The Complete List of States That Charge Sales Tax On Services
The following table below is a detailed list of states that charge sales tax on services appears in the table below, showing general sales‑tax rates, local add‑ons, and each state’s stance on service taxation. Refer to the Comments column to see whether services are widely taxed, selectively taxed, or exempt in every jurisdiction.
Gnesist’s List Of States That Charge Sales Tax On Services
| State | Sales Tax Rate | Local Tax Variation | Comments |
|---|---|---|---|
| Alabama | 4.00% | 0%–7% | Generally does not tax services at the state level; only a few services (e.g. amusement fees, repairs to property, and linen rentals) are taxable. |
| Alaska | 0.00% | 0%–7.5% | No state sales tax on goods or services. (Local jurisdictions may levy sales taxes, including on some services.) |
| Arizona | 5.60% | 0%–5.6% | Taxes certain services under its transaction privilege tax (TPT). For example, Arizona taxes many amusement, personal property leasing, contracting, and publishing services, while most other services are exempt. |
| Arkansas | 6.50% | 0%–5% | Taxes a range of services, including many business, personal, and property-related services. For instance, Arkansas taxes cleaning services, pest control, pet grooming, lawn care, and amusement services. |
| California | 7.25% | 0%–3% | Generally does not tax services. California’s sales tax applies mainly to tangible goods; most services (e.g. professional and personal services) are exempt from sales tax. (Proposals to tax services have been raised but not enacted.) |
| Colorado | 2.90% | 0%–8.3% | Does not generally impose sales tax on services. Colorado taxes very few services at the state level (it is among the states taxing fewer than 20 services). (Note: Some home-rule cities in Colorado may tax more services locally.) |
| Connecticut | 6.35% | None | Taxes a broad range of services. Many services (including personal, professional, and maintenance services) are subject to Connecticut sales tax, making its service tax base relatively large. |
| Delaware | 0.00% | None | No sales tax on goods or services. (Delaware instead imposes a gross receipts tax on the seller for certain services, but consumers pay no sales tax.) |
| Florida | 6.00% | 0%–2% | Exempts most services. Only specific services are taxed in Florida – for example, commercial rent/lease payments, a few repair and maintenance services, and amusement or recreation admissions are subject to sales tax. |
| Georgia | 4.00% | 0%–5% | Exempts most services. Only limited categories (such as charges for amusement park or sporting event admissions) are taxable in Georgia. Virtually all other services are not subject to sales tax. |
| Hawaii | 4.00% | 0%–0.5% | Broadly taxes services by default. Hawaii’s General Excise Tax (GET) applies to almost all services (as well as goods) unless specifically exempt. This means services in Hawaii are generally taxable. |
| Idaho | 6.00% | 0%–3% | Exempts most services. Only some services are taxed in Idaho – primarily services to tangible personal property (e.g. repair or installation labor) and certain recreation/amusement services. The vast majority of services face no sales tax. |
| Illinois | 6.25% | 0%–4.75% | Does not tax most services. Illinois generally limits sales tax to goods; services are exempt except in a few cases (e.g. if a service is bundled with a taxable product or certain grooming and installation services). |
| Indiana | 7.00% | None | Exempts most services. Indiana’s sales tax applies mainly to sales of tangible goods; services generally aren’t taxable, with only a few exceptions (such as if the service results in a product being created or in rare cases like photography sessions that include tangible goods). |
| Iowa | 6.00% | 0%–2% | Taxes many services. Iowa’s tax base includes approximately 75 taxable services, ranging from personal services (e.g. salon services, dating services) to maintenance, repairs, and business services. In Iowa, services to both tangible and real property, along with various personal services, are subject to sales tax. |
| Kansas | 6.50% | 0%–4.1% | Taxes many services. Kansas applies sales tax to numerous services, including labor services to tangible property, amusement and recreational services, and certain business services. Many services that are exempt in other states are taxable in Kansas. |
| Kentucky | 6.00% | None | Taxes many services. In recent years Kentucky expanded its sales tax to cover various services. The state now taxes a range of services, including certain personal services (like pet care, landscaping, fitness training) and business services, whereas previously these were exempt. |
| Louisiana | 4.45% | 0%–7% | Taxes some services. Louisiana’s state sales tax generally applies to goods, but it also covers certain services (for example, fabrication and repair labor, telecommunications, and some personal services). Many other services remain exempt or are taxed only at local levels. |
| Maine | 5.50% | None | Exempts most services under its general sales tax. However, Maine imposes a separate Service Provider Tax (at 5%) on specific services (e.g. telecommunications, rental of furniture, certain installation and personal services). Thus, while Maine’s sales tax doesn’t broadly tax services, some services are taxed under this parallel tax. |
| Maryland | 6.00% | None | Exempts most services. Maryland’s sales tax is primarily on goods. Only a few services (such as production or fabrication of tangible personal property, lodging, or certain amusement charges) are taxable. The vast majority of professional and personal services are not subject to Maryland sales tax. |
