Nonprofit Tax Exempt Status

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Nonprofit tax exempt status can be obtained from the IRS and from each state where the nonprofit operates. The most popular is 501(c)(3) which grants charitable nonprofits exemption from federal corporate income taxes. States offer nonprofits a variety of exemptions from corporate income and other taxes they impose (such as sales and use taxes).

Tax exemption can reduce or entirely eliminate your tax burden; however, even exempt organizations will need to continue to file regular documents with authorities.


Federal Income Tax Exemption

IRC 501(c) outlines the income tax exemption options available. The most popular of these is 501(c)(3) which applies to public charities and private foundations. Learn about other 501(c) exemption options. Certain organizations such as churches are automatically exempt and do not need to file a separate exemption application. Application for 501(c)(3) exemption is made within the first 27 months after incorporating. The IRS issues a determination letter which details whether the exemption is granted and states whether donors to the nonprofit can make tax-deductible contributions. Learn about applying for 501(c)(3).


State Tax Exemptions

See the chart below for detail on each state's income and sales tax exemptions for nonprofits. Consider exemption in each state where your nonprofit operates. States may offer exemption from corporate income, sales, use, and other taxes they levy on nonprofits. Typically exemption requires submitting an application to the department of revenue and must be renewed every 1-5 years.


Key Takeaways:

  1. Nonprofit tax exemptions exist both at the federal and state levels.
  2. Apply for federal income tax exemption by qualifying for any section under IRC 501(c).
  3. State tax exemptions exist for a variety of state taxes: income, sales, use, etc.
  4. Apply for state tax exemptions with the department of revenue in each state where your nonprofit operates.

50-State Chart of Nonprofit State Tax Exemptions

Alabama

Income tax exemption:
Not required.

Exempt upon obtaining Determination Letter from the IRS

More information: Alabama Department of Revenue
Sales Tax Exemption:
Agency:Alabama Department of Revenue
Form:

ST: EX-A1: Application for Sales Tax Certificate of Exemption and Instructions

State fee:

$0

Notes:

Most nonprofit organizations will not qualify for a sales tax exemption in Alabama. Alabama Statutes § 40-9-1 et seq describes organizations that may qualify for an exemption.

Alaska

Income tax exemption:
Not required.

Exempt upon obtaining Determination Letter from the IRS

More information: Alaska Department of Revenue
Sales tax exemption:
Not required.

Alaska does not currently have a state level sales tax.

Arizona

Income tax exemption:
Not required.

Exempt upon obtaining Determination Letter from the IRS

More information: Arizona Department of Revenue
Transaction Privilege Tax Exemption:
Agency:Arizona Department of Revenue
Notes:

Arizona does not offer an overall exemption for nonprofits, but they allow exemptions in some circumstances. For a list of the few available exemptions, contact the Arizona Department of Revenue.

Arkansas

Income tax exemption:
Agency:Arkansas Department of Finance and Administration
Form:

Form AR1023CT: Application for Income Tax Exempt Status

Instructions:

http://www.dfa.arkansas.gov/offices/incomeTax/corporation/Documents/2012_AR1023CTInstructions.pdf

State fee:

$0

Notes:

Apply by submitting a copy of the IRS Determination Letter, the first two pages of IRS Form 1023, and a statement declaring exemption under ACA 26-51-303 or ACA 26-51-309. Organizations without an IRS Determination Letter should submit Form AR1023CT, a copy of the articles of incorporation, and a copy of the bylaws.

Sales Tax Exemption:
Agency:Arkansas Department of Finance and Administration
Form:

SSTGB Form F0003: Exemption Certificate

Instructions:

Streamlined Sales and Use Tax Agreement Certificate of Exemption Instructions

Notes:

Arkansas does not offer a general exemption application for nonprofits, but charitable sales are exempted under certain conditions. The certificate of exemption can be used to exempt an organization from sales tax in a specific purchase.

