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Prepaying US Sales Tax

Learn how to make a sales tax prepayment.

A sales tax prepayment (also known as accelerated payments) is like a deposit paid ahead of time to cover future sales tax liability before the due date. Prepayment requirements, calculations, due dates, and thresholds vary for each state.

To find out how your state handles sales tax prepayments, choose your state below.

Who must make sales tax prepayments?

According to the Alabama Department of Revenue (DOR), taxpayers who have an average state sales tax liability of $2,500 or more per month during the preceding calendar year must make estimated sales tax payments.

When are prepayments due?

Sales tax prepayments are due on or before the 20th day of the month in which the liability occurs.

How much should you prepay?

Prepayments must be at least 2/3 or 67% of the actual tax due for the same calendar month last year; or 2/3 of the tax due for the current month.

What other State facts should you know?

  • Alabama prepayments are combined with the state return on AL Form 2100 and must be filed online at https://revenue.alabama.gov/.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

According to the Arizona Department of Revenue (DOR), taxpayers who make an annual Transaction Privilege Tax (TPT) liability of $100,000 or more during the preceding calendar year or reasonably anticipate a tax liability of $100,000 in the current year, must make a yearly June estimated sales tax payment.

When are prepayments due?

The annual sales tax prepayments are due on or before the 20th day of June. Payment is considered timely if postmarked by June 20th.

How much should you prepay?

Prepayments must be 50% of the actual tax due from the month of May; or the actual tax liability collected from June 1st through June 15th.

What other State facts should you know?

  • Arizona Annual Transaction Privilege Tax (TPT) prepayments are combined with the state return on Arizona TPT forms and must be filed online at www.AZTaxes.gov.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

According to the Arkansas Department of Finance and Administration (DFA), taxpayers who average monthly net sales of $200,000 or more during the preceding calendar year must make sales and use tax prepayments.

When are prepayments due?

  • Arkansas requires two prepayments per month. The first prepayment is normally due on the 12th and the second prepayment is due on the 24th of each month. If the 12th or the 24th falls on a state holiday or weekend, then prepayments are due the following business day.
  • Taxpayers who elect to make one prepayment must remit payment by the 24th of each month.

How much should you prepay?

  • Taxpayers may elect to make two tax payments.
  • Each payment must equal 40% of the tax due based on the monthly average net sales or one payment that equals 80% of the tax due for the current month.

What other State facts should you know?

  • Arkansas prepayments are filed and paid separately from the regular state return and must be filed online at https://atap.arkansas.gov/_/.
  • Taxpayer’s prepayment schedules and due dates are normally sent in October for the subsequent year if they elect the two prepayments per month instead of one under the 80% prepay rule.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

According to the California Board of Equalization (BOE), upon written notification by the board, taxpayers who average monthly net taxable sales of $17,000 or more must make sales tax prepayments.

When are prepayments due?

  • Prepayments are due by the 24th day of each month, except for the last month of each quarter.
  • The first prepayment is due by the 24th day of the month following the first month of the quarter (for example, sales tax collected in January are remitted in February).
  • The second prepayment is due by the 24th day of the month following the second month of the quarter (that is, sales tax collected in February is remitted March).
  • If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

How much should you prepay?

Prepayments must be at least 90% of the actual tax due from the previous month.

What other State facts should you know?

  • California prepayments are paid separately from the state return and must be filed online at https://onlineservices.cdtfa.ca.gov/ or via Electronic data interchange(EDI).
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayment?

  • According to the Florida Department of Revenue (DOR), taxpayers who paid $200,000 or more in state sales and use tax during the previous fiscal year (July 1‐ June 30) must file and pay estimated tax monthly.
  • New taxpayers who are required to prepay must submit their first estimated payment on their December return (due in January).

When are prepayments due?

  • Sales tax prepayments are due by the 20th day of each month.
  • If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

How much should you prepay?

Your estimated tax liability is based only on state sales and use tax due. FL has three methods for computing estimated tax, and taxpayers are required to use one method during the year.

  • Method 1: Calculate 60% of your average state sales tax due for the months you reported taxable transactions during the calendar year.
  • Method 2: Calculate 60% of your state sales and use tax due for the same month of the previous calendar year.
  • Method 3: Calculate 60% of the state sales tax due for the next month’s return.

