The Complex Nature of Software Taxability

It’s easy to see why software companies struggle with getting sales tax right. How do you apply a tax meant for tangible personal property to an intangible product or service? Attempts by states to solve for this have resulted in a complex tapestry of tax rates and rules for software and software as a service (SaaS.) This infographic breaks down how software and SaaS products and services are taxed on a state-by-state basis in an easy, visual way.