Taxability of SaaS in Different States
SaaS is generally not taxable in North Dakota. The state does not have specific regulations or statutes regarding SaaS taxability. SaaS is generally considered a service in North Dakota, and services are not subject to sales tax. However, some SaaS may be taxable, like SaaS considered a digital good such as a software application. Additionally, SaaS provided to a consumer in North Dakota may be taxable if the consumer does not have a business use. Consult a tax professional if unsure about SaaS taxability in North Dakota.
Where can you learn more about why Alabama does not require sales tax on SaaS? AL 810-6-1 defines computer software but does not define SaaS as a taxable service.
Does Alaska require sales tax on SaaS? Alaska generally charges sales tax on SaaS. Software downloads, specified digital products, streaming services and other online services are subject to Alaska sales tax as a remote sale when delivered into an Alaska jurisdiction.
State Tax Laws on SaaS
The chart below details states where SaaS is and is not taxable with a source from each state’s department of revenue or laws. SaaS taxability laws are changing rapidly. We recommend speaking to a tax professional about specific SaaS taxability.