Intermediate Comparison

What is the difference between SST states and non-SST states for a seller?

⚡ TL;DR

In the 24 SST states, qualifying remote sellers get registration, calculation, filing, and remittance covered for free through a CSP — the state funds the cost. In the 21 non-SST states (including California, Texas, New York, and Florida), you register with each state separately and pay per-filing fees, typically $30–75 per return. A seller with 8 SST states enrolled through a CSP avoids 96 billed returns per year.

The compliance requirements in SST and non-SST states are the same: register, collect, file, remit. What’s different is the cost structure and how registration works. For a seller enrolled through a Certified Service Provider, SST states are essentially free. Non-SST states are not.

Side by side

	SST states (24 states)	Non-SST states (21 states + DC)
Registration	Single unified application through your CSP covers all SST states	Direct registration with each state’s Department of Revenue separately
Cost to seller	Free for qualifying remote sellers, state compensates the CSP	Per-filing fees (typically $30–75/return depending on provider)
Calculation	Handled by your CSP	Handled by your provider (billed normally)
Filing	Filed monthly by your CSP, compensated by the state	Filed at your assigned frequency by your provider
Remittance	Your CSP remits directly to the state	Your provider remits on your behalf
Filing frequency	Monthly, required by SST program terms	Monthly, quarterly, or annual, assigned by each state based on your volume
Unified rate structure	Yes — SST member states have simplified and standardized their rate structures	No: each state has its own rate structure, local additions, and taxability rules

What “free” actually means

In SST states, the compliance cost is funded by the state out of tax revenue collected. When your CSP files a return and remits $10,000 in sales tax to an SST member state, a portion of that revenue flows back to the CSP as compensation. The seller pays nothing for the SST-state filing.

This only works through a Certified Service Provider: a company formally certified by the SST Governing Board to participate in the compensation arrangement. Non-CSP providers are not part of this arrangement and charge sellers for SST-state filings regardless.

Registration: unified vs. separate

The registration difference is meaningful for sellers entering multiple new states at once.

In SST states: Your CSP submits a single Central Registration application to the SST Governing Board. That application covers all 24 SST member states where you have nexus. One form, one process, handled by your CSP.

In non-SST states: Each state has its own registration portal, its own form, its own processing timeline, and its own fee structure (some charge nothing; some charge $10–100 for a permit). Registering in California, Texas, New York, Florida, and Illinois simultaneously means five separate registration processes.

The non-SST states you can’t avoid

The largest sales tax states in the US are non-SST members. A seller with national nexus will almost certainly have compliance obligations in:

California: $500K economic nexus threshold, so economic nexus may not apply for mid-market sellers, but FBA inventory creates physical nexus regardless
Texas: $500K threshold, large market, significant compliance cost
New York: $100K threshold, complex local rate structure
Florida: $100K threshold, enacted economic nexus in 2021
Illinois: $100K threshold, origin vs. destination sourcing rules

Compliance in these states requires direct registration and per-filing fees. SST enrollment doesn’t help with them.

How to think about your total compliance cost

For a growing ecommerce brand with nexus in 15 states, the split matters significantly:

If 8 of those 15 are SST states and you’re enrolled through a CSP, those 8 states cost you nothing in filing fees. You pay per-return fees only for the 7 non-SST states. Over a year of monthly filing, that’s 96 returns you’re not being charged for.

A non-CSP provider charges per-return for all 15 states. At $50/return average, that’s $9,000/year in filing fees for the SST states alone, fees that a CSP enrollment would eliminate.

Related: Is the SST program free to use? | What is a Certified Service Provider (CSP) and why does it matter?

Frequently asked questions

What is the main difference between SST and non-SST states?

In SST member states, qualifying remote sellers can get full compliance (registration, calculation, filing, and remittance) at no cost through a Certified Service Provider. The state funds the cost. In non-SST states, there is no such program. Sellers pay their provider for compliance in every non-SST state where they have nexus.

Which are the major non-SST states?

The largest non-SST states are California, Texas, New York, Florida, Illinois, Pennsylvania, and Colorado. These states have economic nexus laws and require compliance, but they are not SST members and do not offer free compliance through a CSP.

Do I need to do anything differently in SST states vs. non-SST states?

The compliance steps (register, calculate, file, remit) are the same in both. The difference is who pays for it and how registration works. In SST states, your CSP handles everything through the SST Central Registration System at no charge to you. In non-SST states, you register directly with the state and pay per-filing fees to your provider.

Can I choose to only enroll in some SST states?

Yes. SST enrollment is state-by-state. You enroll in the SST states where you have nexus. States where you don't have nexus are not part of your enrollment. As your nexus expands into new SST states, you can add them to your enrollment.

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