Navigating the complex world of sales tax is one of the biggest headaches for consignment shop owners. Our Consignment Software simplifies this process by allowing you to set dual tax rates (state and local) and even automate tax exemptions for specific items like clothing in certain states. Ensure your shop stays compliant with local laws without the burden of monthly subscription fees or complicated accounting workarounds.
For tax purposes, consignment and resale transactions are generally considered "retail" activity. This means shop owners must collect and remit sales tax based on their state and local laws.
Forty-five states impose a statewide retail tax, and 38 of them collect local taxes on top of that. Below is a reference guide for general tax rates applicable in 2024.
| State | State Tax | Avg. Local Tax | Total Est. Tax |
|---|---|---|---|
| Alabama | 4.00% | 5.10% | 9.10% |
| Alaska | 0.00% | 1.76% | 1.76% |
| Arizona | 5.60% | 2.73% | 8.33% |
| Arkansas | 6.50% | 2.91% | 9.41% |
| California | 7.25% | 1.29% | 8.54% |
| Colorado | 2.90% | 4.62% | 7.52% |
| Connecticut | 6.35% | 0.00% | 6.35% |
| Delaware | 0.00% | 0.00% | 0.00% |
| Florida | 6.00% | 0.80% | 6.80% |
| Georgia | 4.00% | 3.15% | 7.15% |
| Hawaii | 4.00% | 0.35% | 4.35% |
| Idaho | 6.00% | 0.03% | 6.03% |
| Illinois | 6.25% | 2.45% | 8.70% |
| Indiana | 7.00% | 0.00% | 7.00% |
| Iowa | 6.00% | 0.80% | 6.80% |
| Kansas | 6.50% | 2.18% | 8.68% |
| Kentucky | 6.00% | 0.00% | 6.00% |
| Louisiana | 5.00% | 5.02% | 10.02% |
| Maine | 5.50% | 0.00% | 5.50% |
| Maryland | 6.00% | 0.00% | 6.00% |
| Massachusetts | 6.25% | 0.00% | 6.25% |
| Michigan | 6.00% | 0.00% | 6.00% |
| Minnesota | 6.88% | 0.55% | 7.42% |
| Mississippi | 7.00% | 0.07% | 7.07% |
| Missouri | 4.23% | 3.80% | 8.03% |
| Montana | 0.00% | 0.00% | 0.00% |
| Nebraska | 5.50% | 1.39% | 6.89% |
| Nevada | 6.85% | 1.29% | 8.14% |
| New Hampshire | 0.00% | 0.00% | 0.00% |
| New Jersey | 6.63% | -0.03% | 6.60% |
| New Mexico | 5.13% | 2.54% | 7.66% |
| New York | 4.00% | 4.49% | 8.49% |
| North Carolina | 4.75% | 2.20% | 6.95% |
| North Dakota | 5.00% | 1.80% | 6.80% |
| Ohio | 5.75% | 1.40% | 7.15% |
| Oklahoma | 4.50% | 4.41% | 8.91% |
| Oregon | 0.00% | 0.00% | 0.00% |
| Pennsylvania | 6.00% | 0.34% | 6.34% |
| Rhode Island | 7.00% | 0.00% | 7.00% |
| South Carolina | 6.00% | 1.37% | 7.37% |
| South Dakota | 4.50% | 1.90% | 6.40% |
| Tennessee | 7.00% | 2.46% | 9.46% |
| Texas | 6.25% | 1.92% | 8.17% |
| Utah | 5.95% | 0.82% | 6.77% |
| Vermont | 6.00% | 0.18% | 6.18% |
| Virginia | 5.30% | 0.33% | 5.63% |
| Washington | 6.50% | 2.68% | 9.18% |
| Washington D.C. | 5.75% | 0.00% | 5.75% |
| West Virginia | 6.00% | 0.37% | 6.37% |
| Wisconsin | 5.00% | 0.42% | 5.42% |
| Wyoming | 4.00% | 1.46% | 5.46% |
New York provides a sales tax exemption for clothing and footwear purchases under $110 per item. This exemption is particularly beneficial for consignment shops in NY, as many used items fall below this threshold.
In BCSS, you can record a buyer's Reseller Tax ID on their client record. When you process a sale for that client, the software can automatically wave the sales tax, ensuring you stay compliant without manual math at the register.
Tax rates change frequently. A shop owner should contact the following resources to verify current local rates:
Disclaimer: This information is for educational purposes only and is not tax or legal advice. Tax rates are subject to change. Please consult with a CPA or tax professional for advice specific to your business.