COVID-19 tax relief roundup

Last updated May 11, 2021. Orginally published March 16, 2020.

Governments worldwide are working to bolster an economy faltering under the new coronavirus (COVID-19) pandemic. In many countries, including the United States, relief includes tax filing and payment extensions and even temporary rate reductions.

So that you can focus on your family and business rather than hunt for information, we’re compiling tax news related to the COVID-19 outbreak in this roundup. It's updated regularly as more information becomes available.

Tax relief varies widely by country, state, and industry. Jump to the COVID-19 news you want to know. 

Last updated February 2, 2021

State Filing extension Payment extension Penalty waived Interest waived
California

Colorado

Temporary deduction

       
Maryland
Massachusetts  
New Mexico

New York

Washington 
upon request
 
State Tax relief

Alabama

Updated 3.24.21

2020 state sales tax relief programs have expired. 

Contact non-state administered localities directly for information about local relief efforts.

See COVID-19 Outbreak Updates.

The Alabama Department of Revenue (ALDOR) will automatically waive, without request, late-payment penalties for income tax payments remitted by May 17, 2021. However, ALDOR is not authorized to waive interest, and any interest accruing from April 15, 2021, through the actual payment date will be due. ALDOR encourages taxpayers to make their payments for the 2020 tax year as soon as possible to avoid the accrual of interest beyond April 15.

Alaska

Updated 1.26.21

Contact local governments directly to learn about potential sales tax relief programs.

See the Alaska Department of Revenue.

Arizona

Updated 1.26.21

2020 relief transaction privilege tax (TPT) programs have expired.

See COVID-19 Relief Resources.

Arkansas

Updated 3.24.21

See COVID-19: DFA FAQs.

The state income tax due date is extended to May 17, 2021.

California

Updated 3.24.21

Sales tax relief. For sales and use tax originally due December 15, 2020 through April 30, 2021, business taxpayers with less than $5 million in annual taxable sales are eligible for a 12-month, interest-free payment plan for up to $50,000 of sales and use tax liability. Full payment is due by April 30, 2022.

This is the second such plan offered by California, and participation in the first doesn't disqualify businesses from applying for the second. Full payment on the initial payment plan is due by July 31, 2021.

The payment plan is not automatically granted; requests must be made through the CDTFA online services system.

See COVID-19 Extensions to File and Pay for a list of extended due dates for all state business taxes and fees.

 

The state income tax due date is extended to May 17, 2021.

Colorado

Updated 3.24.21

Sales tax relief. Qualifying bars, restaurants, and mobile food vendors may claim a special limited state sales tax deduction for the November 2020, December 2020, January 2021, and February 2021 tax periods.  

See COVID-19 Updates.


The state income tax due date is extended to May 17, 2021

Connecticut

Updated 3.24.21

2020 sales tax relief programs have expired. 

See COVID-19 Response FAQs.


The state individual income tax due date is extended to May 17, 2021.

Delaware

Updated 3.24.21
2020 tax relief programs have expired.

The state personal income tax due date is extended to May 17, 2021

Florida

Updated 1.26.21

 

2020 sales tax relief programs have expired

See Taxpayer Info COVID-19Taxpayers adversely affected by COVID-19 should send questions to  

COVID19TAXHELP@floridarevenue.com.

Georgia


Updated 5.11.21
No sales tax relief.

Temporary ad valorem tax relief for Georgia manufacturers is available for property tax year 2021.

See Coronavirus Tax Relief Information.

The deadline to file and pay state individual income tax returns is extended to May 17, 2021
Hawaii

Updated 1.26.21

No General Excise Tax (GET) relief.

See the Hawaii Department of Taxation COVID-19.

Idaho

Updated 1.26.21
No sales tax relief. 

See Coronavirus and Idaho Taxes.

Illinois

Updated 3.24.21

2020 sales tax relief programs have expired. 

See COVID-19 Information for Illinois Taxpayers.

The deadline to file and pay state individual income tax returns is extended to May 17, 2021

Indiana

Updated 3.24.21

No sales tax relief. However, Indiana is waiving use tax on donated COVID-19 supplies, including medical supplies, food, and cleaning supplies.


