State & Local Sales Tax Rates for Consignment
Navigating the complex world of sales tax is one of the biggest headaches for consignment shop owners. Our Consignment Software simplifies this process by allowing you to set dual tax rates (state and local) and even automate tax exemptions Resell4.me allows you to configure dual tax rates for state and local taxes and automate exemptions for qualifying items or customers.
For tax purposes, consignment and resale transactions are generally considered "retail" activity. This means shop owners must collect and remit sales tax based on their state and local laws.
Forty-five states impose a statewide retail tax, and 38 of them collect local taxes on top of that. Below is a reference guide for general tax rates applicable in 2024.
2024 Sales Tax Rate Table
| State | State Tax | Avg. Local Tax | Total Est. Tax |
|---|---|---|---|
| Alabama | 4.00% | 5.10% | 9.10% |
| Alaska | 0.00% | 1.76% | 1.76% |
| Arizona | 5.60% | 2.73% | 8.33% |
| Arkansas | 6.50% | 2.91% | 9.41% |
| California | 7.25% | 1.29% | 8.54% |
| Colorado | 2.90% | 4.62% | 7.52% |
| Connecticut | 6.35% | 0.00% | 6.35% |
| Delaware | 0.00% | 0.00% | 0.00% |
| Florida | 6.00% | 0.80% | 6.80% |
| Georgia | 4.00% | 3.15% | 7.15% |
| Hawaii | 4.00% | 0.35% | 4.35% |
| Idaho | 6.00% | 0.03% | 6.03% |
| Illinois | 6.25% | 2.45% | 8.70% |
| Indiana | 7.00% | 0.00% | 7.00% |
| Iowa | 6.00% | 0.80% | 6.80% |
| Kansas | 6.50% | 2.18% | 8.68% |
| Kentucky | 6.00% | 0.00% | 6.00% |
| Louisiana | 5.00% | 5.02% | 10.02% |
| Maine | 5.50% | 0.00% | 5.50% |
| Maryland | 6.00% | 0.00% | 6.00% |
| Massachusetts | 6.25% | 0.00% | 6.25% |
| Michigan | 6.00% | 0.00% | 6.00% |
| Minnesota | 6.88% | 0.55% | 7.42% |
| Mississippi | 7.00% | 0.07% | 7.07% |
| Missouri | 4.23% | 3.80% | 8.03% |
| Montana | 0.00% | 0.00% | 0.00% |
| Nebraska | 5.50% | 1.39% | 6.89% |
| Nevada | 6.85% | 1.29% | 8.14% |
| New Hampshire | 0.00% | 0.00% | 0.00% |
| New Jersey | 6.63% | -0.03% | 6.60% |
| New Mexico | 5.13% | 2.54% | 7.66% |
| New York | 4.00% | 4.49% | 8.49% |
| North Carolina | 4.75% | 2.20% | 6.95% |
| North Dakota | 5.00% | 1.80% | 6.80% |
| Ohio | 5.75% | 1.40% | 7.15% |
| Oklahoma | 4.50% | 4.41% | 8.91% |
| Oregon | 0.00% | 0.00% | 0.00% |
| Pennsylvania | 6.00% | 0.34% | 6.34% |
| Rhode Island | 7.00% | 0.00% | 7.00% |
| South Carolina | 6.00% | 1.37% | 7.37% |
| South Dakota | 4.50% | 1.90% | 6.40% |
| Tennessee | 7.00% | 2.46% | 9.46% |
| Texas | 6.25% | 1.92% | 8.17% |
| Utah | 5.95% | 0.82% | 6.77% |
| Vermont | 6.00% | 0.18% | 6.18% |
| Virginia | 5.30% | 0.33% | 5.63% |
| Washington | 6.50% | 2.68% | 9.18% |
| Washington D.C. | 5.75% | 0.00% | 5.75% |
| West Virginia | 6.00% | 0.37% | 6.37% |
| Wisconsin | 5.00% | 0.42% | 5.42% |
| Wyoming | 4.00% | 1.46% | 5.46% |
Special Tax Exemptions
New York Clothing Tax
New York provides a sales tax exemption for clothing and footwear purchases under $110 per item. This exemption is particularly beneficial for consignment shops in NY, as many used items fall below this threshold.
Reseller Tax Exemptions
In Resell4.me, you can record a buyer's Reseller Tax ID on their client record. When you process a sale for that client, the software can automatically wave the sales tax, ensuring you stay compliant without manual math at the register.
How to Verify Your Local Rates
Tax rates change frequently. A shop owner should contact the following resources to verify current local rates:
- State Department of Revenue: The primary source for official state tax data.
- Local City/County Clerk: For specific local option taxes that may apply to your district.
- Local Chamber of Commerce: Often has resources for new businesses regarding compliance.
Disclaimer: This information is for educational purposes only and is not tax or legal advice. Tax rates are subject to change. Please consult with a CPA or tax professional for advice specific to your business.
Frequently Asked Questions
Do consignment shops have to collect sales tax?
Yes. Consignment and resale transactions are generally classified as retail activity, meaning shop owners must collect and remit sales tax according to their state and local laws. Forty-five states impose a statewide retail tax, and 38 of those also collect local taxes on top of the state rate.
How does Resell4.me handle sales tax for consignment shops?
Resell4.me supports dual tax rates — a state rate and a separate local rate — that are applied automatically at checkout. The software also supports reseller tax ID tracking, so when a registered reseller makes a purchase, the system can automatically waive sales tax without any manual calculation at the register.
Is clothing tax-exempt for consignment shops in New York?
New York State provides a sales tax exemption for individual clothing and footwear items priced under $110 per item. This exemption is particularly relevant for clothing consignment shops in New York, as many used items fall below this threshold. Shop owners should verify the current exemption rules with the NY Department of Taxation and Finance.
How much does Resell4.me cost for shops that need sales tax management?
Resell4.me starts at $49/month (Essentials) or $1,470 one-time, and $89/month (Professional) or $2,670 one-time. Both plans include built-in sales tax configuration with dual state and local rate support. The software is cloud-based, works on any device, and requires no long-term contract.
Where can consignment shop owners verify their local sales tax rates?
Shop owners should contact their state's Department of Revenue for the official state rate and their local city or county clerk's office for applicable local option taxes. Rates change frequently and vary by jurisdiction, so periodic verification is important — especially when opening a new location or expanding to a new county.
Run Your Shop on Resell4.me
Cloud-based consignment software from $49/mo. Talk-and-touch inventory and automatic consignor settlements on any device, with an online consignor portal on the Professional plan. Free data migration, month-to-month, cancel any time.