US State-by-State Guide to Sales & Use Tax on Advertising, Media, Publications, and SaaS (2025)

Introduction

Navigating U.S. sales and use tax for advertising, media, publications, and cloud services is a complex challenge for businesses operating across multiple states. Each state has its own rules, exemptions, and interpretations- especially as digital services and SaaS reshape the landscape. This blog provides a comprehensive, state-by-state breakdown based on the latest Bloomberg Tax Chart (September 2025).This will be helpful for the folks who are working in Adverstisement space (eg – WPP, Publicis, Havas etc)

Categories Covered: Advertising Placement & Design, Printing & Copying, Packaging & Mailing, Promotional Items, Direct Mail & Catalogs, Newspapers, Magazines, Books, Film/Audio/Video, Machinery & Equipment, SaaS/Cloud.

Alabama

• Advertising Placement: Nontaxable. Charges for advertising and promotional services are not subject to sales tax (Ala. Code § 40-23-2).
• SaaS: No direct guidance; generally not taxed unless tangible property is transferred.

Alaska

• All Categories: No state sales or use tax.

Arizona

• Advertising Placement: Nontaxable at state level, but many cities tax advertising. (Ariz. Rev. Stat. Ann. § 42-5065)
• SaaS: Taxable. Transaction privilege tax applies to software sales, including SaaS.

Arkansas

• Advertising Placement: Depends. Placement in newspapers/publications/billboards is exempt; other advertising may be taxable.
• SaaS: No formal guidance; generally not taxed.

California

• Advertising Placement: Nontaxable. Placement services are not subject to sales tax (Cal. Rev. Tax. Code § 6051).
• SaaS: Nontaxable. SaaS is not taxed if the customer only accesses software remotely.

Colorado

• Advertising Placement: Nontaxable. Placement and design services are not taxed.
• SaaS: Nontaxable. Software delivered via ASP or electronic means is not taxed.

Connecticut

• Advertising Placement: Exempt for media advertising; non-media placement is taxable.
• SaaS: Taxable. Electronically accessed prewritten software is taxed.

Delaware

• All Categories: No state sales or use tax.

District of Columbia

• Advertising Placement: No tax on placement services.
• SaaS: Taxable. Charges for access to equipment/data processing are taxed.

Florida

• Advertising Placement: Exempt. Professional services for preparing/placing advertising are not taxed.
• SaaS: No statutes; some technical advisements suggest SaaS is not taxed.

Georgia

• Advertising Placement: Exempt. Placement and design services are not taxed.
• SaaS: Nontaxable. Cloud-based services are not taxed.

Hawaii

• Advertising Placement: Taxable. Gross income from advertising services is subject to general excise tax.
• SaaS: Taxable. SaaS receipts are subject to excise tax.

Idaho

• Advertising Placement: Exempt as professional services.
• SaaS: Nontaxable. Remotely accessed software is excluded from tangible property.

Illinois

• Advertising Placement: Nontaxable. No specific tax on advertising services.
• SaaS: Nontaxable if no tangible property is transferred.

Indiana

• Advertising Placement: Nontaxable. Placement services are not taxed.
• SaaS: Nontaxable. Remote access to prewritten software is not a retail transaction.

Iowa

• Advertising Placement: Nontaxable. Not enumerated as taxable service.
• SaaS: Taxable unless sold to a commercial enterprise for exclusive use.

Kansas

• Advertising Placement: Exempt. Advertising agency services are exempt.
• SaaS: Nontaxable. Remote access to software is not a taxable lease.

Kentucky

• Advertising Placement: Exempt for creation; taxable for reproduction.
• SaaS: Taxable. Prewritten computer software access services are taxed.

Louisiana

• Advertising Placement: Exempt. Advertising services by agencies/media are exempt.
• SaaS: Taxable from Dec 2024. Prewritten software access services are taxed.

Maine

• Advertising Placement: Exempt unless tied to tangible property.
• SaaS: No formal guidance.

Maryland

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable. SaaS is taxed as a digital product.

Massachusetts

• Advertising Placement: Exempt. Advertising agency services are not taxed.
• SaaS: Taxable. Charges for remote access to software are taxed.

Michigan

• Advertising Placement: Nontaxable. Not enumerated as taxable service.
• SaaS: Nontaxable.

Minnesota

• Advertising Placement: Nontaxable. Placement services are not taxed.
• SaaS: Nontaxable. Charges to access data remotely are not taxed.

Mississippi

• Advertising Placement: Nontaxable unless tied to tangible property.
• SaaS: Taxable unless software is on a server outside Mississippi.

Missouri

• Advertising Placement: Nontaxable. Placement services are not taxed.
• SaaS: Nontaxable.

Montana

• All Categories: No state sales or use tax.

Nebraska

• Advertising Placement: Exempt for fixed displays.
• SaaS: No formal guidance.

Nevada

• Advertising Placement: Exempt for services; tangible property is taxed.
• SaaS: No formal guidance.

New Hampshire

• All Categories: No state sales or use tax.

New Jersey

• Advertising Placement: Exempt for newspaper advertising.
• SaaS: Exempt unless it meets definition of information service.

New Mexico

• Advertising Placement: Taxable. Placement services are subject to gross receipts tax.
• SaaS: Taxable. Cloud services are subject to gross receipts tax.

New York

• Advertising Placement: Exempt. Advertising agency fees are excluded from sales tax.
• SaaS: Taxable. License to remotely access prewritten software is taxed.

North Carolina

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Nontaxable. Cloud computing services are not taxed.

North Dakota

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: No formal guidance.

Ohio

• Advertising Placement: Nontaxable unless tangible property is sold.
• SaaS: Taxable if used for business purposes.

Oklahoma

• Advertising Placement: Taxable. Sales of advertising are taxed except for qualified exemptions.
• SaaS: No formal guidance.

Oregon

• All Categories: No state sales or use tax.

Pennsylvania

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable if user is located in Pennsylvania.

Rhode Island

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable. Vendor-hosted prewritten software is taxed.

South Carolina

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable. Charges to access databases/online services are taxed.

South Dakota

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable. All computer software/services are taxed unless exempt.

Tennessee

• Advertising Placement: Exempt for print/electronic media.
• SaaS: Taxable. Cloud computing/SaaS is taxed.

Texas

• Advertising Placement: Exempt unless tied to tangible property.
• SaaS: Taxable. Treated as data processing service (partial exemption).

Utah

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable. License fees for remotely accessed software are taxed.

Vermont

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable from July 2024. SaaS is taxed.

Virginia

• Advertising Placement: Exempt unless tangible property is delivered.
• SaaS: Exempt. SaaS is generally not taxed.

Washington

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Taxable. Charges for access/use of prewritten software are taxed.

West Virginia

• Advertising Placement: Exempt for broadcast/newspaper/outdoor advertising.
• SaaS: No formal guidance.

Wisconsin

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Nontaxable if customer does not have physical access to server.

Wyoming

• Advertising Placement: Exempt. Placement services are not taxed.
• SaaS: Nontaxable unless tangible property/service is embedded.

Key Trends and Takeaways

• Advertising Placement/Design: Most states exempt these services unless tied to tangible property.
• Printing/Promotional Items: Generally taxable.
• SaaS/Cloud Services: Rapidly evolving and many states now tax SaaS, but several major states (CA, TX, FL, NY, VA) have nuanced or partial exemptions.
• No Sales Tax States: AK, DE, MT, NH, OR- no sales/use tax on any category.