See
Coronavirus Information.


The deadline to file and pay state individual income tax returns is extended to May 17, 2021

Iowa

Updated 5.11.21

2020 sales tax relief programs have expired.

The deadline to file and pay 2020 Iowa individual income taxes (and individual estimated income tax payments for Q1 2021) was extended from April 30, 2021 to June 1, 2021.

See the Iowa Department of Revenue COVID-19.

Kansas

Updated 3.24.21
No sales tax relief.

See the Kansas Department of Revenue.


The deadline to file and pay state individual income tax returns is extended to May 17, 2021

Kentucky

Updated 3.24.21

No sales tax relief.

See COVID-19 Information.

The deadline to file and pay state individual income tax returns is extended to May 17, 2021.

Louisiana

Updated 1.26.21

2020 sales tax relief programs have expired

Some home-rule jurisdictions are providing local sales tax filing and payment extensions. 

See COVID-19 and COVID-19: Louisiana State Tax Filings and Payment Extensions

Maine

Updated 3.24.21
For sales occurring in 2020, the presence of employees in the state doesn't constitue substantial physical presence for sales and use tax, provided they started working remotely from Maine during the state of emergency and due to the COVID-19 pandemic.

See COVID-19 FAQs.

The individual income tax deadline is extended to May 17, 2021.

Maryland

Updated 3.24.21

Maryland taxpayers have until April 15, 2021, to file and remit eligible business taxes, including sales tax, otherwise due in January, February, or March 2021. The extension will be granted automatically; no interest or penalties will be assessed provided returns are filed and taxes paid by April 15, 2021.

See COVID-19 Agency Response.

All individual, corporate, pass-through entity, and fiduciary income tax returns that otherwise would be due between January 1, 2021 and July 15, 2021, inclusive, are now due on or before July 15, 2021.

Massachusetts

Updated 5.11.21

The filing and payment deadline for certain vendors collecting room occupancy excise and sales and use taxes otherwise due March 20, 2020 through June 1, 2021 has been extended to October 30, 2021. The Department previously extended the deadline to June 20, 2020, and again to September 20, 2020, and then to May 20, 2021.

Businesses that collected less than $150,000 in regular sales plus meals taxes in the twelve-month period ending February 29, 2020 are eligible for relief for sales and meals taxes. Businesses that collected less than $150,000 in room occupancy taxes in the twelve-month period ending February 29, 2020 are eligible for relief with respect to room occupancy taxes. For these small businesses, no penalties or interest will accrue during this extension period.

For businesses with meals tax and room occupancy tax obligations that do not otherwise qualify for this relief, late-file and late-pay penalties for returns due from March 20, 2020 through June 1, 2021 are waived through October 30, 2021.

Additional tax-relief needs will be handled on a case-by-case basis based on reasonable cause.

See Important COVID-19 Coronavirus Response Update from DOR and Updates to Relief for Certain Business Taxes.

The individual income tax deadline is extended to May 17, 2021

Michigan

Updated 3.24.21

2020 sales tax relief programs have expired. 

See COVID-19 Updates.

The individual income tax deadline is extended to May 17, 2021

Minnesota

Updated 3.24.21

2020 sales tax relief programs have expired. 

Taxpayers with reasonable cause, or who are negatively affected by the COVID-19 panedmic, may ask the Department of Revenue to cancel or reduce penalties and interest for late filing or payment.

See Our Response to COVID-19.

Taxpayers have until May 17, 2021 to file and pay individual income tax. 

Mississippi


Updated 3.24.21

No sales tax relief.

See Covid-19.

The individual income tax deadline has been extended to May 17, 2021.

Missouri


Updated 3.24.21

No sales tax relief.

See Relief Resources.

The individual income tax deadline has been extended to May 17, 2021.

Montana


Updated 3.24.21

No sales tax or sales tax relief.

The Montana Department of Revenue will work to find a solution for Montana taxpayers impacted by COVID-19.

See COVID-19 updates.

The individual income tax deadline is extended to May 17, 2021

Nebraska


Updated 3.24.21

No sales tax relief.

See the Nebraska Department of Revenue.

