Summary: There are multiple states with gross receipts tax: Delaware, Nevada, Ohio, Oregon, Tennessee, Texas, and Washington. Business owners should be aware of the gross receipts tax requirements in these states and to take action to prevent liabilities from accumulating over time.
Last Updated: September 23rd, 2021
Gross receipts tax is a tax that is applied to the total gross revenue of a business. Unlike sales tax, gross receipts tax is generally paid by the business, not by the consumer.
Frequently, businesses overlook gross receipts tax or assume that the liabilities will be taken care of automatically with their sales tax return. This is dangerous because often time the states’ Statute of Limitations only apply to sales tax and not to Gross receipts Tax.
Thankfully, only a few states have Gross Receipts Tax and of those that do, the rates are relatively low. If you have a sizable business and are not paying Gross Receipts Tax in any states, you should consider working with us so we can take care of it all for you.
See the table below for detailed information regarding gross receipts tax in specific states.
Local governments have also been creating gross receipts taxes in order to boost revenues. We are aware of the following cities with local gross receipts taxes:
Summary : Any company that is “engaged in business” in Delaware must file and pay Delaware Gross Receipt Tax. The tax rate used is based on your business category but generally ranges from 0.09% to 0.75%.
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| Who has to file/pay Delaware Gross Receipts Tax? | Any company that is “engaged in business” in Delaware must have a business license and pay Gross Receipts Tax. At the time of this blog article, if your company does not have a physical presence within the state and are simply mailing orders to customers in Delaware, then you would not need to pay Delaware Gross Receipts Tax. Additionally, according to Warren Wood from the Delaware Department of Revenue, storing inventory at an Amazon FBA warehouse located in the state of Delaware does not create gross receipts tax nexus or require you to pay Delaware Gross Receipts Tax. There is currently no threshold for retail sales that require gross receipts tax, however, all wholesalers must file gross receipts taxes for gross sales that exceed 100K monthly, or 300K quarterly. Additional exclusions might apply if you simply send a delivery vehicle or sales representative(s) into Delaware. |
Summary : All businesses whose gross Nevada revenues exceed $4,000,000 are required to file a Nevada Gross Receipts Tax (Commerce Tax) return annually. The amount of tax used is based on your business category but is usually ranges from 0.05% and 0.3%.
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| Who has to file/pay the Nevada Commerce Tax? | All businesses whose Nevada gross revenues in a taxable year exceed $4,000,000 are required to file the Nevada Commerce Tax return. Certain entities, such as non-profits, are exempt (see this page for more information). |
Let our team of professionals help you determine where you have nexus and file your returns with our Done-for-You Service by learning more here.
Summary : Businesses with $3,000,000 or more (for 2024) or $6,000,000 or more (for years 2025 and later) in revenues attributable to Ohio are responsible for paying Ohio Gross Receipts Tax (Commercial Activity Tax) quarterly. The tax rate is a flat 0.26%. of revenues beyond the threshold.
| Question | Answer |
| Who has to file/pay Ohio Commercial Activity Tax? | Ohio’s Commercial Activity Tax (CAT) applies to most businesses including retail, wholesale, service, manufacturing, and other businesses regardless of the formation type. This includes sole proprietorships, LLCs, S corporations, corporations, disregarded entities, trusts, and all other types of businesses. You must pay Ohio’s gross receipts tax if you have taxable gross receipts attributable to Ohio of more than $3,000,000 in a calendar year (in 2024) or $6,000,000 in a calendar year (in 2025 or later) OR Please note that Ohio changed its Corporate Activit Tax Requirements starting in 2024, and requirements for businesses in 2023 and earlier may be different. You can find a summary of the changes on this page. |
| How do you register for Ohio Commercial Activity Tax? | In order to file returns, you must register for the CAT with the Department of Taxation. This can be done electronically through the Ohio Business Gateway . A paper registration application is also available on Ohio’s Forms page . |
Summary : Any business that has over $750,000 in Oregon commercial activity must register to pay the CAT, and any business with over $1 Million in Oregon commercial activity must file and pay the CAT. The amount due is based on sales in excess of $1 Million.
| Question | Answer |
| Who has to file/pay Oregon Corporate Activity (CAT) Tax? | Any business, or unitary group of businesses, doing business in Oregon may have responsibilities under the CAT. This includes all business entity types, such as C and S corporations, partnerships, sole proprietorships, and other entities. |
Registration is due within 30 days of meeting the $750,000 registration threshold. A penalty of $100 per month may be assessed for failing to register, up to $1,000 per calendar year.
