11 columns, 46 rows, UTF-8, comma-separated. Version 2026-10-04. Free to reuse under CC BY 4.0 with credit to Ledgental.
Key figures
- 25 of the 46 jurisdictions with a statewide sales tax let a seller keep part of the tax for filing and paying on time; the rate runs from 0.25% (Nevada) to 5% (Alabama on the first $100 of tax; New York, up to $200 a period). Read at each state's source on October 1, 2026.
- Texas lets a seller keep 0.5% of the tax when the report and payment are on time (Texas Comptroller, checked October 1, 2026). Applying it to the tax due on the return is our reading; the Comptroller's page states the rate, not the computation.
- Colorado ended its 4% state service fee on January 1, 2026, and South Dakota suspended its collection allowance from July 1, 2025 to June 30, 2028, so Colorado, South Dakota, Tennessee now give none (state sources; South Dakota from the enrolled bill, not the signed copy).
- Illinois (1.75%, returns due from January 1, 2025) and Ohio (0.75%, returns due from January 1, 2026) now cap the discount for each month a return covers, at $1,000 and $750 (state bulletins).
- 15 jurisdictions, the District of Columbia included, show no discount on their current return or instructions, though no state text says “none”; for 3 more we couldn't read a state source.
What does each state allow?
One row per jurisdiction. “Discount” is our reading of the rule; “Status” is how firmly we confirmed it. The rule column keeps the caps and conditions, because a quoted rate without its cap is what goes wrong when the table is copied.
Sorted by state, A to Z. Select a column heading to sort by it.
| Rule, as we read it | Checked | ||||
|---|---|---|---|---|---|
| Alabama (AL) | Yes | Partly checked | Alabama Department of Revenue FAQ | 5% of the first $100 of tax + 2% of the rest, if paid before the 20th; the state's page also gives a $400 monthly maximum, which we couldn't quote word for word. Local taxes filed through ONE SPOT may differ. | 2026-10-01 |
| Arizona (AZ) | Yes | Checked at the state | Arizona Department of Revenue, E-Services for TPT | Accounting credit of 1.2% of tax due if every return that year is filed electronically (up to $12,000 a year); 1% on paper (up to $10,000). The tool doesn't track the yearly cap. | 2026-10-01 |
| Arkansas (AR) | Yes | Partly checked | Arkansas Rule GR-84 (Cornell LII copy) | 2% of state tax (up to $1,000 a month) + 2% of city and county tax (no limit), if paid by the due date, from a published copy of the state rule. The tool can't split state from local tax, so it calculates the discount only when 2% of the tax is $1,000 or less a month; above that, enter it from the return. | 2026-10-01 |
| California (CA) | None found on the return | None found on the return | CDTFA-401 instructions (Rev. 34, 1-26) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Colorado (CO) | None | Checked at the state | Colorado Department of Revenue, service fee | None for state tax from January 1, 2026 (it was 4%, up to $1,000 a period). Local jurisdictions may still allow a service fee (DR 1002). | 2026-10-01 |
| Connecticut (CT) | None found on the return | None found on the return | Form OS-114 (Rev. 09/20) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| District of Columbia (DC) | None found on the return | None found on the return | FR-800 instructions (Rev. 05/2024) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Florida (FL) | Yes | Checked at the state | Florida DR-15EZ instructions (R. 01/20) | 2.5% of the first $1,200 of tax, up to $30 a return, only when you file electronically and pay on time. | 2026-10-01 |
| Georgia (GA) | Yes | Checked at the state | Georgia Form ST-3 (Rev. 07/25/22) | 3% of the first $3,000 of state and local tax + 0.5% of the rest, per return for each location, when the return and payment are on time. The tool assumes one location. | 2026-10-01 |
| Hawaii (HI) | None found on the return | None found on the return | G-45/G-49 instructions (Rev. 2025) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. Hawaii's general excise tax also needs an annual return, Form G-49. | 2026-10-01 |
| Idaho (ID) | None found on the return | None found on the return | Form 850 instructions | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Illinois (IL) | Yes | Checked at the state | Illinois Department of Revenue bulletin FY 2025-04 | 1.75% of tax paid on time, capped at $1,000 for each month the return covers (returns due on or after January 1, 2025). | 2026-10-01 |
