SURPLUS LINES TAX LAWS BY STATE

 

State Statutory Citation to Insurance Code Tax Rate Applied

Alabama		 §27-10-31 6% (annually)
 


Alaska

 §21.33.055
§21.34.180
§21.34.190		 2.7% (+1% filing fee) (quarterly)
0.75% (wet marine) (annually)

Arizona		 §20-415
§20-416 (a)		 3% (semi-annually) (+ 0.20% stamping fee).
Multi-state risks (quarterly)

Arkansas		 §23-65-315 4% (within 60 days following the calendar quarter that the business was transacted)

California		 §1775.5
§1775.1(a)		 3% (+ stamping fee of 0.18%, effective Jan. 1, 2023)
(monthly or annual based on prior year tax liability).

Colorado		 §10-5-111 3% (effective Jan. 1, 2024)‎

Connecticut		 §38(a)-743 4% (quarterly)

Delaware		 §1925 3%

District of Columbia		 §31-2502.40 2% (semi-annually)

Florida		 §626.932
§626.921(f)
§626.9325		 4.94% (not wet marine and transportation), plus 0.06% service fee paid by the insured to the surplus lines agent, who remits to the FSLSO.

Georgia		 §33-5-31 4% (quarterly)

Hawaii		 §431:8-315 4.68% (quarterly)

Idaho		 §41-1229 1.50% (+ stamping fee of 0.50%) (annually)
Illinois 215 ILCS 5/445 3.5% (+ up to 1% fire marshal tax) (semi-annually)
0.04% stamping fee (effective Jan. 1, 2023) (monthly)

Indiana		 §27-1-15.8-4 2.5% (annually)

Iowa		 §515I.3(2)
§432.1(4)(a)-(e)		 .975% (for the 2024 calendar year), .95% (for the ‎‎2025 calendar year), .925% (for the 2026 calendar ‎year), and .9% (for the 2027 and subsequent ‎calendar years) ‎

Kansas		 §40-246c ‎3% (effective Jan. 1, 2024) (annually) ‎

Kentucky		 §304.10-180 3% plus 1.8% surcharge, payable by broker (annually)

Louisiana		 §22:439 4.85% (quarterly)

Maine		 Title 24-A §2016
Title 36 §2531		 3%‎ (applied retroactively to Jan. 1, 2023)‎ of difference between gross premiums and return premiums (within 45 days of end of each quarter and annually)

Maryland		 §3-324, 3-325 3% (quarterly and semi-annually)

Massachusetts		 Ch. 175 §160
Ch. 175 §168
Ch. 175 §168A		 4% (annually)

Michigan		 §500.1905(3)(d) 2% (+ regulatory fee of 0.5% on premiums written in the state) (semi-annually)

Minnesota		 §297I.05(7)(a) 3%, less returns and dividends, plus .04% stamping fee (effective Oct. 10, 2016)  (.06% for transactions with an effective date on or after 1/1/2013 to 9/30/2016) (payable by individual licensee bi-annually)

Mississippi		 §83-21-25 4% premium tax plus 3%, wind pool fee, plus 0.25% stamping fee, payable by broker or agent.

Missouri		 §384.059, §384.061 5% (annually)

Montana		 §33-2-311, §33-2-705(2), §33-2-321, §50-3-109(1) 2.75%, plus 0.25% stamping fee (0% stamping fee if policy is filed electronically) and 2.5% additional tax on fire portions of surplus lines payments (annually).

Nebraska		 §44-5506
§81-523		 3% (quarterly)

Nevada		 §685A.180(1)
§680B.027(1)		 3.5% (+ 0.4% stamping fee applicable to all premiums) (quarterly)

New Hampshire		 §405:29 3% (annually)

New Jersey		 §17:22-6.59 5% (quarterly)

New Mexico		 §59A-6-2 3.003% (quarterly)

New York		 §2118(d)(1) 3.6% (+ 0.15% stamping fee payable to ELANY on all excess lines placements) (Additional fee of $25 for late/erroneous filing).

North Carolina		 §58-21-85 5% (filing dates vary for resident and non-resident agents) plus a 0.3% stamping fee (effective Jan. 1, 2023) payable to the NC Surplus Lines Assn.

North Dakota		 §26.1-03-17
§26.1-44-03.1
§26.1-44-06		 1.75% (annually)

Ohio		 §3905.36 5% (annually before March 31)

Oklahoma		 36 §§629
1115		 6% (on or before end of month following calendar quarter)If premium tax of previous year greater than $1000, remit quarterly estimates.

Oregon		 §731.820(1)
§735.470		 2% payable by broker, and an additional 0.3% fire marshal tax payable by broker, plus $10 flat service charge applicable for each new or renewal (not endorsement) transaction. Non-admitted wet marine and transportation policies are subject to a ¾ of 1% (0.0075%) premium tax, plus a $100 flat service charge per policy (new, renewal and endorsement), payable to the Surplus Line Association of Oregon.

Pennsylvania		 40 §991.1621 3% (+ $20 stamping fee) (annually)(Note: stamping fee becomes $45 if received after 45 days from the effective date of the placement and becomes $70 if received timely yet missing the producer affidavit).

Puerto Rico		 T.26 §1013 9% (within 60 days). This tax does not apply to medical/hospital professional malpractice coverage.

Rhode Island		 §27-3-38(d) 4% (quarterly estimate, plus annual broker report)

South Carolina		 2012 S.C.Act 283 6% blended rate, paid by broker online to the South Carolina DOI. The 2% municipal business tax no longer applies.

South Dakota		 §58-32-44 refers to
Title 10 (Taxation)
§10-44-2(3)
§10-44-9		 2.5% payable by broker3% for fire insurance (annually, except if more than $5,000 of surplus lines premium tax, then quarterly)

Tennessee		 §56-14-113
§56-4-206		 5% on gross premiums (less return premiums where the insurance covers an insured whose home state is Tennessee).

Texas		 Ins. § 225.004 4.85% (+ stamping fee of .04%) (reduced from ‎‎.075%, effective Jan. 1, 2024)‎

Utah		 R 590-157-5
§31A-3-301
§31A-15-103		 4.25% (+ 0.18% stamping office fee) (not ocean marine insurance) (due 25th day of the following month closing the quarter)

Vermont		 T.8 §5035 3% (quarterly)

U.S. Virgin Islands		 T.22 §662(a)
T.22 §603(b)		 5% (quarterly)

Virginia		 §38.2-4809(A)(1)
refers to Article 1,
Title 58.1-2500 et seq.
(Taxation)
§58.1-2501(A)(1)		 2.25% (except workers’ compensation) (quarterly if premium tax liability is expected to exceed $1,500)

Washington		 §48.14.020
§48.15.120		 2% (+0.10% stamping fee)
(annually by March 1)

West Virginia		 §33-12C-7 4.55% (quarterly)

Wisconsin		 §618.43 3% (annual by March 1).

Wyoming		 §26-11-118 3% (quarterly)