What other State facts should you know?

  • Florida prepayments are combined with the FL state return and must be filed online at http://floridarevenue.com/taxes/eservices/Pages/filepay.aspx. Florida prepayments amounts are updated annually.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayment?

According to the Georgia Department of Revenue (DOR), businesses with a tax liability of $60,000 or more from the previous calendar year must make estimated tax payments.

When are prepayments due?

Prepayments are due by 20th day of each month. If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

How much should you prepay?

  • The amount of estimated tax due is based on total state sales for the past year.
  • If this amount exceeds $60,000, businesses must remit 50% of the average monthly state sales once a year.

What other State facts should you know?

  • Georgia prepayments are combined with the state regular return and must be filed online at https://gtc.dor.ga.gov/
  • When a taxpayer is no longer required to prepay, GA retains the last prepayment (like a security deposit) and will not refund it until the account cancels their license. Therefore, your last prepayment cannot be used as a credit for future liability, unless your prepayment status changes.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Illinois Department of Revenue (DOR), taxpayers with an average monthly tax liability of $20,000 or more from the previous calendar year must make quarter‐monthly payments.
  • IL will notify taxpayers in writing if they are required to prepay.

When are the prepayments due?

  • Payments are due the 7th, 15th, 22nd, and last day of the month.
  • If the due date falls on a weekend or holiday, your payment is due the following business day.

How much should you prepay?

  • Taxpayers must choose must from two prepay options to determine their obligation.
  • For each quarter-monthly payment, you must pay either 22.5% of the current month's liability; or 25% of the liability for the same month of the previous year.

What other State facts should you know?

  • Illinois prepayments are paid separately and must be filed online at https://mytax.illinois.gov/_/#1 or via ACH Credit.
  • Be sure to keep your business name and location updated. Otherwise, taxpayers will not be absolved from their prepayment obligation if the prepay notification is sent to the wrong address and name.
  • Untimely quarter‐monthly payments that are late or underpaid will lose their discount and assessed the additional tax due plus penalty and interest.
  • Quarter‐monthly over-payments will be recorded as a credit that may be used for future liability with a written request.

Who must make sales tax prepayments?

According to the Iowa Department of Revenue (DOR), taxpayers with an average monthly tax liability of $5,000 or more must make bi‐monthly deposit payments.

When are the prepayments due?

  • The first deposit for the period from the 1st through the 15th is due on the 25th of that month.
  • Then the second deposit for the period from the 16th through the end of the month is due by the 10th of the next month.

How much should you prepay?

Taxpayers must deposit (prepay) the actual tax collected for that period.

What other State facts should you know?

  • Iowa prepayments are paid separately and must be filed online at https://tax.iowa.gov/.
  • A quarterly return is due on the last day of the month that follows the quarter. Therefore, a deposit is not required for the final 6th semi‐monthly period of each quarter. The return and last deposit may be filed and paid together.
  • Taxpayers should start making semi‐monthly deposits after two consecutive quarters where monthly tax liability is $5,000 and up.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Kansas Department of Revenue (DOR), taxpayers with an average monthly tax liability of $2,666.67 or more (or annual tax liability of 40,000.01 or more) must make monthly prepayments.
  • Kansas goes on to say that taxpayers should not file prepayments, unless they are notified in writing. Therefore, prepayments start after being notified

When are the prepayments due?

The prepayment is due by 25th of the current month.

How much should you prepay?

  • Taxpayers must choose from two prepay options to determine their payment obligation.
  • The first option is 90% of the sale tax collected within the first 15 days of that month or 50% of the tax liability for the same month of the prior year.

What other State facts should you know?

  • Kansas reports the prepayment on the state return ST‐36, the prepayment may be made separately, and must be filed online at https://www.ksrevenue.org/.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Kentucky Department of Revenue (DOR), taxpayers with an average monthly tax liability of $10,000 or more must make monthly prepayments.
  • Kentucky goes on to say that taxpayers should not file prepayments unless they are notified in writing to file. Therefore, prepayments start after being notified.

