Professional Fees and Taxes in United States
Calculate taxes for professional fees using country defaults.
Input
Default tax for United States: —
Common US state examples:
| State | Typical tax |
|---|---|
| California | 7.25% |
| New York | 8.875% |
| Texas | 6.25% |
| Florida | 6.00% |
| Illinois | 6.25% |
Information about sales tax and similar charges — United States
This calculator provides an estimate of sales tax or similar charges that may apply to professional services in United States. Taxes are administered at the state and local level — rates and tax bases vary considerably between states, counties and cities.
Key Considerations
- State/local variability: each state (and many localities) sets its own rules — some tax many services, others exempt most.
- Nexus and registration: businesses must register in states where they have nexus (physical presence, economic thresholds, marketplace sales).
- Marketplaces and digital services: marketplace facilitator laws and rules for digital services can change who collects and remits the tax.
- Use tax and equivalents: buyers may owe use tax when sellers do not charge sales tax; some states place responsibility on the buyer.
- Check local rules: always confirm with the state or local tax authority before applying a rate on an invoice.
Quick Example (California)
Sample invoice: $1,000.00 with combined rate of 21%:
Examples by state (approximate)
| State | State Rate | Combined Rate | Services Taxable? |
|---|---|---|---|
| California | 7.25% | ~7.25%–10.25% | Selective Many services are not taxable by default; local taxes raise the rate. |
| New York | 4.00% | ~4%–8.875% | Selective NYC has high local rate; some professional services may be exempt. |
| Texas | 6.25% | ~6.25%–8.25% | Frequent Many services (professional/repair) are taxable; check lists. |
| Florida | 6.00% | ~6%–8%+ | Selective Some services taxable; many professionals are exempt. |
| Washington | 6.50% | ~6.5%–10.5% | Frequent Broad base including digital transactions and certain services. |
| Massachusetts | 6.25% | ~6.25% | Mostly no Most professional services are not subject to sales tax. |
| Alabama | 4.00% | ~8%–11% | Selective Local rates can increase burden; verify taxable services. |
| Alaska | 0.00% | ~0%–7.5% | Varies No statewide tax; municipalities may apply local taxes. |
| Arizona | 5.60% | ~5.6%–11.2% | Selective Some cities increase the rate; review taxable service lists. |
| Arkansas | 6.50% | ~6.5%–11% | Selective Check state and local lists of taxable services. |
| Colorado | 2.90% | ~2.9%–10% | Selective Low state rate; localities can add significant levies. |
| Connecticut | 6.35% | ~6.35%–7.75% | Selective Some services may be taxable or exempt depending on category. |
| Delaware | 0.00% | 0% | No No statewide sales tax; businesses use other taxes (franchise/gross receipts). |
| District of Columbia (DC) | 6.00% | ~6% | Selective Own rules; check treatment of professional services. |
| Georgia | 4.00% | ~4%–9%+ | Selective Localities can add charges; some categories exempt. |
| Hawaii | 4.00% | ~4%–4.5% | Varies Hawaii uses GET rather than a traditional sales tax for many transactions. |
| Idaho | 6.00% | ~6%–8% | Selective Check taxable service lists and local charges. |
| Illinois | 6.25% | ~6.25%–11% | Selective Chicago and counties add rates; certain services exempt. |
| Indiana | 7.00% | ~7% | Mostly no Most professional services are not taxed at state level. |
| Iowa | 6.00% | ~6%–7% | Selective Some services are taxable; review state guidance. |
| Kansas | 6.50% | ~6.5%–9%+ | Selective Municipalities and districts may raise the rate. |
| Kentucky | 6.00% | ~6% | Mostly no Professional services generally not subject to sales tax. |
| Louisiana | 4.45% | ~4.45%–11% | Frequent Local rates can be high; many service categories taxable. |
| Maine | 5.50% | ~5.5% | Mostly no Limited taxation of services; check exemptions. |
| Maryland | 6.00% | ~6% | Mostly no Few categories of services are taxable. |
| Michigan | 6.00% | ~6% | Mostly no Most professional services are not subject to sales tax. |
| Minnesota | 6.88% | ~6.875%–8.875% | Selective Some services taxable; consult state lists. |
| Mississippi | 7.00% | ~7%–8%+ | Frequent Broad base for services in certain categories. |
| Missouri | 4.23% | ~4.225%–10%+ | Selective Local rates vary; certain services taxable. |
| Montana | 0.00% | 0% | No No general statewide sales tax; limited local taxes exist. |
| Nebraska | 5.50% | ~5.5%–7%+ | Selective Check taxable services and local rates. |
| Nevada | 6.85% | ~6.85%–8.375% | Selective Some cities/tourism areas influence combined rate. |
| New Hampshire | 0.00% | 0% | No No statewide sales tax; some other taxes apply. |
| New Jersey | 6.63% | ~6.625%–7%+ | Selective Some service sales are taxable. |
| New Mexico | 5.13% | ~5.125%–8%+ | Varies Uses a gross receipts tax (GRT) rather than a traditional sales tax. |
| North Carolina | 4.75% | ~4.75%–7.5% | Selective Local taxes increase combined rate; consult categories. |
| North Dakota | 5.00% | ~5%–8.5% | Selective Check state-level rules for taxation of services. |
| Ohio | 5.75% | ~5.75%–8%+ | Selective Localities add rates; certain services exempt. |
| Oklahoma | 4.50% | ~4.5%–11% | Selective Local rates can be high in some municipalities. |
| Oregon | 0.00% | 0% | No No general statewide sales tax. |
| Pennsylvania | 6.00% | ~6%–8%+ | Selective Some services (e.g., repairs) are taxable; check lists. |
| Rhode Island | 7.00% | ~7% | Selective Specific rules for certain services. |
| South Carolina | 6.00% | ~6%–9%+ | Selective Local rates vary; categories of services taxable. |
| South Dakota | 4.50% | ~4.5%–6.5% | Frequent Broad base and active policy on economic nexus. |
| Tennessee | 7.00% | ~7%–10%+ | Frequent High local rates in some counties/cities. |
| Utah | 4.85% | ~4.85%–8.35% | Selective Local rates increase the combined rate. |
| Vermont | 6.00% | ~6%–7%+ | Selective Some services taxable; confirm exemptions. |
| Virginia | 4.30% | ~4.3%–7%+ | Selective Local taxes increase combined rate; check rules. |
| West Virginia | 6.00% | ~6%–7%+ | Selective Verify taxable services and local levies. |
| Wisconsin | 5.00% | ~5%–7%+ | Selective Municipalities apply additional charges; some categories exempt. |
| Wyoming | 4.00% | ~4%–6%+ | Selective Local rules and service categories vary. |
Note: Rates are approximate and illustrative. Confirm exact rates and taxability with the relevant state/local tax authority.