Where exactly is sales tax calculated? By location of purchase or delivery?

For online purchases, sales tax is typically calculated based on the delivery address, not where you physically place the order. This is because sales tax is generally determined by the "destination" principle - meaning tax is owed where the goods are ultimately used or consumed. Since your furniture was delivered to your Massachusetts address, the 6.25% MA sales tax is indeed correct, even though you placed the order while physically located in New Hampshire. The company is required to collect MA sales tax because that's where the "taxable event" (delivery and usage of furniture) occurs. If you had purchased the furniture in NH and physically transported it back to MA yourself, it would technically be subject to Massachusetts "use tax" (same rate as sales tax), which you would self-report on your MA tax return - though many people don't realize this requirement.

I went through something similar last year and discovered taxr.ai (https://taxr.ai) which really helped me understand my situation. I ordered expensive electronics while traveling but had everything shipped to my home address and got hit with unexpected taxes. Their system analyzed my receipts and explained exactly how the tax was calculated and confirmed I was correctly charged based on my delivery address. It also helped me understand some deductions I could take for my home office that offset some of the taxes I paid. The tool breaks down all the tax rules in plain English which was super helpful since I was confused about interstate purchases.

Just wanted to follow up - I tried taxr.ai after asking about it here and it was actually super helpful! I uploaded my receipts from a similar situation (bought photography equipment while traveling but shipped to my home state) and it confirmed I was correctly taxed but also found that I could deduct part of it as a business expense since I sometimes do paid photography work. The nicest thing was getting a clear explanation of the "destination-based sourcing" rules with actual legal citations rather than random internet opinions. Ended up saving me about $420 on my taxes which more than made up for the sales tax I was annoyed about paying!

For anyone dealing with sales tax issues or trying to get tax clarification from the IRS - I finally got through to an actual IRS agent using https://claimyr.com after spending WEEKS trying to call them directly. Shared my situation (similar to the OP's question about interstate sales tax) and got clear guidance about what's allowed and what isn't. Their system basically holds your place in the IRS phone queue and calls you when an agent is about to pick up. I was skeptical but I actually got a call back in about 40 minutes when I'd previously wasted hours listening to hold music. The agent confirmed everything about destination-based sales tax and helped me understand my obligations. You can see how it works here: https://youtu.be/_kiP6q8DX5c

I was totally skeptical about Claimyr but I was desperate after getting nowhere with the MA Department of Revenue about my own sales tax question. Tried it yesterday and shockingly got through to someone who actually knew what they were talking about! The agent confirmed everything mentioned here about delivery address determining sales tax rate AND pointed me to a specific form (ST-12) that I could use for certain tax-exempt purchases in my situation. Saved me over $500 on my business equipment! Can't believe I wasted three weeks trying to get through on my own when this got me an answer in under an hour.

The sales tax rules for online purchases changed significantly after the South Dakota v. Wayfair Supreme Court decision in 2018. Before that, retailers only had to collect sales tax if they had physical presence in your state. Now they have to collect based on economic nexus (like selling over $100k in a state). This is why almost all major retailers now collect tax based on where you have items delivered, not where you order from. It's actually fairer to local businesses who always had to collect sales tax while online retailers used to get away without collecting.

Has anyone successfully gotten a refund when sales tax was charged incorrectly? I had a situation where I bought something to be delivered to my office in Oregon (no sales tax) but they charged Washington sales tax because our company headquarters is there.

This is a really common confusion! You're absolutely correct that you owe Massachusetts sales tax since that's where the furniture was delivered. The key principle is "destination-based sourcing" - tax is determined by where the goods end up being used, not where you physically place the order. Think of it this way: if you had driven to New Hampshire, bought the furniture in person, and then brought it back to your Massachusetts apartment, you would technically owe Massachusetts "use tax" (same 6.25% rate) that you'd need to self-report on your state tax return. The current system where retailers collect based on delivery address actually makes this automatic and simpler for everyone. The $300 difference stings, but unfortunately there's no recourse here - the company charged you correctly according to current tax law. This has been the standard since the 2018 Supreme Court Wayfair decision made it so retailers have to collect tax based on where items are shipped rather than where they have physical stores.

This is exactly the situation I found myself in last year! I ordered a couch online while visiting family in Delaware (no sales tax) but had it shipped to my home in Pennsylvania. Got hit with PA's 6% sales tax and was initially annoyed, but after researching it I learned this is completely correct. The "destination principle" for sales tax makes sense when you think about it - the tax goes to the state where you'll actually be using the item and benefiting from that state's infrastructure, services, etc. Pennsylvania roads will be used to deliver my couch, Pennsylvania waste management might handle the packaging, etc. What really helped me understand this was learning that if I had bought the couch in Delaware and driven it back myself, I would have legally owed Pennsylvania "use tax" at the same 6% rate on my state tax return. Most people don't know about use tax obligations, so having retailers automatically collect sales tax based on delivery address actually makes compliance much easier for consumers. The system isn't perfect and that $300 definitely hurts, but at least you can be confident the charge was legitimate and you don't need to worry about any additional tax obligations to Massachusetts.

