Sales Tax Exemption
Sales Tax Exemption
Sales TaxSome states exempt solar equipment from state sales tax. This provides an immediate upfront discount on the purchase price of solar panels, inverters, and related equipment.
Rate / Amount
Varies by state sales tax rate (typically 4–8% of equipment cost)
Valid Through
Permanent law in most states
Example
A $15,000 system in a state with 6% sales tax saves $900 with the sales tax exemption.
How It Works
When purchasing solar equipment in states with this exemption, the solar components are exempt from state sales tax. This is applied at the point of purchase by your installer. You don't need to file separately — it's built into your installer's pricing.
Eligibility
Residents in states with solar sales tax exemptions: AZ, CO, CT, FL, MA, MD, MN, NJ, NY, OR, TX, WA, and others.
Real-World Example
A $15,000 system in a state with 6% sales tax saves $900 with the sales tax exemption.