| Massachusetts | 6.25% | None | Exempts nearly all services. Massachusetts is among the states that tax very few services (fewer than 20 specific services are taxable). In general, MA sales tax applies only to tangible goods; most services (apart from a handful like telecommunications or cable TV) are not taxed. |
| Michigan | 6.00% | None | Exempts most services. Michigan’s sales tax applies almost exclusively to tangible products. Services are generally not taxable in Michigan, aside from a few exceptions (e.g. hotel accommodations are taxed as they are treated as tangible property rentals, and some telecommunications services). |
| Minnesota | 6.875% | 0%–1.5% | Taxes some services. Minnesota imposes sales tax on certain services – for example, repair and maintenance labor, many digital goods/services, and a selection of personal services are taxable. However, a large number of services (especially professional services) remain exempt in Minnesota. |
| Mississippi | 7.00% | 0%–1% | Taxes many services. Mississippi’s sales tax law broadly taxes numerous services (beyond just goods). For instance, Mississippi applies tax to things like repair services, amusement and entertainment services, and some personal services, making its service tax scope relatively extensive. |
| Missouri | 4.225% | 0%–5.875% | Exempts most services. Missouri generally does not tax services; its sales tax is focused on tangible personal property. Only a very few services (such as admissions or rentals closely tied to tangible goods) are subject to Missouri sales tax. |
| Montana | 0.00% | None | No general sales tax (no state or local sales tax on goods or services in Montana). (Montana does not levy sales tax; only certain local resort taxes exist for specific tourism-related services.) |
| Nebraska | 5.50% | 0%–2% | Taxes some services. Nebraska’s sales tax applies to certain services (for example, telecommunications, utilities, building cleaning, and repair labor are taxable), but many other services remain exempt. Only specifically enumerated services are taxed, and Nebraska still excludes a broad range of services from sales tax. |
| Nevada | 6.85% | 0%–1.53% | Exempts most services. Nevada’s sales tax (a form of excise tax) generally does not apply to services. The main exceptions are services that are part of the sale of tangible personal property (e.g. repair or installation services are taxable). Aside from those, services are not taxed in Nevada (Nevada taxes fewer than 20 services overall). |
| New Hampshire | 0.00% | None | No sales tax (New Hampshire does not impose any sales tax on goods or services). (Note: NH also has no state income tax on wages, making it a no-sales-tax state.) |
| New Jersey | 6.625% | None | Taxes many services. New Jersey’s sales tax extends to a wide range of services (including installation and repair services to tangible property, landscaping and maintenance services, information services, and certain personal services). However, some services (like most professional services) are still exempt in NJ. |
| New Mexico | 5.125% | 0%–3.9375% | Broadly taxes services. New Mexico uses a Gross Receipts Tax (GRT) which taxes most services by default (along with goods). Unless a service is specifically exempted by law (e.g. certain healthcare services), it is subject to NM’s tax. |
| New York | 4.00% | 0%–4.875% | Exempts most services. By default, New York does not charge sales tax on services. There are notable exceptions where NY does tax services, such as utilities (electricity, gas), telecommunications, hotel accommodations, admission charges for entertainment, and certain information services. Aside from those enumerated categories, services are not taxed. |
| North Carolina | 4.75% | 0%–2.75% | Historically exempted most services, though it has recently expanded service taxation. North Carolina now taxes certain repair, maintenance, installation services and some entertainment/amusement services (since 2016 reforms). Still, the majority of services remain exempt in NC (sales tax applies mainly to goods). |
| North Dakota | 5.00% | 0%–3.5% | Exempts most services. North Dakota generally does not tax services; only a few categories (e.g. amusement/recreation services and some labor services to tangible property) are taxable. Nearly all other services are sales tax-free in ND. |
| Ohio | 5.75% | 0%–2.25% | Taxes many services. Ohio’s sales tax base includes dozens of taxable services. For example, Ohio taxes landscaping and lawn care, private investigation/security services, software/data services, and other business and personal services. Overall, many services that are exempt elsewhere are taxable in Ohio. |
| Oklahoma | 4.50% | 0%–7% | Exempts most services. Oklahoma’s state sales tax mostly covers goods; only specific services are taxed (primarily services to tangible personal property and certain amusements). Most other services (professional, personal) are not subject to Oklahoma sales tax. |
| Oregon | 0.00% | None | No sales tax (Oregon levies no state or local sales tax on purchases of goods or services). |
| Pennsylvania | 6.00% | 0%–2% | Taxes some services. Pennsylvania taxes certain enumerated services – for example, repair services to tangible property, building maintenance and cleaning services, parking, and laundry services are taxable. However, most services are exempt in PA (professional services like legal, medical, etc., and personal services like haircuts are not taxed). |
