Industry Guide
Healthcare Sales Tax
Healthcare organizations rely on a patchwork of exemptions — prescription drugs, durable medical equipment, nonprofit-purchaser status — that vary by state and by specific product category.
Healthcare exemptions reward careful exemption-certificate management and a
strong vendor onboarding process. Confirm any position against current
state guidance and the specific product or service category.
Recurring exemption categories
- Prescription drugs, oxygen, and certain over-the-counter items
- Durable medical equipment when prescribed and for home use
- Hospital and qualifying nonprofit purchases (with proper certificates)
Where exposure hides
- Mixed taxable / exempt invoices from medical-supply vendors
- Construction contractors who buy materials for hospital projects without proper certification
- Software, IT, and administrative purchases incorrectly treated as exempt under the nonprofit status