Note: As of October 1, 2021, Upwork may be required to collect these taxes from: District of Columbia, Hawaii, Maryland, New Mexico, South Carolina, South Dakota, Tennessee, and Washington. We will update this list of states as we approach the collection date.
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 |
|
|
Service 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 |
| District of Columbia* |
| Hawaii* |
| Maryland* |
| Massachusetts |
| New Mexico* |
| New York |
| Ohio |
| Pennsylvania |
| South Carolina* |
| South Dakota* |
| Tennessee* |
| Texas |
| Washington* |
*Collection in these states is scheduled to begin on October 1, 2021. Check back closer to the collection date for a finalized list of new states.
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.
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.
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.
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.
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.
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.