Overview
Many states offer vendor discounts as incentives for businesses to file and remit sales tax on time. These discounts typically range from 0.25% to 5% of the tax collected (not the gross sales), with most states imposing caps on the maximum discount amount. While vendor discount programs vary by state, most jurisdictions require businesses to meet these fundamental compliance criteria:
- Timely filing — All states require on-time filing to qualify for discounts.
- Full payment — Most states require full payment of taxes due by the deadline.
- Electronic filing — Some states offer discounts only for electronic filing.
- No late returns — Discounts are forfeited if returns are filed after the deadline.
- No amended returns — Discounts must be claimed on the original return filing.
When your return qualifies for a state discount, Anrok will automatically calculate the amount based on the jurisdiction's discount rate and cap. The state discount amount will then be deducted from your payment amount when the return is in a status. Once the return has moved to a
status, the state discount will appear on the return in the Filing record section under State discounts.
The table below details vendor discount rates, caps, and requirements for each state that offers these tax incentives.
Note
Discount rates, caps, and requirements are subject to frequent changes. Always verify current information with the relevant state tax authority before relying on these figures for compliance purposes.
| State | Discount rate | Cap/Maximum | Requirements |
|---|---|---|---|
| Alabama | 5% | $400 per month | Timely filing and payment |
| Arkansas | 2% | $1,000 per month | On-time filing and payment |
| Colorado | 3.33% | $1,000 per month | Small businesses only (<$1M in sales) |
| Connecticut | 0.75% | $120 per month | Timely filing and payment |
| Georgia | 3% | $3,000 per month | On-time filing and payment |
| Kentucky | 1.75% of first $1,000, then 1.5% | $1,500 per return | Timely filing and payment |
| Louisiana | 0.935% | $1,500 per return | On-time payment |
| Maryland | 1.2% on first $6,000, 0.9% on excess | $500 per return | Timely filing and payment |
| Missouri | 2% | No cap | Timely filing and payment |
| Nebraska | 2.5% | $3,000 per month | On-time filing and payment |
| New Mexico | 0.5% plus 1.25% prepay discount | Varies | Timely filing; prepay discount for advance payment |
| New York | 5% | $200 per quarter | Quarterly/annual filers only |
| North Carolina | 0.75% | $20,000 per month | On-time filing and payment (early payment gets higher rate) |
| Ohio | 0.75% | No cap | Timely filing and payment |
| Pennsylvania | 1% | $25 monthly, $75 quarterly, $150 semi-annual | Timely filing and payment |
| South Carolina | 2% (<$100 tax due), 3% (≥$100 tax due) | $3,000 per fiscal year ($3,100 electronic) | Timely filing and payment |
| Tennessee | 2% first $2,500, 1.15% excess | For SST voluntary filers only | Streamlined Sales Tax participants |
| Texas | 0.5% + 1.25% prepay discount | Various | Timely filing + prepayment option |
| Utah | 1.31% | Varies | Monthly filers only |
| Virginia | 1% | $6,250 per year | On-time filing and payment |
| West Virginia | 1.5% | $500 per month | Timely filing and payment |