| Indiana (IN) | Yes | Partly checked | Indiana ST-103 instructions | 0.73%, 0.53%, or 0.26% depending on last year's tax ($60,000 and $600,000 breakpoints), if paid on time. The tiers come from an unofficial copy of the code, so enter the allowance from the return. | 2026-10-01 |
| Iowa (IA) | None found on the return | None found on the return | Iowa rule 701-202.1 (Cornell LII copy) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Kansas (KS) | Not verified | Not verified | Kansas Legislature, SB 109 (2025) | We found no discount on the Kansas Department of Revenue site, and a 2025 bill to create one died, though no state page says outright that there isn't one. | 2026-10-01 |
| Kentucky (KY) | Yes | Checked at the state | Kentucky DOR sales tax FAQ (2016) and Form 51A135 (7-23) | 1.75% of the first $1,000 of tax + 1.5% of the rest, up to $50 a period. None on returns filed or paid late. | 2026-10-01 |
| Louisiana (LA) | Yes | Checked at the state | Louisiana Revenue Information Bulletin 25-006 | Vendor's compensation of 1.05% on part of the state tax, about 0.84% of it, up to $750 a month per dealer (from January 1, 2025). Return and payment must be on time. | 2026-10-01 |
| Maine (ME) | None found on the return | None found on the return | Maine Revenue Services Rule 304 | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Maryland (MD) | Yes | Checked at the state | Maryland bFile help | 1.2% of tax up to $6,000; above that, 0.9% of the tax + $18. Up to $500 a return, when the return is on time and paid in full. | 2026-10-01 |
| Massachusetts (MA) | None found on the return | None found on the return | Form ST-9 instructions | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Michigan (MI) | Yes | Checked at the state | Michigan Form 5080 (2026) | Paid by the 20th: tax × 2/3 × 0.5%, up to $15,000 (by the 12th: × 0.75%, up to $20,000). If the tax is $9 to $1,800 a month ($27 to $5,400 a quarter) and paid by the 20th, it's a flat $6 ($18). The tool uses the 20th. Michigan also requires an annual return, Form 5081. | 2026-10-01 |
| Minnesota (MN) | None found on the return | None found on the return | Minnesota Department of Revenue filing guide | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Mississippi (MS) | Yes | Checked at the state | Mississippi DOR, reporting requirements | 2% of the tax, up to $50 a period and $600 a year. A late or short return loses it for all locations. | 2026-10-01 |
| Missouri (MO) | Yes | Checked at the state | Missouri DOR sales tax filing FAQ | 2% timely payment allowance when the return and payment are on time. No cap stated. | 2026-10-01 |
| Nebraska (NE) | Yes | Checked at the state | Nebraska Form 10 Schedule I worksheet (Rev. 6-2025) | 3% of the first $5,000 of tax each month, up to $150. We couldn't confirm from the current form whether the return must be on time. | 2026-10-01 |
| Nevada (NV) | Yes | Checked at the state | Nevada Form REV-F013A (Version 2025.1) | Collection allowance of 0.25% of sales tax on a timely return. None on use tax. | 2026-10-01 |
| New Jersey (NJ) | None found on the return | None found on the return | New Jersey EZ Telefile worksheet | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| New Mexico (NM) | None found on the return | None found on the return | TRD-41413 instructions (Rev. 07/01/2025) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. New Mexico's tax is a gross receipts tax on the seller. | 2026-10-01 |
| New York (NY) | Yes | Checked at the state | New York TB-ST-925 (updated April 7, 2026) | Vendor collection credit of 5% of the tax, up to $200 a period, for quarterly and annual filers only. Not on amended or late returns. | 2026-10-01 |
| North Carolina (NC) | None found on the return | None found on the return | Form E-500 instructions | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| North Dakota (ND) | Yes | Partly checked | N.D. Cent. Code 57-39.2-12.1 (FindLaw copy) | 1.5% of the tax, up to $110 a return, if paid on time. From an unofficial copy of the statute; the state's 2025 guideline doesn't mention it. | 2026-10-01 |
| Ohio (OH) | Yes | Checked at the state | Ohio Information Release ST 2025-02 | 0.75% of the amount due, capped at $750 per vendor's license for each month the return covers (returns due on or after January 1, 2026). Return and full payment must be on time. | 2026-10-01 |
