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Aug 1, 2025

Resale certificates by state: 2026 guide

Dawn Moser

Sales tax exemptions are a tough nut to crack. Each state has its own rules about what is or isn’t exempt. One of the few things consistent across the board: Resellers can typically skip the tax on goods they’ll be reselling. How that exemption shakes out is a little less uniform.

 

Most states have their own resale certificates. Others, like Colorado and North Carolina, just use multistate certificates. Mississippi doesn’t even require a certificate, as long as the reseller has a valid sales tax permit.

 

If you’re buying or selling goods for resale in multiple states, there’s a lot to keep track of. This overview of basic resale exemption information, as well as a state-by-state guide to certificate requirements, can help.

Key takeaways

  • Valid resale certificates allow businesses to purchase goods tax free for resale.   
  • Multistate resale certificates like the Streamlined Sales Tax (SST) Certificate of Exemption and Multistate Tax Commission (MTC) Uniform Sales & Use Tax Resale Certificate help ease the compliance burden of certificate management, but some states don’t accept them. 
  • Vendors should verify resale certificates, update them as required, and store them in a secure but accessible location. 

What is a resale certificate?

A resale certificate is a document that allows a business to make exempt purchases based on the assumption the goods will be resold and the sales tax will be paid by the end consumer.

 

Purchasers apply for resale certificates and provide them to sellers at checkout. 

 

Sellers collect and validate certificates prior to exempting tax. Sellers store each certificate, so it’s accessible for future purchases or to validate the exemption if the business is audited.

 

Drop shipping can further complicate resale certificates or sales tax collection. Things get trickier when you go from a business selling to a customer, to a business purchasing from a drop shipper for delivery to a customer. Who collects what largely depends on who has nexus (and where everyone is located). We cover the sales tax implications of drop shipping in a post of its own.

Exemption certificates vs. resale certificates

  • 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. 

Can I use the same resale certificate in every state?

No. There’s no one universally accepted resale certificate. However, there are two types of multistate resale certificates: 

 

 

Not every state accepts these certificates. You’ll need to obtain a valid state-issued certificate in those that won’t accept either.

How does a business get a resale certificate?

To get a resale certificate, a business must obtain a sales tax permit. Then that business can apply for the proper sales tax exemption forms, including resale certificates. 

 

Most states accept out-of-state resale certificates, but not all. It’s important to make sure you have the right certificate if you’re purchasing items for resale outside of your home state.

Are sellers required to accept resale certificates?

In a word, no. Sales tax obligations are imposed by the state or local tax jurisdiction, not individual retailers. 

 

If anything is out of order with the certificate, the seller is responsible for any uncollected sales tax. For that reason, sellers may choose not to honor resale certificates.

 

If a buyer pays sales tax on goods for which they’re entitled to an exemption, they can request a refund from the state tax authority.

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

Purchasers should maintain certificates for as long as they’re valid. In some cases, resale exemptions are issued for individual purchases. In others, they’re valid for several years, or even indefinitely, as long as the information is correct. Changes to a business, such as name, address, and ownership, can void an exemption certificate.

 

Sellers should hold on to resale certificates until the statute of limitations expires on the purchase, at a minimum. Each state has its own time frame for sales tax assessments. If you’re audited and you cannot produce a certificate to justify an exempt sale, you may be responsible for the applicable taxes, as well as potential penalties.

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 also find information on how often you should renew your documentation and links to the forms you need.  

 

States may change acceptance policies for their certificates without notifying the Multistate Tax Commission (MTC). Check with the state to determine current policy.

 

Streamlined Sales Tax (SST) note: Not all states allow all exemptions listed on the SST Exemption Certificate, but a business does not need to be registered through the SST Registration System to use the Streamlined Exemption Certificate.

 

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.

Reference

Exemption application

Alabama Department of Revenue FAQ

 

Accepted exemption forms

  • Sales tax permit

 

Expiration period

  • Renew annually 

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.

 

Reference

Tax exemption letter of response

Exemption certificate directory

Exempt resellers can use the MTC Uniform Sales & Use Tax Resale Certificate

Reference

Arizona Department of Revenue TPT exemptions page

 

Accepted exemption forms

 

Expiration period

  • Does not expire

Reference

Sales and use tax FAQ

 

Accepted exemption forms

 

Expiration period

  • Expires if not used within a 12-month period 

Reference

Sales and use tax links

 

Accepted exemption forms

 

Expiration period

  • Does not expire

Reference

Sales tax guide

 

Accepted exemption forms

 

Expiration period

  • Does not expire

Reference

Sales and use tax information

 

Accepted exemption forms

 

Expiration period

  • Renew every 3 years

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

Reference

Resale certificate

Government exemptions

 

Accepted exemption forms

  • Annual resale certificate

 

Expiration period

  • Certificates expire on December 31 each year; new resale certificates are issued annually 

Reference

Sales tax FAQ

 

Accepted exemption forms

 

Expiration period

  • Expires annually

Reference

General excise and use tax information

 

Accepted exemption forms

 

Expiration period

  • Does not expire

Reference

General exemption information

 

Accepted exemption forms

 

Expiration period

  • Does not expire

Reference

Certificate of resale

 

Accepted exemption forms

 

Expiration period

  • Renew every three years

Reference

Sales tax FAQ

Accepted exemption forms

 

Expiration period 

  • Does not expire

Reference

Sales and use tax guide

 

Accepted exemption forms

 

Expiration period

  • Three years 

Reference

Sales tax FAQ

Exemption certificate booklet

 

Accepted exemption forms 

 