California

Income tax exemption:
Agency:California Franchise Tax Board
Form:

Form 3500: Exemption Application or Form 3500A: Submission of Exemption Request

Instructions:

https://www.ftb.ca.gov/forms/misc/3500bk.pdf

State fee:

$25 ($0 for exemption request)

Notes:

Use form FTB-3500a if you have received an IRS Determination Letter and form FTB-3500 if you have not.

Sales Tax Exemption:
Agency:California State Board of Equalization
Form:

http://www.boe.ca.gov/sutax/staxforms.htm#Certificates

Instructions:

Pub-18: Tax Tips for Nonprofit Organizations and Pub-61: Sales and Use Taxes: Exemptions and Exclusions

State fee:

$0

Notes:

California provides some forms for specific exemptions, but nonprofits should make a special request application including: Organization type, a letter describing your practices and activities, letters from the California Franchise Tax Board and the IRS to verify your tax exempt status, and a copy of the organizations articles of incorporation or bylaws. Prior to filing this request, organizations must have obtained 501(c) exemption as well as California Franchise Tax exemption.

Colorado

Income tax exemption:
Not required.

Exempt upon obtaining Determination Letter from the IRS

More information: Colorado Department of Revenue
Exemption form Sales Tax & State-Administered Local Sales Tax:
Agency:Colorado Department of Revenue
Form:

DR 0715: Application for Sales Tax Exemption and Form DR-0716: Statement of Non-Profit - Church, Synagogue, or Organization

State fee:

$0

Notes:

Colorado organizations can apply for state sales tax exemption if they have an IRS determination letter. If approved, you will receive a Certificate of Exemption.

Connecticut

Income tax exemption:
Agency:Connecticut Department of Revenue Services
Notes:

Exemption from Connecticut income tax is obtained by submitting a copy of your IRS Determination Letter when submitting Form REG-1.

Sales tax exemption:
Not required.

Upon receiving an IRS determination letter, Connecticut nonprofits are automatically exempt from state sales tax. Organizations must follow the guidelines in Guide SN 95(10). This includes providing sellers with a copy of CERT-119: Purchases of Tangible Personal Property and Services by Qualifying Exempt Organizations.

Delaware

Income tax exemption:
Not required.

Any corporation granted an exemption by the IRS as a non-profit organization under Section 501(c) is exempt from Delaware Corporate Income Tax.

More information: Delaware Department of Finance - Division of Revenue
Sales tax exemption:
Not required.

Delaware does not collect sales tax. However, nonprofits still need to register with Division of Revenue, the Division of Unemployment Insurance and the Office of Workers' Compensation. You will file Form CRA: Combined Registration Application.

District of Columbia

Income tax exemption:
Agency:D.C. Office of Tax and Revenue
Filing method:

Online

State fee:

$0

Notes:

Paper exemption applications are available upon request.

Sales Tax Exemption:
Agency:D.C. Office of Tax and Revenue
Filing method:

Online

State fee:

$0

Notes:

Paper exemption applications are available upon request.

Florida

Income tax exemption:
Agency:Florida Department of Revenue
Notes:

Not-for-profit corporations are subject to corporate income tax. However, a not-for-profit corporation that is exempt from federal taxation under Internal Revenue Code section 501(c)(3) is only required to file a Florida corporate income tax return (Form F-1120) if it has unrelated business income or it files federal Forms 990-C or 990-T with the Internal Revenue Service.

Sales Tax Exemption:
Agency:Florida Department of Revenue
Form:

DR-5: Application for a Consumer's Certificate of Exemption

State fee:

$0

Law:Chapter 212, Florida Statutes
Notes:

Certain not-for-profit organizations are exempt from sales and use tax on purchases and rentals of tangible personal property if that property is used in carrying out the organization's not-for-profit activities. See the form for information on the available exemptions.

Georgia

Income tax exemption:
Agency:Georgia Department of Revenue
Notes:

Simply attach your IRS Determination Letter and Letter of Incorporation to your tax returns.

