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The Complex Nature of Software Taxability

It’s easy to see why software companies struggle with getting sales tax right. How do you apply a tax meant for tangible personal property to an intangible product or service? Attempts by states to solve for this have resulted in a complex tapestry of tax rates and rules for software and software as a service (SaaS.) This infographic breaks down how software and SaaS products and services are taxed on a state-by-state basis in an easy, visual way.

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Xcellent Insights is a futuristic market intelligence firm, headquartered in New York, US that focuses on providing strategic market insights. We offer a plethora of data-centric research reports and consulting services to help customers expand and explore their business strategies, obtain clarity about current business trends and future development, and attain substantial growth. Our portfolio of services includes syndicated and custom research reports driven by end-to-end market research and market intelligence studies.

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