Summary: Learn how Tithely handles state sales tax, understand the difference between nonprofit status and tax-exempt status, and find out how to upload your tax exemption certificate.
Note: This is a phased release that is currently only applicable to New York and Pennsylvania customers. Arizona currently does not have any tax exemption options available.
Signed up for Tithely before May 2025?
The steps to find the tax exemption section are different for accounts who signed up before May 2025. Follow the steps in this article instead.
Before you begin
- Federal vs. state exemption: Being a registered 501(c)(3) nonprofit only grants your organization federal income tax exemption. It does not automatically exempt you from paying state sales tax. Sales tax is set at the state level, so you must apply for and hold a state-issued sales tax exemption certificate under your state's laws.
- Tithely and ExempTax: To manage state-level exemptions, Tithely partners with ExempTax, a secure third-party compliance platform that collects and verifies tax-exempt certificates. You upload your certificate directly in your Tithely dashboard. ExempTax then reviews and validates it.
- Verify your name: Your church or organization name in Tithely must exactly match the legal entity name or "Doing Business As" (DBA) name on your tax-exempt certificate.
Certificate requirements
Before you upload, make sure your certificate meets ExempTax's validation criteria:
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Include Tithely's Information: "Tithely" or "YourGiving Inc" must be explicitly listed as the seller or vendor on your sales tax certificate. If asked for the seller's or vendor's address, enter Tithely's legal address:
901 Woodland Street, Suite 104
Nashville, Tennessee 37206 - Blanket Exemption Option: If your Sales Tax certicate specifically mentions the option for a blanket exemption or a one time exemption it is required that the blanket exemption be selected.
- Complete all fields: Every required field must be filled in, signed (by hand and not typed), and dated. ExempTax automatically rejects forms with blank or incomplete sections.
Step-by-step instructions
Check your status and upload your certificate
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To navigate to the Tax Exemption page to see your current status, you begin by clicking Organization Settings in the top right corner of your screen, then clicking on the Billing option.
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Once you're on the Billing page, you should see the options to upload your Sales Tax Exemption Certificate, along with additional guidance for best practices.
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You will upload your tax-exempt certificate directly in the Tithely product, on the same Tax exemption page.
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Once you upload your certificate, You will see one of the following statuses:
Status or field What it means Tax Exempt Your certificate is approved, and you are not being charged sales tax. Taxable You are currently subject to sales tax. Pending Your uploaded certificate is under review. Approved / Rejected The final decision on your most recent certificate upload. Expiration Date The date your current certificate expires. - Wait for your notification. You will receive an in-app notice and an email from ExempTax telling you whether your certificate was Approved or Rejected.
- Review any rejection and upload a corrected file. If your certificate is rejected, ExempTax emails you a detailed notice with the specific reasons. You will upload any needed corrections on the same Tax Exemption page in your Tithely account.
Where sales tax applies
Sales tax rules are set by each state and can change. Tithely reviews them once a year, and we will tell you if sales tax starts to apply in your state or a state law changes.
States where you can upload an exemption certificate
Churches and 501(c)(3) organizations in these states can avoid sales tax by uploading a valid state exemption certificate. Click on your state to open its official exemption resources.
Maryland (MD)
Maryland resources for non-profit organizations
Example Certificate: Maryland Sales Tax Certificate
Massachusetts (MA)
New York (NY)
Ohio (OH)
Ohio state resources for non-profit organizations
Example Certificate: Ohio Sales Tax Exemption Certificate
Pennsylvania (PA)
Tennessee (TN)
Texas (TX)
Texas state resources for non-profit organizations
Example Certificate: Texas Sales Tax Exemption Certificate
West Virginia (WV)
States where nonprofits are not exempt
State law does not exempt nonprofits from sales tax on software in these states, so an exemption certificate cannot be used: Alabama (AL), Arizona (AZ), California (CA, starting January 1, 2027), Hawaii (HI), Iowa (IA), South Carolina (SC), South Dakota (SD), and Washington (WA).
Troubleshooting & FAQs
What address do I use for Tithely on my tax-exempt certificate?
When your sales tax exemption certificate asks for the seller's or vendor's address, use Tithely's legal address:
901 Woodland Street, Suite 104
Nashville, Tennessee 37206.
What happens when my tax-exempt certificate expires?
State certificates expire on different schedules, usually every 4 to 10 years depending on the state. ExempTax watches your expiration date and emails you 30 days before it expires to ask for a renewal. It emails you again if your certificate expires. Upload your renewed certificate on the Tax exemptions page to keep your exempt status.
If I upload my tax-exempt certificate after being billed sales tax, can I get a refund?
No. Neither Tithely nor ExempTax is authorized to refund sales tax that was collected before your certificate was approved. Upload your valid certificate on the Tax exemptions page to avoid future charges, and contact your state's Department of Revenue to request information on the feasibility of a refund for past charges.
Where do I upload my tax-exempt certificate?
Upload your certificate directly in your Tithely dashboard, on the Tax exemptions page. ExempTax is the partner that reviews it.
What if sales tax rules change in my state?
Taxability can change when states pass new legislation or when Tithely completes its annual review. If we become newly required to collect sales tax in your state, we will tell you proactively and begin collecting it as soon as reasonably practicable.
What documents are generally required to apply for state sales tax exemption?
Most states require proof of your federal 501(c)(3) tax-exempt status (IRS Determination Letter) and your governing documents, such as Articles of Incorporation, Bylaws, and recent financial statements or a proposed budget.
How often do I need to renew my state tax-exempt certificate?
It depends on your state. Tennessee reissues certificates every 4 years. Maryland and Pennsylvania require renewal every 5 years. Massachusetts certificates (Form ST-2) last 10 years, and the state sends a new one about 30 days before expiry. Ohio churches do not renew because the exemption is set by law. Always check your state's Department of Revenue for specific details.
How does Tithely determine taxability?
Tithely evaluates its business connection to a state based on state laws and compliance thresholds once per year. If Tithely's nexus status changes or if state laws change, you will be proactively notified.
What if my state isn’t listed here?
As of today, Tithely is not required to collect sales tax in states not listed above because we have not reached economic nexus (the required business presence) in those jurisdictions. However, other states do require sales tax collection or offer their own exemption certificates. We recommend searching your state's Department of Revenue or Comptroller website for "Sales and Use Tax Exemption for Nonprofits" to see exactly how your state manages sales tax for churches and non-profits.