1. Accounting
  2. Taxation
  3. SuiteTax
  4. SuiteTax Engine
  5. Setting Up the SuiteTax Engine for the United States
  6. Tax Code Lookup Logic for United States
  7. United States Tax Code Lookup for Sales

United States Tax Code Lookup for Sales

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Note:

If the Ship To state isn't the same as the transaction nexus, we always apply the non-liable tax code. This is done to avoid inconsistencies between the taxes and the transaction nexus.

Note:

The SuiteTax Engine can't differentiate between the consumer's use tax and seller's use tax rates. These use tax rates are usually identical, but if they are not, only the general use tax rates (for consumers) are supported.

Sales and purchases tax determination lookup logic is based on ZIP+4 accuracy:

Note:

If you leave the Location field empty, we consider the subsidiary Shipping Address as the Ship From address. If the Location field isn't empty but it doesn't have an address, we consider the Subsidiary Main Address as the Ship From address.

States Always Applying Sales Tax on Interstate Sales

The following states always apply the sales tax on interstate sales.

States

States Codes

Notes

Alaska

AL

The sales and use tax rates are different.

Arizona

AZ

The sales and use tax rates are different.

Colorado

CO

The sales and use tax rates are different.

Connecticut

CT

-

District of Columbia

DC

-

Florida

FL

-

Georgia

GA

-

Guam

GU

Guam has no use tax. It has the gross receipt tax that should be applied on sales to Guam (even from the other US states).

Hawaii

HI

The 0.5% use tax is a separate tax that is imposed on the import of the goods that are meant to be resold in Hawaii. If the sale is directly to a customer, the tax does not apply.

Iowa

IA

-

Idaho

ID

-

Illinois

IL

Since 1 January 2025, all the interstate sale should be charged with the sales tax. This applies to both in-state and out-of-state retailers).

Indiana

IN

-

Louisiana

LA

-

Massachusetts

MA

-

Maryland

MD

-

Maine

MA

-

Michigan

MI

-

Minnesota

MN

-

North Carolina

NC

-

North Dakota

ND

-

Nebraska

NE

-

New Jersey

NJ

-

New Mexico

NM

-

New York

NY

-

Pennsylvania

PA

-

Puerto Rico

PR

In Puerto Rico, the tax is officially called "Sales and use tax (SUT)".

Rhode Island

RI

-

South Dakota

SD

-

Tennessee

TN

-

Texas

TX

-

Vermont

VT

-

Washington

WA

-

Wisconsin

WI

-

Wyoming

WY

-

Origin-based Sales Tax States for Intrastate Sales

For the following states, the sales tax should be charged depending on where your business is located. For intrastate sales, the sales tax rates are applied based on the Ship FROM address.

States

States Codes

Notes

Arizona

AZ

-

California

CA

California is a modified origin-based state. County and city taxes are based on the Ship FROM address, and the district taxes are based on the Ship TO address. For more information about tax codes and mapping for California, see California Tax Codes and Mapping.

Illinois

IL

-

Mississippi

MS

-

Missouri

MO

-

Ohio

OH

-

Tennessee

TN

-

Texas

TX

-

Utah

UT

-

Virginia

VA

-

California Tax Codes and Mapping

California is a modified origin-based state. The state, county, and city taxes are based on the Ship FROM address, and the district taxes are based on the Ship TO address. California (CA) tax codes naming can be different in NetSuite. See the following table for the California tax codes naming specifics in NetSuite:

Tax Code Name in NetSuite

Actual Level of Tax

Tax Rate is Based on the Following Address

State

State

Ship FROM

County

County

Ship From

County

District

Ship TO

City

District

Ship TO

District

County

Ship FROM
Note:

Please be advised that although the tax codes naming in SuiteTax is different for some states, the actual rates are correct. Also, we can't change the naming completely due to the structure of the U.S. data and a significant number of relations and consequences such a change would entail. However, we are currently working on the tax codes naming enhancement.

Example for California Tax Codes

The Ship FROM address: Sweetser Avenue, Marin County, Novato CA 94945.

The Ship To address: Vine Hill Road, Sebastopol, Sonoma County, CA 95472.

Based on these two addresses, these are the taxes which are applied on the transaction:

Actual Level of Tax

Tax Rate

Based on

County the Tax is Based on

Tax Code Name/ Level Based on STE

Tax Code in NS

Rate in NS

Comment

State

6%

Ship FROM

Marin County

State

US_CA_STATE_SALES_1

6%

Correct

County

0.25%

Ship FROM

Marin County

County

US_CA_MARIN COUNTY_COUNTY_SALES_2

0.25%

Correct

County (local)

1%

Ship FROM

Marin County

District

US_CA_MARIN COUNTY_DISTRICT_SALES_1

1%

The rate is correct, but the name is misleading, as explained above. It is a local county tax imposed by county.

City

-

-

-

-

-

-

N/A (there is no city tax)

District

1.25%

Ship TO

Sonoma County

County

US_CA_SONOMA COUNTY_COUNTY_SALES_3

1.25%

The rate is correct, but the name is misleading, as explained above. It is a district tax imposed by county.

District

0.75%

Ship TO

Sonoma County

City

US_CA_SONOMA COUNTY_CITY_SALES_6

0.75%

The rate is correct, but the name is misleading, as explained above. It is a district tax usually imposed by city or county.

Multiple Shipping Routes US Tax Code Lookup

For the line level shipping address to be used in the nexus determination, you need to do the following:

  • enable the Multiple Shipping Routes feature

  • check the Enable Item Line Shipping box on your transaction.

If you enable the feature and then check the box, the US tax code lookup logic is followed on sales transactions.

Note:

If you check the Enable Item Line Shipping box on your sales transaction, you should not enter more than 400 item lines. Entering more than 400 item lines may negatively impact the feature performance or cause timeouts.

For more information about nexus determination logic, see Nexus Determination Lookup Logic in SuiteTax.

Shipping items are always taxable and follow the tax code lookup logic for sales.

Shipping items can only be exempt from sales tax in the following cases:

  • if the customer has a valid blanket exemption certificate in the ship to state

  • if the customer's default tax code or tax group are the not liable tax code or tax group for the transaction tax ID

  • if the transaction is treated as non-taxable.

    For example, the transaction is related to export out of the US. Then, it is shipping to a state where a seller has no registration. Then, the transaction could also override the nexus to a state not corresponding to the ship to address.

General Notices