Collect the tax, remit the tax — the state wants a guarantee.
Security for the tax you collect on the state’s behalf
Sales tax bonds guarantee that a business will collect, report, and remit the state (and applicable local) sales and use tax it is responsible for. Not every seller needs one — it is most often required of new applicants, out-of-state or remote vendors, or businesses with a history of delinquency.
What a sales tax bond guarantees
The bond guarantees to the state Department of Revenue that you will remit the sales and use tax you collect. It protects state tax revenue — not consumers. It is commonly triggered for new, out-of-state, or previously delinquent taxpayers, or as a condition of reinstating a revoked permit, rather than required of every seller.
How the amount is set
The amount is typically a multiple of your estimated average monthly (or annual) tax liability, determined by the state revenue department, so it grows with your sales. Most states accept a cash bond, certificate of deposit, or letter of credit as an alternative to a surety bond, and many release the bond after a set period (often about two years) of clean filing and payment.
Sales Tax Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
Who has to post a sales tax bond?
Not every seller — it’s most often required of new applicants, out-of-state/remote vendors, or businesses with prior tax delinquencies, and to reinstate a revoked permit. The state Department of Revenue decides.
How is the amount determined?
Usually as a multiple of your estimated average monthly or annual tax liability, set by the state — so it scales with your sales.
Can I get the bond released?
Often, yes. Many states release or refund the bond after a set period — commonly about two years — of on-time filing and payment.
How do I get a sales tax bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.