When are the prepayments due?

The prepayment is due by the 25th of the current month.

How much should you prepay?

  • Taxpayers must choose from two prepay options to determine their payment obligation.
  • The actual amount or the estimated amount which must be at least 50% of the previous month’s tax payment.

What other State facts should you know?

  • Kentucky reports the prepayment on the state return, the prepayment may be made separately, and must be filed online at https://onestop.efile.ky.gov/efilelanding.html.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Michigan Department of Revenue (DOR), taxpayers with an annual average tax liability of $720,000 or more must make monthly accelerated payments.
  • Michigan goes on to say that taxpayers should not file accelerated payments unless they are notified in writing to file.

When are the prepayments due?

The prepayment is due by the 20th of the current month.

How much should you prepay?

Prepayments must be the lesser of 75% of last month’s tax liability or 75% of the previous year’s tax liability for the same month.

What other State facts should you know?

Who must make a sales tax prepayment?

  • According to the Minnesota Department of Revenue (DOR), taxpayers with an annual average tax liability of $250,000 or more from the previous fiscal year (July 1 to June 30) must make a June accelerated payments.
  • Minnesota goes on to say that taxpayers required to prepay must continue making this payment until you receive further notice.

When is the prepayment due?

The accelerated prepayment is due two business days before June 30, normally the 28th of June.

How much should you prepay?

Prepayments must be any of the three:

  • 81.4% of your actual June liability
  • 81.4% of May’s liability
  • 81.4% of your average monthly liability for the prior calendar year.

What other State facts should you know?

  • Minnesota reports accelerated payments on the state return, the prepayment may be made separately, and must be filed online at https://www.mndor.state.mn.us/tp/eservices/_/?Reset=1.
  • If accelerated payments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make a sales tax prepayment?

  • According to the Mississippi Department of Revenue (DOR), taxpayers whose average sales and use tax liabilities that exceed $50,000 per month for the previous calendar year must make a June accelerated payments.
  • Mississippi goes on to say that taxpayers are not required to make accelerated payment, unless they are notified in writing.

When is the prepayment due?

The accelerated prepayment is due by the 25th of June.

How much should you prepay?

The accelerated payments must be either:75% of last year's June tax liability or 75% of current month's liability.

What other State facts should you know?

  • Mississippi reports accelerated payments with the state online return, the prepayment may be made separately, and must be filed online at https://tap.dor.ms.gov/_/.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Missouri Department of Revenue (DOR), taxpayers are required to make quarter-monthly payments if their average monthly state sales tax equals or exceeds $15,000 during at least six of the previous 12 months.
  • Missouri will notify taxpayers in writing if they are required to prepay.

When are the prepayments due?

  • Payments are due the 7th, 15th, 22nd, and the last day of the month.
  • If the due date falls on a weekend or state holiday, your payment is due the following business day.

How much should you prepay?

  • The quarter‐monthly prepayment must be at least 90% of the actual tax due.
  • To calculate the payment for each week, multiply taxable sales by 4.225%(state sales tax rate) times 90%( estimated payment) times 98%.
  • The 2% was removed to account for the timely payment discount to avoid over-payment.

What other State facts you should know?

  • Missouri prepayments are paid separately and may be filed online at http://dor.mo.gov/, if you are already registered or via ACH credit.
  • Be sure to keep your business name and location updated. Otherwise, taxpayers will not be absolved from their prepayment obligations if the prepay notice is sent to the wrong address and name.
  • Untimely quarter‐monthly payments that are late or underpaid will lose their discount and assessed the additional tax due plus the 5% penalty and interest.
  • Quarter‐monthly over-payments will be recorded as a credit that may be used for future liability with a written request or a refund request using Form 472S.
  • Prepayments amount are updated in July every year.

Who must make sales tax prepayments?

  • According to the New Jersey Department of Taxation (DOT), taxpayers with an average monthly tax liability of $500 and up for the current calendar year with $30,000 in tax liability in the previous year are required to make monthly prepayments in the first two months in each quarter of a calendar year.
  • New Jersey emphasizes monthly prepayments are only required by businesses that collected more than $30,000 in sales tax in the prior year, regardless of the sale tax collected for a certain month. Therefore, taxpayers should focus on the annual threshold instead of their monthly collections.

