Invoice Generator for USA: Sales Tax by State, Nexus Rules, and Compliance
Generate sales tax compliant invoices for US businesses. Understand nexus rules, state-by-state tax rates, and when to charge sales tax.
US Sales Tax Basics
Unlike GST or VAT, the US has no federal sales tax. Each state sets its own rates and rules. Some states (Oregon, Montana, Delaware, New Hampshire) have no sales tax at all. Others range from 2.9% (Colorado) to 7.25% (California).
What Is Nexus?
Nexus is the connection between your business and a state that requires you to collect sales tax there. Physical nexus means you have a physical presence (office, warehouse, employee). Economic nexus means you exceed a sales threshold (typically $100,000 in sales or 200 transactions per year in that state).
When to Charge Sales Tax on Invoices
You must charge sales tax when: you have nexus in the buyer's state, the product/service is taxable in that state, and the buyer is not tax-exempt.
Clorefy for US Invoicing
Clorefy supports US invoicing with customizable tax rates. Set your state tax rate during onboarding, and the AI applies it automatically to all invoices. For tax-exempt clients, simply mention "tax exempt" in your prompt.
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