Buying an artwork or selling one from an existing collection can be a long process with lots of factors that can affect the final price. One of them is taxes. Various taxes can significantly raise the price of art you are looking to buy or sell. That's why we composed a list of several different taxes you need to consider before purchasing or selling an art piece.
Sales Tax
Sales tax has to be paid in the country in which the sale occurs. If the artwork is sold by the collector, dealer, gallery or an auction house, the seller will collect the tax from the buyer and then transfer it to the government. In the U.S., sales taxes vary significantly from state to state. Montana, New Hampshire, and Oregon do not have sales taxes at all.
Other states like Tennessee have a 9.46% sales tax on artworks. Sales tax is charged when the artworks are purchased within one U.S. state with the intention of keeping it in that state. If the artwork is shipped to another U.S. state instead of sales tax, use tax rates apply.
