Nearly half of all states impose taxes on memberships in gyms, health clubs, athletic clubs and fitness clubs, while the rest either exempt memberships or don’t have state sales taxes at all, according to new research.
Wolters Kluwer Tax & Accounting US recently examined which states impose sales taxes on gym memberships and produced a map and infographic showing which ones. The research also found a number of other tidbits for the CrossFit Fitbit set.
Texas, Florida and New Jersey are among 24 states, along with the District of Columbia, that currently impose sales taxes on membership fees.
States that do not impose sales taxes on membership fees include California, Illinois and New York.
Arkansas, Delaware, Montana, New Hampshire and Oregon do not impose statewide sales or use taxes.
In North Dakota, sales taxes are imposed on amusement, entertainment and athletic club fees, but memberships to nonprofit clubs operated solely by non-salaried officers and staff are exempt.
“Some states that impose sales tax on fees for gym, health, fitness and athletic club memberships have carved out exemptions, such as membership fees paid to nonprofit civic organizations like the YMCA,” said Wolters Kluwer Tax & Accounting US senior state tax analyst Carol Kokinis-Graves in a statement. “While many base gym memberships on factors such as facility equipment and location, it may be worth asking how much of your total fees include sales taxes.”
A map and infographic show which states do and do not impose taxes on gym, health, fitness and athletic club memberships. They are available by clicking here and below.