Animal specialty services except veterinary services
• Certain construction services
• Consumer credit reporting services if the client doesn’t reside within South Carolina
• Farm product warehousing and storage
• Local and suburban transportation, except limousines
• Motion picture rentals to a commercially operated theater
• Security brokers, dealers, and flotation companies
• Trucking and courier services, except air

Additional resources: South Dakota Department of Revenue

Are services taxable in Tennessee? 

Services generally aren’t taxable in Tennessee unless specified in law. Services subject to sales and use tax in Tennessee include services to tangible personal property. Tennessee also imposes an amusement tax on amusement/recreation services. 

Business services impacted by taxation:

Taxable services in Tennessee include:

• Admission to places of amusement, entertainment, and sports (Tennessee imposes an amusement tax)
• Alterations and mending
• Animal bathing (but not grooming)
• Cleaning of tangible personal property
• Installation of tangible personal property attached to real property but that can be ordinarily removed such as window air conditioning units, curtain and drapery rods, and gasoline pumps
• Installation or repair of tangible personal property including software
• Recreation club dues such as golf courses and tennis clubs, charges for participation in recreational activities, and charges for renting tangible personal property such as golf carts and bowling shoes
• Services that are part of the sales price of tangible products including labor and delivery charges
• Vehicle parking and storage

Additional resources: Tennessee Department of Revenue

Are services taxable in Texas?

Many services are taxable in Texas including services to tangible personal property, services to real property, business services, personal services, and amusement/recreation services. 

Business services impacted by taxation:

Examples of services that are subject to sales and use tax in Texas include:

• Admission to amusement places, exhibitions, and sports events, and charges for participatory games, sightseeing tours, fortune telling, and similar activities
• Assembling products such as computer systems, toys, furniture, or equipment
• Calligraphy
• Catering
• Creating artwork
• Credit reporting services
• Custom sewing or tailoring
• Data processing services including website creation and hosting, but 20% of the charge is exempt from tax
• Debt collection services 
• Escorts and bodyguards
• Garbage and waste collection
• Information services, but 20% of the charge is exempt from tax
• Insurance services
• Internet access bundled with taxable services if the service provider can’t establish a reasonable allocation for the nontaxable internet services
• Janitorial and custodial services
• Landscaping, lawn care, and tree services
• Laundry, cleaning, and garment services
• Manufacturing, assembling, fabricating, or processing products
• Massage
• Nonresidential real property repair, restoration, or remodeling
• Personal property maintenance, remodeling, or repair such as shoe shining, appliance repair, or upholstering
• Pest control
• Pet grooming
• Photography and videography
• Printing
• Security services including locksmiths, alarm installation, monitoring, private investigation, and armed couriers
• Turkish baths
• Vehicle parking and storage
• Welding
• Woodworking

Additional resources: Texas Comptroller

Are services taxable in Utah? 

Services to tangible personal property and amusement/recreation services are taxable in Utah. 

Business services impacted by taxation:

Businesses may need to charge sales tax on services in Utah for the following:

• Admission or user fees for places for amusement, entertainment, and recreation, as well as athletic events, cultural activities, and exhibitions
• Car washing
• Labor to repair, renovate, or clean tangible personal property or maintain products transferred electronically
• Pet grooming
• Renting or leasing tangible personal property and products transferred electronically
• Special events
• Storage of tangible personal property
• Towing unless the tow company doesn’t perform repairs and is unaffiliated with the repair shop
• Vehicle renting and leasing
• Video and DVD rentals

Additional resources: Utah State Tax Commission

Are services taxable in Vermont? 

Services are generally tax exempt in Vermont but exceptions include certain services to tangible personal property and amusement/recreation services.

Business services impacted by taxation:

Services subject to sales and use tax in Vermont include:

• Admission to places of amusement, entertainment, and recreation
• Certain labor charges
• Fabrication of tangible personal property
• Linen cleaning and rental
• Photography services provided as part of the sale of photographs
• Renting and leasing tangible personal property

Additional resources: Vermont Department of Taxes

Are services taxable in Virginia? 

Services are generally tax exempt in Virginia but there are some exceptions. 

Business services impacted by taxation:

Services subject to sales and use tax in Virginia include services to tangible personal property:

• Fabrication of tangible personal property
• Renting or leasing tangible personal property
• Services included or connected to the sale of tangible personal property such as personal shopping

Additional resources: Virginia Department of Taxation

Are services taxable in Washington? 

Many services are subject to sales and use tax in Washington including services to tangible personal property, business services, personal services, and amusement/recreation services.

Business services impacted by taxation:

Taxable services in Washington include:

• Alarm monitoring
• Car washing including self-service facilities and detailing
• Catering and personal chefs
• Certain amusement and recreational activities
• Clearing land and moving earth
• Constructing and improving new or existing buildings and structures
• Credit bureau services
• Dating and escort services
• Domain name registration services
• Escrow services and abstract and title insurance
• Installation, cleaning, and repair services such as mold abatement, deep fryer oil filtration, and cleaning fish tanks (however, routine and repetitive janitorial services are tax exempt)
• Installing, repairing, cleaning, improving, constructing, and decorating real or personal property for others
• Landscaping and horticultural services
• Parking
• Personal training at athletic and fitness facilities
• Tanning
• Tattooing
• Towing
• Turkish and steam baths

Additional resources: Washington Department of Revenue

Are services taxable in West Virginia? 

Services are taxable by default in West Virginia unless specifically exempted. 

Business services impacted by taxation:

Services subject to sales and use tax in West Virginia include services to tangible personal property, services to real property, business services, and amusement/recreation services.

