PureCloud Voice taxes (United States)


The following information is a high-level overview of the various taxes that regulatory authorities mandate for commercial enterprises (US customers only). Because the taxes vary based on the type of service and the tax jurisdiction, this information cannot cover every scenario that an enterprise might encounter. 

Voice services have many different taxes based on the tax jurisdiction where the service is being consumed. Because taxation and regulation vary from state to state, the taxes are significant not only at the federal level, but also at the state and local level. 

The taxes that can be assessed include the following:

  • State and Local Sales and Use Tax
  • Excise Tax
  • Gross receipts tax
  • Utility Users tax
  • E911
  • Local telecommunications taxes

Other regulatory fees that can be assessed include the following:

  • Federal USF
  • Regulatory Recovery Fee (including Federal TRS (Telecommunications Relay Service) Fund)
  • North American Numbering Plan Administration
  • Local Number Portability shared costs
  • FCC Regulatory Fees
Note: The following examples are illustrative in nature and do not constitute the exact percentages and taxes charged by each jurisdiction. The actual invoice contains all the applicable taxes charged by the specific jurisdiction where the customer’s business is located.

Use case scenarios

Customer purchases a toll-free number. What taxes can the customer expect on an invoice for purchasing and activating this number? The following examples list various taxes for three different locations. The revenue amount is $1. 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1.00 $0 100 $0.01
District Dallas MTA $1.00 1.00 $0 100 $0.01
Total Tax $0.09

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.14

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0.00
State CA Advanced Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.18

Customer purchases a toll-free number. What taxes can the customer expect on an invoice for monthly recurring charges for this number? The following examples list various taxes for three different locations. The revenue amount is $1. 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Fee Toll Free Number $1.00 0 $0.01 100 $0.01
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.10

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Fee Toll Free Number $1.00 0 $0.01 100 $0.01
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.15

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Fee Toll Free Number $1.00 0 $0.01 100 $0.01
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 100 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0.00
State CA ADVANCED Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.20

Customer purchases a DID number. What taxes can the customer expect on an invoice for purchasing and activating this number? The following examples list various taxes for three different locations. The revenue amount is $1. 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 64.9 $0.12
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 6.25 $0 100 $0.07
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.22

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Universal Service Fund $1.00 18.4 $0.01 64.9 $0.12
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 4 $0 100 $0.05
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.06
City Local Gross Receipts Tax $1.00 2.35 $0 100 $0.02
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.30

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fund $1.00 18.4 $0 64.9 $0.12
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 35.1 $0
State CA Teleconnect Fund $1.00 1.08 $0 35.1 $0
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 35.1 $0
State CA ADVANCED Serv Fund Surcharge $1.00 0.56 $0 35.1 $0
State CA Universal Lifeline Surcharge $1.00 4.75 $0 35.1 $0.02
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.24

Customer purchases a DID number. What taxes can the customer expect on an invoice for monthly recurring charges for this number? The following examples list various taxes for three different locations. The revenue amount is $1. 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Universal Service Fee $1.00 18.4 $0 64.9 $0.12
Federal Federal Cost Recovery Charge $1.00 2.289 $0 64.9 $0.01
State State Sales Tax $1.00 6.25 $0 100 $0.52
State 9-1-1 Equalization Fee $1.00 0 $0.06 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.08
City Municipal Right of Way Fee $1.00 0 $7.21 100 $7.21
City Dallas 9-1-1 Fee $1.00 0 $1.52 100 $1.52
District Dallas MTA $1.00 1 $0 100 $0.08
Total Tax $9.60

Note: The total tax amount of $9.60 for a single DID number computed above is not a typo. The fees are what make this so high for commercial establishments in Texas.

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fund $1.00 18.4 $0.01 64.9 $0.12
Federal Federal Cost Recovery Charge $1.00 2.289 $0 64.9 $0.01
State State Sales Tax $1.00 4 $0 100 $0.05
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.06
City Local Gross Receipts Tax $1.00 2.35 $0 100 $0.02
City NYC E-911 Surcharge $1.00 0 $1.00 100 $1.00
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $1.30

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Universal Service Fund $1.00 18.4 $0 64.9 $0.12
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 35.1 $0
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 35.1 $0
State CA Teleconnect Fund $1.00 1.08 $0 35.1 $0
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 35.1 $0
State CA Advanced Serv Fund Surcharge $1.00 0.56 $0 35.1 $0
State CA Universal Lifeline Surcharge $1.00 4.75 $0 35.1 $0.02
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
County San Francisco Access Line Tax $1.00 0 $3.39 100 $3.39
Total Tax $3.63