How do you register for Oregon Corporate Activity (CAT) Tax?
How is Oregon Corporate Activity (CAT) Tax calculated?
The CAT is applied to Oregon taxable commercial activity in excess of $1 million. The tax is computed as $250 plus 0.57% of Oregon commercial activity of more than $1 million. Only taxpayers with more than $1 million of taxable Oregon commercial activity will have a payment obligation.
The following exclusions may apply to Oregon Corporate Activity Tax:
A taxpayer expecting more than $5,000 of Corporate Activity Tax liability for the calendar year must make estimated payments. CAT liability of $5,000 for the year corresponds with taxable commercial activity equal to $1,833,245.
You can read two examples for how to calculate the Oregon CAT by clicking here .
Where is the form for Oregon Corporate Activity (CAT) Tax?
In addition, you can pay your estimated taxes by using one of the following options:
By ACH Credit. You can submit your application by going to Revenue Online and clicking on Apply for ACH credit .
When is Oregon Corporate Activity (CAT) Tax due?
A taxpayer expecting $5,000 or less of CAT liability for a calendar year doesn’t need to make estimated payments but still must file an annual return and pay CAT liability no later than April 15 of the following calendar year.
Estimated payments are due April 30, July 31, October 31, and January 31 for the preceding calendar quarter.
Where can I go for more information on Oregon Corporate Activity (CAT) Tax?
Does TaxValet handle Oregon Corporate Activity (CAT) Tax?
Who has to file/pay Tennessee Business Tax?
All businesses generally must pay Tennessee business tax if they make more than $10,000 in sales into any Tennessee county and have substantial nexus in the state. This includes businesses with a physical location in the state as well as out-of-state businesses performing certain activities in the state.
Also, if you have a physical location where you conduct business in a city that has enacted a business tax, then you must pay the city business tax as well. Under these circumstances, you must file two separate tax returns.
For out-of-state businesses that are not contractors: If you are an out-of-state taxpayer with substantial nexus to Tennessee and engaged in this state for business tax purposes, you must register with the department and remit business tax on any gross receipts from sales of $10,000 or more annually in any county in Tennessee. You do not need a local business license issued by a county.
Taxpayers who enter Tennessee to conduct business activities but who do not have a physical business location in Tennessee and who generate gross sales of $10,000 or more in any Tennessee county must file one state business tax return for the gross receipts received in counties where gross receipts were $10,000 or more.
For in-state businesses: If your in-state location has gross receipts of more than $3,000 but less than $10,000, you must obtain a minimal activity license from your county and/or municipal clerk. A standard business license is needed from your county and/or municipal clerk if your gross receipts are $10,000 or more. You are not allowed to operate until your required license is obtained and posted in your business’ location.
How do you register for Tennessee Business Tax?
How is Tennessee’s Business Tax calculated?
The amount of Tennesee Business Tax you pay is based on the classification of your business.
To determine which business classification you should use, check out Tennessee’s Business Tax Classification guide (note: most retail businesses will fall under Classification 2).
An updated list of rates is provided on Tennessee’s Business Tax Page . In general, rates vary from 0.03% to 0.1875%.
Where is the form for Tennessee Business Tax?
When is Tennessee Business Tax due?
Your business tax return is due on the 15th day of the fourth month following the end of your fiscal year. For example, if your fiscal year coincides with the calendar year, then your return will be due on April 15.
Where can I go for more information on Tennessee Business Tax?
You can learn more about Tennessee’s Business Tax on the Tennessee Business Tax homepage .
Does TaxValet handle Tennesse Business Tax?
