How to File Sales Tax

When a merchant registers for a sales tax permit, the state assigns you a filing frequency and sales tax filing due dates. When your sales tax filing due date approaches, you need to figure out your sales tax filing frequency and due date and how much sales tax you’ve collected.

It sounds simple, right? However, because all forty-five states (plus Washington DC) with a sales tax make their own tax rules and regulations, this can get complicated quickly. Let’s look at each step toward filing a sales tax return.

Sales Tax Filing and Remittance

Sales tax is an indirect tax applied to the sale of goods or services. It’s generally between four and eight percent. In the US, sales tax is paid by the buyer, collected by the seller at the point of sale, and remitted to the state when a business files sales tax.

It’s also referred to as a “pass-through tax” since it’s collected by a business then passed on to the state. Forty-five states and Washington DC all have sales tax and can each make their own laws, rules, and regulations regarding how much sales tax to charge, what products are taxable, and how companies should collect and remit sales tax.

When a company reaches physical or economic nexus, it typically must register for a permit and file sales tax.

Sales Tax Return Filing

To file a sales tax return, you must register for a sales tax permit with a state’s Department of Revenue or equivalent agency. This permit allows you to collect sales tax in the states where you sell.

When you receive your sales tax license from a state, you’ll also receive your sales tax filing frequencies and due dates. 

Sales Tax Filing Frequency

Sales tax filing frequencies are generally based on your business’s sales volume. Filing frequencies are typically monthly, quarterly, or annually but can also be semi-annual. Also, keep in mind that not all quarters are created equal. New York’s sales tax filing quarters, for example, fall from March 1 to May 31.

In most cases, a small hobby e-commerce business that only makes a few hundred dollars annually has an annual reporting period, meaning they are generally only required to file once every calendar year. However, a prominent business like Wayfair or Amazon is usually required to file sales tax monthly. Some states require very high-volume companies to file and pay even more frequently in some states.

That said, just because your sales tax filing frequency is quarterly in one state does not mean it will be quarterly in every state where you must file a sales tax return.

Sales Tax Filing Due Dates

In most states, sales tax is due on the 20th day of the month after the filing period ends. So, for example, if you are required to file monthly in Colorado, your April 2023 sales tax return would be due on May 20, 2023. Or if you are required to file quarterly in Georgia, your Q1 (January-March) 2023 sales tax return would be due April 20, 2023. 

However, not every state adheres to this rule of thumb either. Some states set their sales tax due dates to the last day of the month after the taxable period. But still other states have a different due date, such as the 15th or 23rd. 

The trouble here is that it’s easy to confuse sales tax return due dates between states and accidentally file late in one state.

Reporting Collected Sales Tax

Once you’ve confirmed your sales tax filing due dates and frequency, your next step is determining how much sales tax you collected in each state over that taxable period.

This would be simple if you only had to tell the state a single number, such as “I collected $5,097.77 in sales tax in California this quarter.”

But sales tax is rarely that simple. 

Most states require that business owners not only tell them how much sales tax they collected but also report how much sales tax they collected in each of the state’s taxing jurisdictions.

Why? States and local areas use sales tax to pay for budget items like roads or public education. They want to ensure that the right amount of tax is allocated to each city, county, or other special taxing district so that local jurisdiction gets its due. 

For a brick-and-mortar seller, this is easy. Sales tax is collected at the point of sale, and a brick-and-mortar retailer stays in one place. But in most cases, an e-commerce business’s point of sale is the buyer’s ship-to address. 

That means that even the smallest e-commerce seller may be required to determine in which city, county, and other special taxing district each of their customers resides. You should have already calculated the right amount of sales tax when making the original transaction. But when it comes time to file your sales tax return, you now have to break that down by state, county, city, and other special taxing jurisdiction.

Remitting Sales Tax to the States

Once you’ve gathered your sales tax collection info, your next step is to file sales tax. 

Every state allows (and encourages) you to file a sales and use tax return online, but state sales tax filing websites vary in user experience and complexity.

Zero Sales Tax Returns

Didn’t collect any sales tax? Don’t forget to file sales tax anyway. Most states require registered sales taxpayers to file “zero returns” even if they didn’t collect any sales tax during the taxable period. 

