Is SaaS taxable? The taxability for SaaS (Software as a service) can be different from state to state and we break this down state by state in this blog post. We offer more informative resources here regarding SaaS. If you have questions about the taxability of the software service you sell, we'd suggest giving your state's DOR a call and asking them to confirm how the software you sell should be taxed in your particular scenario. We provide contact details for each state here.