Do You Need to Collect Sales Tax on Delivery Orders?
Short answer: usually yes, but it depends
In most states, delivery orders are taxable. The food is still prepared food, and the fact that it's delivered doesn't change its tax status. But the question of who collects and remits the tax — you or the delivery platform — depends on your state's marketplace facilitator laws.
What are marketplace facilitator laws?
Marketplace facilitator laws require platforms like DoorDash, Uber Eats, Grubhub, and Instacart to collect and remit sales tax on orders placed through their platform. As of 2026, nearly every state with a sales tax has a marketplace facilitator law.
Under these laws, the platform is the one responsible for collecting the tax from the customer and sending it to the state. You don't have to report those orders on your own sales tax return.
When the platform handles it
If a customer orders through DoorDash, Uber Eats, Grubhub, or a similar marketplace, the platform almost certainly collects and remits the sales tax. You'll see this reflected in your platform settlement statements — the tax is collected from the customer but isn't included in your payout because the platform sends it directly to the state.
This means those orders should generally not be included on your sales tax return. Including them would mean the tax gets reported twice.
When you still have to handle it
There are a few situations where the tax is still your responsibility:
Direct delivery orders: If a customer calls your restaurant and you deliver with your own driver (or a non-marketplace courier), that's your sale. You collect the tax and report it on your return.
Your own website or app: If you take delivery orders through your own online ordering system (not through a marketplace), you're responsible for the tax.
Catering and large orders: These often go through your business directly, not through a marketplace. You're responsible for the tax on these.
The tricky states
Most states have clear marketplace facilitator laws, but a few have nuances worth knowing:
Colorado: Home-rule cities may require separate filings even for marketplace sales. Some cities don't recognize the state-level marketplace facilitator law.
Louisiana: The state has a marketplace facilitator law, but local taxes are administered separately through parish-level collectors.
Alabama: Similar to Colorado — the Simplified Sellers Use Tax program covers state tax, but local jurisdictions can have their own rules.
How to keep it straight
The easiest way to handle this is to make sure your POS system tracks marketplace orders separately from direct orders. When you file your sales tax return, exclude the marketplace orders (the platform already reported them) and include only your direct sales.
If you're not sure how your state handles marketplace facilitator laws, check your state tax guide for the specifics.