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File and pay sales tax in QuickBooks Online
Learn how to file, pay, and record your sales tax in QuickBooks Online.
Note: This feature is limited for QuickBooks Online Free and QuickBooks Online Lite. Upgrade your plan to get more features. Go to Settings 
, then Subscriptions and billing. Then select Upgrade your plan.
Use QuickBooks to file, pay, and record your sales tax. This helps you make sure you comply with tax regulations, so you can focus more on your business.
Before you get started, make sure you have:
Subscribed to Sales Tax Essentials so that you can use our sales tax e-file service
File your sales tax
The sales tax e-file service is available in 18 states. We’ll be adding more states soon.
| State | Tax period |
| Arkansas | Monthly and quarterly |
| Indiana | Monthly and quarterly |
| Iowa | Monthly |
| Ohio | Monthly |
| Kentucky | Monthly and quarterly |
| Michigan | Monthly and quarterly |
| Minnesota | Monthly and quarterly |
| Nebraska | Monthly and quarterly |
| Nevada | Monthly and quarterly |
| New Jersey | Monthly and quarterly |
| North Carolina | Monthly and quarterly |
| North Dakota | Monthly and quarterly |
| Rhode Island | Monthly and quarterly |
| South Dakota | Monthly and quarterly |
| Texas | Monthly and quarterly |
| Vermont | Monthly and quarterly |
| West Virginia | Monthly and quarterly |
| Wisconsin | Monthly and quarterly |
Follow these steps to file your sales tax:
All apps
From the Action column, select File return.
Select Add now to enter the sales tax account ID and the Employer Identification Number (EIN) or Social Security Number (SSN). You can also select Edit if you need to make any changes.
Verify the total sales amount, non-taxable sales, and taxable sales.
Note: These fields auto-populate from the sales tax liability report.Verify the taxes at the state and local level.
Note: The origin of the state tax field auto-populates from the sales tax liability report.(Optional) You can add on sellers purchase, also called use tax, and QuickBooks will automatically update the total.
Note: You'll get a prompt to add the use tax adjustment on the form. You can select an existing account or create a new one if needed.Add your payment info.
Note: QuickBooks will send the info to the tax agency as they’ll process, collect, and remit the payment. After submission, it could take up to five business days to collect the payment.Verify the tax details and add your payment info. Then, select the By submitting this payment I hereby: checkbox to acknowledge the disclaimer.
Select File and Pay.
Note: QuickBooks may take a few hours to confirm submission and acceptance from the tax agency. In some cases, this could take up to two business days.
Record your sales tax
Once you’re done filing, you can now record your sales tax payment.
Frequently asked questions (FAQ)
What do I need to file my return for sales tax?
You must complete the registration process with your state agency where you collect and file your sales tax returns. Tax Identification Number is unavailable in QuickBooks.
Note: You'll need these details from your state online sales tax account:
Valid state-issued sales tax ID
Your EIN or SSN associated with your state sales tax account ID
Why can't I see "File return" after I've set up sales tax in QuickBooks?
The e-file service might not be available yet in the state where you collect sales tax. We work with all the states where sales tax is levied. Each state has its own rules and regulations, so it may take time to roll out the service.
Note: Only monthly and quarterly filing frequencies are available.
How is my sales tax paid?
Sales tax can only be paid using ACH debit. We’ll send this via a secured transmission to the state along with your sales tax return.
How long will it take the state to accept my return?
It can take up to 48 hours to receive confirmation from the state agency. Once we receive confirmation, QuickBooks will notify you via email, and you'll see the status update in QuickBooks.
Tip: You can also track your sales tax return manually.
Why did I receive an email from QuickBooks saying my return was rejected?
The state may reject a return for many reasons. The most common reasons are:
Invalid or incorrect state tax ID or SST ID
Invalid EIN or SSN
Business isn’t registered for sales tax yet
State agency service may be down for maintenance
What do I do after the state accepts my return?
You can record your payment in QuickBooks.
Can I submit use tax along with my sales tax?
Yes, you can. When you load the tax form, you’ll see the option to include your use tax.
Can I include adjustments such as credits or prepayments in the return?
The sales tax e-file service is currently limited to sales and use tax without any adjustments. You'll soon be able to file with all the adjustments.
What happens after I file a return with a refund?
The state agency will review and approve your refund. If you qualify, they'll contact you or you can reach out to them for updates.
Can my accountant file my sales and use tax returns?
Yes, as long as your accountant's an authorized user in your QuickBooks and has the details needed to do so.
What do I do if the liability on the tax filing form isn’t correct?
Run the sales tax liability report for the same period and compare them.
Check for overrides you may have used on invoices.
If you still see a discrepancy, let us know.
What do I do if the rounding on the tax form is off?
QuickBooks automatically updates the rounding in accordance with state agency's guidelines when you submit a return. You don't need to do any adjustments.
Note: If the difference is unusually bigger or smaller, check any adjustments that you made.
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