Sales Tax

Why am I being charged sales tax?

For customers located in the United States, Arcade is required to charge and collect sales tax in certain states where we either:

• Have a physical presence, or

• Have met state-defined economic nexus thresholds (based on revenue or transaction volume)

Effective February 23, 2026, Arcade collects sales tax in the following states:

• New York

• Massachusetts

If you’re located in a state where SaaS products like Arcade are taxable but we haven’t yet met the economic threshold, you won’t see sales tax on your invoice today. That may change in the future as laws evolve or as Arcade meets the requirements to collect tax in that jurisdiction.

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Where will I see the sales tax?

Sales tax appears as a separate line item on your invoice.

You can find your invoices by:

1. Going to Workspace Settings

2. Navigating to Billing

3. Opening the Invoices section

4. Clicking into any invoice to view or download it as a PDF

If sales tax applies, it will be clearly labeled on the invoice along with the rate charged.

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What happens with the sales tax collected?

Arcade does not keep any of the sales tax charged.

• 100% of the sales tax collected is remitted to the appropriate state or local tax authority

• Arcade is simply collecting it on behalf of those authorities, as required by law

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How is sales tax calculated?

Sales tax on your invoice is determined by a combination of factors:

1. Your billing address

   • Tax rates are based on where your organization is located

   • In some states, rates vary by city, county, or special tax district

2. The taxability of our product

   • SaaS products like Arcade are taxable in certain jurisdictions and exempt in others

If your billing address is incorrect, your tax rate may also be incorrect. To update it, reach out to us via Intercom and we’ll help get it fixed.

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What if my organization is tax-exempt?

Some organizations—such as nonprofits, educational institutions, and government agencies—may qualify for a sales tax exemption.

If your organization is tax-exempt:

1. Reach out to us via Intercom

2. Provide a copy of your valid tax exemption certificate

3. We’ll update your account so future invoices do not include sales tax

Note: Exemptions typically cannot be applied retroactively to invoices that have already been issued.

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Questions or something doesn’t look right?

If you have questions about sales tax, notice something unexpected on an invoice, or need help accessing your billing details, just reach out via Intercom. We’re happy to help straighten things out.