Seller's Permit 2026: What It Is and How to Get a Sales Tax Permit
Short answer: a seller’s permit is your registration with a state to collect sales tax. You need one in your home state before your first taxable sale, and in any other state once you pass its economic nexus threshold. You apply online with the state’s tax agency. It’s free in most states, and you usually get your number within a few days.
States call it a seller’s permit, a sales tax permit, a sales tax license, a retail tax license, a Certificate of Authority, a vendor’s license or a TPT license. They’re all the same registration.
This guide is for small businesses selling physical or digital products: Shopify and WooCommerce stores, Etsy and Amazon sellers, and people selling at markets and fairs. If you already have a permit and want to buy inventory tax-free, read the resale certificate guide next.
Do you need a seller’s permit? Find your situation
Section titled “Do you need a seller’s permit? Find your situation”| Your situation | Do you need one? | When |
|---|---|---|
| You sell taxable products to customers in your home state | Yes | Before your first sale |
| You sell into another state and are under its threshold | No | Keep tracking your sales there |
| You pass a state’s economic nexus threshold (usually $100,000 a year) | Yes, in that state | Usually by the next month. Each state sets its own deadline |
| You have inventory, staff or an office in another state (including Amazon FBA warehouses) | Yes, in that state | From the first sale. See physical nexus |
| You sell only on Etsy, Amazon or eBay | Often not | Depends on the state. See marketplace sellers |
| You sell at a one-off craft fair or event | Usually, a temporary one | Before the event. See temporary permits |
| You sell only in Alaska*, Delaware, Montana, New Hampshire or Oregon | No | These states have no statewide sales tax. *Some Alaska cities do |
| You sell only services or SaaS that your state doesn’t tax | Usually not | Check whether your state taxes SaaS and digital goods |
What is a seller’s permit?
Section titled “What is a seller’s permit?”A seller’s permit gives you a sales tax account number with a state. With it you can, and must:
- Charge sales tax to customers in that state at the right rate
- File sales tax returns on the schedule the state gives you (monthly, quarterly or yearly), even when you owe nothing
- Pay the tax you collected to the state with each return
It’s also the number your suppliers ask for when you give them a resale certificate, so you need it before you can buy stock tax-free.
Selling without a permit when you need one is the most expensive mistake in sales tax. You still owe the tax you didn’t collect, plus penalties and interest, usually out of your own pocket. If that’s already happened, a voluntary disclosure agreement can limit how far back the state goes.
Seller’s permit vs resale certificate vs business license
Section titled “Seller’s permit vs resale certificate vs business license”These four get confused all the time. You’ll often need all of them.
| What it is | Who issues it | What it’s for | |
|---|---|---|---|
| Seller’s permit | Your state sales tax registration | State tax agency | Collecting sales tax and filing returns |
| Resale certificate | A form you give suppliers | Usually you fill it in (Florida and Washington issue one) | Buying inventory without paying sales tax |
| Business license | Permission to operate in a city or county | City or county | Running a business there. Unrelated to sales tax in most states |
| EIN | Federal Employer Identification Number | IRS | Federal tax ID. Most permit applications ask for it; sole proprietors can use their SSN |
Names and costs by state
Section titled “Names and costs by state”Every state names its permit differently, and a few charge for it. Here are the 15 states with the most online sales. Each state links to the registration steps in its GoodVat guide.
| State | What it’s called | Agency | Cost |
|---|---|---|---|
| California | Seller’s Permit | CDTFA | Free. A security deposit may be required |
| Texas | Sales and Use Tax Permit | Comptroller of Public Accounts | Free |
| New York | Certificate of Authority | Department of Taxation and Finance | Free. Needed 20 days before your first sale if you’re based there |
| Florida | Certificate of Registration (Form DR-1 application) | Department of Revenue | Free |
| Illinois | Certificate of Registration | Department of Revenue | Free |
| Pennsylvania | Sales Tax License | Department of Revenue | Free |
| Ohio | Vendor’s License | Department of Taxation | $25 one-time |
| Georgia | Sales and Use Tax Number | Department of Revenue | Free |
| North Carolina | Certificate of Registration | Department of Revenue | Free |
| Michigan | Sales Tax License | Department of Treasury | Free |
| New Jersey | Certificate of Authority | Division of Taxation | Free |
| Washington | Business License (includes sales tax) | Department of Revenue | $90 at first registration |
| Arizona | Transaction Privilege Tax (TPT) License | Department of Revenue | $12 per license, plus some city fees |
| Colorado | Sales Tax License (Retailer’s Use Tax for remote sellers) | Department of Revenue | Varies. Check when you apply |
| Oklahoma | Sales Tax Permit | Oklahoma Tax Commission | $20, renewed every 3 years. Free through SST |
For every other state, find it in the state sales tax index.
