More than 30 states and the District of Columbia are states with a Netflix tax, meaning they add some form of tax to streaming subscriptions like Netflix, Hulu, Disney+, and Spotify. The mechanism varies: most states extend their general sales tax to digital products, Florida uses a communications services tax built for cable and satellite, and Chicago layers on a city amusement tax. The rest either exempt streaming or have no sales tax at all.
States That Tax Netflix and Other Streaming Services
Most taxing states treat a streaming subscription as a taxable digital product or service under their sales tax. The label differs from state to state, but on your bill the effect is the same: a percentage added to the monthly price.
One group taxes streaming as part of a broader category of digital products: Alabama, Connecticut, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Nebraska, North Carolina, Ohio, Utah, Vermont, Wisconsin, and Wyoming. In these states your Netflix subscription is taxed the same way a digital download or e-book would be.
A second group taxes streaming services specifically, sometimes as their own category: Arizona, Arkansas, Hawaii, Illinois, Indiana, New Mexico, South Carolina, and West Virginia.
A third group taxes both digital products and streaming services explicitly: Maryland, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Washington, and the District of Columbia.
Two jurisdictions stand apart because they don’t use a standard sales tax at all. Florida taxes streaming under its communications services tax, the same framework it applies to cable and satellite television. The statewide rate on video streaming is 7.44%, and local taxes add to that.1Florida Dept. of Revenue. Florida Communications Services Tax Chicago applies its city amusement tax to streaming at 10.25% as of January 2025, up from 9%.2City of Chicago. Amusement Tax: Subscribers to Paid Television Programming Cook County collected a similar tax previously but stopped in April 2020.3cookcountyil.gov. Amusement Tax
A few states on these lists tax only certain kinds of digital purchases. Idaho and Indiana, for instance, focus on digital products sold with a permanent license, so whether a monthly subscription counts depends on how the state defines “permanent use.”
States That Don’t Tax Netflix
Five states have no general sales tax, so streaming is untaxed at the state level: Delaware, Montana, New Hampshire, Oregon, and Alaska. Alaska allows local sales taxes, so a small number of residents could see a local charge.
Several states with a sales tax still leave streaming alone. California has no state-level tax on digital products, and courts there have rejected attempts by cities to tax streaming under local utility user tax ordinances. Missouri, Nevada, and Virginia also keep digital goods outside their sales tax.
Georgia started taxing certain digital goods in 2024, but subscriptions where access ends when payment stops are explicitly exempt. The tax applies only when a service grants permanent ownership, such as letting you download and keep a file forever. A standard Netflix or Spotify subscription falls in the exempt category.4Georgia Department of Revenue. Adopted Rule 560-12-2-118 Digital Goods
New York exempts most digital products transmitted electronically, including streaming video, though prewritten computer software stays taxable. New Jersey goes further and exempts all video programming services from its sales and use tax, covering both streaming and on-demand video.5Justia. New Jersey Revised Statutes Title 54 Section 54-32B-8.61 – Exemption for Receipts From Sale of Video Programming Services
Why the Type of Tax Matters
The mechanism a state uses affects the rate and what’s covered.
Sales Tax on Digital Goods
The common route is to widen the existing sales tax to cover media delivered electronically: streaming video, music, e-books, and software. No new tax category is needed, so the rate a subscriber pays generally tracks the state’s ordinary sales tax rate.
Communications Tax
A communications tax mirrors the way states have long taxed cable, satellite, and telephone service. Florida is the clearest example, folding streaming into a combined state rate of 7.44% before local additions.1Florida Dept. of Revenue. Florida Communications Services Tax Effective rates under this framework tend to run higher than a plain sales tax extension because communications taxes carry surcharges and fees that general sales taxes don’t.
Amusement Tax
Amusement taxes were designed for concerts, sporting events, and other live entertainment, and a handful of cities have stretched them to cover paid television programming. Chicago’s 10.25% amusement tax on streaming is the prominent example.2City of Chicago. Amusement Tax: Subscribers to Paid Television Programming Because these are local, they can sit on top of any state-level tax, pushing the combined rate above what the state charges on its own.
What the Tax Looks Like on Your Bill
Streaming tax is calculated as a percentage of your subscription fee. On a $17.99 Netflix plan in a state with a 5.5% rate, the tax adds about $1 per month. Combined state and local rates on streaming range from under 4% to over 10%, depending on where you live and which categories apply.
The streaming provider collects the tax and remits it to the state. The charge appears as a separate line item on your monthly bill or payment confirmation, labeled something like “sales tax,” “communications services tax,” or “amusement tax.”
Providers determine your rate from your billing address, which is worth checking. An outdated address can push you into a taxing state you no longer live in, or out of one you do. Updating your billing address with each streaming service is the simplest fix.
What’s Changing in 2026
The streaming tax map keeps moving as states look for ways to replace shrinking cable franchise fee revenue.
Maine begins collecting a 5.5% sales tax on streaming subscriptions on January 1, 2026. The state defines the taxable service broadly to cover digital audio and audiovisual works accessed through a subscription with “less than permanent use.” At the same time, Maine repealed its earlier 6% service provider tax on cable and telecom and moved those services under the lower general sales tax rate.6Maine Revenue Services. General Information Bulletin 115
In Colorado, the Court of Appeals ruled in July 2025 that Netflix subscriptions qualify as taxable “tangible personal property” under the state’s 1935 sales tax law. Netflix had argued that only physical objects you can touch qualify. The court concluded that content perceptible to the senses, including through hearing and sight, meets the statutory definition, and noted that requiring physical touch would produce absurd results when music, movies, and newspapers are routinely sold in digital form. The case was sent back to the lower court, so the final outcome is still developing.7Colorado Judicial Branch. Netflix, Inc. v. Department of Revenue, No. 24CA1019
How to Check Whether You’re Paying Streaming Tax
Pull up your most recent statement from any streaming service. If your state taxes streaming, a separate line will appear below the subscription price. For a fuller answer, search your state Department of Revenue website for “digital goods,” “streaming services,” or “electronic services.” These pages spell out what’s taxable, the current rate, and any exemptions. Because tax is tied to your billing address, keeping that address current with each provider is what makes sure the rate you pay matches where you actually live.