A list of special sourcing states and states that use origin sourcing.
Sourcing determines how tax should be applied to a transaction. Tax rules are applied based on the origin or destination address, depending on state laws.
Origin Sourcing - Apply sales tax to products based on their point of origin, for intrastate transactions (within the same state).
Example: Product shipped from Springfield to Chicago within the state of Illinois. Tax is based on the Springfield address, the origin.
Note: For services, AvaTax typically applies tax based on the destination address.)
- New Mexico
Mixed Sourcing - The tax rate depends on the product, service, or unique jurisdiction rules.
- Products in counties and local special jurisdictions are based on the origin
- Products in cities and district special jurisdictions are based on the destination
- Services are based on the destination
- See How does California's sourcing work?
Home Rule States - Self-administered local taxing authorities. See What are home rule states?
- Alaska (Alaska doesn't have a state sales tax, but local jurisdictions impose taxes)
- Arizona (local jurisdictions are administered by the state, except for local tribal governments)
States with differing sales and use rates - States with at least one jurisdiction where the sales and use rates are different. See a compliance video on tax types.
- New Mexico
- South Dakota (only the city of Carthage)