US SaaS taxability

Now dataset-backed. SaaS (digital_service) taxability — and 24 other product categories — comes from the us-tax-data dataset by default, across all states. The curated StaticProductTaxability map described below is the fallback used when the dataset is disabled (or for US pairs it leaves undetermined).

Whether SaaS / cloud software is subject to US sales tax varies state by state. The engine ships a curated StaticProductTaxability override map for the digital_service category, keyed "US-XX:digital_service" => taxable, bound by default. It covers only states with clear, citable guidance; states where the guidance conflicts, is local/home-rule-only, or is conditional/partial in a way a boolean cannot represent, are deliberately absent and throw UnresolvedProductTaxability so an operator configures them.

Not a substitute for tax advice. The determinations below are drawn from authoritative, dated practitioner compilations, not from reading each statute. SaaS taxability is nuanced (bundling, delivery method, home-rule localities, B2B vs B2C) and changes. Verify with your tax advisor before relying on this in production.

Rates are state-precision by default. Where SaaS is taxable, the dataset rate source returns the state rate at Confidence::Derived; local city/county/special-district components are stacked only when a rooftop locality is resolved (experimental, off by default). With the dataset disabled, the StaticTaxRateSource instead refuses US:*:digital_service unless a category-specific rate band is bound.

Sources, and what they are not

The map is curated from two dated, published SaaS-by-state compilations, retrieved 2026-07-17; only states where both agree on a clear taxable/exempt outcome are shipped, and a state they disagree on is deliberately absent so it refuses rather than guesses.

Both are practitioner compilations, not tax authorities. Neither carries statutory citations, both are published by commercial tax vendors as marketing material, and neither is under any obligation to keep its page current. The two are named with their URLs and retrieval dates in the dataset's own provenance registry (us-tax-data, resources/overlays/saas-taxability.json and the published meta.json), which is where a determination's source belongs — beside the determination, where an auditor reading the data finds it.

They are not repeated here. This package is the public MIT engine, and a coverage page that reads as a comparison against named competitors is not what its documentation is for.

Two consequences worth acting on. First, requiring both to agree is doing real work — it is the only cross-check there is, which is why a disagreement ships as a refusal. Second, this is the weakest provenance anywhere in the package, weaker than the state rates and far weaker than the SST-sourced local records, so verify any state that matters to your revenue against its own department's guidance before you rely on it.

Shipped — taxable (18 jurisdictions)

SaaS treated as taxable for the digital_service category. Citation: both compilations above concur (retrieved 2026-07-17).

State	Note
US-AZ Arizona
US-CT Connecticut	Business use taxed at 1%, personal at the full rate; the map records "taxable"
US-DC District of Columbia
US-HI Hawaii	General excise tax applies broadly
US-KY Kentucky	Taxable since 2023
US-LA Louisiana	Taxable at state level; parish-level rules add complexity
US-MA Massachusetts
US-NM New Mexico	Gross receipts tax applies broadly
US-NY New York
US-PA Pennsylvania
US-RI Rhode Island
US-SC South Carolina
US-SD South Dakota
US-TN Tennessee
US-UT Utah
US-VT Vermont
US-WA Washington
US-WV West Virginia

Shipped — exempt (26 jurisdictions)

SaaS treated as not taxable at the state level for the digital_service category. Citation: both compilations concur (retrieved 2026-07-17).

State	Note
US-AR Arkansas
US-CA California	No transfer of tangible personal property
US-CO Colorado	State-level exempt; home-rule cities (e.g. Denver) may tax
US-FL Florida
US-GA Georgia
US-ID Idaho
US-IL Illinois	State-level exempt; Chicago's lease-transaction tax may apply
US-IN Indiana
US-KS Kansas
US-ME Maine
US-MI Michigan	Downloadable components may still be taxable
US-MN Minnesota
US-MO Missouri
US-NE Nebraska
US-NV Nevada
US-NJ New Jersey
US-NC North Carolina
US-ND North Dakota
US-OK Oklahoma
US-VA Virginia
US-WI Wisconsin
US-WY Wyoming
US-DE Delaware	No general statewide sales tax
US-MT Montana	No general statewide sales tax
US-NH New Hampshire	No general statewide sales tax
US-OR Oregon	No general statewide sales tax

Undetermined — operator configures (throws)

These are not in the shipped map. StaticProductTaxability throws UnresolvedProductTaxability for these jurisdictions. You must configure these before invoicing SaaS in them; do not rely on a default.

State	Why undetermined
US-AL Alabama	Sources conflict (one taxable, one exempt)
US-MS Mississippi	Sources conflict (recent law change)
US-TX Texas	Partial: SaaS is a data-processing service, 80% taxable / 20% exempt — not a boolean
US-IA Iowa	Conditional on B2B vs B2C (exempt for business use)
US-OH Ohio	Conditional on B2B vs B2C (taxable for business use)
US-MD Maryland	Conditional: business use taxed at a reduced rate, personal use fully taxable
US-AK Alaska	No statewide sales tax; home-rule localities set their own SaaS rules

Representative primary-source constraints behind the "undetermined" bucket:

State	Primary-source constraint
US-TX Texas	Texas Comptroller guidance treats data processing as taxable with 20% of the charge exempt, so a plain taxable/exempt boolean is not enough. See https://comptroller.texas.gov/taxes/publications/94-127.php.
US-OH Ohio	Ohio taxes automatic data processing / computer / electronic information services when provided for business use, so customer/use context matters. See https://tax.ohio.gov/wps/portal/gov/tax/business/ohio-business-taxes/sales-and-use/information-releases/index-sales/st199904-archive3.
US-MD Maryland	Maryland distinguishes non-commercial SaaS from commercial-use software/SaaS, with further enterprise-computer-system analysis. See https://marylandtaxes.gov/forms/Business_Tax_Tips/bustip29.pdf.

Scope of the map

Covers the digital_service category only. Tangible goods (standard) remain taxable-by-default, which is generally correct.
Determinations are state-level. Home-rule localities (Chicago; Colorado home-rule cities) may tax SaaS even where the state does not — resolving those needs rooftop resolution the package does not yet ship a crosswalk for.
Taxable state-level SaaS resolves at the state rate. With the dataset disabled and no category-specific band bound, the engine throws UnresolvedTaxRate rather than applying an illustrative base rate.
Override any entry, or supply your own full map, by binding Cbox\Tax\Contracts\ProductTaxability.