Expiration period 

  • Expires if not used within a 12-month period

Reference

Sales tax information

 

Accepted exemption forms

 

Expiration period

  • Valid as long as there is no change in character of purchaser’s operation and the purchases are of tangible personal property

Reference

Sales tax FAQ

Resale certificate FAQ

 

Accepted exemption forms

  • Resale certificate | Application

 

Expiration period

  • Valid for the period indicated on the certificate

Reference

Sales tax guide

 

Accepted exemption forms

 

Expiration period

  • Five years

Reference

Resale certificate FAQ

 

Accepted exemption forms

 

Expiration period

  • Valid until revoked by taxpayer or Comptroller

Reference

Sales and use tax guide

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

Reference

Exemptions FAQ

 

Accepted exemption forms

 

Expiration period

  • Four years

Reference

Nontaxable sales

Retailers and wholesalers industry guide

 

Accepted exemption forms

 

Expiration period

  • Does not expire unless information changes; should be updated every three to five years

Reference

Exemption information

Sales tax FAQ

 

Accepted exemption forms

Mississippi does not issue resale exemption certificates. Goods for resale can be purchased tax exempt using a valid sales tax permit.

Reference

Exemption information search hub

Sales tax exemption FAQ

 

Accepted exemption forms

 

Expiration period

  • Five years

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

Reference

Sales tax FAQ

 

Accepted exemption forms

 

Expiration period

  • Valid indefinitely 

Reference

Sales tax FAQ

 

Accepted exemption forms

 

Expiration period

  • Valid until revoked in writing

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

Reference

Sales tax information

Sales tax exemption administration bulletin

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

 

Reference

Non-taxable transaction certificates (NTTCs)

Gross receipts tax overview

NTTC application

 

Accepted exemption forms

  • Non-taxable transaction certificate | Type 2

  • Resale certificate | Type 5

  • Border states resale certificate 

  • Out-of-state resale certificate | Type NTTC-OSB

 

Expiration period

  • No stated expiration period

Reference

Exemption certificate information

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

Reference

Sale and purchase exemptions

Sales and use tax information

 

Accepted exemption forms

 

Expiration period

  • Blanket certificate is valid as long as purchaser is making recurring purchase 

Reference

Sales and use tax information

 

Accepted exemption forms

 

Expiration period

  • Two years 

Reference

Sales tax FAQ

Applying sales tax FAQ

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

Reference

Sales tax information

 

Accepted exemption forms

 

Expiration period

  • Blanket certificate is valid as long as purchaser is making recurring purchases

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

Reference

Retailer’s information guide

Sales tax information

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period 

Reference

Sales tax information (translation available)

Reseller information (translation available)

 

Accepted exemption forms

 

Expiration period

  • Three years

Reference

Information for exempt organizations

Sales tax FAQ

 

Accepted exemption forms

 

Expiration period 

  • No stated expiration period

Reference

Sales tax exemptions

Sales tax FAQ

 

Accepted exemption forms

 

Expiration period

  • Valid until canceled or revoked in writing 

Reference

Sales tax information

Exempt entities guide

Exempt status application

 

Accepted exemption forms

 

Expiration period 

  • No stated expiration period

Reference

Exemption information

 

Accepted exemption forms

 

Expiration period

  • Valid until revoked in writing by the purchaser

Reference

Resale certificates FAQ

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

Reference

Sales tax FAQ

Tax bulletins

 

Accepted exemption forms

 

Expiration period 

  • Certificate remains valid as long as purchaser is making recurring purchases

Reference

Exemption certificate information

 

Accepted exemption forms

 

Expiration period

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

Reference

Cigarette resale exemption certificates information

 

Accepted exemption forms

 

Expiration period

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

Reference

Sales tax FAQ

Reseller guides for qualified industries

 

Accepted exemption forms

 

Expiration period

  • 48 months, but may expire in 24 months for some businesses

Reference

Exemptions FAQ

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

Reference

Sales and use tax information

Exemption guide

 

Accepted exemption forms

 

Expiration period

  • Blanket certificate remains valid as long as purchaser is making recurring purchases

Reference

Sales and use tax information

Publication 201, Part 11: What is Exempt?

 

Accepted exemption forms

 

Expiration period

  • Valid indefinitely, but should be reviewed periodically

Reference

Excise tax resources

Exemption bulletin

 

Accepted exemption forms

 

Expiration period

  • No stated expiration period

Managing resale exemption documents for your business

Managing exemption certificates can be challenging on both sides of the register. Not having the right documents can lead to costly mistakes.

 

Automation can help you keep track of requirements and renewals. Using an automated solution that stores documents in the cloud is an efficient way to supply or retrieve certificates, and to find and access the forms you need in the event of an audit.

 

Avalara has tax compliance solutions to make the process easier for both buyers and sellers of tax-exempt purchases:

 

  • 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. 

Bottom line

Avalara has tax compliance solutions to make the process easier for both buyers and sellers of tax-exempt purchases:

 

  • 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. 

Resale certificate FAQ

Resale certificates can be obtained through state tax departments or multistate organizations like the Multistate Tax Commission and the Streamlined Sales Tax Governing Board. Approximately 12 states require businesses to register for a sales tax permit to get a resale certificate. 

No. A business license is a permit that allows the holder to legally conduct business in a city, county, or state. A resale certificate allows a business to purchase taxable goods tax free when the items are for resale. 

No, a resale certificate is not the same as an EIN (Employer Identification Number). A resale certificate allows businesses to purchase taxable goods for resale tax free. An EIN is a federal tax identification number that identifies a business for federal tax purposes. 

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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