Sales tax exemption:
Agency:Georgia Department of Revenue
Notes:

Georgia currently does not provide a general sales or use tax exemption. A few exemptions exist for nursing homes, hospices, hospitals, and other organizations, and you can contact the Georgia Department of Revenue for a full list.

Hawaii

Income tax exemption:
Not required.

Your IRS determination letter granting exemption from federal income taxes, also exempts your organization from Hawaii income taxes. Organizations that are not required to file an application for recognition of exemption with the IRS are exempt from Hawaii income taxes.

More information: Hawaii Department of Taxation
General Excise Tax Exemption:
Agency:Hawaii Department of Taxation
Form:

G-6: Application for Exemption from General Excise Taxes

Instructions:

http://tax.hawaii.gov/forms/a1_b2_1geuse/

State fee:

$20 unless you already have a Hawaii GET tax ID number.

Notes:

Hawaii does not have sales tax; instead, it has general excise tax (GET).Hawaii does not have sales tax; instead, it has general excise tax (GET).

Idaho

Income tax exemption:
Not required.

If the IRS grants the exempt status, your organization will also be exempt from Idaho income tax, except for tax due on unrelated business income.

More information: Idaho State Tax Commission
Sales tax exemption:
Agency:Idaho State Tax Commission
Notes:

Currently, most Idaho nonprofit organizations must pay and collect sales tax. For a list of exempt organizations, visit Idaho Tax Commission Brochure #50: Nonprofit Groups & Churches.

Illinois

Income tax exemption:
Not required.

If your corporation receives a federal tax exemption, it is exempt from Illinois income tax. No reports need to be filed and no tax is due.

More information: Illinois Department of Revenue
Sales Tax:
Agency:Illinois Department of Revenue
Form:

STAX-1: Application for Sales Tax Exemption

State fee:

$0

Indiana

Income tax exemption:
Agency:Indiana Department of Revenue
Form:

Form NP-20A: Nonprofit Application for Sales Tax Exemption

State fee:

$0

Notes:

Attach your IRS Determination Letter. This application is due within 120 days of incorporation. The department will return a Nonprofit Tax Registration Certificate and you can use Form ST-105: General Sales Tax Exemption Certificate to provide your exemption information to sellers.

Sales Tax Exemption:
Agency:Indiana Department of Revenue
Form:

NP-20: Nonprofit Application for Sales Tax Exemption

State fee:

$0

Notes:

This form is due within 120 days of incorporation, and you must attach your IRS determination letter.

Iowa

Income tax exemption:
Not required.

Your nonprofit is automatically exempt from Iowa income tax when you receive IRS income tax exemption.

More information: Iowa Department of Revenue
Sales tax exemption:
Not required.

Iowa nonprofits receive limited exemption from sales tax. Sales made to nonprofits are not exempt from sales and use tax. The exception is private nonprofit schools do not pay sales tax on the purchase of goods and taxable services used for educational purposes. Also, sales made by educational, religious, or charitable organizations are exempt on proceeds expended for qualifying educational, religious, or charitable purposes.

Kansas

Income tax exemption:
Not required.

Your nonprofit is automatically exempt from Kansas income tax when you receive IRS income tax exemption.

More information: Kansas Department of Revenue
Sales and Use Tax Exemption:
Agency:Kansas Department of Revenue
Form:

Online

Instructions:Listing of entities and organizations qualified for Kansas sales tax exemption status and Publication KS-1520
State fee:

$0

Notes:

Not all 501(c)(3) organizations are eligible for exemption. Use the online system to file for exemption.

Kentucky

Income tax exemption:
Not required.

Your nonprofit is automatically exempt from Kentucky corporate income tax when you receive IRS income tax exemption.

More information: Kentucky Department of Revenue
Sales & Use Tax Exemption:
Agency:Kentucky Department of Revenue
Form:

Form 51A125: Application for Purchase Exemption

State fee:

$0

Notes:

Include a copy of your articles of incorporation and IRS Determination Letter.

