What US states are charged tax for SaaS services by Heroku?

Issue

You'd like to learn more about the taxation of Heroku services and what states are subject to taxation for services rendered.

Resolution

In order to become tax compliant, Heroku is charging taxes to customers in 19 U.S. states starting August 1, 2019. The 19 states affected are:

  1. Arizona
  2. Connecticut
  3. District of Columbia
  4. Hawaii
  5. Iowa
  6. Maryland
  7. Massachusetts
  8. New Mexico
  9. New York
  10. Ohio
  11. Pennsylvania
  12. Rhode Island
  13. South Carolina
  14. South Dakota
  15. Tennessee
  16. Texas
  17. Utah
  18. Washington
  19. West Virginia

Additional states will be added as Heroku continues to become tax compliant.

Taxable locale

Taxes are based on the billing address entered during credit card verification. Taxes will appear on both Personal and Heroku Teams whose address is listed in one of those 18 states.

Heroku is happy to comply with sales tax exemption requests from eligible organizations. To be given sales tax exemption, a Heroku Team admin, account owner or Personal account holder must submit your organization's state tax exemption form as an attachment to a Heroku support ticket.

Processing time

We cannot accept Federal (IRS) tax exemption forms; only the state form will be used for sales tax exemption. Once the request has been received, please allow 10-12 business days for processing.

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