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Mar 18, 2026

A state-by-state guide to exemption certificates

Dawn Moser

This blog post has been updated. It was originally published in February 2023.

 

We’ve talked about sales tax exemptions many times on this blog. The big caveat is always the same: Each state has its own rules. Figuring out state tax exemption certificate requirements can be particularly daunting.

 

To that end, here’s a primer on sales tax exemption certificates. You can also just jump directly to our state-by-state guide to certificate requirements.

Key takeaways

  • A sales tax exemption certificate is a document that allows businesses to purchase normally taxable goods or services tax free. Sellers are required to collect and validate certificates prior to exempting tax.

  • Exemption certificates should be reviewed and updated as needed. In some states, these documents expire after a set period of time. Incorrect and missing information will render an otherwise valid document invalid.

  • Our state-specific guide shares details about each state’s requirements.

What is a sales tax exemption certificate?

A sales tax exemption certificate is a document that allows a business, organization, or individual to purchase normally taxable goods or services tax free.

 

Purchasers apply for exemption certificates and provide them to sellers at checkout. In the case of a blanket certificate, it’s not necessary to use a new sales tax exemption certificate form for each purchase, as long as the qualifying factors are the same and the certificate is valid.

 

Sellers are required to collect and validate certificates prior to exempting tax. If a certificate is incomplete, expired, or unavailable, the seller is responsible for collecting tax and the purchaser can later request a refund from the state. 

 

Sellers must retain each certificate, so it’s accessible for future purchases or to validate the exemption if the business is audited. 

What’s the difference between an exemption certificate and a resale certificate?

  • An exemption certificate is a document that allows tax-exempt purchases based on the status or circumstances of the purchaser. 
  • A resale certificate is a document that allows a business to make tax-exempt purchases based on the assumption the goods will be resold and the sales tax will be paid by the end consumer.

 

Some states use the same document for both exemption and resale certificates. Others have different documents for each.

Who can use a sales tax exemption certificate?

Getting a sales tax exemption sounds like a pretty sweet deal, but alas, it’s not an option for everyone. Exempt entities vary for each state, but often include:

 

  • Nonprofit organizations
  • Religious or educational affiliations
  • Federal, state, and local government
  • Specific industries
  • Manufacturers

 

Do states use the same exemption certificates for all exempt purchases?

 

No. State exemption certificate requirements vary by state. Most states have certificates for specific types of exemptions, and collecting the wrong certificate for an exemption is often the same as having no certificate: The seller can be liable for the uncollected taxes. 

 

Some states, such as California and Kentucky, require separate certificates for different exemption types, including industry-specific exemptions. States can also require different documents for different types of nonprofit organizations; this is the case in Colorado and Maine.

 

Some states accept multistate exemption certificates, like the Multistate Tax Commission (MTC) Exemption Certificate or the Streamlined Sales Tax (SST) Exemption Certificate. However, not all states allow all the exemptions listed on these forms, and states can change which forms they accept and requirements related to using those documents at any time. Check with the state to determine current policy. 

How long do you need to keep exemption certificates on file?

Exemption certificates are worth every penny of exempted tax and possibly more. If you’re audited and can’t produce a certificate to justify an exempt sale, you may be responsible for the applicable taxes, as well as potential penalties.

 

States have their own statutes of limitations for sales tax audits. Certificates from exempt purchases should be kept for at least the time frame for which you could be assessed. 

 

There are also variations on when certificates expire; some certificates never expire, some are only good for a year. Even if there’s no official expiration, it’s good to verify the information is up to date every couple of years or so. Changes to a business, such as name, address, and ownership, can void an exemption certificate.

Can exempt sales establish nexus?

Sales tax nexus is a relationship between a business and a state that creates an obligation for the business to register to collect tax and file returns in a given state. All states with a general sales tax (plus Alaska, Puerto Rico, and Washington, D.C.) have economic nexus conditions based on a business’s amount of sales and/or number of transactions. 

 

Each state has its own rules concerning whether exempt sales count toward economic nexus totals. So even if you aren’t required to collect taxes, you may still be required to register and file returns in a state.

 

If you do establish nexus, you’ll need to either collect sales tax or a valid exemption certificate on any normally taxable sales. Otherwise, you could be held liable for the uncollected tax.

 

Many states exempt certain products from sales tax, such as food for home consumption in Washington or diapers and feminine hygiene products in Colorado. In these kinds of cases, you do not need to collect a certificate to exempt tax on each sale.

How can I get information for my state?