When are the prepayments due?

Prepayments are due by the 20th for the first two months in each calendar quarter.

How much should you prepay?

The actual tax collected for the prior month. For example, February prepayment is based on actual tax collected from January.

What other State facts should you know?

  • New Jersey prepayments are paid separately may be filed using Form ST‐51 online at http://www.state.nj.us/treasury/taxation/onlinebus.shtml#sales, or by phone through the NJ Sales and Use EZ File Systems.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the New York Department of Taxation and Finance (DOTF), taxpayers with a combined total of taxable sale (and purchases subject to tax) in a quarter that is at least $300,000 or more must file monthly prepayments, called part‐quarterly(monthly) return. The State Department will notify you of the change.
  • Taxpayer may request a change to quarterly filing status if taxable sales are less than $300,000 during any quarter for four consecutive quarters.

When are the prepayments due?

Prepayments are due by the 20th for the first two months in each quarter.

How much should you prepay?The actual tax collected for the period. For example, taxes collected in April are remitted in May.

What other State facts should you know?

  • New York monthly prepayments are filed separately (for the first two months of the quarter) using the online Form ST‐809 at https://www.tax.ny.gov/bus/st/stmp.htm.
  • Certain large volume vendors (greater than $500,000 in annual sales and use tax liabilities) must remit prepayment using the electronic funds transfer or certified check system, called NY PrompTax program. The State Department will notify you if you fall within this threshold.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the North Carolina Department of Revenue (DOR), taxpayers who are consistently liable for at least $20,000 a month in State and local sales and use tax must make monthly prepayments.
  • North Carolina goes on to say that taxpayers should not file prepayments unless they are notified in writing to file.
  • Prepayments start after their filing status has changed to “monthly filing with prepayments.

When are the prepayments due?

The prepayment is due by 20th of the current month.

How much should you prepay?

Prepayment must at least be 65% of one of the three options:

  • The amount of tax due for the current month
  • The amount of tax due for the same month in the previous year
  • The average monthly amount of tax due in the prior calendar year.

What other State facts should you know?

  • North Carolina reports the prepayment on the state return (FormE‐500), the prepayment may be made separately or with the return and must be filed online at https://www.ncdor.gov/file‐pay/eservices.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

According to the Ohio Department of Taxation (DOT), taxpayers with an annual tax liability that exceeds $75,000 or more must make monthly accelerated payments.

When are the prepayments due?

The prepayment is due by 23th of the current month.

How much should you prepay?

Prepayments must be at least 75% of the previous year’s tax liability for the same month.

What other State facts should you know?

  • Ohio reports accelerated payments on the state return, the prepayment may be made separately, and must be filed online at http://business.ohio.gov/ or through Ohio’s Telefile system.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

According to the Oklahoma Tax Commission (OTC), taxpayers with an average tax liability of $2,500 or more from the previous fiscal year must make monthly prepayments, called semi‐monthly electronic payments.

When are the prepayments due?

The prepayment is due on or before the 20th of the current month.

How much should you prepay?

Prepayments must be at least 50% of the previous year’s tax liability for the same month or at least 90% of the tax liability for the first 15 days of the current month.

What other State facts should you know?

  • Oklahoma semi‐monthly flier must join in the OTC’s electronic funds transfer and electronic data interchange payment program.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Pennsylvania Department of Revenue (DOR), taxpayers whose sales and use tax liability for the third quarter of the prior year was $25,000 or more but less than $100,000 must make monthly accelerated payments.
  • Pennsylvania also states that if taxpayers tax liability for the third quarter of previous year was $100,000 or more, then they must remit monthly prepayments as well.

When are the prepayments due?

  • The prepayment is due by 20th of the current month.
  • If the filing due date falls on a weekend or state holiday, sales tax is normally due the following business day.

How much should you prepay?

If taxpayers’ tax liability for the third quarter of the previous year (July, August and September) was $25,000 or more but less than $100,000, they must remit sales and use tax prepayments, using either of the following calculation methods:

  • 50% of the actual tax liability for the same month of the previous year.
  • At least 50% of the actual tax liability for the current period.

