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How to calculate US sales tax
How to calculate US sales tax
Updated over 2 months ago

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please consult a tax professional. This is general guidance and is not legal advice. Nothing in this Help Centre overrides an individual state’s laws. For specific state guidance, please contact your relevant state tax authority>> State Contact Information


How is US sales tax calculated?

Sales tax is calculated at the time of the sale. Sales tax is calculated by multiplying the purchase price by the applicable sales tax rate. Sales tax can be calculated by converting the sales tax percentage to a decimal and then multiplying it by the retail price of a good or service.

(Sales tax percentage ÷ 100) × price of good or service.

The tax rate charged on your attendees' order depends on many factors including:

These factors can change between the time you publish your event and when your event takes place. As a result, the tax calculated on your attendees' orders may change.

>> See the full guide on US State Sales and Use Taxes to learn more

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions.


What are the state sales tax rates?

Sales tax is collected only on taxable goods or services. The tax is computed as the tax rate times the taxable transaction value. Rates vary by state and by locality within a state. Not all categories of goods or services are taxable. There are two scenarios for calculating the tax rate:

Good to know: Humanitix can only detect physical events that use the Address option when setting up Event location to determine the relevant state sales tax rates. This means if your event uses Custom, Online or To be announced when setting up your event location, Humanitix will not be able to remit sales tax for you.

  • In States where Humanitix is Not Required to Collect & Remit Sales Tax, the Event Host (seller) must Collect tax on the event and enter the correct sales tax rate. If so, the sales tax will be included in your payout. The Host (seller) must verify, correct, and update information if they determine that taxes calculated on Event Tickets or Add On items sold via Humanitix (marketplace) are inaccurate or untrue.

>> See the full guide on Who is Liable for Tax on Sales

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions.


Where can I find the tax breakdown on my ticket sales?

If you have set up your event to be subject to tax, you can find the breakdown in the orders report.

  1. Filter by the event name

  2. Click Get report and find the “Taxes” column

>> See the full guide on Who Sends Taxes to the Tax Authority

Event hosts are responsible for all compliance and tax obligations in areas where the event occurs. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions.


How can I pass on or absorb sales tax?

Selecting ‘Pass on Tax’ or ‘Absorb Tax’ does not change how tax is calculated. This only affects how pricing is published (advertised) for your Event Tickets or Add Ons.

What happens when ‘Pass on Tax’ is selected?

The sales tax is added to the published price. This is typical in the US. The “price tag” for Event Tickets or Add Ons will display the price before tax.

What happens when ‘Absorb Tax’ is selected?

The sales tax is included in the published price. This is not typical in the US. The “price tag” for Event Tickets or Add Ons will display the price with tax.

Event hosts are responsible for all compliance and tax obligations in areas where the event is taking place. Humanitix cannot give tax advice. Please contact the tax assessor nearest to your event location with questions.


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