The individual income tax deadline is extended to May 17, 2021

Nevada

Updated 1.26.21

Nevada is offering a tax amnesty program for qualifying taxpayers, February 1–May 1, 2021.

See the Nevada Tax Department

New Hampshire

Updated 1.26.21

No sales tax or sales tax relief.

See the New Hampshire Department of Revenue Administration.

New Jersey

Updated 3.24.21

No sales tax relief.

See the Division of Taxation.

The individual income tax deadline is extended to May 17, 2021.

New Mexico

Updated 3.24.21

Deadlines to file tax returns to avoid late-filing penalty and interest relief have expired. 

Gross receipts tax/compensating tax. Taxes due March 25–July 25 are eligible for penalty and interest relief. Tax returns must be filed by the original due date to avoid late filing penalties, but the deadline to pay gross receipts tax and compensating tax in full is extended to April 25, 2021.

Withholding tax relief. The deadline to file withholding tax returns due March 25–July 25 is extended to July 25, 2020. Interest and penalty is waived provided payment in full is made by April 25, 2021. 

Property tax. Property tax due April 10–May 10, 2020 is eligible for penalty and interest relief if paid in full by May 10, 2021.

See New Mexico Taxation and Revenue.

The personal income tax deadline is extended to May 17, 2021.

New York

Updated 3.24.21

Sales tax returns and payments for the period September 1 - November 30 were due December 21, 2020. However, penalty and interest may be waived for businesses unable to file and pay on time that are principally engaged in business as a restaurant or other food service establishment in New York City that had to suspend indoor dining due to Executive Order 202.81, or as a restaurant or other food service establishment that had to suspend indoor dining due to the Governor’s Executive order 202.68 because you are located in an area that was a designated Orange Zone on December 18, 2020. Sales tax returns must be filed and the total amount due must be paid by March 22, 2021, for this relief to apply. This relief does not apply to vendors enrolled in PrompTax for sales and use tax.

See Tax relief for quarterly and part-quarterly (monthly) sales tax vendors affected by COVID-19 to request relief from penalty and interest.

See Tax Department Response to COVID-19.

The personal income tax deadline is extended to May 17, 2021

North Carolina

Updated 3.24.21

2020 sales tax relief programs have expired. 

See NCDOR Actions on COVID-19.

The individual income tax deadline is extended to May 17, 2021

North Dakota

Updated 3.24.21

No sales tax relief.

See the North Dakota State Tax Commissioner.

The deadline for individual income tax filers is extended to May 17, 2021.

Ohio 

Updated 3.24.21
No sales tax relief.

See Ohio's COVID-19 Tax Relief

The deadline to file and pay individual income and school district income taxes is extended to May 17, 2021.

Oklahoma

Updated 2.3.21

No sales tax relief. 

See Our Response to COVID-19.

Oregon

Updated 3.24.21

No sales tax relief.

See Oregon offering tax relief due to pandemic.

The individual income tax deadline is extended to May 17, 2021.

Pennsylvania

Updated 3.24.21

2020 sales tax relief programs have expired. 

The Pennsylvania Department of Revenue (DOR) may give taxpayers increased flexibility, additional time to meet tax obligations, and relief from a number of compliance actions. 

See Relief for Taxpayers During COVID-19 Pandemic.

The individual income tax deadline is extended to May 17, 2021

Puerto Rico

Updated 2.3.21

2020 sales tax relief programs have expired.

See Tax measures related to coronavirus.

Rhode Island

Updated 2.3.21

2020 sales tax relief programs have expired.

See COVID-19 Information.

The individual income tax deadline is extended to May 17, 2021.

South Carolina

Updated 3.24.21

2020 sales tax relief programs have expired.  

See The Department of Revenue, Emergencies.

The individual income tax due date is extended to May 17, 2021.

South Dakota

Updated 2.3.21

No sales tax relief.

See SDDOR.

Tennessee

Updated 3.24.21

No sales tax relief.

See Tennessee Department of Revenue COVID-19 Updates.


The individual income tax due date is extended to May 17, 2021. The extension also applies to franchise tax and excise tax otherwise due April 15, 2021.

