- Online pharmacies are becoming more common, reducing the need for in-person pharmacy visits.
- Prescription medication is non-taxable in all U.S. states except Illinois, which taxes it at 1%.
- Nonprescription medication and medical supplies taxability varies by state.
- Forty-six states and Washington D.C. have sales tax, with each state setting its own tax rules.
- Nonprescription drugs are generally taxable, with exceptions in some states like Florida and New York.
- Medical supplies taxability varies, with some states taxing items like hand sanitizer and bandages.
- Dietary supplements may be taxed like grocery food, depending on state rules.
- Online pharmacies face various sales tax questions due to differing state laws.
- TaxJar provides product tax codes to help online pharmacies collect the correct sales tax.
- Sales tax collection depends on where the online pharmacy has sales tax nexus.
- Nexus is created by having a physical presence, employees, or inventory in a state.
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
