Telecom taxes aren’t uniform, they’re layered. Federal excise rules, state sales or communications taxes, E911 surcharges, and Universal Service Fund (USF) fees all stack differently across jurisdictions. For providers, that means one service can trigger multiple filings, agencies, and audit risks.
The quick reference guide below brings clarity. It summarizes key federal programs and provides a state-by-state view of major telecom tax rates, 911 fees, and USF surcharges.
State telecom tax quick reference
Last updated: November 2025
| State / Jurisdiction | Primary telecom tax approach | E911 surcharge structure | State USF |
|---|---|---|---|
| Alabama | Mobile Communications Services Tax limited to wireless services | Statewide per line, set by 911 board | No broad state USF; relay applies |
| Alaska | No state sales tax; local sales taxes in some cities | Local 911 authorities set rates | State USF supports high cost areas |
| Arizona | Transaction Privilege Tax (~5.6%) on telecom | Prepaid Wireless 911 Fee applies | No broad state USF |
| Arkansas | State sales tax of 6.5% applies to telecom | Statewide Prepaid Wireless 911; Postpaid Telecommunications 911 Fee | State USF on intrastate revenues |
| California | Telecom not subject to state sales tax | Statewide per line per CDTFA; separate 988 Fee | CPUC administers consolidated state program surcharges |
| Colorado | State sales tax of 2.9%; many self-collecting home-rule cities | Statewide 911 & 988 Fees | High Cost Support Mechanism (HCSM) imposed (state USF equivalent) |
| Connecticut | State sales tax of 6.35% on many voice services | Statewide per-line 911 Fee | No broad state USF |
| Delaware | No state sales tax | Statewide Prepaid and Postpaid 911 | No broad state USF |
| District of Columbia | Sales tax on telecom services | Prepaid wireless 911 fee applies | Small DC USF percentage applies |
| Florida | Communications Services Tax at state level | Statewide 911 Fees | No broad state USF; relay surcharge applies |
| Georgia | State sales tax of 4% applies to intrastate telecom | Statewide per line | State Universal Access Fund applies |
| Hawaii | 6% General Excise Tax on telecom | Statewide per line | No state USF; TRS and PUC Fee apply |
| Idaho | State sales tax on telecom | Statewide per line | State USF per line applies |
| Illinois | State Telecommunications Excise of 7% on gross charges; local telecom taxes common | State and some city 911 line items | State USF imposed |
| Indiana | State sales tax of 7% on telecom | Statewide per line | State USF imposed |
| Iowa | State sales tax of 6% on telecom | Statewide per line | No broad state USF |
| Kansas | State sales tax of 6.5% on intrastate telecom | Prepaid 911 rate-based; Postpaid per subscriber/line | Kansas USF percentage on intrastate |
| Kentucky | State sales tax of 6% applies to telecom | Statewide Wireless; Wireline varies | Limited state lifeline/relay surcharges |
| Louisiana | Combined state sales tax plus parish local tax of ~10% | Parish 911 fees | State USF administered by LPSC |
| Maine | State sales tax of 5.5% on telecom | Statewide per line | State USF and Connect Maine programs |
| Maryland | State gross-receipts-type franchise tax on telecom; many services outside sales tax | State and county 911 fees apply; 988 fee applies except to Prepaid Wireless | No broad state USF |
| Massachusetts | Telecom taxable; varies for B2B/B2C | Statewide per line | No broad state USF |
| Michigan | State sales tax of 6% on telecom | State and optional county adders | No broad state USF |
| Minnesota | State sales tax of 6.875% on telecom | Statewide 911 plus Prepaid 911 and 988/TAM line items | USF surcharge of 3.1% applies |
| Mississippi | 7% state sales tax on intrastate telecom | Statewide wireless; wireline by district | No broad state USF |
| Missouri | State sales tax of 4.225%; many cities impose license taxes on telecom | County 911 varies | No broad state USF |
| Montana | No general sales tax; state telecom excise applies | Statewide per line | TRS-type charge; no state USF |
