How to File a Sales Tax Return: A State-by-State Guide

Filing sales tax returns is a critical part of staying compliant as a U.S. business. Whether you sell physical goods, digital products, or subscription services, if you're collecting sales tax from customers, you're acting as an agent of the state—and you're legally required to report and remit that tax. But every state has different rules, formats, and deadlines, which makes sales tax return filing a complex task.

This guide explains everything you need to know about how to file a sales tax return, from preparing your taxable sales data to submitting state-specific returns. You'll also find a breakdown of how to file in each state, including special cases like Hawaii’s GET and local option sales tax in states like Colorado and Alabama.

Who has to file a sales tax return?

You must file a sales tax return if your business:

• Is registered to collect sales and use tax in a U.S. state or local jurisdiction
• Has established economic nexus or physical nexus in that state (e.g., based on sales volume, employee presence, or warehouse storage)
• Has collected sales tax from customers in that jurisdiction

Even if you haven’t made any taxable sales in a reporting period, you’re still required to file a zero return. Failing to file can lead to penalties, late fees, and audit risk.

You must also file if:

• You sell tangible personal property or taxable digital goods
• You’re a marketplace seller or marketplace facilitator with obligations under state laws
• You operate in a state with local option taxes that require jurisdiction-level reporting (e.g., Colorado, Louisiana)

Filing sales tax returns - step by step

1. Register for a sales tax permit

Before you can collect sales tax, you must register with each state's Department of Revenue (DOR) where you have tax obligations. This is typically due to physical or economic nexus, and the registration process is usually done online.

2. Determine your filing frequency

States assign your filing frequency—monthly, quarterly, or annually—based on your sales volume. Higher-volume businesses generally file more frequently.

3. Collect the right data

You’ll need:

• Gross sales for the period
• Exempt sales (backed by certificates)
• Taxable sales = gross sales – exemptions – refunds
• Sales tax collected during the period

Also, keep documentation like invoices, receipts, and exemption certificates.

4. File your sales tax return

Each state’s return has a slightly different layout, but all require you to summarise your sales activity for the reporting period, report the tax liability, and indicate whether you owe state sales tax, local tax, or both. Most returns must be submitted electronically.

Even if you didn’t collect any sales tax for the period, you're typically still required to file a zero return.

5. Remit sales tax payments

Once your return is submitted, you must also remit sales tax to the relevant authority—either electronically or by mail (if allowed). Tax payments are due on the same day as your return unless stated otherwise.

Common mistakes to avoid

Filing sales tax can be tricky—especially across multiple states. Here are some frequent errors to watch out for:

• Missing deadlines: Sales tax returns are often due on the 20th of the month after the reporting period.
• Incorrect jurisdiction reporting: Some states (e.g., California, Texas, Colorado) require sales to be broken down by local district or city.
• Forgetting to file zero returns: Even if you didn’t collect tax, you’re often still required to file.
• Overlooking economic nexus: Many states have thresholds as low as $100,000 or 200 transactions. You may need to file even without physical presence.
• Not verifying exemption certificates: Invalid or expired certificates can lead to tax liability and penalties.
• Ignoring notices: States may send warnings or assessments if you miss a filing. Ignoring them can escalate issues.

State-by-state guide to sales tax return filing

Below is a snapshot of sales and use tax filing processes in each state. Be sure to confirm your sales tax filing deadline and specific instructions with the appropriate DOR:

Note: Most states require electronic filing and payment.

Alabama

• File via: My Alabama Taxes (MAT)
• Local taxes: Many self-administered cities/counties
• Frequency: Monthly, quarterly, annually, based on volume

Alaska

• No statewide sales tax, but some local jurisdictions impose tax
• File via: Alaska Remote Seller Sales Tax Commission

Arizona

• Transaction Privilege Tax (TPT) instead of sales tax
• File via: AZTaxes.gov

Arkansas

• File via: ATAP
• Frequency: Monthly/quarterly/annually
• Includes: Local tax reporting

California

• File via: CDTFA online services
• Requires reporting of sales by district for local sales tax

Colorado

• File via: Colorado Revenue Online
• Many home rule cities require separate filing

Connecticut

• File via: myconneCT
• Sales and use tax reported together

Delaware

• No sales tax, so no sales tax filing required

Florida

• File via: Florida DOR e-Services

Georgia

• File via: GTC (Georgia Tax Center)

Hawaii

• Imposes General Excise Tax (GET), not sales tax
• File via: Hawaii Tax Online

Idaho

• File via: Idaho State Tax Commission

Illinois

• File via: MyTax Illinois
• Must report sales separately for each location

Indiana

• File via: INTIME

Iowa

• File via: eFile & Pay
• Local option tax applies in many areas

Kansas

• File via: Kansas DOR

Kentucky

• File via: KY E-Tax

Louisiana

• State taxes via LaTAP
• Many local parishes file separately via Parish E-File

Maine

• File via: Maine Tax Portal

Maryland

• File via: Comptroller of Maryland

Massachusetts

• File via: MassTaxConnect

Michigan

• File via: MTO (Michigan Treasury Online)

Minnesota

• File via: e-Services

Mississippi

• File via: TAP (Taxpayer Access Point)

Missouri

• File via: MyTax Missouri

Montana

• No sales tax

Nebraska

• File via: Nebraska DOR

Nevada

• File via: NevadaTax

New Hampshire

• No sales tax

New Jersey

• File via: NJ Online Services

New Mexico

• Gross Receipts Tax (GRT) instead of sales tax
  
  
• File via: TAP

New York

• File via: NY DTF Online Services

North Carolina

• File via: NC DOR

North Dakota

• File via: ND TAP

Ohio

• File via: The Ohio Business Gateway

Oklahoma

• File via: OkTAP

Oregon

• No sales tax

Pennsylvania

• File via: myPATH

Rhode Island

• File via: RI Division of Taxation

South Carolina

• File via: MyDORWAY

South Dakota

• File via: SD DOR e-Path

Tennessee

• File via: TNTAP

Texas

• File via: Webfile

Utah

• File via: Utah TAP

Vermont

• File via: myVTax

Virginia

• File via: VATAX

Washington

• File via: My DOR

West Virginia

• File via: MyTaxes

Wisconsin

• File via: My Tax Account

Wyoming

• File via: Wyoming DOR

Benefits of automating sales tax filing

As your business grows, manual sales tax filing becomes unsustainable. Automation helps by:

• Reducing the risk of errors
• Tracking nexus thresholds automatically
• Auto-populating returns with real-time sales data
• Managing filing schedules, deadlines, and reminders
• Generating audit-ready reports
• Avoiding penalties for late or incorrect filings

Automation is especially important for e-commerce sellers, marketplace facilitators, or businesses operating in multiple states with local taxes.

How Taxually can help

At Taxually, we simplify sales and use tax filing through our purpose-built, automated U.S. sales tax solution, LumaTax. We help you:

• Track nexus and determine where you’re required to file
• Prepare and file returns across all 45+ taxing states
• Manage exempt sales with built-in certificate management
• Ensure on-time remittance with automatic deadline tracking
• Integrate your sales channels to sync your tax data
• Reduce compliance costs by up to 80%

Whether you’re filing in one state or fifty, LumaTax takes the stress out of sales tax return filing.

Do you need help with your sales tax compliance? Book a free call with one of our sales tax experts to find bespoke solutions for your business, optimize your tax costs, and reach millions of new potential customers.