Arizona’s TPT license is the one that surprises people. Arizona has no sales tax on paper: it charges a transaction privilege tax on the seller instead. In practice it works like sales tax, and you register for it the same way.
How to get a seller’s permit in 5 steps
Section titled “How to get a seller’s permit in 5 steps”- Gather your details. Legal business name and address, your EIN (or SSN as a sole proprietor), business structure, owners’ names, a description of what you sell (often a NAICS code), your start date in the state and your estimated monthly sales.
- Go to the state’s tax agency website. Use the official site, which ends in
.gov. Third-party “permit services” charge a fee for a registration that’s usually free to do yourself. - Apply online. Choose sales and use tax. Some states have a separate option for remote sellers, such as Colorado’s Retailer’s Use Tax.
- Get your number. Many states issue it instantly online. Others mail it within one to two weeks. The state also tells you your filing frequency.
- Set up collection and filing. Turn on tax collection for that state in your store, and note your first return’s due date. If your store doesn’t collect, you pay the tax yourself.
Registering in many states at once? The Streamlined Sales Tax program lets you register in all 23 member states with one free application. The rest need separate applications.
What a seller’s permit costs
Section titled “What a seller’s permit costs”Registration is free in most states. The exceptions among large states are in the table above: Ohio ($25), Oklahoma ($20 every three years), Arizona ($12 per license) and Washington ($90 for the business license).
Two other costs to watch for:
- Security deposits. California and a few other states can ask new sellers, especially those without a sales history in the state, for a deposit against unpaid tax. It’s refunded after a period of on-time filing.
- Paid permit services. Websites that look official will file the same free application for a fee. They don’t give you anything the state doesn’t.
After you register
Section titled “After you register”- File every return on time, even when you owe nothing. Most states charge a penalty for a missing zero return, and some cancel permits for not filing.
- Display it if you have a shop or a market stall. Most states require the permit to be visible at a physical place of business.
- Keep it current. Tell the state when your address, ownership or business structure changes. A new owner or a new entity (a sole proprietor becoming an LLC, for example) usually needs a new permit.
- Close it when you stop selling in that state. Otherwise the filing obligation continues and penalties pile up.
Marketplace sellers: Etsy, Amazon and eBay
Section titled “Marketplace sellers: Etsy, Amazon and eBay”Marketplace facilitator laws make Etsy, Amazon, eBay and Walmart collect and pay sales tax on your sales in every state with a sales tax. Many states then don’t require you to register for those sales. California, for example, doesn’t require a seller’s permit if all your California sales go through a registered marketplace.
You need a permit as soon as:
- You sell anywhere else in that state: your own Shopify store, social media, markets or in person
- Your state requires it anyway. Some states want sellers based there to register even when every sale goes through a marketplace
- You want to buy stock tax-free. Most resale certificates ask for a permit number, though California lets marketplace-only sellers use the marketplace’s number instead
Marketplace sales still count toward economic nexus thresholds in most states. A seller with $80,000 on Amazon and $30,000 on Shopify in one state has $110,000 of sales there.
Temporary seller’s permits for fairs and events
Section titled “Temporary seller’s permits for fairs and events”Selling at a craft fair, farmers market, trade show or pop-up in a state where you aren’t registered usually needs a temporary seller’s permit (or “special event” permit). California, for example, issues temporary permits for sales at a temporary location for up to 90 days. They’re usually free, and some event organizers register all vendors for you. Ask the organizer before the event.
Worked example: an Ohio candle maker
Section titled “Worked example: an Ohio candle maker”Maya makes candles in Columbus, Ohio, and sells on Etsy and her own Shopify store.
- Year 1: $40,000 in sales, $6,000 of it to Ohio customers. Ohio taxes candles, so she needs an Ohio vendor’s license before her first sale. It costs $25. Her Etsy sales to other states are taxed by Etsy, and her Shopify sales in other states are far below any threshold. One permit.