We worked with Sales Tax Institute to create a State-by-State Exemption Certificate Guide to help you identify which certificates are required for your state. In it, you’ll find information on how often you should renew your documentation and links to the forms you need.  
 
Bear in mind that expiration periods vary by state and exemption certificate, and most states have different certificates for different situations or entities. Check with your state to get the most up-to-date information.  

 

Please consult a sales tax expert who can discuss your specific requirements. And consider exploring how automating exemption certificate management can help you streamline tax compliance.

State exemption certificate rules

Expiration period

Renew annually

 

Forms

This state takes the MTC multijurisdictional tax form  

 

Reference

Alabama Department of Revenue FAQ

Alaska doesn’t have a state sales tax, but local sales tax is permitted and is in effect in multiple jurisdictions. Sales tax exemptions are also determined by individual municipalities.

 

Expiration period

Valid until the end of each calendar year

 

Forms

This state takes the MTC multijurisdictional tax form   
 
Reference

Alaska Remote Seller Sales Tax Commission exemption certificate directory

Expiration period

The end of the period specified on the certificate; up to 48 months if the vendor verifies the purchaser’s tax license each year

 

The Department of Revenue strongly encourages vendors to limit the specified period to a 12-month calendar

 

Forms

This state takes the MTC multijurisdictional tax form  

 

References

Arizona Department of Revenue TPT exemptions page

TPP 17-1

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form  

This state participates in Streamlined Sales Tax

 

Reference

Sales and use tax FAQ

Expiration period

Valid until revoked in writing by the issuer unless issued for a specific transaction; in that case, generally valid for one year

 

Forms

This state takes the MTC multijurisdictional tax form  

 

Reference

Sales and use tax exemption information

Expiration period

Valid until cancelled by the Department of Revenue in writing or revoked by the city or state

 

Forms

This state takes the MTC multijurisdictional tax form  


Reference

Tax exemption qualifications

Expiration period

Three years

 

Forms

This state takes the MTC multijurisdictional tax form  

 

Reference

Sales and use tax information

 

Delaware doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.

Expiration period

Five years

 

Forms

This state takes the MTC multijurisdictional tax form  

 

Reference

Government exemptions

 

Expiration period

Valid until revoked in writing

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Nontaxable sales

Tax exempt organizations

Expiration period

Does not expire

 

Forms

This state takes the MTC multijurisdictional tax form  

 

Reference

General excise and use tax information

 

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form  

 

Reference

General exemption information

 

Expiration period

Validity period varies depending on purchaser;

certificates of resale should be updated at least every three years

 

Forms

This state takes the MTC multijurisdictional tax form in some situations

 

References

General information

Certificate of resale

Expiration period

Does not expire; recommended review every four years

 

Forms

This state participates in Streamlined Sales Tax

 

Reference

Sales tax FAQ

 

Expiration period

Three years

 

Forms

This state takes the MTC multijurisdictional tax form  

This state participates in Streamlined Sales Tax 
 

 

Reference

Sales and use tax guide

 

Expiration period

Blanket certificate remains valid provided purchaser is making recurring purchases;

tax-exempt entity exemption certificates have an expiration period

 

Forms

This state takes the MTC multijurisdictional tax form
This state participates in Streamlined Sales Tax

 

References

Sales tax FAQ

Exemption certificate booklet

Expiration period

Four years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

Reference

Sales tax information

 

Expiration period

May be automatically renewed for up to three years

 

Reference

Sales tax FAQ

Expiration period

Five years after date of issuance; may be renewed automatically for qualifying taxpayers

 

Forms

This state takes the MTC multijurisdictional tax form 

 

Reference

Sales tax guide

Expiration period

Five years

 

Forms

This state takes the MTC multijurisdictional tax form

 

Reference

Exemption certificate information

Expiration period

10 years; may be renewed automatically for qualifying taxpayers

 

Forms

Check with the Massachusetts Department of Revenue

 

Reference

Sales and use tax guide

Expiration period

Four years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 
Reference

Exemptions FAQ

Expiration period

Does not expire unless information changes; recommended review every three to five years 

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 
Reference

Sales and use tax information

Expiration period

The state does not issue exemption certificates or accept or use blanket certificates

 

References

Exempt entities

Exemption information

Sales tax FAQ

Expiration period

Five years

 

Forms

This state takes the MTC multijurisdictional tax form


References

Exemption information search hub

Sales tax exemption FAQ

Montana doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.