Texas

Updated 2.3.21

For businesses struggling to remit the full amount of sales taxes collected from customers, a short-term payment agreement may be available. 

See COVID-19 News.

Utah


Updated 3.24.21

No sales tax relief.

See the Utah State Tax Commission News Release.


The individual income tax due date is extended to May 17, 2021

Vermont

Updated 2.3.21

Businesses and individuals financially impacted by COVID-19, who were unable to fully pay taxes for tax periods that became due during the Governor’s state of emergency on March 13, 2020, may be eligible for the special repayment provisions.

See Coronavirus Update: Information for Taxpayers.


The individual income tax due date is extended to May 17, 2021

Virginia

Updated 3.24.21

Businesses that adopt the state's COVID-19 Emergency Temporary Standard and compy with certain criteria may qualify for a temporary sales tax exemption for personal protective equipment.

See Coronavirus Updates.

The personal income tax due date is extended to May 17, 2021

Washington

Updated 2.3.21

 

Revenue Agents are available to assist businesses struggling to pay tax liability due to COVID-19. Cases will be handled on a case-by-case basis. For assistance, please contact your Revenue Agent or local field office.

Washington, D.C.

Updated 3.24.21

Relief may be available if payment of the amount due (minus penalty and interest) is remitted timely.

See OTR Coronavirus Information and Guidance and Important Reminder for Sales and Use Tax Filers.

The deadline to file and pay all income tax returns is extended to May 17, 2021

West Virginia

Updated 3,24.21

No sales tax relief.

See COVID-19 Response.


The deadline to file and pay all income tax returns is extended to May 17, 2021

Wisconsin 

Updated 3,24.21

2020 sales tax relief programs have expired.

See COVID-19 Information and Anouncements.

The deadline to file and pay individual income tax is extended to May 17, 2021.

Wyoming

Updated 2.3.21

Sales and use tax filings will be handled on a case-by-case basis. See the Wyoming Department of Revenue for more details.

Updated January 2, 2021.

The food and beverage industries have been particularly hard hit by stay-at-home and social distancing orders.

Helpful policies are being tracked by the Alcohol and Tobacco Tax and Trade Bureau atTTB Updates and Guidance on COVID-19. Regulations specific to the wine industry are also changing. Please see the Wine Institute for more information.

To give struggling businesses a boost, many states have relaxed laws governing the sale of alcohol. Several states are helping businesses in the industry in other ways, as well. Relief includes, but isn’t limited, to the following.

California

  • Licensees can sell and deliver alcoholic beverages to customers in their vehicles.
  • The hours during which specified licensees may deliver alcoholic beverages to retailers have been extended.
  • Manufacturers and wholesalers may extend credit past 30 days and won’t be required to impose penalty charges on delinquent accounts.
  • Manufacturers and wholesalers may accept returns from retailers.
  • There are extensions for Alcoholic Beverage Tax and Sales and Use Tax returns. See the new due dates here.
  • See the ABC COVID-19 Updates and theCDTFAfor more information.

Illinois

  • All liquor licenses expiring on the last day of March, April, and May are extended through July 21, 2020 (but should be renewed online as soon as possible). Late fees will not be assessed.
  • Short-term relief of sales tax payments is available for qualifying eating and drinking establishments. See the sales tax relief chart (above) for details.
  • See the Illinois Liquor Control Commission and the Illinois Department of Revenue for more information.

Maine

  • Temporary extensions are conditionally granted for all licenses that expired or will expire from March 1 to April 30, 2020, including Certificates of Approval and Direct Shipper of Wine licenses, and label registration renewals.
  • See the BABLO and the Maine Revenue Services for more information.

New York

  • Late filing and payment penalties and interest for the quarterly sales and use tax return due March 20 will be waived for affected taxpayers.
  • Licensed retailers with renewals due March 31 or April 30 have until June 1 to submit payments normally due with their renewal applications. However, they must submit renewal paperwork associated with their renewals.
  • Wholesalers may immediately lower prices charged to retailers and lower the volume of products retailers need to order to receive a quantity discount.
  • See the New York State Liquor Authority (SLA) and the New York Department of Taxation and Finance for more information.