Louisiana

Income tax exemption:
Agency:Louisiana Department of Revenue
Notes:

To obtain exemption from Louisiana corporate income tax, simply submit your IRS Determination Letter to the Louisiana Department of Revenue.

Sales Tax Exemption:
Agency:Louisiana Department of Revenue
Form:

Form R-1048: Application for Exemption from Collection of Louisiana Sales Tax at Certain Fund-Raising Activities

State fee:

$0

Notes:

In general, Louisiana nonprofits are not exempt from sales and use tax. You can request an exemption for a fundraiser. This exemption should be filed at least 2 weeks prior to a fundraising activity.

Maine

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Maine corporate income tax. No application or notification is necessary.

More information: Maine Revenue Services
Sales Tax Exemption:
Agency:Maine Revenue Services
Form:

Find the form for your type of organization

Notes:

Maine has a large number of sales tax exemptions, and you will file a form specific to your type of organization.

Maryland

Income tax exemption:
Agency:Comptroller of Maryland
State fee:

$0

Notes:

Submit: Request for exemption from Maryland income tax, an explanation of the nature, purpose, and scope of your organization, IRS tax determination letter, by-laws, and latest financial statement of your organization.

Sales Tax Exemption:
Agency:Comptroller of Maryland
Form:

Form CRA: Combined Registration Application

State fee:

$0

Notes:

Must have IRS tax determination letter first.

Massachusetts

Income tax exemption:
Agency:Massachusetts Department of Revenue
State fee:

$0

Notes:

Submit: Registration (if not already registered), a copy of the IRS Determination Letter of Exemption granting the corporation Section 501 (c) status, a copy of the Articles of Organization filed with the Secretary of State's Office, and a copy of the IRS documentation of Employer Federal Identification Number if it is not stated on the IRS Section 501 (c) Determination Letter.

Sales Tax Exemption:
Agency:Massachusetts Department of Revenue
Form:

http://www.mass.gov/dor/forms/restricted-forms-notice.html

Notes:

The Massachusetts Department of Revenue sends your organization a copy of Form ST-2: Certificate of Exemption upon filing Form TA-1.

Michigan

Income tax exemption:
Not required.

Nonprofits are exempt from Michigan's 6% Michigan Corporate Income Tax (CIT). No filing is needed.

More information: Michigan Department of Treasury
Sales and Use Tax Exemption:
Not required.

Michigan nonprofits are automatically exempt from state sales and use tax. Simply complete and present Form 3372: Michigan Sales and Use Tax Certificate of Exemption to sellers and vendors.

Minnesota

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Minnesota corporate income taxes. No application or notification is necessary.

More information: Minnesota Department of Revenue
Sales Tax Exemption:
Agency:Minnesota Department of Revenue
Form:

Form ST16: Application for Exempt Status

State fee:

$0

Mississippi

Income tax exemption:
Agency:Mississippi Department of Revenue
Notes:

Certain nonprofit corporations qualify for tax-exempt status under Mississippi law. To apply for exemption from Corporate and Franchise taxes, submit your IRS determination letter to the Mississippi Department of Revenue.

Sales tax exemption:
Notes:

Mississippi nonprofit organizations are not exempt from state sales tax, with a few exceptions. Review the full of list of exemptions on the Department of Revenue website.

Missouri

Income tax exemption:
Not required.

Missouri nonprofits that file IRS Form 990 are exempt from Missouri corporation income tax.

More information: Missouri Department of Revenue
Sales Tax Exemption:
Agency:Missouri Department of Revenue
Form:

Form 1746: Missouri Sales or Use Tax Exemption Application

State fee:

$0

Montana

Income tax exemption:
Agency:Montana Department of Revenue
Form:

Montana Tax-Exempt Status Request Form

State fee:

$0

Notes:

Montana nonprofits may apply for exemption from Montana's Corporation License Tax (6.75%) after receiving their IRS Determination Letter.

Sales tax exemption:
Not required.

Montana does not currently have a state level sales tax.