| Oklahoma (OK) | Not verified | Not verified | Oklahoma House bill summary, HB 4318 (2026) | Most likely none: the House staff summary of a 2026 bill (HB 4318) says it "reinstates the sales and use tax timely filing discount" (1%, up to $1,000 a month). The bill passed a House subcommittee on February 19, 2026, with no later action shown. No Tax Commission page says outright that there isn't one. | 2026-10-01 |
| Pennsylvania (PA) | Yes | Checked at the state | Pennsylvania myPATH sales tax upload specifications | The lesser of 1% of the tax or $25 (monthly), $75 (quarterly), $150 (semi-annual), on timely returns. | 2026-10-01 |
| Rhode Island (RI) | None found on the return | None found on the return | Rhode Island sales tax instructions (2023) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| South Carolina (SC) | Yes | Checked at the state | South Carolina Revenue Ruling 21-7 | 3% if the tax due is under $100, 2% if it's $100 or more, up to $3,000 a year ($3,100 if filed electronically). The tool doesn't track the yearly cap. | 2026-10-01 |
| South Dakota (SD) | None | Partly checked | South Dakota Legislature, HB 1037 (2025) | Collection allowance suspended from July 1, 2025 to June 30, 2028 by 2025 HB 1037 (we saw the enrolled bill, not the signed copy). | 2026-10-01 |
| Tennessee (TN) | None | None (state source) | Tennessee DOR, 2022 legislative updates | None. A temporary 2% deduction (up to $25 a return) ran only from July 2022 to June 2023. | 2026-10-01 |
| Texas (TX) | Yes | Checked at the state | Texas Comptroller, reporting and paying FAQ | 0.5% when the report and payment are on time; the tool applies it to the tax due on the return, which is our reading. A separate 1.25% discount for prepaying isn't calculated here. | 2026-10-01 |
| Utah (UT) | Yes | Checked at the state | Utah State Tax Commission, monthly filers | 1.31% of the combined tax for monthly filers who file and pay on time. Quarterly and annual filers get none. | 2026-10-01 |
| Vermont (VT) | Not verified | Not verified | Vermont Department of Taxes FAQ | We couldn't read the Vermont source. Check the return. | 2026-10-01 |
| Virginia (VA) | Yes | Checked at the state | Virginia 2026 Appropriation Act, Item 3-5.05 | 1.6%, 1.2%, or 0.8% of the first 3% of tax, depending on monthly taxable sales; none for dealers required to pay by EFT. Enter it from the return. | 2026-10-01 |
| Washington (WA) | None found on the return | None found on the return | Combined Excise Tax Return instructions (2023) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| West Virginia (WV) | None found on the return | None found on the return | CST-200CU instructions (Rev. 03/2022) | We found no timely-filing discount on the state's current return or instructions, though no state text says outright that there isn't one. Check the return. | 2026-10-01 |
| Wisconsin (WI) | Yes | Checked at the state | Wisconsin DOR retailer's discount FAQ (updated March 11, 2026) | If the tax is $10 or less, the discount is all of it; up to $1,333, it's $10; above that, 0.75%, up to $8,000 a period. Not on use tax. | 2026-10-01 |
| Wyoming (WY) | Yes | Partly checked | Wyoming 2024 HB0197 | 1.95% of the tax due, up to $500 a month, if paid by the 15th (from July 1, 2024). From the 2024 law; the state's bulletin still shows the older rule. | 2026-10-01 |
How we built this
What the data rests on. For each of the 45 states with a statewide sales tax and the District of Columbia, we read the current sales tax return or its instructions, and where the discount lives elsewhere, the state's bulletin, FAQ, or statute, on October 1, 2026. The source column names what we read, so you can open it. Where the only readable copy was secondary (Cornell LII, FindLaw) or we couldn't quote the state word for word, the status says so.
What the statuses mean. Each row carries one of five:
- Checked at the state (verified): confirmed at the state's own page, form, bulletin, or law.
- Partly checked (partial): the rate or a detail rests on a secondary copy (Cornell LII, FindLaw) or on a page we couldn't quote word for word.
- None (state source) (none): the state's own source says there isn't one.
- None found on the return (notFound): no discount on the current return or its instructions, but no state text says "none".
- Not verified (notVerified): we couldn't read a state source, so the tool never calculates it.
