Sales Tax Exemption Forms: The Complete 2026 Guide to Every Form You Need

If you have ever tried to figure out which sales tax exemption form you need, you know the frustration. Every state has its own forms, its own names, and its own rules. Some states accept multi-state certificates, others demand their own proprietary forms, and the terminology changes depending on where you are.

This guide cuts through the confusion. Whether you are a business buying goods for resale, a nonprofit claiming tax-exempt status, a contractor working on exempt projects, or a seller trying to figure out which forms to accept, this is the comprehensive reference you need for 2026.

What Is a Sales Tax Exemption Form?

A sales tax exemption form is a document that allows a buyer to purchase goods or services without paying sales tax. The buyer provides the form to the seller, and the seller keeps it on file as proof that the tax-free sale was legitimate.

There are two broad reasons a transaction can be tax-exempt:

1. The buyer is tax-exempt. The organization itself has exempt status (nonprofits, government, religious organizations).
2. The purchase is tax-exempt. The goods will be resold, used in manufacturing, used in agriculture, or fall under another statutory exemption.

The form you need depends on why the purchase is exempt.

Types of Sales Tax Exemption Forms

1. Resale Certificates

What they are: Documents that prove the buyer is purchasing goods to resell them, not for personal consumption.

Who uses them:

• Retailers buying inventory
• Wholesalers and distributors
• E-commerce sellers purchasing products
• Restaurants buying ingredients
• Any business buying goods that will be sold to end customers

How they work: The buyer provides the certificate to the seller. The seller does not charge sales tax. The buyer then collects sales tax from the end customer when they resell the goods.

Key requirement: The buyer must be registered to collect sales tax in their state (i.e., they must have a sales tax permit, seller's permit, or vendor's license).

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2. Tax Exemption Certificates (Nonprofit/Government)

What they are: Documents proving that the buyer's organization has tax-exempt status granted by the state.

Who uses them:

• 501(c)(3) nonprofit organizations
• Government agencies (federal, state, local)
• Religious organizations and churches
• Educational institutions
• Hospitals and healthcare organizations
• Charitable organizations

How they work: The state issues an exemption number or certificate to the qualifying organization. The organization provides this to sellers when making purchases.

Key distinction from resale certificates: The goods are NOT being resold. The organization itself is exempt from paying sales tax on its purchases.

3. Seller's Permits / Sales Tax Permits

What they are: Licenses issued by the state that authorize a business to collect and remit sales tax.

Who uses them: Any business making taxable sales in a state. The permit itself is not an exemption form, but it is often required to obtain a resale certificate.

Important note: A seller's permit and a resale certificate are not the same thing, though many people confuse them. The permit gives you the right to sell and collect tax. The certificate lets you buy tax-free for resale. For a detailed comparison, read our guide on resale certificates vs. sales tax permits.

4. Direct Pay Permits

What they are: Permits that allow large-volume purchasers to pay sales tax directly to the state rather than to each individual vendor.

Who uses them: Large corporations, manufacturers, and organizations that make complex purchases where the taxability may depend on how the goods are ultimately used.

How they work: The buyer provides the direct pay permit to the seller, who does not charge tax. The buyer then calculates and remits the correct tax amount directly to the state.

5. Manufacturer's Exemption Certificates

What they are: Forms that exempt purchases of raw materials, machinery, and equipment used directly in the manufacturing process.

Who uses them: Manufacturing businesses buying inputs for production.

Key requirement: The items must be used directly and primarily in the manufacturing process. Office supplies and general equipment typically do not qualify.

6. Agricultural Exemption Certificates

What they are: Forms that exempt purchases related to farming and agricultural production.

Who uses them: Farmers, ranchers, and agricultural producers buying seed, feed, fertilizer, farm equipment, and other qualifying items.

Multi-State Exemption Certificates

Two standardized certificates make it easier to claim exemptions across state lines.

Streamlined Sales Tax (SST) Certificate of Exemption

The Streamlined Sales and Use Tax Agreement (SSUTA) is a cooperative effort among states to simplify sales tax administration. The SST Certificate of Exemption is accepted by all 24 member states.

