| Alaska | No state sales tax | No state sales tax; many towns and boroughs levy their own. | Alaska Dept. of Commerce, Alaska Sales Tax Information |
| Maine | Does not tax it | Our reading: not on the taxable service list. | 36 M.R.S. section 1752 |
| Wisconsin | Does not tax it | | Wisconsin Admin. Code Tax 11.71 |
| Vermont | Does not tax it | Our reading: not on the taxed list. | 32 V.S.A. section 9771 |
| New Hampshire | No state sales tax | | N.H. RSA 78-D:1 |
| Washington | Taxes it | Taxed as IT services since Oct. 1, 2025. | Washington DOR, interim guidance on ESSB 5814 IT services |
| Idaho | Does not tax it | Our reading: untaxed unless the result is printed or delivered on storage media. | IDAPA 35.01.02.027 |
| Montana | No state sales tax | | Montana Dept of Revenue, Sales Tax Guidance |
| North Dakota | Does not tax it | Unless part of a taxable unitary transaction; covers reports from the customer's own data. | North Dakota Tax Commissioner, Computers Guideline |
| Minnesota | Does not tax it | Generally; except a contract in the nature of a lease. | Minnesota Rules 8130.9700 |
| Illinois | Does not tax it | 2024 ruling for one company: untaxed when no software passes to the customer. | Illinois DOR, Private Letter Ruling ST 24-0003-PLR |
| Michigan | Does not tax it | 2019 ruling for one company lists data processing as exempt. | Michigan Treasury Letter Ruling 2019-3 |
| New York | Does not tax it | 2010 advisory opinion on one petitioner; NY does tax some information services, a separate category. | New York Tax Dept, Advisory Opinion TSB-A-10(52)S |
| Massachusetts | Does not tax it | Generally exempt. | Massachusetts DOR, 830 CMR 64H.1.3 |
| Oregon | No state sales tax | | Oregon Dept of Revenue, Sales Tax in Oregon |
| Nevada | Does not tax it | Our reading: services not tied to goods are untaxed; data processing is not named. | Nevada Department of Taxation, Sales Tax FAQs |
| Wyoming | Does not tax it | Our reading: Wyoming taxes listed services; data processing is not listed. | Wyoming DOR, presentation to the Joint Revenue Committee, Aug. 2025 |
| South Dakota | Taxes it | | South Dakota DOR, Direct Mail tax fact sheet (July 2023) |
| Iowa | Does not tax it | Our reading: not on the taxed list, but storage, data access and SaaS are. | Iowa Code 423.2 |
| Indiana | Does not tax it | Our reading: batch computer time is untaxed if billed apart from equipment. | Indiana DOR, Sales Tax Information Bulletin #8 |
| Ohio | Taxes it | Only when provided for use in business. | Ohio Revised Code 5739.01 |
| Pennsylvania | Does not tax it | Effective July 1, 1997; canned software remains taxable. | 61 Pa. Code 60.19, Computer software and related transactions |
| New Jersey | Does not tax it | Marked E in the bulletin's services table. | New Jersey Division of Taxation, Bulletin S&U-4 (Rev. 07/22) |
| Connecticut | Taxes it | Reduced 1% rate; general rate is 6.35%. | Connecticut DRS, Form O-88 instructions (07/26) |
| Rhode Island | Does not tax it | Our reading: not on the list of taxed services. | R.I. Gen. Laws 44-18-7.3 |
| California | Does not tax it | Generally; the regulation says tax applies to some related charges. | California CDTFA, Regulation 1502 |
| Utah | Does not tax it | Private letter ruling: generally not taxable. | Utah State Tax Commission, Private Letter Ruling 21-004 |
| Colorado | Does not tax it | Our reading: services untaxed, but paid access to computers to process data is taxed. | Colorado DOR, Sales Tax Guide |
| Nebraska | Does not tax it | Stated as an example in a 2008 revenue ruling. | Nebraska DOR, Revenue Ruling 01-08-6 |
| Missouri | Does not tax it | Our reading: software as a service is untaxed; data processing is not named. | 12 CSR 10-109.050 |
| Kentucky | Does not tax it | Our reading: not on the taxed list, but hosting and data brokering are. | KRS 139.200 |
| West Virginia | Does not tax it | Exempt; equipment, materials and supplies are not. | West Virginia Tax Division, TSD-300 |
| Virginia | Does not tax it | Ruling cites long-standing department policy. | Virginia Tax Commissioner Ruling 02-113 |
| Maryland | Taxes it | 3% rate since July 2025; the listed data processing item excepts payroll and financial transactions. | Maryland Comptroller, Technical Bulletin No. 56 |
| Delaware | Gross receipts tax on sellers | Has a gross receipts tax on sellers of goods and providers of services. | Delaware Division of Revenue, Step 4: Gross Receipts Taxes |
| Arizona | Does not tax it | 2002 ruling: not taxed if billed apart from software licences. | Arizona DOR, Private Taxpayer Ruling LR02-020 |
| New Mexico | Gross receipts tax on sellers | A gross receipts tax on sellers covers services done in the state. | 3.2.1.18 NMAC, Gross Receipts; Services |
| Kansas | Does not tax it | Tax applies to conversion when the true object is the tangible medium. | Kansas Dept of Revenue, EDU-71R sales tax guidelines |
| Arkansas | Does not tax it | Our reading: word-processed copies and mailing jobs are exempt; data processing is not named. | Arkansas Gross Receipts Tax Rule GR-10.1 |
| Tennessee | Does not tax it | State law carves out data processing; remotely accessed software is taxed. | Tennessee DOR, Revenue Ruling 25-08 |
| North Carolina | Does not tax it | 2021 ruling for one company: untaxed when the customer wants the processed data. | NCDOR Private Letter Ruling SUPLR 2021-0017 |
| South Carolina | Does not tax it | Excluded by statute, as defined there. | South Carolina DOR, Policy Manual Ch. 17 (Sept 2025) |
| District of Columbia | Taxes it | 6.0 percent. | DC Office of Tax and Revenue, Taxable and Non-Taxable Services |
| Oklahoma | Does not tax it | Exempt under rule 710:65-19-86, as of the 2022 compilation. | Oklahoma Tax Commission, OAC 710:65 (2022 compilation) |
| Louisiana | Does not tax it | Listed as an exclusion from information services. | Louisiana Dept of Revenue, FAQ on information services exclusions |
| Mississippi | Does not tax it | Rule says not taxable; a 2023 law also exempts software hosted out of state. | Mississippi Admin. Code Title 35 (Secretary of State copy) |
| Alabama | Does not tax it | Our reading: the tax falls on sales of goods; the page does not name data processing. | Alabama DOR, Sales Tax |
| Georgia | Does not tax it | 2006 rule: untaxed if billed apart from prewritten software. | Ga. Comp. R. & Regs. 560-12-2-.111 |
| Hawaii | Gross receipts tax on sellers | Our reading: a 4% general excise tax on sellers reaches service businesses. | Hawaii Revised Statutes 237-13 |
| Texas | Taxes it | Twenty percent of the charge is exempt, so 80% is taxed. | Texas Comptroller, Publication 96-259, Taxable Services |
| Florida | Does not tax it | 2002 advisement: one-customer data work is not taxed. | Florida DOR, Technical Assistance Advisement 02A-045 |