Unfortunately, failing to file–even when you don’t owe a cent in sales tax–can result in fines or flag you for future sales tax audits. 

Penalties for Late Sales Tax Filing and Payment

Failing to file and pay on time can result in penalties and interest. 

Penalties generally include a one-time fee for failing to file. But interest begins accruing on the amount of sales tax you failed to remit. If you realize that you’ve been unable to file and pay on time, take steps to get up-to-date as soon as possible since interest continues to accrue.

Failed to file or pay over multiple taxable periods? Consider a Voluntary Disclosure Agreement (VDA). 

Sales Tax Discounts

On a brighter note, some states offer a discount to merchants if they file and pay sales tax on time. Basically, they allow you to keep a very small percentage of your sales tax collected if your filing and payment is on time.

How to File and Remit Sales Tax by State

To file a sales tax return and remit taxes, you must submit returns to each taxing authority where you are registered. Most states require you to submit tax returns online and pay online through electronic payments.

Alabama

The Alabama Department of Revenue (DoR) requires remote sellers and businesses to file sales tax online at My Alabama Taxes. However, if you remit more than $750, you must pay electronically through an electronic funds transfer (EFT).

Alaska

While Alaska does not have a state sales tax, several local jurisdictions charge sales tax. You can file and remit sales tax online at the Alaska Remote Seller Sales Tax Commission.

Arizona

Sellers can file Arizona sales tax online at the Arizona Department of Revenue or file by mail using Form TPT-EZ and TPT-2 if you live out of state.

Arkansas

Sellers can file and remit Arkansas sales tax online at the Arkansas Taxpayer Access Point or file by mail using Form ET-1. To get Form ET-1, contact 501-682-7104 and they will be mailed to your business in two to three weeks.

California

In California, sellers can file and remit sales tax by filing online through the California Department of Tax and Fee Administration or by mail through California’s Short Form — Sales and Use Tax Return.

Colorado

Colorado allows sellers to file and remit sales tax returns in two ways — online at the Colorado Department of Revenue website or through mail by using Form DR-0100.

Connecticut

The state of Connecticut requires all sellers to file and remit sales tax returns online at the Connecticut Department of Revenue Services website.

Florida

As a seller, you have two options for filing and remitting Florida sales tax: filing online at the Florida Department of Revenue or filing through mail using Form DR-15.

Georgia

In Georgia, sellers can file and remit sales tax online at the Georgia Tax Center or by using Form ST-3.

Hawaii

Hawaii does not have a sales tax; instead, it has a general excise tax. Sellers can file and remit general excise taxes through Hawaii Tax Online.

Idaho

To file Idaho state sales tax, you can file online at the Idaho State Tax Commission’s Taxpayer Access Point (TAP) or by using a paper form that the state can mail.

Illinois

Sellers can file and remit Illinois sales tax online at MyTax Illinois or by mail using Form ST-1.

Indiana

Remote sellers and businesses can file Indiana sales tax online at the Indiana Department of Revenue.

Iowa

In Iowa, sellers can file sales and use tax returns online through GovConnectIowa.

Kansas

Those who have to file and remit Kansas sales tax have two options:

• File online at the Kansas Department of Revenue. However, you may need to contact the Kansas Department of Revenue if you’ve never used this system.
• Fill out Form ST-16 if you report sales made in single sales tax jurisdictions or multiple sales tax jurisdictions.

Kentucky

Sellers can file and remit Kentucky sales tax online at the Kentucky Department of Revenue.

Louisiana

There are three ways to file and remit sales tax in Louisiana:

• Online through Louisiana Taxpayer Access Point (LaTAP)
• Online through E-Parish
• Download a PDF return and mail it to the Louisiana Department of Revenue

Maine

You have two ways to file and remit sales tax in Maine: online through the Maine Tax Portal or by mail using Form ST-7.

Maryland

Sellers can file and remit Maryland sales tax through the Maryland Tax Connect portal.

Massachusetts

There are two ways for sellers to file and remit Massachusetts sales tax: online at the Massachusetts Department of Revenue website or by mail using Form ST-9.

