How do I handle sales tax if I sell in another state?
Selling in another state may create tax obligations based on nexus and local rules.
The Narrative
The Empathy
You travel to a market across state lines and suddenly worry about different tax rates and permits. It can feel risky to sell without knowing the rules.
The Education
Many states require a sales tax permit if you have "physical nexus," which can be triggered by attending a fair or temporarily selling in the state. Rates can vary by city or county, and some states offer temporary permits for short-term events. The safest approach is to check the state tax authority website before you sell.
The Solution
Confirm whether the event state requires a temporary or standard permit, then set the correct local tax rate in your point-of-sale system. Keep a separate record of sales for that state so you can file the correct return. Planning ahead removes the stress and keeps you compliant.