Customer has usage charges associated with inbound calls to a US Domestic Toll Free number. What taxes can customer expect on their invoice for the usage portion? 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Fee Toll Free Number $1.00 0 $0.01 100 $0.01
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.10

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Fee Toll Free Number $1.00 0 $0.01 100 $0.01
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.15

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal FCC Fee Toll Free Number $1.00 0 $0.01 100 $0.01
Federal Federal Cost Recovery Charge $1.00 1.862 $0 64.9 $0.01
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 100 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0.00
State CA ADVANCED Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.20

Customer has usage charges associated with inbound calls to a US DID number. What taxes can customer expect on their invoice for the usage portion?

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.08

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
City Local Gross Receipts Tax $1.00 2.35 $0 100 $0.02
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.15

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 100 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0
State CA Advanced Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.18

Customer has usage charges associated with inbound calls to a US DID number. What taxes can customer expect on their invoice for the usage portion? 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.08

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.13

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 100 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0
State CA Advanced Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.18


Customer has usage charges associated with inbound calls to a US DID number. What taxes can customer expect on their invoice for the usage portion? 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 100 $0.18
Federal Federal Cost Recovery Charge $1.00 2.289 $0 100 $0.02
State State Sales Tax $1.00 6.25 $0 100 $0.07
Total Tax $0.27

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 100 $0.18
Federal Federal Cost Recovery Charge $1.00 2.289 $0 100 $0.02
State NY State Excise Tax $1.00 2.5 $0 100 $0.04
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.25

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 100 $0.18
Federal Federal Cost Recovery Charge $1.00 2.289 $0 100 $0.02
County Local Utility Users Tax $1.00 7.5 $0 100 $0.10
Total Tax $0.00


Customer has usage charges for outbound local calls. What taxes can customer expect on their invoice for the usage portion?  

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.08

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
City Local Gross Receipts Tax $1.00 2.35 $0 100 $0.02
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.15

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 100 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0
State CA Advanced Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.18

Customer has usage charges for outbound intra-state calls. What taxes can customer expect on their invoice for the usage portion?  

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 6.25 $0 100 $0.06
State State Cost Recovery Fee $1.00 0 $0 100 $0
City City Sales Tax $1.00 1 $0 100 $0.01
District Dallas MTA $1.00 1 $0 100 $0.01
Total Tax $0.08

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State State Sales Tax $1.00 4 $0 100 $0.04
State NY State Excise Tax $1.00 2.5 $0 100 $0.03
City County Sales Tax $1.00 4.5 $0 100 $0.05
District Metro Commuter Trans. District $1.00 0.375 $0 100 $0.00
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.13

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
State CA Emer Tel. Users Surcharge $1.00 0.75 $0 100 $0.01
State CA Telecom Relay Systems Surcharge $1.00 0.5 $0 100 $0.01
State CA Teleconnect Fund $1.00 1.08 $0 100 $0.01
State CA High Cost Fund(A) Surcharge $1.00 0.35 $0 100 $0
State CA Advanced Serv Fund Surcharge $1.00 0.56 $0 100 $0.01
State CA Universal Lifeline Surcharge $1.00 4.75 $0 100 $0.05
County Local Utility Users Tax $1.00 7.5 $0 100 $0.09
Total Tax $0.18

Customer has usage charges for outbound inter-state calls. What taxes can customer expect on their invoice for the usage portion? 

Location: Dallas, TX

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 100 $0.18
Federal Federal Cost Recovery Charge $1.00 2.289 $0 100 $0.02
State State Sales Tax $1.00 6.25 $0 100 $0.07
Total Tax $0.27

Location: New York, NY

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 100 $0.18
Federal Federal Cost Recovery Charge $1.00 2.289 $0 100 $0.02
State NY State Excise Tax $1.00 2.5 $0 100 $0.04
District NY MTA Surcharge on Excise Tax $1.00 0.595 $0 100 $0.01
Total Tax $0.25

Location: San Francisco, CA

Tax Authority Tax Description Revenue Tax Rate Percent Fee Rate Percent Taxable Tax Amount
Federal Federal Universal Service Fee $1.00 18.4 $0 100 $0.18
Federal Federal Cost Recovery Charge $1.00 2.289 $0 100 $0.02
County Local Utility Users Tax $1.00 7.5 $0 100 $0.10
Total Tax $0.00