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Last Updated: 9/3/2015

Insurance Agency Services

Insurance agencies typically sell a variety of insurance policies, including property, casualty, life, health, disability, and long-term care. Fees charged for insurance coverage are not taxable . Any commission received  by the insurance agent is also not taxable. Insurance agency services may include:

  • Contacting clients to discuss insurance policy coverage
  • Renewing policies
  • Settling claims for policyholders

Taxable sales

Most insurance agencies do not make taxable sales. However, if you sell taxable products, you must charge sales tax. Examples include:

  • Smoke detectors
  • Radon detectors
  • Fire extinguishers
  • Charges for copies of insurance claims

Note: Do not pay sales or use tax when you purchase these items for resale in your business. Instead give your supplier a completed Form ST3, Certificate of Exemption. Specify the resale exemption.

 
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