So....I'm sure this has been brought up again and again, but I am new to this site and was hoping you could all help me out!
Do you pay sales tax on the whole amount you charge the client or just the product? I am in Colorado and I'm sure it's a little different everywhere, but any advice on this subject would be great!

Angie

Call your local Department of Revenue and ask, because it is different in every state. In WA, where I am from, I have to tax everything including shipping and handling. In some other states it can be different. So, check with your local state and never trust anybody on forums regarding taxes.

In California, you tax everything. Except: if you only charge for "actual shipping", e.g., exactly what you pay to the post office, UPS, FedEx, etc., you don't have to tax that. But if it's shipping "and handling", then it all gets taxed, too.

Definitely check with your DOR! When I checked with mine, I found that there are two separate tax rates photographers should be using - one for the service of actually shooting, and one for any products that are sold after the fact. But everything IS taxed. They even had a convenient packet specifically made for photographers to help them figure out how to file.

What's taxed will vary depending on your state.

Thanks everyone for your help! This is the part of the biz I don't like I found a sales tax class to take next week for Colorado, so hopefully i will have it all figured out! Thanks again!