::SALES_TAX_EXEMPTION
Solar Sales Tax Exemptions: Where Solar Equipment Is Tax-Free
A sales tax exemption removes state and (usually) local sales tax from solar equipment purchases. On a $24,000 install with $18,000 in equipment costs, a 6% sales tax exemption returns $1,080 in savings at the point of sale.
States With Sales Tax Exemption
13 states currently offer sales tax exemption. Click into any state for the specific terms.
How to Claim Sales Tax Exemption
Your installer applies the exemption directly on the invoice — solar PV equipment, inverters, racking, and batteries (in most exempting states) are itemized as tax-exempt. Labor is not generally subject to sales tax in most states regardless.
How Sales Tax Exemption Relates to the Ended Federal Credit
A sales tax exemption lowers the price you pay for equipment. There is no federal residential credit on a 2026 install for that price reduction to change.
Frequently Asked Questions
Which states exempt solar from sales tax?
About 25 states offer some form of sales tax exemption on residential solar equipment in 2026, with significant variation. A handful exempt only at the state level; some include local jurisdictions; a few exempt batteries separately.
Does the exemption cover labor?
Most states do not tax labor, so the question is moot. In states that do tax service labor, the exemption typically applies only to equipment — not installation labor.
Do I need paperwork for the exemption?
Your installer files the exemption automatically when invoicing. Keep the itemized invoice showing exempt status for your records, in case of audit.