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Oct 26, 2016

Which states let you pay sales tax return with a credit card?

Scott Peterson

Which states let you pay your sales tax return with a credit card?

For small businesses, credit cards can be an important tool, offering financial management benefits and the opportunity to earn valuable rewards. You can put just about anything on a credit card these days, including your sales taxes — in most states. Out of the 45 states that charge sales tax, all but 7 (Alabama, Arizona, Arkansas, Illinois, Maine, Nevada and Virginia) allow businesses to pay via credit card.

 

However, in those states that do allow you to pay sales taxes with plastic, the convenience comes with a price, usually in the form of a small fee that is charged by a third-party payments processor.

Here’s a rundown of which states let you remit sales taxes via credit card and how much using that option will cost you. “Fee unspecified” means there is no information on the amount of the fee until you actually initiate a credit card payment.

State

Credit cards accepted?

Fee

Alabama

No

Alaska

No sales tax

Arizona

No

Arkansas

No

California

Yes

2.3%, minimum $1

Colorado

Yes

Unspecified

Connecticut

Yes

2.35%

Delaware

No sales tax

Florida

Yes

1.85%, minimum $1

Georgia

Yes

2.50%

Hawaii

Yes

Unspecified

Idaho

Yes

Unspecified

Illinois

No

Indiana

Yes

Unspecified

Iowa

Yes

2.45%, minimum $3.95

Kansas

Yes

2.50%

Kentucky

Yes

2.45%

Louisiana

Yes

2.45%.

Maine

No

Maryland

Yes

2.49%

Massachusetts

Yes

2.30%

Michigan

Yes

2.75%.

Minnesota

Yes

2.25%, minimum $3.75

Mississippi

Yes

2.50%

Missouri

Yes

Unspecified

Montana

No sales tax

Nebraska

Yes

2.35%

Nevada

No

New Hampshire

No sales tax

New Jersey

Yes

Unspecified

New Mexico

Yes

Unspecified

New York

Yes

2.25%

North Carolina

Yes

$2.00 for every $100.00 increment of tax payment

North Dakota

Yes

2.49%

Ohio

Yes

2.50%

Oklahoma

Yes

2.50%

Oregon

No sales tax

Pennsylvania

Yes

2.49%, minimum $1

Rhode Island

Yes

2.50%

South Carolina

Yes

Unspecified

South Dakota

Yes

2.45%

Tennessee

Yes

2.49%.

Texas

Yes

$1 up to $100 payment; 2.25% plus $0.25 processing fee for payments over $100

Utah

Yes

Tiered according to amount of tax payment

Vermont

Yes

3%

Virginia

No

Washington

Yes

2.5%, $1 minimum

West Virginia

Yes

2.5%, $1 minimum

Wisconsin

Yes

$1 for payments less than $40; 2.5% for payments greater than $40

Wyoming

Yes

2.50%

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Getting help with sales taxes

Keeping up with sales tax filing requirements can be a big burden for a small business. Avalara’s TrustFile software can help. TrustFile automatically generates reports for each state based on your sales data, broken down according to each state’s requirements. It can also support electronic payment of sales tax returns in some states. TrustFile is constantly updated on the latest requirements for each state, so you will always have the right information on when and how to file.

Special plans for small businesses make TrustFile an affordable option that can help you file your sales taxes correctly and confidently. Learn more now.

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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