SST member states (as of 2026):

Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming

Key features:

• Single form accepted across all member states
• Can be used for resale, manufacturing, agricultural, and other exemptions
• Available as a blanket or single-purchase certificate
• Includes fields for multiple exemption reasons

Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate

The MTC Uniform Certificate is accepted by 38+ states, making it the most widely accepted multi-state exemption form.

Key features:

• Broader acceptance than the SST certificate
• Covers resale and various other exemptions
• Widely used by businesses operating in multiple states
• Each state may have additional requirements or limitations

States that do NOT accept the MTC Uniform Certificate: California, Florida, Hawaii, Illinois, Maryland, Massachusetts, and a few others have their own mandatory forms.

For a deep dive into multi-state certificates, see our multi-state resale certificate guide.

State-by-State Exemption Forms: The Top 15 States

Here is a quick-reference table for the most commonly needed state forms:

Important: This table covers the most commonly used forms. Many states have additional specialized forms for specific exemption types (manufacturing, agriculture, government, etc.).

When to Use Which Form

Choosing the correct form depends on three factors: why the purchase is exempt, where the purchase is happening, and who is making the purchase.

Decision Guide

Are you buying goods to resell?

• Use your state's resale certificate (or the MTC/SST uniform certificate if accepted)
• You must have a valid sales tax permit or vendor's license

Are you a nonprofit or government entity?

• Use your state's tax exemption certificate
• You must have an exemption number issued by the state

Are you a manufacturer buying production inputs?

• Use your state's manufacturing exemption certificate or the relevant section of a multi-purpose form (like Ohio's STEC-B)

Are you a farmer buying agricultural supplies?

• Use your state's agricultural exemption certificate

Are you buying across state lines?

• Check if the seller's state accepts the MTC Uniform Certificate or SST Certificate
• If not, use the specific form required by the seller's state

Are you a contractor on an exempt project?

• Use the state's contractor exemption certificate (like New York's ST-120.1) or the project owner's exemption documentation

Quick Reference: Exemption Type by Form

How to Fill Out Exemption Forms Correctly

Regardless of which form you use, these elements are almost always required:

Essential Information

1. Buyer's legal business name: Must match your registration exactly
2. Buyer's address: Registered business address
3. Tax registration number: Sales tax permit, vendor's license, or exemption number
4. Federal identification number: EIN or SSN for sole proprietors
5. Seller's name and address: The vendor you are providing the form to
6. Reason for exemption: Resale, nonprofit, manufacturing, etc.
7. Description of goods: General description of what you are purchasing
8. Signature and date: Must be signed by an authorized person

Common Mistakes That Invalidate Forms

Missing signature: An unsigned exemption form is worthless. This is the single most common error.

Wrong exemption reason: Checking "resale" when the goods are for your own use is fraud. Checking the wrong box by accident still creates audit liability.

Expired or invalid registration number: If your sales tax permit has lapsed, any certificates you issue are invalid.

Incomplete information: Leaving fields blank gives auditors a reason to reject the form and assess tax on the sale.

Wrong form for the state: Using a California CDTFA-230 for a Texas purchase, or vice versa, will be rejected. Know which forms each state accepts.

Not specifying blanket vs. single use: If you intend for the certificate to cover all future purchases, make sure you indicate this on the form. Otherwise, the seller may only apply it to one transaction.

Accepting Exemption Forms as a Seller

If you are on the selling side, knowing how to properly accept and manage exemption forms is just as important.

Seller's Responsibilities

• Collect the form at or before the time of sale. Do not retroactively collect certificates.
• Verify the form is complete. All required fields must be filled in.
• Check the registration number. Use the state's online verification tool to confirm the buyer's permit is active.
• Keep the form on file. Store for the period required by your state (typically 3-4 years minimum).
• Match the form to sales records. Be able to connect each tax-free sale to a valid certificate.

What Happens If You Accept an Invalid Form?

If an auditor finds that you made a tax-free sale without a valid exemption form on file, you are liable for the uncollected sales tax, plus penalties and interest. The buyer's failure to provide a valid form does not protect you.

Best practice: Verify every new customer's certificate before making the first tax-free sale. Re-verify annually for repeat customers.