| Rhode Island | 7.00% | None | Mostly exempts services. Rhode Island’s sales tax covers tangible goods and a short list of services. Only specific services (such as labor on tangible personal property, telecommunications, and lodging/accommodations) are subject to sales tax. The majority of other services are exempt. |
| South Carolina | 6.00% | 0%–3% | Exempts most services. South Carolina taxes only a few service categories – notably, charges for amusement parks, athletic events, and other recreation admissions are taxable, as well as accommodations (lodging) and a handful of business services. Most personal and professional services are not taxed. |
| South Dakota | 4.50% | 0%–2% | Broadly taxes services. South Dakota is one of the few states that tax nearly all services by default. Unless a service is specifically exempt (such as certain medical or educational services), it is subject to SD sales tax. This broad tax base includes most personal and business services. |
| Tennessee | 7.00% | 0%–2.75% | Exempts most services by default. Tennessee only taxes services that are explicitly enumerated in law – for example, repair and installation labor on tangible property is taxed, and Tennessee also imposes an amusement tax on entertainment services. Other non-listed services (e.g. professional services) are exempt. |
| Texas | 6.25% | 0%–2% | Taxes many services. Texas imposes sales tax on a wide variety of services, including data processing and information services (with a partial exemption), amusement services (e.g. sporting events, amusement parks), cable TV and telecom services, insurance services, and more. Most professional services (legal, accounting, medical) remain exempt. |
| Utah | 4.85% | 0%–4% | Exempts most services. Utah generally taxes goods and a few services. Taxable services in Utah are mainly services to tangible personal property (e.g. repair labor) and amusement/recreation charges. Other services, including most personal and professional services, are not subject to Utah sales tax. |
| Vermont | 6.00% | 0%–1% | Exempts most services. Vermont taxes only specific services by statute – for example, a few services to property (like installation of taxable goods) and amusement admissions are taxable. The majority of services (including personal care and professional services) are exempt from Vermont’s sales tax. |
| Virginia | 4.30% | 0%–2.7% | Exempts most services. Virginia taxes very few services (it is among the states taxing fewer than 20 services). Sales tax in VA applies mainly to products; services generally are not taxed, aside from a short list of exceptions (such as room rentals and a few amusement or data services). |
| Washington | 6.50% | 0%–3.9% | Taxes many services. Washington has steadily expanded its sales tax base to include more services. Many business and personal services are subject to WA sales tax – for example, Washington taxes certain digital services, installation services, extended warranties, and amusement/recreation services. (Professional services like medical/legal remain exempt.) |
| West Virginia | 6.00% | 0%–1% | Broadly taxes services. West Virginia taxes services by default (similar to HI, NM, SD). Most services are taxable unless specifically exempt. WV’s base includes many personal services, contracting services, etc., making it one of the broadest service-tax states. |
| Wisconsin | 5.00% | 0%–0.6% | Taxes some services. Wisconsin’s sales tax covers certain services (e.g. landscaping and lawn maintenance, some installation and repair services, amusement admissions, and cleaning services are taxed). However, many other services (especially professional and personal services) are exempt in Wisconsin. |
| Wyoming | 4.00% | 0%–2% | Taxes some services. Wyoming’s sales tax (often called an excise tax) applies to a limited set of services – chiefly services to tangible personal property (like repair labor) and a few amusements. Most other services are not taxed in Wyoming. |
States with No Sales Tax or No Tax on Services
The following states either do not have any general sales tax (and therefore do not tax services at all), or they have a sales tax but do not tax services (or only tax a negligible number of services):
- Alaska – No state sales tax (no sales tax on goods or services).
- Delaware – No sales tax at all (Delaware does not impose sales tax on purchases of goods or services).
- Montana – No sales tax (Montana has no general statewide sales tax on anything).
- New Hampshire – No sales tax (no tax on goods or services in NH).
- Oregon – No sales tax (Oregon charges no sales tax on any products or services).
- Colorado – Services generally not taxed (Colorado’s sales tax applies to fewer than 20 services, effectively exempting almost all services).
- Illinois – Does not tax services (Illinois sales tax is almost entirely on goods; virtually all services are exempt).
- Massachusetts – No tax on almost all services (MA taxes fewer than 20 specific services, otherwise services face no sales tax).
- Nevada – No tax on most services (Nevada’s sales tax base excludes nearly all services, except a few like repair services).
- Virginia – No tax on services generally (Virginia does not levy sales tax on services except for a very few exceptions).
Each of the above states either lacks a sales tax entirely or chooses not to tax services in their sales tax code, making them outliers in how services are treated for sales tax purposes.