For small businesses, credit cards can be an important tool, offering financial management benefits and the opportunity to earn valuable rewards. You can put just about anything on a credit card these days, including your sales taxes — in most states. Out of the 45 states that charge sales tax, all but 7 (Alabama, Arizona, Arkansas, Illinois, Maine, Nevada and Virginia) allow businesses to pay via credit card.
However, in those states that do allow you to pay sales taxes with plastic, the convenience comes with a price, usually in the form of a small fee that is charged by a third-party payments processor.
Here’s a rundown of which states let you remit sales taxes via credit card and how much using that option will cost you. “Fee unspecified” means there is no information on the amount of the fee until you actually initiate a credit card payment.
Getting help with sales taxes
Keeping up with sales tax filing requirements can be a big burden for a small business. Programs that automate the process, like Avalara’s TrustFile, can help. TrustFile automatically generates reports for each state based on your sales data, broken down according to each state’s requirements. It can also support electronic payment of sales tax returns in some states. TrustFile is constantly updated on the latest requirements for each state, so you will always have the right information on when and how to file.