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Tax Exempt Form

Which form a nonprofit uses to become tax-exempt, the fees and eligibility rules, what to file each year, how sales tax exemption forms differ, and a chooser.

Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

Tax exempt form chooser

Annual gross receipts ($)Total assets ($)Months since you legally formedOrganization

Application

–

–Exemption back to formation?

–Annual IRS return

Which tax exempt form do you need?

"Tax exempt form" can mean two different things:

Federal tax exemption for a nonprofit: an organization applies to the IRS for 501(c)(3) status on Form 1023 or the shorter Form 1023-EZ, filed online.
Sales tax exemption certificate: a state form that lets a buyer (a reseller, manufacturer or exempt organization) buy without paying sales tax. These come from your state revenue department, not the IRS; see states without sales tax.

Form 1023 vs 1023-EZ

The IRS user fee is $600 for Form 1023 and $275 for Form 1023-EZ. The EZ form is for smaller charities: generally gross receipts of $50,000 or less (actual and projected) and assets of $250,000 or less, and some types, such as schools, hospitals, churches that apply and supporting organizations, must use the full form. File within 27 months after the end of the month you legally formed and your exemption can generally apply back to your formation date.

After approval

Most exempt organizations file an annual return: Form 990-N if gross receipts are normally $50,000 or less, Form 990-EZ for gross receipts under $200,000 and assets under $500,000, or the full Form 990. Missing three years in a row automatically revokes exemption. Check a charity's status with the IRS nonprofit search; get an EIN first with the SS4 form.

Common questions

What form do I file for 501(c)(3) status?

Form 1023, or the shorter Form 1023-EZ if you're eligible.

How much does Form 1023 cost?

$600; Form 1023-EZ is $275.

Is a sales tax exemption form the same as 501(c)(3)?

No, sales tax exemption certificates are state forms.

Sources

More paycheck and tax calculators: State Income Tax Rates 2026 by State + No-Tax States · Tax Extension (Form 4868) · UI Claims

General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.