Sales Tax

Some States Allow Sales Tax Payments Via Credit Card

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.

Scott Peterson

Nov. 17, 2016

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.

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. Programs that automate the process, like Avalara’s TrustFile, 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.

Sales Tax

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