Sales Tax Digital Goods Taxability by State

Sales Tax Digital Goods Taxability by State
State Taxable Digital Goods Untaxable Digital Goods Source Link Last Updated
Alabama Prewritten computer software is taxable as tangible personal property; electronically delivered custom software services are not taxed Custom software programming services are not taxed Source 7/27/26
Alaska No statewide sales tax; digital goods not taxed at state level All digital goods untaxed at state level Source 7/27/26
Arizona No official guidance found; TPP generally applies to tangible property   Source 7/27/26
Arkansas Digital goods and software are generally taxable   Source 7/27/26
California Digital products are generally not taxable unless transferred on tangible media Most digital downloads are not taxed Source 7/27/26
Colorado Digital goods are generally not subject to sales tax Most digital products untaxed Source 7/27/26
Connecticut Digitally delivered audio/visual works, music, e-books taxable at 6.35% Digital newspapers, magazines, and college textbooks exempt Source 7/27/26
Delaware No state sales tax; digital goods not taxed All digital goods untaxed   7/27/26
District of Columbia All digital goods taxable including apps, music, movies, streaming No specific exemptions; most digital content taxable Source 7/27/26
Florida E-books and digitally delivered audio/video works exempt Streaming video and electronic books not taxed Source 7/27/26
Georgia Digital products sold for permanent use are taxable Electronically delivered prewritten software exempt Source 7/27/26
Hawaii General excise tax applies to digital goods and services   Source 7/27/26
Idaho Digitally delivered books, music, videos, games taxable when permanently transferred Subscription-based or licensed digital products not taxed Source 7/27/26
Illinois Digital products including streaming services are taxable   Source 7/27/26
Indiana Specified digital products taxable (audio, video, books) Prewritten software and digital services not taxed Source 7/27/26
Iowa Digital audio, video, books, apps, software taxable Internet access and some data services exempt Source 7/27/26
Kansas Digital products are generally taxable   Source 7/27/26
Kentucky Digital property (audio works, books, images, games) taxable Some digital audiovisual works excluded from digital property tax Source 7/27/26
Louisiana Digital products taxable starting Jan 1 2025 Existing B2B and statutory exemptions apply Source 7/27/26
Maine Digital products taxable if physical equivalent would be taxed Custom software treated as non-taxable service Source 7/27/26
Maryland Digital products and digital codes are taxable starting March 2021 Custom software services exempt Source 7/27/26
Massachusetts Prewritten software taxable on tangible media; electronically delivered software generally not taxed Custom software development not taxed Source 7/27/26
Michigan Digital products and software are generally taxable   Source 7/27/26
Minnesota Digital audio, video, books, games taxable News articles, magazines, and similar digital content exempt Source 7/27/26
Mississippi Computer software and digital media taxable Separately stated service fees not taxed Source 7/27/26
Missouri Digital products are generally not taxable unless on tangible media Most digital goods untaxed Source 7/27/26
Montana No state sales tax All digital goods untaxed   7/27/26
Nebraska Digital audio, video, books taxable if permanently transferred Other digital products not specifically listed not taxed Source 7/27/26
Nevada No sales tax on electronically delivered digital goods Only tangible media taxed Source 7/27/26
New Hampshire No sales tax in state All digital goods untaxed   7/27/26
New Jersey Specified digital products (audio, video, books) taxable Digital magazines, photos, newsletters exempt Source 7/27/26
New Mexico Digital products and services may be subject to gross receipts tax   Source 7/27/26
New York Digital products including audio works, audiovisual works, and e-books are taxable Custom software and certain digital services exempt Source 7/27/26
North Carolina Digital property such as audio, video, and e-books generally taxable Digital newspapers and certain educational services may be exempt Source 7/27/26
North Dakota Specified digital products are likely treated as taxable   Source 7/27/26
Ohio Digital downloads of audio and video works are taxable Custom software and services generally not taxed Source 7/27/26
Oklahoma Some digital products are taxable Digital products delivered purely as a service may be exempt Source 7/27/26
Oregon No state sales tax All digital goods untaxed   7/27/26
Pennsylvania Digital products including audio works, audiovisual works, apps, games, and e-books are taxable Digital newspapers, periodicals, educational publications, and custom software are exempt Source 7/27/26
Puerto Rico Digital goods are subject to Puerto Rico Sales and Use Tax (IVU) Certain B2B software services and business data products may be excluded Source 7/27/26
Rhode Island Digital downloads of audio/video works and software are generally taxable Some SaaS and computer services exempt if no ownership transfer Source 7/27/26
South Carolina Canned (prewritten) software, including downloaded software, is taxable Custom software treated as a professional service and not taxed Source 7/27/26
South Dakota Digital products and streaming services accessed by end users are taxable   Source 7/27/26
Tennessee Specified digital products including audio works, audiovisual works, books, games, and online courses are taxable Virtual currency sales and certain digital information services remain exempt Source 7/27/26
Texas Digital goods are taxable if their tangible equivalent is taxable; prewritten software is taxable Custom software development and certain data processing services are exempt Source 7/27/26
Utah Permanent digital downloads of audio and video works are taxable Some educational materials may qualify for exemption Source 7/27/26
Vermont Downloaded software and digital video/audio products are taxable Custom software services exempt Source 7/27/26
Virginia Digital products including music, movies, apps, games, and e-books are taxable Custom software and custom digital content generally exempt Source 7/27/26
Washington Digital goods including audio works, audiovisual works, e-books, remote access software, and digital codes are taxable Internet access, some communications services, and certain school purchases are exempt Source 7/27/26
West Virginia Digital products are taxable as tangible personal property   Source 7/27/26
Wisconsin Digital goods delivered electronically are taxable SaaS may be exempt if no title transfer occurs Source 7/27/26
Wyoming Downloaded software and digital entertainment are generally taxable Custom software development exempt Source 7/27/26

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