Sales tax on services varies from state to state. If your state allows it, you may charge it.
There are significant differences across the country, so be sure to check each state accordingly.
- Services to tangible personal property (TPP): Many states now tax services to TPP at the same rate as sales of TPP. This includes improvements or carpentry repairs to property, and car repair.
- Services to real property: Includes work done on buildings and land, such as landscaping or janitorial services.
- Business services: Here, services performed for businesses and companies include telephone answering, credit reporting and credit bureaus, and extermination services.
- Personal services: These comprise businesses that provide personal grooming or other types of self-improvement, tanning salons, massages not performed by a licensed therapist, and even animal grooming.
- Professional services: These are considered the least-taxed services due to powerful lobbying presences. Accountants fall into this area, as well as the work performed by attorneys and healthcare professionals, among other licensed professionals.
- Amusement and recreation: Where there’s fun, there may be a tax on services; many states tax admission to amusement parks and events such as concerts and professional sports.
Sales tax