This is a great breakdown of how online sales tax works! I had a similar experience recently when I bought some home electronics while traveling for work. I was in Nevada (no state sales tax) placing the order, but had everything shipped to my home in California and got charged the full CA sales tax rate. At first I was frustrated and thought about calling to dispute it, but after reading through situations like yours, I realized the retailer was doing exactly what they're supposed to do. The "destination-based sourcing" rule makes perfect sense when you think about it - California is providing the infrastructure for delivery, the consumer protections if something goes wrong, and I'm the one who will benefit from using the products there. What I found interesting is learning that even if I had driven to Nevada, bought everything in person, and transported it back to California myself, I would still legally owe California the same amount in "use tax" on my state return. So really, having the retailer collect it automatically just saves me the hassle of remembering to self-report it later (and let's be honest, a lot of people probably forget or don't know about that requirement). It's one of those situations where the initial sticker shock is annoying, but the system is actually working as intended to make sure everyone pays their fair share based on where they actually live and use their purchases.

This thread has been incredibly helpful! I just went through something very similar when I ordered a dining room set while visiting my sister in Oregon (no sales tax) but had it delivered to my home in Colorado. I was charged Colorado's 2.9% state sales tax plus local taxes, bringing it to about 7.5% total. Initially I was frustrated because I thought I could avoid the tax by ordering while physically in Oregon, but after reading all these explanations about destination-based sourcing and the Wayfair decision, I understand why the system works this way. It actually makes sense that Colorado gets the tax revenue since that's where I live, where the furniture will be used, and where the delivery infrastructure is being utilized. The use tax explanation was eye-opening too - I had no idea that if I had bought furniture in Oregon and transported it back myself, I would still owe Colorado the same tax rate on my state return. Having retailers automatically collect based on delivery address definitely seems more straightforward than expecting consumers to remember and self-report use tax. It's one of those situations where understanding the "why" behind the rules makes the outcome much easier to accept, even when it costs more than you initially expected!

This whole discussion has been incredibly educational! I'm actually dealing with a very similar situation right now - I ordered some expensive office equipment while on a business trip to New Hampshire (no sales tax) but had it shipped directly to my home office in Connecticut. Based on all the explanations here about destination-based sourcing, I should expect to pay Connecticut's 6.35% sales tax when it arrives. What really opened my eyes was learning about the use tax obligations that would apply even if I had purchased the items in New Hampshire and transported them back myself. I had absolutely no idea that you're supposed to self-report and pay your home state's tax rate in those situations - that seems like something the vast majority of people would never know about or remember to do. The explanation about which state's infrastructure and services you're actually utilizing makes perfect sense. Connecticut will handle the delivery, provide consumer protections if anything goes wrong, and I'll be using their utilities and services while operating the equipment from my home office there. While it's disappointing to lose out on what I initially thought would be "tax-free" shopping, I can definitely see how the current system is much more transparent and fair than expecting consumers to navigate use tax reporting requirements on their own. Thanks to everyone who shared their experiences - it really helps to understand the reasoning behind these rules rather than just feeling surprised by unexpected tax charges!

This has been such an informative discussion! I'm a tax professional and I'm really impressed with how well everyone has explained the destination-based sourcing rules and the impact of the Wayfair decision. Just to add one more perspective - for those who are frustrated about losing what they thought were "tax-free" shopping opportunities, remember that this system actually creates more fairness. Before 2018, brick-and-mortar stores were at a significant disadvantage because they always had to collect sales tax while many online retailers didn't. This put local businesses at an artificial 6-10% price disadvantage in most states. The current system levels the playing field and ensures that tax revenue goes to the states where consumers actually live and use the products they purchase. While it might mean paying more tax than you initially expected on online orders, it's supporting the infrastructure and services in your home state that you rely on every day. For anyone dealing with complex multi-state tax situations or business purchases that might qualify for exemptions, I'd recommend consulting with a tax professional who can help you navigate the specific rules that apply to your situation.

This discussion has been incredibly helpful for understanding how online sales tax works! I recently had a similar experience ordering a washer and dryer set while visiting my brother in Alaska (no state sales tax) but having it delivered to my home in Florida. I was charged Florida's 6% sales tax and initially thought it was an error. After reading everyone's explanations about destination-based sourcing and the Wayfair decision, I completely understand why the system works this way. It makes perfect sense that Florida gets the tax revenue since that's where I'll be using the appliances and where the delivery infrastructure is being utilized. What really surprised me was learning about use tax obligations - I had no idea that if you buy something in a no-tax state and transport it home yourself, you're still supposed to pay your home state's tax rate on your return. That seems like such an obscure requirement that most people would never know about or remember to do. Having retailers automatically collect based on delivery address definitely seems much simpler and more transparent. Thanks to everyone who shared their experiences and the tax professional who explained how this levels the playing field for local businesses. It really helps to understand the reasoning behind these rules!

This has been such an educational thread! I'm dealing with a very similar situation right now - I ordered some home gym equipment while visiting family in Delaware (no sales tax) but had it shipped to my apartment in Virginia. Based on all the explanations here about destination-based sourcing, I should expect to pay Virginia's sales tax when it arrives. What really opened my eyes was learning about the use tax requirement that would apply even if I had bought the equipment in Delaware and hauled it back in a truck myself. I honestly had no clue that you're legally supposed to report and pay your home state's tax rate in those situations - that seems like something 99% of people would never know about or remember to do on their tax returns. The explanation about supporting the infrastructure in the state where you actually live and use your purchases really makes sense. Virginia will handle the delivery logistics, provide consumer protections if there are any issues, and I'll be using their roads and services while using the equipment. It's actually kind of nice that retailers now handle this automatically rather than leaving it up to consumers to figure out complex use tax obligations. Thanks to everyone who shared their real experiences - it's so much more helpful learning from people who've actually been through this than trying to interpret confusing tax code on government websites!