Not all online retailers are required to pay local and state taxes, yet. Currently, large retailers are starting to charge and collect state taxes. Smaller companies are often exempt from collecting taxes if they do not sell over a certain amount of product. However, soon small companies may have to collect state taxes as well. To charge state taxes correctly, you need to know what the state taxes are. If you use a credit card processor or a point-of-sale system connected to a processor, those companies may be able to provide the technology for you to collect taxes correctly. While you may not be required to collect state taxes yet, you should prepare to be able to in the future.