SESK: Stuff Everyone Should Know · sesk.info/biz-sales-tax-items-vary
Are the same products and services taxable in every state?
No. Tax rates and taxable categories differ by state.
- No, states tax different categories ✔
- Yes, one federal list controls
- Only prices determine taxability
Why: A sale can be taxable in one state and exempt in another. Sellers must check the destination state's current rules for goods, services, digital products, and exemptions.
Huh, didn't know that: The Supreme Court noted that state taxes differ in both rates and categories of taxed goods.
What do you call a store that sells only bagels? A hole business.
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References
Answer: No, states tax different categories. A sale can be taxable in one state and exempt in another. Sellers must check the destination state's current rules for goods, services, digital products, and exemptions.
- Supreme Court, South Dakota v. Wayfair www.supremecourt.gov/opinions/17pdf/585us1r58_pok0.pdf
State taxes differ, not only in the rate imposed but also in the categories of goods that are taxed.
Checked 2026-10-11.
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