Unsure where you owe sales or use tax or dealing with legacy compliance pain?
Check Your ExposureA use tax exposure calculator helps businesses estimate unpaid use tax liability from prior periods. Use tax exposure commonly exists when taxable purchases were made without sales tax being charged and the business did not self-assess and remit use tax. Use tax exposure is often larger and more difficult to detect than sales tax exposure. Many businesses are unaware they owe use tax until an audit, notice, or internal review reveals the issue.
This page explains what a use tax exposure calculator does, how to interpret the results, and when businesses should use one before filing or engaging with tax authorities.
Use tax exposure refers to unpaid tax on taxable items that were purchased without sales tax and later used, stored, or consumed in a state.
Use tax exposure typically builds when a business:
Unlike sales tax, use tax is not collected at the point of sale. The obligation falls on the buyer. A broader explanation is available in the use tax explained guide.
Use tax exposure is frequently overlooked because:
As a result, exposure often accumulates quietly over several years. Many audits identify use tax liability before sales tax issues.
A use tax exposure calculator estimates potential liability by reviewing historical purchasing activity and applying state level use tax rules.
Most calculators evaluate:
The purpose is not to produce a filing amount. The purpose is to provide clarity on whether material exposure exists and which states require deeper review.
A use tax exposure calculator does not replace a full use tax review or audit defense process.
It does not:
This is why use tax exposure should be evaluated before filing or responding to an audit. More guidance is available in what to do before filing sales tax.
Businesses commonly use a use tax exposure calculator when:
Use tax exposure calculators are especially valuable for manufacturing companies, SaaS businesses, professional services firms, healthcare organizations, and multi-location enterprises.
Sales tax exposure and use tax exposure are related but distinct.
Key differences include:
Many businesses have minimal sales tax exposure but significant use tax exposure. A comparison is covered in sales tax vs use tax exposure.
TaxMap’s Use Tax Exposure Calculator is designed to surface hidden risk without overwhelming users.
It evaluates:
Results help businesses understand whether use tax exposure exists and which states require deeper analysis.
You can access the calculator here: Use Tax Exposure Calculator
Use tax rules vary widely by state. Some states aggressively audit use tax and apply long lookback periods.
Businesses often begin use tax exposure analysis by state, especially in:
State specific exposure guidance is available in the Texas sales tax exposure overview and California sales tax exposure overview.
Use tax exposure commonly arises from:
These categories are frequently reviewed during audits.
After estimating use tax exposure, businesses typically choose one of three paths:
The right next step depends on exposure size, audit risk, and timing. Next steps are outlined in sales tax exposure next steps.
If your use tax exposure estimate shows potential liability or uncertainty, this is usually a signal to pause before filing and review where use tax may actually be owed. You can learn how sales tax exposure is identified to understand how risk develops.
TaxMap is designed for exposure clarity, not forced compliance actions.
TaxMap helps businesses:
This approach allows businesses to stay in control of decisions and timing.
If you are unsure whether your business has unpaid use tax, start by estimating exposure before filing or responding to an audit. You can begin by using the use tax exposure calculator and reviewing the results in context.