Do freelancers need to charge sales tax in the US?

Usually not. Most states exempt professional services (consulting, writing, design, development, and similar work) from sales tax entirely — sales tax in the US mainly targets physical goods and a specific list of taxable services that varies by state. If you're selling a service, not a product, you very likely owe no sales tax at all. Check your specific state's rules if you're unsure, since a handful of states (like Hawaii and New Mexico) tax services more broadly than most.

What is "nexus," and does it apply to me?

Nexus is the connection that creates a tax obligation in a state — either physical presence, or (since a 2018 Supreme Court decision, South Dakota v. Wayfair) "economic nexus" from crossing a sales or transaction threshold in that state, even with no physical presence. This mostly matters for businesses selling taxable goods or services across state lines at real volume — a solo freelancer invoicing a handful of clients rarely needs to think about it, but it's worth knowing the term if you scale.

Do I need a business license or EIN to invoice as a freelancer?

Not necessarily — many sole proprietors invoice under their own name using their Social Security Number for tax purposes, with no separate business registration required. An EIN (Employer Identification Number) becomes useful once you hire employees, open a business bank account, or simply want to avoid putting your SSN on invoices/W-9 forms — it's free and quick to get from the IRS directly.

What payment terms are normal for US freelance invoices?

Net 15 or Net 30 are both common — Net 30 is more of a corporate-client default since many companies' accounts payable processes run on a monthly cycle. Due on receipt is reasonable for smaller or one-off jobs. Whichever you choose, state it clearly on every invoice rather than leaving it implied.

How to Invoice as a Freelancer in the US

US sales tax has a reputation for being complicated — but for most freelancers billing for services, the real answer is simpler than the 50-state headline suggests.

By InvoiceFlow Canada Team · Updated July 19, 2026

Quick answer

A US freelance invoice needs the same basics as anywhere: your info, the client's info, a unique invoice number, a clear description of the work, the amount, and your payment terms. Sales tax is the one piece that trips people up — but most states exempt professional services entirely, so most freelancers invoicing for their work (not physical goods) owe no sales tax at all. Check your specific state if you're unsure rather than assuming either way.