North Carolina

  • Due to COVID-19, the North Carolina Department of Revenue (NCDOR) will not witness the destruction of malt beverages or wine in person as usual. It will accept documentation (e.g., reports, destruction invoices, pictures) that substantiates the amount of malt liquor or wine claimed to be exempt was rendered unsalable by major disaster. See NCDOR for more details.

For more information on other state relief for alcohol licensees, please see the resources and recording from our April 8th webinar, Navigating Beverage Alcohol Compliance During COVID-19.

Most COVID-19 relief for state telecommunications tax expired in 2020. Additional relief may be available at the local level. 

For more information about COVID-19 tax relief related to communications taxes, call Avalara at 844-722-5747.

Last updated March 24, 2021.

To help slow the spread of COVID-19, many state and local governments initially placed restrictions on short-term rentals, including hotels, motels, and vacation rentals. These typical allowed an exception in certain situations, such as to provide lodging for health care professionals. By the middle of 2020, most states had elimated any such restrictions.

At the same time, states and localities recognized the impact the pandemic has on the hospitality industry. In the week ending April 11, 2020, for example, the travel economy fell 87% below the level in 2019. Many states and localities offered lodging and sales tax relief in the spring of 2020.

The United Nations World Tourism Organization (UNWTO) found 2020 to be the worst year for tourism on record, and UNWTO Secretary-General Zurab Pololikashvili says he crisis is far from over. Indeed, UNWTO believes that "the overall prospectes of a rebound in 2021 seem to have worsened."

The outlook is generally better for short-term rentals, though "the recovery will not happen as instantly as the decline."

For the latest information, see:

Last updated March 24, 2021.

On March 17, 2021, The Treasury Department and IRS automatically extended the federal income tax filing due date from April 15, 2021, to May 17, 2021. 

 

President Biden signed the sixth coronavirus relief bill into law on March 11, 2021, nearly one year after former President Trump signed the first. The newest iteration is more forward-looking than its predecessors; it contains elements intended to stimulate rapid, long-term growth.  

The American Rescue Plan Act of 2021 (H.R. 1319) provides funding for many individuals and institutions, including but not limited to:

  • Agriculture and nutrition programs
  • COVID-19 vaccinations, testing, treatment, and prevention
  • Emergency rental assistance, homeowner assistance, and other housing programs
  • Health care providers in rural areas
  • Schools and institutions of higher education
  • Scientific research and development
  • Tribal government services

In addition, it extends unemployment benefits, expands certain tax credits, provides recovery rebates for individuals, and more.

 

On December 27, 2020, the Consolidated Appropriations Act 2021 (H.R. 133) was signed into law. It includes:

  • A $900 billion coronavirus relief bill
  • An 11-week extension of unemployment insurance benefits
  • More direct payments to individuals

 

On April 24, 2020, the fourth COVID-19 stimulus package was signed into law. H.R. 266, the Paycheck Protection and Health Care Enhancement Act provides:

  • $310 billion for small business loans through the Paycheck Protection Program
  • $75 billion for an emergency fund for healthcare providers
  • $25 billion to increase testing by various agencies 

 

On March 27, 2020, Congress enacted a historic stimulus package, the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act (H.R. 748). Relief includes direct payments to taxpayers and expanded unemployment benefits. For more details, see the text of the bill or the Tax Foundation's breakdown of the relief.

On March 20, the Treasury Department moved Tax Day from April 15 to July 15. Treasury Secretary Steven Mnuchin tweeted, "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties." Originally, the payment deadline was extended but the filing deadline remained April 15, 2020. Now the filing deadline has been extended, too.

Individuals can defer up to $1 million of the tax due for 2019. This applies to all individual returns, including self-employed individuals and all entities other than C-corporations. For C-corporations, the extension applies to up to $10 million of the tax due. The relief applies also to the estimated tax payments for tax year 2020 that are due April 15, 2020.

