The marketplace collects and remits sales tax for you. That does not always take care of your own obligations in the state.

US marketplace sellers: when you need to register for sales tax

Part of the guide Entering the US Market Without Costly Detours: Legal Form, Taxes, Law, Customs

State table current as of August 31, 2026. The thresholds have been checked against state statutes and state tax authorities. The most recent changes came in Kentucky (the 200-transaction threshold was repealed effective August 1, 2026, HB 757, 2026 Ky. Acts ch. 161) and Illinois (repealed effective January 1, 2026). States change these figures all the time, so please talk to us before you decide whether to register.

On June 21, 2018, the US Supreme Court gave states the power to tax remote sales based on a seller's economic activity in the state, known as economic nexus. Today all 45 states with a statewide sales tax, plus Washington D.C., have economic nexus laws on the books; Missouri was the last to join, effective January 1, 2023.

Around the same time, states also began requiring marketplace facilitators to collect and remit sales tax on behalf of their third-party sellers. These marketplace facilitator laws now also apply in every state with a statewide sales tax (including D.C.).

These two major developments have left many marketplace sellers asking: "Do I need to register in a state once I cross the economic nexus threshold, even though all my sales go through a marketplace that collects and remits on my behalf?"

Unfortunately, as so often with sales tax, the answer is: "It depends."

Whether a marketplace seller has to register with a state usually depends on the specific circumstances described below. Since the question only really comes up once a state has both marketplace facilitator and economic nexus laws, let's take a closer look at the states that have both. The effective dates below refer to the date on which marketplace facilitators became required to collect and remit tax on all marketplace sales.

Registration requirements generally vary depending on how a marketplace seller makes its sales in each state:

Remote multichannel sellers: you sell through one or more marketplaces and other channels into the state and have no physical presence there.
Remote marketplace sellers: you sell only through one or two marketplaces into the state and have no physical presence there.
In-state multichannel sellers: you have a physical presence in the state and sell through one or more marketplaces and other channels there.
In-state marketplace sellers: you have a physical presence in the state and sell only through one or two marketplaces.

Keep in mind that while marketplace facilitator laws can relieve some marketplace sellers of certain sales tax collection duties, marketplace sellers still have a physical presence, and an obligation to collect and remit sales or use tax, in the states where their inventory is stored for sale. Marketplace facilitator laws do not wipe out tax liability that has already arisen.

The table below is based on state laws and information from state tax authorities as of their introduction (compiled as of July 31, 2019). Many states have since adjusted their rules: in particular, the former 200-transaction threshold has been dropped in many places, but the basic pattern of $100,000 in annual sales (California, Texas and New York: $500,000) still applies. Always consult a trusted tax advisor directly and check the current position with the relevant tax authority before deciding how to handle sales in a particular state.

Note that if you sell through your own online store in the US, you as the seller are always solely responsible for handling sales tax. You need to work out whether, and where, your dropshipping or e-commerce business creates nexus. That determines where you register for sales tax and then collect and remit it in each state.

1Different states, different rules

Whether you have to remit sales tax on your marketplace business depends on which states you sell into. Here is how the rules can help you apply sales tax correctly under each state's laws.

