> For the complete documentation index, see [llms.txt](https://help.lob.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.lob.com/account-management/billing/sales-tax-faq.md).
# Sales Tax FAQ
## 2026 Update: What's Changing
Effective October 1, 2026, Lob is restructuring how sales tax is applied to your account:
* Lob will begin acting as your purchasing agent for print and postage, paying sales tax on those costs directly to our print partners.
* As a result, Lob will no longer charge you sales tax on Print or Postage.
* Lob will continue to charge sales tax on SaaS/platform subscription fees in states that tax SaaS, based on your billing address on file.
* Because postage typically makes up the majority of a mailpiece’s cost, removing tax from postage lowers most customers’ net cost per mailpiece even though the base product/print price is increasing modestly to reflect Lob now paying tax on print purchases.
* This change is automatic and applies to mailpieces sent on or after 10/1/2026. No action is required for most customers.
See the FAQ section below for details.
### Overview of Sales Tax
Lob’s rapid expansion of our physical footprint combined with our business growth in the past few years have resulted in Lob’s obligation to collect and remit sales tax on sales generated in most US states. For the 2023 tax year through 9/30/2026, Lob collected state sales/use tax on SaaS, Print, and Postage, based on state and local requirements.
Starting 10/1/2026, Lob collects sales tax only on SaaS/subscription and service fees in states that tax SaaS. Lob no longer charges customers sales tax on Print or Postage; instead, Lob pays that tax directly to its print partners as your purchasing agent.
### Are any actions required from Lob's customers?
Yes. Lob is actively undertaking several initiatives to minimize our customers’ tax obligations.
* Mail Use Type: Many states directly exempt or allow an exemption certificate for marketing, advertising, and promotional mail. Lob requires users to declare a Mail Use type for all mail sent so we can classify mail correctly.
* Billing Address: Your billing address on file determines sourcing for SaaS/subscription sales tax. Please keep this current in the Payments tab of the Lob Dashboard.
* Customer Exemption Management System: For customers with exemption certificates covering subscription/SaaS fees, we track your exemptions and apply them to your sales tax calculations.
Some of these features require customers to take the following steps:
1. Confirm your corporate billing address in the Billing Address section in the Payments tab of the Lob Dashboard.
2. Declare your mail’s use type at the appropriate level based on your organization’s usage (account, campaign, or mailpiece level). API customers should include this in the API call; Dashboard customers are prompted during submission.
3. Submit a tax exemption form if applicable; read more on tax exemption below.
### What will be taxed, and how does it impact me? (Effective 10/1/2026)
Starting 10/1/2026, Lob’s taxable charges to customers are limited to SaaS/platform subscription and service fees. Print and Postage are no longer taxed to customers under any circumstance — Lob pays that sales tax directly to print partners as your purchasing agent.
1. Subscriptions and services: Sales tax is calculated based on your billing address on file, in states that tax SaaS/subscriptions and services (approximately 19 states).
2. Lob Audiences: Taxed in states that tax information retrieval systems and products.
3. Professional Services: Taxed in states that tax computer programming/professional services.
4. Print & Postage: Not taxed to customers as of 10/1/2026. Lob pays sales tax on these costs directly to its print partners.
5. Prepaid Inventory (Custom Envelopes, Card Affix, Buckslips, etc.): Still considered tangible personal property and taxable at the state’s tax rate.
6. Prefund Invoices: Not taxable when invoiced or paid.
Note: For invoices dated before 10/1/2026, sales tax on Print and Postage was calculated under Lob’s prior model (based on mail use type, delivery location, and billing address). Contact if you need historical detail.
### If I only subscribe to the Address Verification API service, does any of this affect me?
For customers who only subscribe to Lob’s Address Verification API service, your subscription may still be subject to sales tax, dependent on your primary billing address on file. This is unaffected by the 2026 print/postage change, since Address Verification is a SaaS/subscription charge. If you have exemption certificates, you may send them to . Customers who do not use the Print & Mail API service are not affected by the mail use type product changes.
### Does Lob accept exemption certificates and/or exempt entities?
Yes! Please email exemption certificates to . Be sure to include your Lob Account ID so we can apply the exemption to the applicable Lob products and services (SaaS/subscription fees). See our Tax Exemption Guide for more information.
### I'm a non-US entity, am I tax-exempt?
For customers who have billing addresses outside of the US, your subscriptions and services (including Address Verification and premium support) are not taxable if your primary billing address on file is outside of the US. Print and Postage are not taxed to any customer, regardless of billing address, as of 10/1/2026.
### I'm a Lob Resale Partner. Am I expected to pass sales tax liabilities to our customers?
It is highly recommended that Resellers provide Lob with a resale certificate to remove tax from their invoices from Lob. In this scenario, the Reseller is then responsible for collecting and remitting state and local sales tax from their end customer based on the Reseller’s own filing obligations in each state. Lob recommends these customers reach out to their tax advisors for assistance with characterizing these transactions.
### Can you advise me on my tax liabilities?
Lob cannot provide tax advice. Please consult an appropriate tax professional.
## 2026 Sales Tax Change — FAQ
**What exactly is changing, and when does it take effect?**
Effective October 1, 2026, Lob is restructuring how sales tax is applied to your account. Lob will begin acting as your purchasing agent for print and postage, paying sales tax on those costs directly to our print partners rather than charging it to you. As a result, Lob will no longer charge sales tax on Print or Postage. Sales tax continues to apply only to SaaS/platform subscription fees, in states that tax SaaS. This change is automatic and applies to mailpieces sent on or after 10/1/2026 — no action is required on your part.
**Will my total cost really go down, or are you just shifting the tax to a different line item?**
For most customers, yes, your net cost should go down. Postage typically makes up roughly 70% of the cost of a mailpiece, and that portion will no longer be taxed. To cover the sales tax Lob now pays directly to print partners, our base product/print pricing is increasing modestly (approximately 8%). Because eliminating tax on postage is proportionally much larger than the base price increase, your total cost per mailpiece is expected to decrease. Your Account Manager can provide a breakdown specific to your account and volume.
**Are you going to reimburse or credit us for sales tax we already paid on postage/print?**
No. This change is prospective only, not retroactive. Adjusting historical taxes would require Lob to amend prior filings in every state where we have nexus, and would require our print partners to retroactively re-bill Lob for tax on past purchases — which isn’t something either party is able to do. The new tax treatment applies only to mailpieces sent on or after 10/1/2026.
**Do I need to sign a new agreement or take any action before 10/1?**
For most customers, no — this change is applied automatically to your account and will be reflected on invoices starting 10/1/2026. Some Enterprise customers may be asked to countersign a brief addendum to their existing agreement documenting Lob’s role as purchasing agent for print and postage; your Account Manager will reach out directly if this applies to you. Self-serve customer terms update automatically, with no signature required.
**Will I still be charged sales tax on anything?**
Yes, in some cases. SaaS/platform subscription fees (including Address Verification, premium support, and other subscription-based services) remain subject to sales tax in states that tax SaaS, based on your billing address on file. Print and Postage are the only categories being removed from taxable charges.
**Do I still need to declare a Mail Use Type or submit exemption certificates?**
Yes. Mail Use Type still matters for classifying your mail correctly, and exemption certificates are still relevant to your SaaS/subscription charges if you qualify for an exemption. If you already have certificates on file, no action is needed; new certificates can be sent to .
### I have more questions; who can I talk to?
Please reach out to .