A sales tax permit lets you collect sales tax from customers and send it to the state. It goes by different names depending on where you are: seller’s permit in California, sales and use tax permit in Texas, certificate of authority in New York, vendor’s license in Ohio. The idea is the same everywhere, and so is most of the paperwork.
Two questions come before any form: which states do you need a permit in, and do you have your business basics lined up? Get those right and the application itself usually takes less than an hour online.
Who Needs a Sales Tax Permit
You generally need one in any state where you have nexus, meaning enough connection to that state to owe it sales tax, and where you sell taxable goods or services. Nexus comes in two main forms.
Physical nexus. A store, office, warehouse, employees, or inventory in the state. Storing goods in a fulfillment center can count, even if you’ve never visited.
Economic nexus. Since the Supreme Court’s 2018 South Dakota v. Wayfair decision, states can require out-of-state sellers to register once their sales into the state cross a threshold.
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska still lets local governments charge sales tax, and many of its cities do, so remote sellers may still have to register there through the state’s shared local system.
Economic nexus thresholds going into 2027
| Threshold | States |
| $100,000 in sales only | Most states, including Florida, Illinois, Kentucky, and Washington |
| $100,000 or 200 transactions | About 15 states plus Puerto Rico and Washington, D.C., including Georgia, Maryland, Michigan, Minnesota, and Ohio |
| $100,000 and 200 transactions (both required) | Connecticut |
| $250,000 | Alabama, Mississippi |
| $500,000 | California, Texas; New York uses $500,000 and more than 100 sales |
States keep dropping the 200-transaction test. Illinois removed it on January 1, 2026, and Kentucky followed on August 1, 2026. Before relying on the table above, check the rules in each state where you sell, because states also differ on which sales count and how far back they look.
Selling through a marketplace like Amazon, Etsy, or eBay? Marketplace facilitator laws usually make the platform collect and remit tax on those sales. You may still need your own permit if you also sell through your own site or in person, or if the state counts marketplace sales toward your threshold.
Documents and Information for the Application
States ask for nearly the same things. Have these ready before you start:
| Item | Notes |
| Legal business name and any DBA | Must match your formation documents and IRS records |
| Business structure | Sole proprietorship, LLC, partnership, or corporation |
| EIN, or SSN for sole proprietors without one | Most states accept either; an ITIN can stand in for an SSN in some states |
| Formation documents | Articles of organization or incorporation, state filing number, and formation date |
| Owners and officers | Names, home addresses, SSNs, and sometimes driver’s license numbers for each owner, partner, member, or officer |
| Business addresses | Physical location and mailing address; every location in the state |
| NAICS code | The six-digit code that describes your main business activity |
| Start date in the state | The date you started selling there, or when you crossed the nexus threshold |
| Estimated monthly sales | Used to set how often you file (monthly, quarterly, or annually) |
| Bank account information | Some states use it for electronic payments |
| Supplier names and addresses | Asked in some states, like California |
| Bookkeeper or accountant contact | Asked in some states |
| Prior owner’s permit number | Only if you bought an existing business |
Get these in place first
If you’re starting from scratch, the permit usually comes after three earlier steps:
- Form the business. An LLC or corporation must be registered with the state first. See our list of LLC formation documents.
- Get an EIN from the IRS. It’s free and you can usually get it online in minutes. Here’s what the EIN application asks for.
- Register a DBA if you trade under another name. Here’s how to file a DBA, and when a DBA or an LLC makes more sense.
You’ll often need a local business license as well. A sales tax permit and a business license aren’t the same thing; check our business license documents guide and whether you need a business license to sell online.
What It Costs
Many states issue sales tax permits for free. A few charge a small fee. Connecticut, for example, charges a one-time $100. Florida is free online. Some states, including California, may ask certain sellers for a security deposit to cover future tax, based on estimated sales or past compliance problems.
Permits are usually issued quickly. Many states send the number by email the same day or within a week. Physical certificates often arrive by mail later. Post the permit at your place of business if your state requires it.
After You Get the Permit
The permit comes with ongoing obligations. Missing them is how small businesses end up with penalties.
- File every return on time, even zero returns. If you made no sales in a period, you usually still have to file.
- Keep records. Sales records, exemption certificates you’ve accepted, and returns, generally for three to four years depending on the state.
- Use resale certificates correctly. Your permit number lets you buy inventory for resale without paying sales tax, by giving suppliers a resale or exemption certificate. Using it for personal or business-use purchases isn’t allowed.
- Update the state when things change. New address, new owners, or a new location in the state.
- Close the account when you stop selling. If you shut down the business, cancel the permit so the state stops expecting returns. Our dissolve an LLC guide covers the rest of the wind-down.
Open a separate account for business funds so collected tax doesn’t mix with personal money. Here’s what you need to open a business bank account.
Special Cases
Home food businesses. Many states treat certain prepared foods as taxable. If you sell from home, read our guides on the cottage food license and whether you can sell homemade food online.
Alcohol sellers. You’ll need a liquor license on top of the sales tax permit. See liquor license documents.
Importers. Goods you import for resale still owe sales tax when you sell them in the U.S. Customs duties are separate. Here’s what you need to import goods into the USA, and how small shipments changed after the end of the de minimis exemption.
Selling to customers abroad. U.S. sales tax permits don’t cover foreign taxes. Selling into Europe or Canada may mean registering for their taxes too; see our guides to VAT registration for U.S. businesses and GST registration in Canada.
Frequently Asked Questions
Is a seller’s permit the same as a sales tax permit?
Yes. States use different names, such as seller’s permit, sales tax license, vendor’s license, or certificate of authority, but they all register you to collect sales tax.
Do I need a sales tax permit to sell online?
If you have nexus in a state and sell taxable products there, yes. Marketplace sales may be handled by the platform, but sales through your own website usually aren’t.
Can I get a sales tax permit without an EIN?
Sole proprietors can usually use their Social Security number. LLCs with employees, partnerships, and corporations generally need an EIN.
How long does it take to get a sales tax permit?
Often the same day to a week when you apply online. Paper applications take longer.
Do sales tax permits expire?
It depends on the state. Many don’t expire as long as you keep filing returns. Some require renewal every year or two.
What happens if I sell without a permit?
The state can bill you for the tax you should have collected, plus penalties and interest, even if you never charged customers. Many states offer voluntary disclosure programs that reduce penalties if you come forward first.
Official Sources