Red Flags When Accepting Forms

• Certificate signed by someone who is not an officer or authorized representative
• Registration number that does not verify through the state's system
• Business name on the certificate does not match the business name on the order
• Certificate is from a state different from the delivery destination
• Exemption reason does not match the type of goods being purchased

State-Specific Quirks to Watch For

California: No Out-of-State Certificates

California does not accept out-of-state resale certificates or the MTC Uniform Certificate. Buyers must have a California seller's permit and use California's own form (CDTFA-230). This is one of the strictest requirements in the country. Visit our California state page for details.

Florida: Annual Renewal Required

Florida's DR-13 is issued annually and tied to the calendar year. If your supplier has a 2025 certificate on file, it is not valid for 2026 purchases. Learn more on our Florida state page.

Colorado: Home-Rule City Complexity

Colorado has dozens of home-rule cities that administer their own sales tax independently. You may need separate exemption certificates for the state AND for individual cities like Denver, Aurora, and Colorado Springs.

Illinois: Multiple Form Types

Illinois requires its own CRT-61 for resale but has separate forms for other exemption types. The state does not accept the MTC Uniform Certificate for resale purposes.

Texas: Broad Acceptance

Texas accepts its own Form 01-339, the MTC Uniform Certificate, and out-of-state resale certificates. This makes Texas one of the easiest states for multi-state businesses. See our Texas state page.

New York: Capital Improvement Distinction

New York draws a critical line between repairs (taxable) and capital improvements (not taxable). Contractors must understand this distinction to use the correct form. Full details on our New York state page.

Organizing Your Exemption Certificate Files

For businesses that accept dozens or hundreds of exemption certificates, organization is critical.

Recommended Filing System

Digital storage (preferred):

• Scan all certificates to PDF at 300+ DPI
• Name files consistently: [Customer Name]_[State]_[Date].pdf
• Store in a dedicated cloud folder with automatic backup
• Use a spreadsheet or database to track certificate status and re-verification dates

Physical storage:

• Alphabetical by customer name
• Separated by state if you operate multi-state
• Stored in a fireproof cabinet
• Copies at a secondary location

Certificate Tracking Spreadsheet

At minimum, track these fields:

Frequently Asked Questions

Q: Can I use one form for all states? A: No single form works in every state. The MTC Uniform Certificate covers the most states (38+), but several major states like California, Florida, and Illinois require their own forms.

Q: How long do I need to keep exemption forms? A: It varies by state, but the general range is 3-4 years from the date of the transaction or the filing date of the related tax return. Some states can audit further back, so keeping forms for 5-7 years is a safer practice.

Q: What if I lose a customer's exemption certificate? A: Request a new one from the customer immediately. If you are audited and cannot produce the certificate, you will be assessed the tax on those sales.

Q: Can I accept a photocopy or electronic certificate? A: Most states accept photocopies, faxes, scanned copies, and electronically signed certificates. Check your specific state's rules, but this is the norm in 2026.

Q: Do exemption certificates expire? A: It depends on the state and the type of certificate. Many resale certificates do not expire (as long as the underlying permit is active). Florida's DR-13 expires annually. Some nonprofit exemption certificates must be renewed periodically.

Q: What if my customer has exempt and non-exempt purchases in the same order? A: The exemption applies only to the qualifying items. Charge tax on the non-qualifying items and document which items fall under which category.

Get Your Exemption Forms in Order

Whether you need a resale certificate for one state or exemption certificates for a dozen, getting properly set up is the first step to saving money and staying compliant.

We help businesses across all 50 states obtain the right sales tax registration and resale certificates. Our service handles the application, ensures all forms are correctly completed, and provides ongoing support.

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Sales tax exemption forms are not one-size-fits-all. The form you need depends on your exemption reason, the state you are buying in, and the specific requirements of that jurisdiction. Use this guide as your reference, get the right forms for your business, and keep them organized. Your accountant will thank you during audit season.

Related Articles

• Resale Certificate vs. Tax Exempt Certificate - A deep dive into the two most commonly confused certificate types and when each applies.
• What Is a Resale Certificate? - Start here if you are new to resale certificates and want to understand the basics.
• Common Resale Certificate Mistakes That Trigger Audits - Filing the wrong form is just one mistake that can lead to an audit. Learn the others.