State	Sales tax trigger
Alabama	More than $250,000 in Alabama sales in the previous calendar year. When calculating the threshold: Remote sellers should include direct sales and sales through a non-collecting marketplace Marketplace facilitators should include all sales made through the marketplace, including sales by affiliates and marketplace sellers Marketplace sellers should exclude sales made through a collecting marketplace
Alaska	At least 200 transactions or more than $100,000 in statewide gross sales of goods or products in the previous calendar year. When calculating the threshold: Remote sellers should include direct sales and sales through a marketplace Marketplace facilitators should include all gross sales in Alaska
Arizona	For remote sellers, more than $200,000 in Arizona sales for calendar year 2019; more than $150,000 for calendar year 2020; and more than $100,000 for calendar year 2021 and later. For marketplace facilitators, more than $100,000 in Arizona sales per year. When calculating the threshold: Marketplace sellers should exclude marketplace sales when calculating the threshold Marketplace facilitators should include all sales through the marketplace
Arkansas	At least 200 transactions or more than $100,000 in total Arkansas sales in the previous or current calendar year. When calculating the threshold: Remote sellers should exclude sales made through a collecting marketplace Marketplace facilitators should include all sales through the marketplace
Colorado	At least $100,000 in Colorado retail sales in the current or previous calendar year. When calculating the threshold: Remote sellers should exclude sales made through a marketplace Marketplace facilitators should include all sales through the platform
Connecticut	At least 200 transactions and $250,000 in Connecticut gross receipts in the preceding 12-month period; the threshold changes to 200 transactions and $100,000 in sales from July 1, 2019. When calculating the threshold: Remote sellers should include sales through a marketplace Marketplace facilitators include all sales made through the marketplace
Florida	A marketplace facilitator with a physical presence in Florida, or that makes or facilitates more than $100,000 in taxable sales of tangible personal property in Florida in the previous calendar year, must collect and remit sales tax on behalf of marketplace sellers. When calculating the threshold: Marketplace facilitators include direct and third-party sales in their thresholds Remote sellers should exclude sales made through a marketplace
Georgia	A marketplace facilitator that makes or facilitates $100,000 or more in taxable retail sales, totaling $100,000 or more, in the previous or current calendar year is the retailer for every taxable retail sale it facilitates in Georgia on behalf of a marketplace seller. When calculating the threshold: Marketplace facilitators include direct and third-party sales in their thresholds Remote sellers should exclude sales made through a marketplace
Hawaii	At least 200 transactions or $100,000 in gross income from Hawaii sales in the current or previous calendar year. When calculating the threshold: Marketplace facilitators should include direct and third-party sales in their thresholds Remote sellers should exclude sales through a marketplace, except: sales of tangible personal property made through a marketplace but shipped into the state by the marketplace seller, and sales of intangible personal property and services in the state that are ultimately used or consumed in the state, whether sold directly or through a facilitator.
Idaho	More than $100,000 in cumulative gross receipts from Idaho sales in the current or previous calendar year. When calculating the threshold: Remote sellers include sales through a marketplace when calculating the threshold. Marketplace facilitators include all sales through the marketplace when calculating the threshold
Illinois	At least $100,000 in gross receipts from Illinois sales in the current or previous calendar year (the 200-transaction threshold was repealed effective January 1, 2026). When calculating the threshold: Remote sellers should include marketplace sales made before January 1, 2020, and exclude them from January 1, 2020 Marketplace facilitators should include all sales through the marketplace from January 1, 2020
Indiana	More than $100,000 in gross revenue from Indiana sales in the current or previous calendar year (the 200-transaction threshold was repealed effective January 1, 2024). When calculating the threshold: Remote sellers exclude sales made through a marketplace, unless the marketplace is not required to collect tax on their behalf Marketplace facilitators include all sales made through the marketplace
Iowa	At least $100,000 in Iowa sales or at least 200 separate transactions in the current or previous calendar year from January 1 to June 30, 2019. The transaction threshold was abolished as of July 1, 2019. When calculating the threshold: Remote sellers include sales made through a marketplace Marketplace facilitators include all sales made through the marketplace
California	More than $500,000 in California sales in the current or previous calendar year. When calculating the threshold: Remote sellers should include sales made through a marketplace facilitator Marketplace facilitators should include all sales through the marketplace
Kansas	More than $100,000 in Kansas sales in the current or previous calendar year. When calculating the threshold: Marketplace facilitators include all sales (direct and third-party) made through the marketplace
Kentucky	Sales only	$100,000 (200-transaction threshold removed as of August 1, 2026)	$100,000 (200-transaction threshold removed by Act 15 of the 2023 session)
Maryland	More than $100,000 in gross revenue or at least 200 separate sales of tangible personal property or taxable services in Maryland in the current or previous calendar year. When calculating the threshold: Remote sellers should include all sales, direct and facilitated Marketplace facilitators should also include all sales into the state
Massachusetts	More than $100,000 in taxable or exempt sales of tangible personal property or services in Massachusetts in the current or previous tax year. When calculating the threshold: Remote sellers should exclude sales made through a collecting marketplace Marketplace facilitators should include all sales made through the marketplace
Michigan	More than $100,000 in taxable or non-taxable sales or at least 200 transactions in the state in the previous calendar year. When calculating the threshold: Remote sellers should include direct sales and sales made through a marketplace Marketplace facilitators include all sales made through the marketplace
Minnesota	More than $100,000 in sales or 200 retail sales transactions in the state over any period of 12 consecutive months. When calculating the threshold: Remote sellers should include sales made through a collecting marketplace Marketplace facilitators include all sales made through the marketplace
Mississippi	More than $250,000 in sales in the state over any consecutive 12-month period. When calculating the threshold: Remote sellers should include direct sales but not sales made through a collecting marketplace Marketplace facilitators should include all sales made through the marketplace
Missouri	More than $100,000 in gross receipts from taxable sales of tangible personal property delivered into Missouri in the current or previous calendar year. The Missouri Department of Revenue has not yet announced how the threshold is to be calculated.
Nebraska	More than $100,000 in gross revenue or at least 200 separate transactions into Nebraska in the current or previous calendar year. When calculating the threshold: Remote sellers should include sales made through a collecting marketplace Marketplace facilitators include all sales made through the marketplace
