This page is for informational purposes only and is not tax, legal, or accounting advice. Consult a qualified tax professional before making compliance decisions. Full disclaimer
Is data processing taxable? State by state
Processing data the customer furnishes and returning the processed result: compute, transformation, analysis and API calls that operate on the buyer's own data. AgentTax routes compute work, API access and data processing to its data processing category.
The states below are the ones where AgentTax has a state-specific position on data processing. Each answer cites the statute or ruling behind it.
| State | Answer | Key authority |
|---|---|---|
| California | Not taxable | S.B. 122 |
| Connecticut | Taxable at 1% | Conn. Gen. Stat. § 12-407 |
| Iowa | Exempt for business buyers | Iowa Code § 423.3(104) |
| Kansas | Not taxable | EDU-71R |
| Kentucky | Taxable at 6% (not settled) | KRS 139.200(2)(ax) |
| Louisiana | Taxable since 2025-01-01 | La. Act 10 (2024 3d Ex. Sess., HB 8, signed 2024-12-04) |
| Maryland | Taxable at 3% | Md. Code, Tax-Gen. §11-104(l)(1) |
| Massachusetts | Treated as taxable at 6.25% | 830 CMR 64H.1.3(9)(a) |
| Mississippi | Not taxable | 2023 SB 2449 |
| New Jersey | Not taxable | N.J.S.A. 54:32B-3(b) |
| North Dakota | Not taxable | N.D. Admin. Code 81-04.1-03-11(8) |
| Ohio | Taxable for business use only | R.C. 5739.01(B)(3)(e) |
| Texas | Taxable on 80% of the price | TX Tax Code §151.351 |
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions.