In certain "marketplace states," Envato collects and remits sales tax directly. In all other states, sales tax (if applicable) is the responsibility of the individual author, not Envato.
Sales tax is a consumption tax imposed by individual US states on certain goods sold within their jurisdiction — rates and rules vary by state. Normally, sales tax is collected by the seller, but when a sale happens through an online marketplace, the marketplace itself (Envato, in this case) is responsible for collecting it in certain states.
Which US states does Envato currently collect and remit sales tax in?
| US State | Maximum Tax Rate | Taxability |
|---|---|---|
| Arizona | 11.2% | Item purchase, buyer fee, handling fee and support |
| Connecticut | 6.35% flat rate | Item purchase, buyer fee, handling fee and support |
| Illinois | 6.25% flat rate | Pre-written software, handling fee and support |
| Massachusetts | 6.25% flat rate | Pre-written software, buyer fee and support |
| Michigan | 6.00% | Pre-written software, handling fee and support |
| New Jersey | 6.625% flat rate | Item purchase, handling fee and support. |
| New York | 8.88% | Pre-written software, handling fee and support |
| North Carolina | 7.75% | Item purchase, handling fee and support |
| Pennsylvania | 8.00% | Item purchase, buyer fee, handling fee and support |
| Rhode Island | 7.00% flat rate | Pre-written software, buyer fee, and support |
| Texas | 8.00% | Item purchase, buyer fee, handling fee and support |
| Washington | 10.5% | Item purchase, buyer fee, handling fee and support |
| Wisconsin | 5.5% | Item purchase, handling fee and support |
FAQ for buyers in marketplace states
What tax rate will I be charged?
Your rate depends on your location. Make sure your billing details (state and zip code) are accurate in your Envato account settings so we can calculate the correct rate. The table above shows the maximum sales tax rate currently collected and remitted in each listed state.
Why isn't tax applied to some items?
Tax only applies to the taxable components of your purchase, based on your state's specific sales tax rules — see the "Taxability" column in the table above for what's covered in each state.
What if I'm exempt from sales tax?
If you hold a sales tax exemption in your state of residence, send us your exemption certificate issued by the relevant state authority. Once verified, we'll apply the exemption to your account.
How to submit your exemption certificate:
- Go to our contact form.
- Select "I am sales tax exempt" from the "Tell us more" menu.
How is my sales tax reported to the state?
When Envato collects sales tax on your purchase, we report and remit it to the relevant state revenue authority according to their required process.
Example: on a $33 purchase with 7% sales tax, the $2.31 tax portion is remitted to the applicable state's Department of Revenue in line with that state's reporting rules.
Where can I find my sales tax on invoices?
See our Buyer's Guide to Your Statement Documents for full details, or view sales tax directly on your statement page via your account settings.
FAQ for buyers in non-marketplace states
If your state isn't listed in the table above, any applicable sales tax is the author's responsibility, not Envato's. You may still see a sales tax line item on your cart and invoice, but it's calculated and managed by the author.
What if I'm sales tax exempt?
Contact the author directly — see how to contact an author for instructions.
What tax rate will I be charged?
This depends on several factors, including your location and whether the author has a tax obligation ("nexus") in your state. Keep your billing details accurate in your account settings so the author can calculate the correct rate, if any applies.
Why isn't tax applied to some items?
Tax rules vary significantly by state — some items, components, or add-on services may be taxable in one state and not another. Some states only apply tax when both buyer and author are located in the same state. For specific questions, we recommend seeking your own tax advice.
Where can I find my sales tax on invoices?
See our Buyer's Guide to Your Statement Documents, or view sales tax on your statement page via account settings. For questions about how tax was applied to your specific purchase, contact the author directly.