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 SaaS taxable? State by state
Remotely accessed software sold by subscription or per use: the customer runs the seller's hosted application and never receives a copy. AgentTax routes SaaS and general AI-agent output (content and consulting work) to its digital service category.
The states below are the ones where AgentTax has a state-specific position on SaaS. Each answer cites the statute or ruling behind it.
| State | Answer | Key authority |
|---|---|---|
| Kansas | Not taxable | KDOR Opinion Letter O-2012-001 |
| Louisiana | Taxable since 2025-01-01 | La. Act 10 (2024 3d Ex. Sess., HB 8, signed 2024-12-04) |
| Mississippi | Not taxable (out-of-state server) | Miss. Code 27-65-7 |
| Missouri | Not taxable | 12 CSR 10-109.050 |
| Nevada | Not taxable | NRS § 372.085 |
| North Dakota | Not taxable (inference-based) | N.D.C.C. 57-39.2-02.1(1)(a)-(i) |
| Oklahoma | Not taxable | 68 Okla. Stat. § 1354 |
Full SaaS guides
- ArizonaTaxable (as a rental)
- CaliforniaNot yet — taxable 2027-01-01
- ColoradoSplit — state from 2027-01-01, home-rule cities already
- ConnecticutTaxable
- FloridaNot taxable
- GeorgiaNot taxable
- HawaiiTaxable
- IdahoNot taxable
- IllinoisNot taxable
- IowaTaxable (business-use exemption)
- MaineNot taxable
- MarylandTaxable
- MassachusettsTaxable
- MichiganNot taxable
- MinnesotaNot taxable
- New JerseyNot taxable
- New MexicoTaxable
- New YorkTaxable
- North CarolinaNot taxable
- OhioBusiness buyers only
- PennsylvaniaTaxable
- Rhode IslandTaxable
- South CarolinaTaxable
- South DakotaTaxable
- TennesseeTaxable
- TexasTaxable (80%)
- UtahTaxable
- VirginiaNot taxable
- WashingtonTaxable
- Washington, DCTaxable
- West VirginiaTaxable
- WisconsinNot taxable
- WyomingNot taxable
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.