Sales tax on digital products by state.

Why “digital product” is not one thing

A sales tax on goods does not automatically reach a file. States that tax digital products usually define them: Arkansas names digital audio works, digital audio-visual works, digital books and digital codes; Indiana limits its tax to digital audio works, audiovisual works and books; North Carolina adds magazines and other publications, photographs and greeting cards; Iowa’s list reaches images and clip art. Other states say outright that an electronic download is not tangible personal property. So the product category decides, and the delivery method (download or streaming) and the buyer’s rights (permanent or subscription) can matter too. Idaho, for example, taxes digital books, videos, music or games when the buyer has a permanent right to use them.

Of the 51 jurisdictions below, 13 are classified as taxing e-books, music or video downloads, 8 as generally not taxing them, 1 as conditional, 5 have no state sales tax and 24 are not classified because we did not open a state page that settles it. That last group is a gap in this edition, not a finding. Do not read “not classified” as “not taxed.”

Worked example (hypothetical numbers)

You sell a $12.00 e-book as a direct download from your own website. A buyer in Maryland owes 6% on it: the Comptroller says the sales and use tax applies to digital products and digital codes, at a 6% rate, and names e-books, so the tax is $0.72 and the buyer pays $12.72. The same file to a buyer in Oklahoma is $12.00, because an Oklahoma letter ruling says the sales tax levy does not apply to digital products delivered electronically, including books. To a buyer in California it is also $12.00 today, since California’s Publication 109 says eBooks sent over the internet are generally not taxable, though California’s new rule for 2027 targets prewritten software and expressly leaves digital books, audio, video and visual works out. If you sell through a marketplace that collects for you, it handles the tax; on your own site you must be registered where your sales pass the state’s threshold.

Edge cases and common mistakes

• Printables, templates, fonts and stock images. The table is about e-books, music and video. A planner PDF, an SVG bundle or a Lightroom preset can fall into a different bucket. Connecticut’s notice lists stock photographs and clip art among taxed digital goods, while New Jersey’s publication says digital photographs and digital magazines are not taxed under its specified-digital-products rule. Read the state’s product list for your file type.
• Software is a separate rule. California’s bulletin makes prewritten software taxable from January 1, 2027, while its digital books, audio, video and visual works stay out. Illinois’s matrix says downloaded canned software is generally taxable even though it treats downloaded media as not taxable.
• Subscriptions and streaming. Access that depends on continued payment is treated differently from a download you keep. Nebraska’s ruling taxes some temporary-use products; Idaho’s guide centers on a permanent right to use. Florida advisements say streaming video and access to electronic books are not subject to its sales tax.
• Bundles. A taxable item inside a bundle can pull in the whole price in some states, so state each component if you can.
• Letter rulings bind one taxpayer. Florida technical assistance advisements and Alabama revenue rulings answer a specific request. Treat them as strong signals, not statutes.

Who this is for, and what it does not cover

It is for sellers of downloadable e-books, music and video, and for anyone deciding whether to collect on their own site. It does not give tax rates, cover local taxes in detail, address NFTs or cloud software, or tell you whether you have nexus. For marketplace sales see does Etsy collect sales tax; for when your own sales trigger registration see economic nexus thresholds; for the Etsy file requirements see the Etsy digital download file checker.

Sources

• Arkansas DFA: Candy, soft drinks and digital products — specified digital products taxed
• Maryland Comptroller: Business Tax Tip 29 — 6% on digital products and codes from March 14, 2021
• Oklahoma Tax Commission: Letter ruling LR-13-013 — digital products delivered electronically not taxed
• California CDTFA: Publication 109, nontaxable sales — eBooks and digital images generally not taxable
• California CDTFA: Tax Information Bulletin, September 2026 — prewritten software taxable from 2027; digital books, audio, video excluded
• Connecticut DRS: Special Notice 2019(8) — digital goods taxed at 6.35%; billing-address presumption
• Idaho State Tax Commission: Sales and use taxes basics — permanent right to use
• Nebraska DOR: Revenue Ruling 01-11-3 — digital audio, audio-visual and books; temporary use
• Illinois DOR: Sales and use tax matrix — downloaded media not taxed; downloaded canned software taxable
• Indiana DOR: Information Bulletin 93 — specified digital products
• Iowa Department of Revenue: Specified digital products — music, e-books, images and clip art taxed
• New Jersey Division of Taxation: ANJ-27 — specified digital products; photographs and magazines not taxed
• North Carolina DOR: Certain digital property — audio, audiovisual, books, publications, photographs, cards taxed
• Florida DOR: Technical Assistance Advisement 14A-010 — streaming video and electronic books not subject to sales tax
• Washington DOR: Retail sales tax — digital products generally taxed if taxable in tangible form

Each row of the table links the single agency page behind that state’s status; the sources above are the ones quoted in the text. All were opened in October 2026 and can change; confirm against the current page before you rely on a status.

Frequently asked questions

Is sales tax charged on digital products?

In some states and not others. Maryland, Ohio, Washington and North Carolina tax e-books, music or video downloads in the pages we read, while Oklahoma, North Dakota and California generally do not. Use the state table.

Are e-books taxable?

It depends on the state. Arkansas, Indiana, Iowa, Maryland, New Jersey and North Carolina list digital books among taxed products; Oklahoma, North Dakota and Florida say electronically delivered books are not subject to their sales tax.

Do I charge sales tax on downloads I sell on Etsy?

If Etsy collects on the order, it handles the tax. Etsy says it collects on digital orders that meet its criteria. For sales on your own site, you collect where you are registered.

Is a streaming subscription taxed the same way as a download?

Not always. Idaho centers its rule on a permanent right to use, Florida advisements say streaming video is not subject to sales tax, and Nebraska taxes some temporary-use digital products. Check the state.

Does sales tax follow the buyer or the seller?

The buyer’s location. Connecticut, for example, presumes a digital good is delivered into the state when the buyer’s billing address is there, so a seller in a no-tax state may still have to collect on sales into a taxing state.

Is software taxed like an e-book?

No. Software has its own rule. California makes prewritten software taxable from January 1, 2027 while excluding digital books, audio and video; Illinois taxes downloaded canned software but not downloaded media.

Why are some states marked not classified?

Because we only classify a state when we opened its agency page and read a statement that settles the question. Unclassified is a gap, not a finding.

Where do I register to collect sales tax on digital sales?

With the state tax agency. Our registration links table lists the agency and portal for each state.