Since the 2018 Wayfair decision, states can require out-of-state sellers to collect sales tax once they exceed sales thresholds.
Economic nexus
Most states set a threshold, commonly $100,000 in sales or 200 transactions per year, after which a remote seller must register and collect tax. Physical presence, such as inventory in a warehouse, can also create nexus.
Marketplaces
Amazon, Etsy, eBay and similar marketplace facilitators collect and remit sales tax on your behalf in most states. You may still need to collect on sales made through your own website and handle exemption certificates for resale.
Staying compliant
Track sales by state, register where required, use tax software to automate rates and filings and keep records for audits. Sales tax collected is not your money, so keep it separate from operating cash.
Try the numbers
Use our Sales Tax Calculator to see this in practice. With its default example (Amount: $250; Sales tax rate: 7.25%; Mode: Add tax to price), it shows total: $268.13. Adjust the inputs to match your situation.
Key takeaways
- Economic nexus thresholds vary by state.
- Marketplaces often collect tax for you.
- Keep collected tax separate from operating cash.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.