Michigan

Sellers can file and remit Michigan sales and use tax online at Michigan Treasury Online or mail through Form 5080 for monthly or quarterly returns. 

Minnesota

In Minnesota, sellers file sales and use tax returns online at the Minnesota Department of Revenue.

Mississippi

Sellers can file sales and use tax returns electronically at the Mississippi Department of Revenue.

Missouri

Those who sell in Missouri can file and remit sales tax online at the Missouri Department of Revenue or by mail using Form 53-1. For the mailed form, the state will issue it to you.

Nebraska

Sellers can file sales tax returns online through the Nebraska Department of Revenue website or by using Form 10.

Nevada

In Nevada, sellers file and remit sales tax returns online at the Nevada Tax Center or by filling out this form.

New Jersey

New Jersey sales and use tax returns can be filed online at the New Jersey Division of Taxation website or by mail using Form ST-50 for quarterly returns.

New Mexico

New Mexico does not have a state sales tax. Instead, it has a gross receipts tax that is imposed on any persons engaged in business in the state. Sellers have two options for filing and remitting New Mexico gross receipts taxes:

• File online through the New Mexico Taxation & Revenue Department
• File by mail using the Gross Receipts Tax Return

New York

Sellers can file sales tax returns online at the New York Department of Taxation and Finance website.

North Carolina

In North Carolina, sellers can file and remit sales tax online at the North Carolina Department of Revenue or by mail with Form E-500.

North Dakota

Sellers can file and remit sales tax returns online at the North Dakota Taxpayer Access Point.

Ohio

In Ohio, sellers can file and remit sales tax electronically at the Ohio Department of Taxation.

Oklahoma

Remote sellers and businesses have two ways to file and remit Oklahoma sales tax: file online at OK Tap or using form STS-20002 to file by mail.

Pennsylvania

Sellers can file sales tax electronically at the Pennsylvania Department of Revenue or by calling 1-800-748-8299.

Rhode Island

Sellers can file and remit sales tax in Rhode Island through two different ways: online at the Rhode Island Division of Taxation website or by mail using the Streamlined Sales Tax Return.

South Carolina

Those who are required to file sales tax in South Carolina can do so electronically at the South Carolina Department of Revenue.

South Dakota

Sellers can file and remit sales tax online through the South Dakota Department of Revenue.

Tennessee

Sellers can file and pay Tennessee sales tax electronically using TNTAP or by mailing in Form SLS-450.

Texas

In Texas, sellers can file and remit sales tax online through the Texas Comptroller website or by mail using the Texas sales and use tax return.

Utah

Sellers can file Utah sales tax online through the Utah Taxpayer Access Point (TAP) or by mail after a sales tax license has been issued. You can find more about forms here.

Vermont

In Vermont, sellers can file a sales tax return online using myVTax or submit a paper return if you have a single location.

Virginia

Sellers can file and remit Virginia sales tax through the Virginia Tax website or mail using Form ST-8 for out-of-state sellers or Form ST-9 for in-state sellers with one location.

Washington

For Washington sales tax, sellers can file a form online at the Washington Department of Revenue or use a form to file and pay through the mail.

West Virginia

Sellers can file a West Virginia sales tax return online at MyTaxes or by mail using Form CST200CU.

Wisconsin

Regarding Wisconsin sales tax, sellers can file a return and remit sales taxes through the Wisconsin Department of Revenue website or by mail using Form ST-12.

Wyoming

Sellers can file a Wyoming sales tax return and remit taxes online at the Wyoming Internet Filing System for Business.

Filing Sales Tax: Conclusion

Filing sales tax on your own can be a challenge as each state has its own rules and regulations regarding filing and remittance. The best way to streamline tax compliance and filing is by having an automated sales tax solution to handle it all for you.

Zamp is the first managed sales tax solution in the market, which allows businesses to outsource their sales tax compliance from start to finish. We eliminate the day-to-day management of sales tax, handling nexus tracking, registrations, calculations, mapping, reporting, and filing for you. Plus, our tax team has over 200 years of sales tax experience. 

Click the button below to get started and see how Zamp can help you.