If taxpayers’ tax for the third quarter of the previous year (July, August and September) was $100,000 or more, they must remit 50% of the actual tax liability for the same month of the prior year.

What other State facts should you know?

  • Pennsylvania accelerated sales tax payments must be remitted separately and must be filed online at https://www.etides.state.pa.us/.
  • If prepayments are not made on time or underpaid, taxpayers will be subject to penalties and interests.

Who must make sales tax prepayments?

  • According to the Puerto Rico Department of Treasury, large taxpayers with over $50,000,000 in business volume in the prior year; and, merchants with monthly sales tax deposits that exceeded $2,000 in the previous year must make prepayments, called bi‐monthly installments.
  • The term “deposit” is the sum of sales tax deposited at the imports and purchase of inventory and sales tax with regards to merchant’s sales.

When are the prepayments due?

The biweekly sales tax estimated payments are due no later than the 15th and the last day of each month. If the due date falls on a weekend or state holiday, the due date is extended to the next business day.

How much should you prepay?

The bi‐monthly prepayments must be the lesser of: 80% of the sales tax determined for the month, net of applicable credits; or 70% of total sales tax remitted in the previous year for the same month.

What other State facts should you know?

  • Bi‐monthly repayments are paid separately and must be filed online at SURI http://www.hacienda.gobierno.pr/. Untimely bi‐monthly payments that are late or underpaid will lose their discount and assessed the additional tax due plus 10% penalty and interest.
  • Taxpayers first installments is the lesser of: 80% of the sales tax collected with the first 14 days of each month, net of applicable credits; or 35% of total sales tax remitted in the previous year for the same month.

Who must make sales tax prepayments?

According to the Texas Comptroller Office of Public Accounts, taxpayers may elect to prepay their sales tax liability and deduct 1¼% (.0125) of the prepayment plus the timely filing discount of ½% (.005) on their regular return, totaling a tax saving discount of 1¾%(.0175).

When are the prepayments due to receive an additional discount?

  • Monthly prepayments are due on the 15th of each month and quarterly prepayments are February 15th, May 15th, August 15th and November 15th. Failure to file the payments and reports by the 15th will cause prepayment discounts to be forfeited.
  • If the prepayment is timely, but the regular return for that period was late, no discounts are allowed.

What are the prepay estimates to receive an additional discount?

  • To qualify for the prepayment discount, the estimated prepay amount must be at least 90% of the tax due or the amount of tax paid in the same quarter or month in the previous year.
  • Again, the regular return must be filed timely to take advantage of the tax savings.

What other State facts should you know?

  • Prepayment must be made filed online either on TX Webfile or TEXNET, depending on your tax liability thresholds.

Who must make a sales tax prepayment?

  • According to the Virginia Tax Department, taxpayers whose taxable sales totaled $4 million or more for the 12‐month period ending June 30, 2017 must make accelerated sales and use tax payments in June 2018.
  • Virginia Tax also states that the requirement is based on aggregate sales and purchases for all business locations, regardless of whether the taxpayers file separate, combined, or consolidated returns. Virginia goes on to say that taxpayers should not file prepayments unless they are notified in writing in April of the current year.

When is the prepayments due?

The prepayment is due by the 30th June. If the filing due date falls on a weekend or state holiday, sales tax is normally due the following business day.

How much should you prepay?

Taxpayer are required to pay 90% of the sales tax owed for the month of June 2017 subtracting dealer’s discount for that month.

What other State facts should you know?

  • Virginia accelerated sales and use tax payment must be remitted separately and may be filed online at https://www.business.tax.virginia.gov/VTOL/Login.seam, or via check (postmarked on or before the 25, 2018).
  • The June accelerated payment should not be combined with the return payment and the full amount must be paid by the due date to avoid an untimely payment penalty of 6%.
  • Virginia also has a hardship waiver provision for businesses unable to make the required accelerated tax payment.
  • To be considered for a full and partial waiver, a written request with supporting documentation and financial records must be submitted on or before June 8th, 2018 to Virginia Department of Taxation PO Box 5771 Richmond, VA 23220‐0771 or faxed at: 804‐225‐3376.

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