The US has no federal sales tax and no national invoice format. You collect a state's sales tax only where you have nexus — a physical presence or, since 2018, enough sales into the state (commonly $100,000 a year). Where you do, invoices should show the jurisdiction, the rate, and the sales tax as its own line.
Unlike GST or VAT countries, the US has no federal sales tax and no single national invoice format. Sales tax is set state by state — 45 states and Washington, D.C. levy a statewide sales tax — and is often layered with county and city rates on top. What a compliant invoice needs to show depends on where the sale is taxed.
Nexus decides whether you charge tax at all
Before worrying about invoice fields, you need to know where you're required to collect sales tax. That's called nexus — the legal connection between your business and a state.
- Physical nexus: an office, warehouse, employee, or inventory physically located in a state.
- Economic nexus: since the 2018 South Dakota v. Wayfair ruling, a state can require you to collect tax based on sales into the state alone — no physical presence needed.
- Most states set the economic nexus threshold at $100,000 in annual sales into the state. Some large states use higher figures — California and Texas use $500,000 — and a shrinking number also apply a transaction-count test (Illinois dropped its 200-transaction rule from 1 January 2026).
Without nexus in a state, you generally can't be required to collect its sales tax. With it, you need to register, collect, file, and remit — even for a handful of sales a year.
States without a statewide sales tax
| State | Statewide sales tax | Note |
|---|---|---|
| Alaska | None | Many local jurisdictions do charge sales tax |
| Delaware | None | Gross receipts tax applies to businesses instead |
| Montana | None | Some resort-area local taxes |
| New Hampshire | None | Separate taxes on meals and rooms |
| Oregon | None | No general sales tax at state or local level |
Marketplace sellers get a partial pass
If you sell through a platform like Amazon, Etsy, or eBay, marketplace facilitator laws generally make the platform responsible for collecting and remitting tax on those sales, in every state with a sales tax. That doesn't fully exempt you — some states still expect you to register and file, and you stay responsible for any sales made off-platform, such as through your own website or shop counter.
Exempt sales and resale certificates
Not every sale is taxable. Sales to buyers who will resell the goods, and to many non-profits and government bodies, can be exempt — but only if you collect and keep a valid resale or exemption certificate from the buyer. If you're audited without one, the state can treat the sale as taxable and bill you for the tax you didn't collect.
What actually needs to be on the invoice
There's no federally mandated invoice layout, but for audit protection and clean books, a US sales invoice should show:
- Business name and address
- Invoice date and a unique invoice number
- The buyer's name and address (and ship-to address, since it often sets the tax rate)
- An itemized description of what was sold, with quantity and price
- Whether each item is taxable or exempt
- The sales tax rate applied and the jurisdiction it applies to
- The sales tax amount as its own line, separate from the price
- The total amount due
Because taxability and rates can differ by item and by jurisdiction — some states tax software or clothing differently from other goods, for instance — a single flat rate on every invoice is rarely accurate once you sell into more than one state. Most multi-state sellers use a rate-lookup or sales tax automation service to keep up.
Frequently asked
Do I need to charge sales tax on online sales to other states?
Only in states where you have nexus — a physical presence, or sales above that state's economic nexus threshold (commonly $100,000 a year).
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax, though Alaska and Montana allow some local sales taxes.
Is there a standard US sales tax invoice format?
No federal format exists. Show the jurisdiction, rate, taxable status, and sales tax amount separately on each invoice so your records hold up in an audit.
A note on StashBill: StashBill's built-in tax presets currently cover India, the UAE, the UK, and Australia — US sales tax isn't supported yet. If you need it, tell us; new countries are prioritised by demand. See the supported countries.
Sources
- US Supreme Court — South Dakota v. Wayfair, Inc. (2018)
- Streamlined Sales Tax Governing Board
- Your state's Department of Revenue website — for current economic nexus thresholds and rates
General information, not tax advice. Sales tax rules vary by state and change often — check with an accountant or your state's Department of Revenue before registering in a new state.