Expiration period

Five years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 
References

Exemption information

Sales tax FAQ

Expiration period

Five years

 

Forms

This state participates in Streamlined Sales Tax 


Reference

 

Sales tax FAQ

 

New Hampshire doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.

Expiration period

No stated expiration period; recommended review every four years


Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax information

Sales tax exemption administration bulletin

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Non-taxable transaction certificates (NTTCs)

Gross receipts tax overview

NTTC application

Expiration period

No stated expiration period; recommended review every four years

 

Forms

Different certificates for different industries

 

References

Exemption certificate information

Exempt organizations and entities

Expiration period

Blanket certificate remains valid provided purchaser is making recurring purchases

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sale and purchase exemptions

Sales and use tax information

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax exemptions

 

Expiration period

No stated expiration period

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax information

Applying sales tax information

Expiration period

Blanket certificate remains valid provided purchaser is making recurring purchases

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

Reference

Sales tax information

 

Oregon doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.

Expiration period

No stated expiration period; recommended review every four years 

 

Forms

This state takes the MTC multijurisdictional tax form

 

References

Retailer’s information guide

Sales tax information

Expiration period

Three years

 

Forms

Visit the 

Departamento de Hacienda de Puerto Rico

 

Reference

 

Sales tax information (translation available) 

 

Expiration period

Certificates issued on or before July 1, 2017, expired on June 30, 2021;

certificates issued after July 1, 2017, expire four years after issuance

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Information for exempt organizations

Sales tax FAQ

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax exemptions

Sales tax FAQ

Expiration period

Blanket certificate remains valid until cancelled by the purchaser

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax information

Exempt entities guide

Exempt status application

Expiration period

Blanket certificate remains valid provided purchaser is making recurring purchases 

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

Reference

Exemption information

 

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form

 

References

Exempt organizations

Exemption FAQ

Expiration period

Certificate remains valid provided purchaser is making recurring purchases

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax FAQ

Tax bulletins

Expiration period

Valid indefinitely when used as a blanket certificate; otherwise, valid for single purchase

 

Forms

This state takes the MTC multijurisdictional tax forms

This state participates in Streamlined Sales Tax

 

Reference

Exemption certificate information

 

Expiration period

Valid until notice from Department of Taxation that certificate is no longer acceptable

 

Forms

Visit the Virginia Department of Taxation

 

References

Sales tax exemptions

Nonprofit organizations

Expiration period

Blanket certificate remains valid provided purchaser is making recurring purchases

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales tax information

Reseller guides for qualified industries

Expiration period

Five years

 

Forms

Visit the Office of Tax and Revenue

 

Reference

Exemptions

 

Expiration period

Blanket certificate remains valid provided purchaser is making recurring purchases

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales and use tax information

Exemption guide

Expiration period

No stated expiration period; recommended review every four years

 

Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Sales and use tax information

Publication 201, Part 11: What is Exempt?

Expiration period

No stated expiration period; recommended review every four years


Forms

This state takes the MTC multijurisdictional tax form

This state participates in Streamlined Sales Tax

 

References

Exemption certificate bulletin

Religious and charitable organization exemption bulletin

Managing exemption certificates for your business

Whether you’re making exempt purchases or managing documents from exempt customers, it’s important to supply or collect valid exemption certificates. Not doing so can create liability with state auditors. 

 

If you’re buying or selling in more than a couple of states, keeping track of which forms are required for which sales and when they expire is challenging. 

 

Automating certificate management can go a long way toward peace of mind and reduced risk. 

 

  • Avalara Exemption Certificate Management can help businesses large or small with collecting, validating, storing, and accessing exemption and resale certificates.
  • Avalara Vendor Exemption Management can help you obtain and supply the right documents to support your exemption requests.

Exemption certificates by state: Rules, forms, and compliance guide

Exemption certificate rules vary by state. Learn when you need an exemption or resale certificate, how requirements differ across states, and how to stay compliant with sales tax laws.

An exemption certificate is a document that allows a buyer to make tax-exempt purchases, such as for resale or qualified nonprofit use. The seller must collect a valid certificate from the buyer at the time of sale to avoid charging sales tax and to support compliance during audits. 

Yes, exemption certificate rules vary widely by state, including accepted forms, expiration requirements, and validation standards. Businesses must follow each state’s specific rules to help ensure compliance and reduce audit risk.  

If a valid exemption certificate is not collected, kept on file, and updated as necessary, the seller may be held liable for uncollected sales tax, plus potential penalties and interest during an audit. Maintaining accurate, accessible records is essential to support exempt transactions.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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