As a sole proprietor artist living in Illinois, do I have to pay Illinois sales tax for a selling a piece of artwork to an out of state buyer?

[DaveF1006]

It depends. Sales tax questions are out of scope for this particular venue because it isn't income tax related. For your convenience however, here is a link for the State of Illinois Sales Tax Handbook that may have the answer you are looking for.

[rjs]

This TurboTax forum is for questions about income tax, not sales tax. You should consult other sources for help with sales tax.

Sales tax on interstate sales gets very complicated. Sales tax is incurred where the product is delivered. If the out-of-state buyer comes to your studio in Illinois and buys the artwork, it is subject to Illinois sales tax. If you ship the artwork to a buyer in another state, it is subject to sales tax in the state that you ship it to.

Each state has its own sales tax rules. You have to determine whether the artwork is taxable in the state where it is delivered. If the item is taxable, you have to determine whether you are required to register with the particular state and collect the sales tax. And you have to determine what sales tax rate applies to the sale. In many states there are local sales taxes as well as state sales tax, so the rate is not the same for the entire state.