Here’s When Your State Will Increase Online Sales Taxes
- The South Dakota v. Wayfair Supreme Court ruling allows states to charge taxes on all online purchases.
- Many states have already implemented the tax but most have not.
- Some states have the potential to earn billions per year from this ruling.
On June 21, the Supreme Court ruled that states can require consumers to pay sales tax for all purchases made online. The South Dakota v. Wayfair decision overturned the 1992 Quill Corp. v. North Dakota ruling that barred states from forcing online and other remote retailers to charge sales tax unless the company had a physical presence in the state.
Some states have already instituted this new policy and several that haven’t are about to start. Keep reading to find out if and when your state will start taxing all online purchases, effectively taking more money out of your wallet.
Click to learn more about the most and least tax-friendly major cities in America.
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Here’s a quick look at how and when online sales tax is or will be charged for each state, and how much revenue states expect to make:
| Online Sales Tax by State | ||
| State | Compliance Date | Estimate of State and Local Potential Revenue Gains***** |
| Alabama | Oct. 1, 2018*** | $156 million to $238 million |
| Alaska | No sales tax | N/A |
| Arizona | TBD*** | $190 million to $293 million |
| Arkansas | TBD** | $123 million to $169 million |
| California | TBD*** | $1 billion to $1.7 billion |
| Colorado | July 1, 2018 (notice law)**** | $168 million to $262 million |
| Connecticut | Dec. 1, 2018*** | $128 million to $194 million |
| Delaware | No sales tax | N/A |
| Washington, D.C. | Pending*** | $30 million to $44 million |
| Florida | TBD*** | $486 million to $758 million |
| Georgia | Jan. 1, 2019* | $232 million to $367 million |
| Hawaii | July 1, 2018*** | $36 million to $51 million |
| Idaho | TBD*** | $42 million to $60 million |
| Illinois | Oct. 1, 2018*** | $383 million to $626 million |
| Indiana | Oct. 1, 2018* | $168 million to $261 million |
| Iowa | Jan. 1, 2019* | $104 million to $146 million |
| Kansas | TBD** | $113 million to $170 million |
| Kentucky | Oct. 1, 2018* | $93 million to $140 million |
| Louisiana | Jan. 1, 2019**** | $195 million to $288 million |
| Maine | July 1, 2018*** | $28 million to $41 million |
| Maryland | TBD*** | $165 million to $252 million |
| Massachusetts | In court*** | $169 million to $279 million |
| Michigan | Oct. 1, 2018** | $221 million to $336 million |
| Minnesota | Oct. 1, 2018* | $132 million to $206 million |
| Mississippi | Sept. 1, 2018*** | $90 million to $123 million |
| Missouri | TBD*** | $180 million to $275 million |
| Montana | No sales tax | N/A |
| Nebraska | Jan. 1, 2019** | $67 million to $95 million |
| Nevada | Pending** | $87 million to $134 million |
| New Hampshire | No sales tax | N/A |
| New Jersey | Oct. 1, 2018* | $216 million to $351 million |
| New Mexico | TBD*** | $60 million to $88 million |
| New York | TBD*** | $510 million to $880 million |
| North Carolina | Nov. 1, 2018** | $223 million to $358 million |
| North Dakota | Oct. 1, 2018* | $34 million to $49 million |
| Ohio | In court** | $288 million to $456 million |
| Oklahoma | July 1, 2018** | $157 million to $228 million |
| Oregon | No sales tax | N/A |
| Pennsylvania | In effect (pre-Wayfair) | $219 million to $373 million |
| Rhode Island | In effect (pre-Wayfair) | $34 million to $48 million |
| South Carolina | Pending*** | $132 million to $193 million |
| South Dakota | In court* | $33 million to $47 million |
| Tennessee | July 1, 2018*** | $237 million to $363 million |
| Texas | TBD*** | $763 million to $1.2 billion |
| Utah | Jan. 1, 2019* | $73 million to $113 million |
| Vermont | July 1, 2018* | $16 million to $23 million |
| Virginia | TBD*** | $188 million to $298 million |
| Washington | Oct. 1, 2018** | $298 million to $453 million |
| West Virginia | TBD** | $53 million to $74 million |
| Wisconsin | Oct. 1, 2018** | $123 million to $187 million |
| Wyoming | Pending* | $22 million to $31 million |
|
* State compliant with Wayfair checklist |
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Check Out: Sales Tax by State: Here’s How Much You’re Really Paying
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