United States of America Tax Information

DigitalOcean charges state and city sales tax as required in the United States of America.

State Tax Summary

To ensure compliance with the requirements of the United States as it pertains to the taxability of our services, we charge sales tax as required in the following cities, states, and territories:

Location State Tax Rate Local Tax Rate Range Charged Since
Arizona 5.6% 0% - 6.5% July 2020
Boulder, Colorado N/A 3.86% April 2022 (SaaS products only)
Chicago, Illinois N/A 9% April 2022
Colorado Springs, Colorado N/A 3.07% April 2022 (SaaS products only)
Connecticut 1% N/A November 2019
Denver, Colorado N/A 4.81% January 2022 (SaaS products only)
Englewood, Colorado N/A 3.8% April 2022 (SaaS products only)
Fort Collins, Colorado N/A 3.85% April 2022
Hawaii 4% 0% - 0.5% July 2020
Iowa 6% 0% - 2% January 2022 (SaaS products only)
Maryland 6% N/A January 2022 (SaaS products only)
Massachusetts 6.25% N/A January 2022 (SaaS products only)
New Mexico 4.875% 0% - 1.25% November 2019
New York 4% 3% - 4.875% July 2020 (SaaS and PaaS products only)
Ohio 5.75% 0.75% - 2.25% November 2019
Pennsylvania 6% 1% - 2% July 2020
Puerto Rico 11.5% N/A January 2022
Rhode Island 7% N/A January 2022
South Carolina 6% 0% - 3% January 2022 (SaaS products only)
South Dakota 4.2% 0% - 2% November 2019
Tennessee 7% 0% - 3% January 2022 (SaaS products only)
Texas 6.25% 0% - 2% November 2019
Utah 4.7% 0% - 4% January 2022 (SaaS products only)
Washington 6.5% 0% - 4% July 2020
Washington D.C. 6% N/A November 2019
West Virginia 6% 0% - 1% July 2020

Frequently Asked Questions about Taxes in the USA

My organization is tax exempt. How do I remove taxes from my invoice?

If we are required to apply taxes based on your account’s tax location, you can submit a tax exemption certificate from the billing page. Under Billing Settings, in the Tax Exemption section, click Add Exemption Form.

In the window that opens, confirm or update your company name, then click Continue to Ryan ControlPoint. Ryan ControlPoint is a third party we partner with to manage tax exemption requests. On their site, you can fill out or upload an exemption certificate. After you submit your exemption certificate, the tax exempt status in Tax Exemption section changes to Not Exempt - forms pending review.

We review requests each billing cycle. Once we review your request, we send an email to the address on file and update the status again. It lists Exempt if we approve the request and Not Exempt with a reason (like expired forms or incorrect location) if we cannot.

Frequently Asked Questions about Taxes

How is my tax location determined?

Your tax location is typically based on your account address, which is initially set to the payment address of your primary payment method when you sign up. In some locations, we are required by law to consider other account details, like other payment addresses or IP addresses.

How can I change my tax location?

You can update your account address and view your account's tax location and rate at any time on the billing page. If you've set your account address correctly but your account's tax location is not what you expect, contact support for help.

Why is my invoice in USD? Can I get an invoice in another currency?

USD is the only currency we accept for payments, so all invoices are in USD. We cannot provide invoices in other currencies. Learn more about invoices.