Nebraska

Income tax exemption:
Not required.

If you have 501(c) exemption, you are automatically exempt from Nebraska income tax. If you have unrelated business income you need to file Nebraska corporate income taxes.

More information: Nebraska Department of Revenue
Sales Tax Exemption:
Agency:Nebraska Department of Revenue
Form:

Form 4: Exemption Application for Sales and Use Tax

State fee:

$0

Notes:

Not all nonprofits are eligible for exemption.

Nevada

Income tax exemption:
Agency:Nevada Department of Taxation
Form:

Exempt Status Entity Form

State fee:

$0

Notes:

The State of Nevada does not levy a state personal, business or corporate income tax, but does levy a privilege tax.

Sales Tax Exemption:
Agency:Nevada Department of Taxation
Form:

Form APP-02.01: Application for Sales/Use Tax Exemption

State fee:

$0

New Hampshire

Income tax exemption:
Not required.

If the IRS Determination Letter grants 501(c) recognition, then your organization is also exempt from New Hampshire corporate income tax (the "New Hampshire Business Profits Tax").

More information: New Hampshire Department of Revenue Administration
Sales tax exemption:
Not required.

New Hampshire does not currently have a state level sales tax.

New Jersey

Income tax exemption:
Not required.

If a nonprofit organization is incorporated and operating as a nonprofit corporation, it is exempt from the New Jersey Corporation Business Tax. You may request a letter from the Division of Taxation confirming exemption from corporation business tax.

More information: New Jersey Department of the Treasury
Sales Tax Exemption:
Agency:New Jersey Department of the Treasury - Division of Taxation
Form:

Form REG-1E: Application for Exempt Organization Certificate

State fee:

$0

New Mexico

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is exempt from New Mexico corporate income tax and franchise tax.

More information: New Mexico Taxation and Revenue Department
Gross Receipts Tax Exemption:
Not required.

If your IRS determination letter stipulates that your nonprofit is an educational or social organization, you are automatically exempt from New Mexico’s gross receipts tax. If you purchase taxable goods, you can apply for a Nontaxable Transaction Certificate (NTTC). You will file Form ACD-31050: Application for Nontaxable Transaction Certificates with the New Mexico Department of Taxation and Revenue.

New York

Income tax exemption:
Agency:New York State Department of Taxation and Finance
Form:

Form CT-247: Application for Exemption from Corporation Franchise Taxes by a Not-for-Profit Organization

State fee:

$0

Notes:

Certain not-for-profit and religious corporations are exempt from the New York State corporation franchise tax. You must file Form CT-247 to apply for exemption.

Sales Tax Exemption:
Agency:New York State Department of Taxation and Finance
Form:

Form ST-119.2: Application for an Exempt Organization Certificate

Instructions:

Instructions for Form ST-119.2 and NYS Dept. of Taxation and Finance - Sales tax exempt organizations

State fee:

$0

North Carolina

Income tax exemption:
Agency:North Carolina Department of Revenue
State fee:

$0

Notes:

Send your Articles of Incorporation, Bylaws, and other organizational documents along with your IRS Determination letter to the Department of Revenue.

Sales and Use Tax Exemption:
Notes:

North Carolina currently does not offer an exemption from sales tax. However, the state offers semiannual refunds for qualified organizations. You will file Form E585: Nonprofit and Governmental Entity Claim for Refund with the North Carolina Department of Revenue.

North Dakota

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from North Dakota corporate income tax. No application or notification is necessary.

More information: North Dakota Office of State Tax Commissioner
Sales tax exemption:
Not required.

Most North Dakota nonprofits are not able to become exempt from sales tax. Certain organizations, such as hospitals and schools are automatically exempt.

Ohio

Income tax exemption:
Not required.

Generally, nonprofit corporations are not subject to the Ohio commercial activity tax. Agricultural and consumer cooperatives are.

More information: Ohio Department of Taxation
Sales tax exemption:
Not required.

