Sales Tax (US)

Sales tax is a consumption tax assessed on Upwork’s supply of digital services. It impacts users in certain parts of the United States.

Note: Sales tax does not apply to your contract value. 

Products with sales tax

Sales tax is traditionally assessed on goods and services, and applied at the point of sale. Find the Upwork products and services currently impacted by sales tax in the list below.

 

Products and Fees  
Clients Client Membership Fees
  Premium Job Posts
  Payment Processing Fees
  Enterprise Billing Fees
  Enterprise Service Fees
  Enterprise Subscription Fees
  Conversion Fee
   
Freelancers and Agencies Membership Fees
  Connect Fees

 

NOTE

Because Upwork is an online business, sales tax on Upwork products and services are only applicable in certain states. In addition, tax laws change and we may be required to charge sales tax on additional services in the future.

 

Sales tax amounts

Upwork only charges sales tax in states where it is required. The amount of tax varies by state and type of fee. In the future, we may be required to charge sales tax in additional states.

The average sales tax assessed on Upwork products is 7.1%, and is applied to the services listed in the following locations.

 

Connecticut
Massachusetts
New York
Ohio
Pennsylvania
Texas

 

Invoices and transactions

Sales tax is only charged on certain Upwork products and services. You will be assessed taxes based on the address registered to your Upwork account.  You are required to keep your address current.

Sales tax is applied at the time of purchase. You will see it listed as an exclusive line item on invoices and transactions.

 

Why are you charging this sales tax now?

Upwork is required to collect sales taxes in certain states based on that state’s tax laws. For that reason, we will now begin collecting sales tax in certain states where we have customers.

How much will I have to pay?

The sales tax you will be charged will be the applicable sales tax rate in the area/county where you are located. We are currently charging the sales tax based on the address you have on file with us. Need to update your address? Click here to do so. Please note that you must use your real, permanent address.

Sales tax isn't new. Why didn't I have to pay it before?

Tax laws and their application change from time to time, and we are required to collect taxes in some states now, particularly where we have a lot of customers. Our engineers have been working on implementing this and in the meantime we have been paying these taxes on your behalf. Now we are ready to begin collecting sales tax from customers in the applicable states.

Where do I see sales tax charges on my invoice? In my account?

When sales tax is charged, it will appear as a separate line on the invoice or receipt that is generated for the transaction. Additionally, the tax charged will appear as an individual line labeled as sales tax in your account.

Why is tax only applied to certain parts of my invoice?

State taxes are only charged on certain Upwork fees. Freelancers may be charged their local sales tax on Connects purchases and membership fees. Clients may be charged their local sales tax on membership fees, Featured Jobs fees, and conversion fees.

For Freelancers: You are not charged a sales tax on your earnings.

For Clients: You are not charged a sales tax on the service fees you pay to freelancers.

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