| Nebraska | State sales tax of 5.5% on telecom | Statewide 911 by service | Nebraska USF includes per line and percent variants |
| Nevada | State sales tax of 6.85% on telecom | County-level 911; statewide 988 | Nevada state USF applies |
| New Hampshire | Communications Services Tax applies | Statewide E911 per line | No broad state USF |
| New Jersey | Sales tax of 6.625% on telecom | Statewide per line | No broad state USF |
| New Mexico | Gross Receipts Tax of ~5% on services including telecom; locals add GRT | Statewide Prepaid Wireless and Wireline 911 | State USF percentage on intrastate |
| New York | State and local sales tax of 4% on intrastate telecom; separate state excise on gross receipts | Statewide and county Public Safety Communications Surcharge; various county 911 fees | State USF applies |
| North Carolina | State and local combined sales tax of 7% on telecom | Statewide per line | No broad state USF |
| North Dakota | State sales tax of 5% on telecom | Prepaid Wireless 911 as a rated tax | No broad state USF |
| Ohio | State sales tax applies to intrastate telecom; specific interstate services are exempt | Prepaid Wireless 911 as a rated tax | No broad state USF |
| Oklahoma | State sales tax of 4.5%; locals may apply | Statewide uniform per-line 911 applied to Wireless, Wireline, VoIP, and Prepaid Wireless | Oklahoma USF on intrastate |
| Oregon | No general sales tax | Statewide 911 per line and prepaid at retail; 988 fee | Oregon USF percentage on intrastate |
| Pennsylvania | Telecom often taxable; varies for B2B or B2C transactions | State-imposed 911 fee on Wireless, Wireline, and VoIP services | State USF applies |
| Rhode Island | State sales tax of 7% on telecom | Prepaid Wireless 911 as a rated tax | No broad state USF |
| South Carolina | State sales tax of 6% on intrastate telecom | Statewide per line | State USF applies to intra- and interstate services |
| South Dakota | State sales tax of 4.2% on telecom | Prepaid Wireless 911 as a rated tax | No broad state USF |
| Tennessee | State sales tax of 7% on telecom; local sales tax may apply | Statewide 911 per line | No broad state USF |
| Texas | State sales tax 6.25%; local sales tax may apply if local exemption repealed | Statewide 911 with equalization; published by state 911 authorities | Texas USF on intrastate revenues; municipal access line fees common |
| Utah | State and local sales tax of 4.85% on telecom | Statewide per line plus statewide 911 percentage on billed charges | State USF percentage applies |
| Vermont | Telecom generally taxable at 6%; USF applies in addition | No 911 Fee; per-line Prepaid Wireless Fee applies | State USF applies |
| Virginia | Statewide Communications Sales and Use Tax 5% | State-administered E-911 reported with communications tax | No broad separate state USF |
| Washington | State sales tax of 6.5% | State 911 plus county adders; state-level 988 Fee | No broad state USF |
| West Virginia | State sales tax of 6% on telecom | Statewide E911 per line | No state USF |
| Wisconsin | State sales tax of 5% on telecom | Statewide 911 per line | Wisconsin USF programs |
| Wyoming | 4% state sales tax on telecom | Prepaid Wireless 911 as a rated tax | No state USF |
Note: Always confirm current rates and filing obligations directly with the state’s DOR, PUC, or 911 authority before applying charges or remitting payments.
Conclusion
Telecom tax compliance is complex, but not unmanageable. Success depends on real-time automation, accurate jurisdiction mapping, and centralized reporting that eliminates guesswork.
With thousands of overlapping taxes and fees, precision isn’t just smart—it’s non-negotiable.
CereTax helps telecom providers automate rate updates, simplify filings, and keep billing data audit-ready—at scale.
Talk to a CereTax Telecom Expert. See how automation can keep your telecom tax calculations accurate, auditable, and billing-ready—no matter how many jurisdictions you operate in.