- Year 3: $380,000 in sales. Pennsylvania reaches $112,000 for the year, $70,000 on Shopify and $42,000 on Etsy. Marketplace sales count toward Pennsylvania’s $100,000 threshold, so she now has economic nexus there. She registers for a free Pennsylvania Sales Tax License and starts charging 6% on her Shopify orders to Pennsylvania. Etsy keeps collecting on its own orders. Two permits.
- California at $60,000 is still far below its $500,000 threshold, so no permit there yet.
She uses her Ohio vendor’s license number on the resale certificates she gives her wax and jar suppliers, so she stops paying sales tax on materials from year 1.
Seller’s permit checklist
Section titled “Seller’s permit checklist”- Register in your home state before your first taxable sale.
- Track your sales by state across every channel. Our economic nexus calculator checks one state in seconds.
- Register in each new state as soon as you pass its threshold, or as soon as you have inventory or staff there.
- Use SST for the 23 member states, and apply directly everywhere else.
- Turn on collection in your store for each state you’re registered in.
- File every return, including zero returns, and close permits you no longer need.
- Give suppliers a resale certificate with your permit number, so you don’t pay tax on stock.
What is a seller’s permit?
Section titled “What is a seller’s permit?”A seller’s permit is your registration with a state’s tax agency to collect sales tax. It gives you a sales tax account number, lets you charge sales tax to customers and requires you to file returns. States call it different things: seller’s permit (California), sales tax permit (Texas), Certificate of Authority (New York), vendor’s license (Ohio), TPT license (Arizona) or sales tax license.
How do I get a seller’s permit?
Section titled “How do I get a seller’s permit?”Register online with the tax agency in your state. You’ll need your legal business name and address, an EIN (or your Social Security number if you’re a sole proprietor), a description of what you sell, your start date and an estimate of your sales. Most states issue the number within a few days, and many issue it instantly.
How much does a seller’s permit cost?
Section titled “How much does a seller’s permit cost?”It’s free in most states. A few charge a fee: Arizona $12 per TPT license (plus some city fees), Oklahoma $20 for three years, Ohio $25 and Washington $90 for the business license that covers sales tax. California doesn’t charge a fee but may ask for a security deposit.
Is a seller’s permit the same as a resale certificate?
Section titled “Is a seller’s permit the same as a resale certificate?”No. A seller’s permit is your registration with the state, and it lets you collect sales tax from customers. A resale certificate is a form you give your suppliers so you can buy inventory without paying sales tax. Most resale forms ask for your seller’s permit number, so you get the permit first.
Is a seller’s permit the same as a business license?
Section titled “Is a seller’s permit the same as a business license?”No. A business license usually comes from your city or county and lets you operate there. A seller’s permit comes from the state tax agency and is only about sales tax. Many businesses need both. Washington is the exception: its state business license includes sales tax registration.
Do I need a seller’s permit to sell online?
Section titled “Do I need a seller’s permit to sell online?”Yes, in your home state, if it has a sales tax and you sell taxable products. You need one before your first sale there. In other states, you need one once you pass their economic nexus threshold, usually $100,000 a year in sales into that state, or as soon as you have inventory, staff or an office there.
Do I need a seller’s permit if I only sell on Etsy or Amazon?
Section titled “Do I need a seller’s permit if I only sell on Etsy or Amazon?”Often not in states where the marketplace collects the tax for you. California, for example, doesn’t require a permit if every California sale goes through a registered marketplace. You need one as soon as you also sell through your own website, at markets or in person, and some states still want marketplace sellers based there to register.
Does a seller’s permit expire?
Section titled “Does a seller’s permit expire?”In most states, no. It stays active until you close it, as long as you keep filing returns, even zero returns. A few states renew permits: Oklahoma every three years, and Florida reissues your Annual Resale Certificate every year. States can also cancel a permit if you stop filing.
Related guides
Section titled “Related guides”- Resale certificates: buy inventory tax-free once you have your permit
- State sales tax index: rates, nexus thresholds and filing frequency for every state
- Streamlined Sales Tax: one free registration for 23 states
- US sales tax compliance checklist: every step from nexus to filing
- US sales tax for e-commerce sellers: nexus, marketplaces and the full picture
- Foreign sellers guide to US sales tax: EIN and registration from outside the US
- Voluntary disclosure agreements: if you should have registered years ago