Ohio nonprofits that have received their IRS determination letter are automatically exempt from paying state sales tax. They must present Form STEC-B: Sales and Use Tax Blanket Exemption Certificate to sellers.

Oklahoma

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Oklahoma corporate income tax. No application or notification is necessary.

More information: Oklahoma Tax Commission
Sales Tax Exemption:
Agency:Oklahoma Tax Commission
Form:

Form 13-16-A: Application for Sales Tax Exemption

Instructions:

https://www.ok.gov/tax/documents/PktE.pdf

State fee:

$0

Notes:

Not all 501(c) recognized nonprofits are exempt from sales tax. There are a number of specific exemptions that exist.

Oregon

Income tax exemption:
Not required.

If you are an exempt organization under Internal Revenue Code (IRC) Sections 501(c) through (f), 501(j), 501(n), 521, or 529, you are exempt from Oregon Corporation taxes (ORS 317.080). You don't have to apply to the Oregon Department of Revenue. Two exceptions to this are nonprofit homes for the elderly and people's utility districts.

More information: Oregon Department of Revenue
Sales tax exemption:
Not required.

Oregon does not currently have a state level sales tax.

Pennsylvania

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Pennsylvania corporate income tax. No application or notification is necessary.

More information: Pennsylvania Department of Revenue
Sales Tax Exemption:
Agency:Pennsylvania Department of Revenue
Form:

Form REV-72: Application for Sales Tax Exemption

State fee:

$0

Due:

Once every five years. Approximately 2 months before an organization's sales tax exemption expires, the Department of Revenue will send a renewal packet to the organization.

Law:Institutions of purely public Charity Act of 1997

Rhode Island

Income tax exemption:
Not required.

When you receive your IRS Determination Letter granting federal income tax exemption (and file IRS Form 990 or 990EZ annually), you are automatically also granted exemption from Rhode Island corporate income tax. You need not apply or notify the Rhode Island Division of Taxation.

More information: Rhode Island Department of Revenue - Division of Taxation
Sales & Use Tax Exemption:
Agency:Rhode Island Department of Revenue - Division of Taxation
Form:

Form EXO-APP: Application for Exemption for an Exempt Organization

State fee:

$25

South Carolina

Income tax exemption:
Not required.

When you receive your IRS Determination Letter granting recognition of exemption, you are also exempt from South Carolina corporate income tax.

More information: South Carolina Department of Revenue
Sales Tax Exemption:
Agency:South Carolina Department of Revenue
Form:

Form ST-387: Application for Sales Tax Exemption

State fee:

$0

Notes:

Certain nonprofit organizations in South Carolina are exempt from sales and use tax on items sold by the organizations for charitable purposes. The exemption applies only to items purchased for resale and does not apply to items purchased by an organization for its own use.

South Dakota

Income tax exemption:
Not required.

South Dakota does not have a state or corporate income tax.

More information: South Dakota Department of Revenue
Sales Tax Exemption:
Agency:South Dakota Department of Revenue
Form:

Sales Tax Exempt Status Application

State fee:

$0

Notes:

Only certain organizations are eligible to apply for a sales tax exempt permit.

Tennessee

Income tax exemption:
Not required.

Franchise and excise taxes are not applicable to nonprofit corporations as defined by law. The Application for Exemption - Franchise and Excise Taxes form is for other exemptions.

More information: Tennessee Department of Revenue
Sales Tax Exemption:
Agency:Tennessee Department of Revenue
Form:

Form RV-F1306901: Application for Registration - Sales and Use Tax Exempt Entities

State fee:

$0

Texas

Income tax exemption:
Agency:Texas Comptroller
Form:

AP-204, AP-205, AP-206, AP-207, or AP-209

State fee:

$0

Notes:

Texas state law permits 501(c)(3) exempt and various other types of organizations to be exempt from paying sales tax, hotel occupancy tax, and franchise tax.

