Sales Tax for Online Courses: What You Need to Know in 2025

When you sell an online course, a digital product delivered over the internet, often for education or skill-building. Also known as digital learning product, it is treated differently than physical goods when it comes to taxes. The rules aren’t the same everywhere. In 2025, more than 45 U.S. states require course providers to collect sales tax if they sell to customers in their state—even if you’re based somewhere else. This isn’t just about big platforms. If you’re teaching on Teachable, Thinkific, or your own site, you’re likely affected.

It’s not just about where you live—it’s about where your students are. Sales tax nexus, the legal connection that triggers tax collection obligations in a state. Also known as economic nexus, it’s now based on how much you sell, not where you’re located. If you hit $100,000 in sales or 200 transactions in a state like California or New York, you owe tax there. That’s true even if you’ve never set foot in the state. And yes, this applies to eLearning compliance, the set of legal requirements for digital education providers, including tax, privacy, and accessibility rules. Also known as online education regulations, it’s growing faster than most creators realize. You can’t ignore it. States are auditing course sellers, and penalties can hit hard.

Some courses are exempt. If your course is part of a degree program at an accredited school, you might not need to collect tax. But if you’re selling a standalone course on graphic design, copywriting, or even yoga instruction? Chances are, you do. And don’t assume your platform handles it for you. Most platforms only collect tax if you turn it on. You’re still responsible for knowing the rules in each state where you have customers.

This is why so many course creators are looking at digital course taxes, the specific tax obligations tied to selling educational content online. Also known as online education taxation, it’s becoming as essential as setting up payment processing. You need to track sales by state, know your thresholds, register where required, and file returns—even if you only had five students in Wyoming. It’s messy, but it’s doable. Tools like TaxJar and Avalara help, but they’re not magic. You still have to understand the basics.

What you’ll find below are real, practical guides from creators who’ve been through this. You’ll see how to set up tax collection without overcomplicating your workflow. You’ll learn what states are cracking down hardest, how to handle international students, and why some course providers are quietly changing their pricing to stay compliant. No fluff. No theory. Just what works.