Additional relief is on the way due to the enactment of the Families First Coronavirus Response Act (H.R. 6201), which President Trump signed into law on March 18. It includes:

  • Emergency food and nutrition assistance 
  • Emergency paid sick days and leave days
  • Emergency paid leave benefits
  • Emergency unemployment insurance stabilization and access
  • Full federal funding of extended unemployment compensation for a limited period
  • Interest-free loans for states with advances
  • Coverage of testing for COVID-19

In other news, the Federal Reserve cut its benchmark interest rate to "close to zero" during a March 15, 2020, press conference call. It expects to maintain the rate at this level until confident the economy "has weathered recent events and is on track to achieve our maximum employment and price stability goals." It's also establishing a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses, and encouraging banks to "use their resources to support households and businesses."

Additional resources:

COVID-19 tax relief in Canada is being provided by the federal government and the provinces. 

Additional details are available at the Canada Revenue Agency. Information about the newly adopted Canada Emergency Response Benefit (CERB) is available here.

Province Tax Relief  

British Columbia

Updated 4.2

Provincial sales tax (PST) relief. The filing and payment deadlines for PST, including municipal and regional district tax on accommodation, are automatically extended to September 30, 2020, for taxes due between March 23 and before September 30.

Taxpayers may make a lump-sum payment in September but must submit separate returns for each reporting periods. If you prefer, you may continue to file your returns according to your usual reporting periods and defer  payments until September 30, 2020. After September 30, returns for all sales taxes will be due on their usual due dates. See What's New in B.C. Sales Taxes.

There are also extended due dates for carbon tax, motor fuel tax, and tobacco tax. Additional details.

B.C. is also delaying some of the PST tax changes announced in the 2020 Budget.

COVID-19 Action Plan - Provincial Tax Changes

 

Manitoba

Updated 4.8

Provincial sales tax relief. The April and May filing deadlines are extended until June 22, 2020, for small and mid-sized businesses with monthly remittances of no more than $10,000. The June 22 extension also applies to businesses filing on a quarterly basis.Penalties and interest will not be applied until after June 22.

The Taxation Department will work with businesses regarding flexible repayment options above the $10,000 cap. Additional details.

Provincial income tax relief. The provincial income and corporate income tax filing deadline is extended to August 31, 2020. Additional details

 

Ontario

Updated 4.8

The Ontario government is offering a 5-month relief period for Ontario businesses unable to file or remit select provincial taxes on time due to COVID-19. Tax filing and remittance deadlines remain the same. However, as of April 1, 2020, penalties and interest will not apply to Ontario businesses that miss any filing or remittance deadline for the following provincial taxes:

  • Beer, Wine & Spirits Tax
  • Employer Health Tax
  • Fuel Tax
  • Gas Tax
  • Insurance Premium Tax
  • International Fuel Tax Agreement
  • Mining Tax
  • Race Tracks Tax
  • Retail Sales Tax on Insurance Contracts and Benefit Plans
  • Tobacco Tax

Additional information.

 

Quebec

Updated 4.8

Sales tax relief. The deadlines for filing GST/HST and QST returns remain the same. Taxpayers are encouraged to file on time if possible. However, no penalty will be charged if returns due between March 27 and June 1 are filed by June 30, 2020.

The deadline for paying GST/HST and QST related to returns normally due between March 27 and June 1 is extended to June 30, 2020. The same applies to installment payments. There will be no penalties or late interest charged.

See COVID-19: FAQ for additional details.

 

Saskatchewan

Updated 4.8

Provincial sales tax relief. Businesses may apply for a three-month extension to file and pay Provincial Sales Tax (until June).

Monthly filers may defer until July 31, 2020, payment of amounts due for February, March, and April 2020. Quarterly filers may defer until July 31, 2020, payment of amounts due for the January 1, 2020, to March 31, 2020 reporting period.

Penalties and interest will not apply provided full payment is made (or an arrangement is in place) by July 31, 2020. Additional details

 

For the latest international tax news related to the outbreak, see World turns to VAT cuts on coronavirus Covid-19 threat and the VATlive blog. Avalara Vice President of Global Affairs Richard Asquith has his finger on the pulse of global coronavirus-related tax relief.

Tax automation has you covered

Avalara is monitoring changes to filing and/or remittance deadlines and responding accordingly. Learn more at our COVID-19 tax news and resources hub.

Take care of yourselves.

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