What “Yes” means, and that it's ours. A state counts as offering a discount when its rule gives more than zero at some filing frequency, or when the discount depends on figures the return has and this table doesn't (Indiana's tiers by last year's tax, Virginia's by monthly taxable sales). A state whose rule now gives zero, because it ended or is suspended, counts as none even when the state page still describes the old rate. That split is our reading, not a state label.
What it doesn't cover. Local discounts and local service fees (Alabama's ONE SPOT filings, Colorado's local fees under DR 1002), the yearly caps some states add on top of the per-return rule (Arizona's $12,000, South Carolina's $3,000), prepayment discounts (Texas's 1.25%), what happens to a late or amended return, and use tax, which Nevada and Wisconsin exclude. Caps and rates change mid-year by bulletin, so a row is right as of its checked date, not for the year.
How to use the file. The CSV has 11 columns:
- state
- State name, or District of Columbia.
- state_code
- Two-letter postal code.
- status
- How firmly we confirmed the rule: verified, partial, none, notFound, or notVerified (defined below).
- status_label
- The same status in words, as the tool shows it.
- discount
- Our reading of the rule: offers, none, notFound, or notVerified.
- discount_label
- The same reading in words: Yes, None, None found on the return, Not verified.
- discount_rule
- The rule in one or two sentences, with its caps and conditions, as we read it at the source.
- tool_calculates
- yes when the reconciliation tool works the discount out from the tax due; no when it asks you to enter it from the return.
- source_title
- The state page, form, bulletin, or law we read.
- source_url
- Its address.
- checked_on
- The date we read it (ISO 8601).
What changed. October 4, 2026: first published, 46 rows generated from the rules the reconciliation tool uses, which were checked on October 1, 2026. When a state changes a rule, we update the tool's data, regenerate the file, and note the change here with the date.
Cite this dataset
Cite this page
Writing about this? Use one of these lines. To point at one section, use the link icon beside its heading.
- Plain line
- Ledgental, Sales tax timely-filing discounts by state (2026), updated October 2026, https://ledgental.com/data/sales-tax-discounts
- APA
- Ledgental. (2026, October). Sales tax timely-filing discounts by state (2026). https://ledgental.com/data/sales-tax-discounts
- Chicago
- Ledgental. “Sales tax timely-filing discounts by state (2026).” Last modified October 2026. https://ledgental.com/data/sales-tax-discounts.
Reusing this dataset: the table, the CSV, and this page's text are licensed under CC BY 4.0. Credit “Ledgental” with a link to this page. The rules themselves are public facts, and quotations from state agencies are public domain.
Frequently asked questions
Is the discount income or a smaller liability?
Income. The IRS Schedule C instructions say that if the state or local government allowed you to retain any part of the sales tax you collected, you must include that amount as income on line 6. So the full tax on the return comes off Sales Tax Payable, the cash paid is the return less the discount, and the difference goes to other income.
Which states changed their discount in 2025 and 2026?
Five that we know of. Colorado ended its state service fee on January 1, 2026 (it was 4%, up to $1,000 a period). Illinois capped its 1.75% at $1,000 for each month a return covers, for returns due from January 1, 2025. Louisiana cut its monthly maximum from $1,500 to $750 for periods from January 1, 2025. Ohio capped its 0.75% at $750 per vendor's license for each month covered, for returns due from January 1, 2026. South Dakota suspended its collection allowance from July 1, 2025 to June 30, 2028.
Does Virginia still have a dealer discount?
Yes. Item 3-5.05 of Virginia's 2026 Appropriation Act keeps a dealer discount of 1.6%, 1.2%, or 0.8% of the first 3% of tax, depending on monthly taxable sales, and suspends it for dealers required to pay by EFT. Pages that say Virginia dropped the discount in 2014 are wrong on this point.
What does "None found on the return" mean?
We read the state's current return or its instructions and found no line or paragraph for a timely-filing discount, but no state text says outright that there isn't one. Fifteen jurisdictions are in this group, the District of Columbia included. Treat it as "probably none" and check the return you file.
Can I reuse this table?
Yes. The rules themselves are public facts from state agencies and laws, so nobody can restrict them. Our wording, the status labels, and the table layout are licensed under CC BY 4.0: credit Ledgental with a link to this page. Quotations from state agencies stay public domain.
Educational information for bookkeepers, not tax or legal advice. Rules checked on October 1, 2026; the return you file is the authority. Ledgental is not affiliated with the IRS or any state revenue department.