Services that are exempt from sales tax in West Virginia include:

• Advertising
• Aircraft remodeling and maintenance
• Construction, alteration, repair, improvement, or decoration of real property, but only when the work performed results in a “capital improvement” to the property; all other construction trade activities are subject to sales tax unless otherwise exempt
• Day care centers
• Educational summer camps
• Personal services such as barbershops, hairstyling, manicures, and massage
• Professional services such as those provided by doctors, lawyers, engineers, architects, and CPAs
• Transporting passengers interstate, such as airplane or bus tickets, when the trip begins or ends outside of West Virginia

Additional resources: West Virginia Tax Division

Are services taxable in Wisconsin? 

Some services are subject to sales and use tax in Wisconsin including amusement/recreation services, services to real property, and services to tangible personal property. 

Business services impacted by taxation:

Taxable services in Wisconsin include:

• Admission and access privileges to amusement, athletic, entertainment, or recreational places and events 
• Amusement devices and coin-operated vending machines
• Boat docking and storage
• Dry cleaning and laundry
• Fabricating, printing, and producing tangible personal property, items, and goods
• Landscaping and lawn maintenance
• Parking for vehicles and aircraft
• Photography
• Renting and leasing tangible personal property
• Repairing and servicing tangible personal property, items, and goods
• Towing and hauling vehicles

Additional resources: Wisconsin Department of Revenue

Are services taxable in Wyoming? 

Wyoming calls its sales and use tax an excise tax. Some services are subject to tax in Wyoming, including services to tangible personal property and amusement/recreation services. 

Business services impacted by taxation:

Taxable services in Wyoming include:

• Admission to places of amusement, entertainment, recreation, games, or athletic events
• Leasing and renting tangible personal property
• Repairs, alterations, and improvements to tangible personal property
• Transportation of passengers intrastate

Additional resources: Wyoming Department of Revenue

Many companies assume services delivered in conjunction with goods sold (e.g., swimming pools and pool cleaning, computers and maintenance, construction materials and installation) aren’t taxable, but that’s often not the case. Delaware, Hawaii, New Mexico, and South Dakota tax most services. Still others, like Kentucky, are actively expanding service taxability. 

Businesses that sell services across multiple states need to know where those services are subject to sales tax. The fact that sales tax laws aren’t universal and often change makes it challenging to remain in compliance. 

Take the taxability of digital products, for example. Digital products don’t neatly fit into sales tax definitions because many state laws were written before the products were invented. Products like cloud-based software can’t be felt and held. Yet, in some states, like Kentucky, installing digital products is a taxable service lumped in with tangible personal property regulations. Digital services taxes become even more complex when companies sell internationally and need to collect and remit value-added tax (VAT) or goods and services tax (GST).

Sales tax is complicated for on-demand service marketplaces. Companies like DoorDash, Upwork, and Uber need to know when to charge tax on services and when to exempt it. On-demand service platforms must also understand marketplace facilitator laws that may apply to them.

States regularly change product and service taxability rules, and the onus of staying on top of changes is on businesses. For example, Washington state lawmakers decided to tax martial arts and mixed martial arts classes in the fall of 2015. Two years later, many of those services were once more exempt. Failure to correctly apply sales tax rates and rules to products and services can lead to costly errors.

In 2023, there were 11,192 sales and use tax rate updates in the U.S. Knowing which rate to charge and which sales tax rules to apply is especially challenging for companies that sell goods or services in multiple states. No two states have the same sales tax laws.

For example, storage services are taxable in many states but exempt in others. There can also be exceptions to taxability rules. In Kansas, renting storage space is tax exempt but renting portable storage containers is subject to sales and use tax.

Most states now require certain out-of-state sellers to register with the tax authority then collect and remit sales tax. What’s challenging is figuring out which states require which businesses to do so. That depends on nexus — the connection between a business and a state that triggers a sales tax collection obligation.

Having a physical presence in a state always triggers nexus, but thanks to the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., nexus can also be created by economic activity alone. This is called economic nexus. All states with sales tax now require out-of-state businesses with a certain volume of sales or number of transactions in the state to collect and remit sales tax.

Determining nexus is the first step toward sales tax compliance. If you’re unsure whether you’ve established nexus, an Avalara Sales Tax Risk Assessment can help you know where you may have an obligation to collect and remit sales tax.

Many businesses that provide customer support, installation, or warranty services in conjunction with the sale of a physical good need to hire an army of accountants to determine what’s taxable and what’s exempt. If you sell service contracts separately or in tandem with sales of tangible goods or digital products, you may be liable to collect sales tax.

While Hawaii, New Mexico, and South Dakota generally tax all sales of services, many other states tax some services but not others. The challenge for businesses is determining which services are taxable in states where they have nexus. In some states, businesses must charge sales tax on services provided in conjunction with sales of physical or digital goods. For example, Illinois doesn’t tax services, yet businesses may need to collect and remit sales tax on labor charges for installation.

When a sale includes both a product and a service, some states use a true object test to determine the taxability of the transaction. If the main purpose of the transaction (the true object) is the sale of taxable property or equipment, the entire transaction is subject to sales tax. If the main purpose of the transaction is the sale of an exempt service, the entire transaction is generally exempt.

Combined sales of products and services are more common in some industries than others, notably the construction, manufacturing, and medical industries. For example, an insulin monitor often accompanies the sale of diabetes treatment. In this case, the product is secondary to the service, and taxability is based on the real object of the transaction — the service provided.

Are you still asking, Should I charge sales tax on services? Avalara can help. Avalara provides a complete suite of solutions to improve compliance and reduce audit risk. Simplify compliance with Avalara solutions that automatically determine which services and products are taxable, apply updated tax rates, and provide answers to sales and use tax research questions. Contact our tax compliance automation specialists to get started.