Sales Tax Exemption:
Agency:Texas Comptroller
Form:

Form AP-205-2: Application for Exemption - Charitable Organizations

State fee:

$0

Utah

Income tax exemption:
Agency:Utah State Tax Commission
Form:

TC-161: Registration for Exemption from Corporate Franchise or Income Tax

State fee:

$0

Sales Tax Exemption:
Agency:Utah State Tax Commission
Form:

Form TC-160: Application for Sales Tax Exemption Number for Religious or Charitable Institutions

State fee:

$0

Vermont

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Vermont minimum corporate tax. No application or notification is necessary.

More information: Vermont Department of Taxes
Sales tax exemption:
Not required.

Vermont nonprofits that have received their IRS determination letter are automatically exempt from paying state sales tax. They must present Form S-3: Vermont Sales Tax Exemption Certificate for Resale and Exempt Organizations to sellers.

Virginia

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Virginia corporation income tax. No application or notification is necessary.

More information: Virginia Department of Taxation
Sales & Use Tax Exemption:
Agency:Virginia Department of Taxation
Form:

Form NP-1: Exemption Application for Nonprofit Organizations

Instructions:

http://www.tax.virginia.gov/forms/search/business/sales-and-use-tax

State fee:

$0

Washington

Income tax exemption:
Agency:Washington Department of Revenue
Notes:

In Washington, nonprofit organizations are generally taxed like any other business. They must pay business and occupation (B&O) tax on gross revenues generated from regular business activities they conduct. They must pay sales tax on all goods and retail services they purchase as consumers, such as supplies, lodging, equipment, and construction services. In addition, nonprofit organizations must collect and remit retail sales tax on their sales of goods and retail services.

Sales tax exemption:
Instructions:Washington Department of Revenue - Nonprofit Organizations Guide
Notes:

Currently, Washington does not grant nonprofits exemption from state sales tax. They must pay sales tax on all goods and retail services they purchase as consumers, such as supplies, lodging, equipment, and construction services. In addition, nonprofit organizations must collect and remit retail sales tax on their sales of goods and retail services. Limited B&O and sales tax exemptions are provided for nonprofit fundraising activities, donations, and for certain types of organizations.

West Virginia

Income tax exemption:
Agency:West Virginia State Tax Department
Notes:

Any corporation exempt from federal income tax is also exempt from West Virginia Corporation Net Income Tax and Business Franchise Tax. Nevertheless, a tax exempt organization's annual West Virginia Corporation Net Income/Business Franchise Tax Return is due on or before the 15th day of the fifth month after the close of the taxable year.

Sales & Use Tax Exemption:
Agency:West Virginia State Tax Department
Form:

Form F0003: Streamlined Sales and Use Tax Certificate of Exemption

Instructions:

http://tax.wv.gov/Business/SalesAndUseTax/Pages/SalesAndUseTax.aspx

State fee:

$0

Notes:

West Virginia uses a multi-state form that is not actually submitted with the West Virginia State Tax Department. However, you must complete it and display to sellers. The form is rather complex, and not accepted in all states. Be sure to read the instructions carefully.

Wisconsin

Income tax exemption:
Not required.

Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Wisconsin corporation franchise and income taxes. No application or notification is necessary.

More information: Wisconsin Department of Revenue
Sales & Use Tax Exemption:
Agency:Wisconsin Department of Revenue
Form:

Form S-103: Application for Wisconsin Sales and Use Tax Certificate of Exempt Status

State fee:

$0

Wyoming

Income tax exemption:
Not required.

Wyoming does not levy a corporate income tax.

More information: Wyoming Department of Revenue
Sales & Use Tax Exemption:
Agency:Wyoming Department of Revenue
Notes:

To become exempt from Wyoming sales tax, simply submit your IRS Determination Letter to the Wyoming Department of Revenue. Alternatively, submit articles of incorporation, constitution or bylaws, mission statement, budget, and income/expense statement for the past three years. When the Wyoming Department of Revenue approves your exemption, they will send you a Streamlined Sales/Use Tax Agreement (SSUTA) Certificate of Exemption.

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