Nevada	More than $100,000 in gross revenue or at least 200 transactions into Nevada in the current or previous calendar year. Currently, remote sellers should include sales made through a marketplace when calculating the threshold. The state has yet to clarify whether marketplace sellers should include or exclude marketplace sales from their threshold count as of October 1, 2019. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
New Jersey	More than $100,000 in gross revenue from New Jersey sales or at least 200 transactions into the state in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
New Mexico	At least $100,000 in total taxable gross receipts in New Mexico in the previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
New York	More than $500,000 in gross receipts and more than 100 sales of tangible personal property in New York in the preceding four sales tax quarters. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
North Carolina	More than $100,000 in gross revenue or more than 200 separate transactions in North Carolina in the previous or current calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
North Dakota	More than $100,000 in taxable sales in North Dakota in the current or previous calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold, unless the marketplace collects on their behalf. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold.
Ohio	Gross revenue of more than $100,000 or 200 transactions in Ohio in the current or previous calendar year. Marketplace facilitators include all sales through the marketplace (direct and third-party) when calculating the threshold. Marketplace sellers also include both direct and marketplace sales in the threshold.
Oklahoma	For remote sellers, at least $100,000 in total sales of tangible personal property in Oklahoma in the current or previous calendar year. Before November 1, 2019, remote sellers should include sales made through a marketplace when calculating the threshold. From November 1, 2019, remote sellers should exclude sales made through a marketplace that collects on their behalf. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold. Note: marketplace facilitators with total sales of at least $10,000 of tangible personal property in Oklahoma during the immediately preceding 12-month calendar period must file an election with the Oklahoma Tax Commission to either collect and remit sales tax or comply with the notice and reporting requirements for exempt sellers.
Pennsylvania	More than $100,000 in gross revenue in Pennsylvania in the previous 12 months. Remote sellers should include sales made through a non-collecting marketplace when calculating the threshold. Marketplace facilitators include all sales, leases and deliveries of tangible personal property and all sales of services made through the marketplace when calculating the threshold. Note: Until June 30, 2019, remote marketplace facilitators with at least $10,000 in taxable sales in Pennsylvania must elect either to register and collect and remit sales tax on all sales into Pennsylvania or to comply with the notice and reporting requirements for non-collecting sellers. From July 1, 2019, the reporting option is no longer available to sellers exceeding the $100,000 economic nexus threshold.
Puerto Rico	Total gross sales in the territory of at least $100,000 or 200 separate transactions during the seller's fiscal year. When calculating the threshold: Marketplace facilitators should include all sales made through the marketplace, including sales by related parties and marketplace sellers. Marketplace sellers should exclude sales made through a collecting marketplace.
Rhode Island	Gross revenue of at least $100,000 or at least 200 transactions in the immediately preceding calendar year. Remote sellers should include sales made through both non-collecting and collecting marketplaces when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold.
South Carolina	More than $100,000 in South Carolina sales in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold.
South Dakota	For remote sellers, more than $100,000 in gross revenue in South Dakota in the current or previous calendar year (special rules apply to marketplace providers); the 200-transaction threshold was removed as of July 1, 2023. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold.
Tennessee	More than $500,000 in retail sales to Tennessee customers in the previous or current calendar year through September 30, 2020 (threshold changes to $100,000 from October 1, 2020). When calculating the threshold: Remote sellers should include sales made through a marketplace through September 30, 2020, but exclude sales made through a marketplace from October 1, 2020. Marketplace facilitators should include all sales made through the marketplace from October 1, 2020 (excluding sales for resale).
Texas	More than $500,000 in gross sales in Texas in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators don't need to calculate the threshold: all of them must collect and remit tax on third-party sales.
Utah	More than $100,000 in gross sales or 200 or more transactions in the state in the current or previous calendar year. Remote sellers should exclude marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Vermont	More than $100,000 in gross sales or 200 or more transactions in Vermont during any preceding 12-month period. Remote sellers should include marketplace sales when calculating the threshold. Marketplace facilitators include only sales facilitated through the marketplace when calculating the threshold.
Virginia	More than $100,000 in gross sales or 200 or more transactions in Virginia in the current or previous calendar year. Remote sellers should exclude marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Washington	More than $100,000 in retail sales delivered into Washington in the current or previous calendar year. From January 1, 2020, the threshold changes to more than $100,000 in cumulative gross receipts in Washington. Remote sellers should include marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Washington DC	More than $100,000 in gross sales or at least 200 transactions into the District in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold.
West Virginia	More than $100,000 in gross sales or at least 200 transactions in the state in the current or previous calendar year. Remote sellers should exclude marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Wisconsin	More than $100,000 in gross sales in the state in the current or previous calendar year (a transaction threshold was repealed effective February 20, 2021). Remote sellers should include sales made through a marketplace when calculating the threshold.
Wyoming	More than $100,000 in gross sales in Wyoming in the current or previous calendar year (the 200-transaction threshold was dropped as of July 1, 2024). Remote sellers should exclude marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.

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Sales Tax

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2Mount Bonnell Advisors: your partner for everything US sales tax

If you sell goods in the USA, whether as a US company or as a non-resident business, you will inevitably run into sales tax.

The good news: because of the thresholds above, you won't need to register for sales tax in many states. Most clients make the bulk of their sales on the East and West Coasts, and perhaps in Texas. In most other states they sell so little that registration isn't necessary.

We support you with every aspect of US sales tax, from registration to ongoing bookkeeping and filing your sales tax returns. Our page on sales tax in the USA explains the basics, our nexus guide covers the thresholds by state, and our tax hub brings all tax topics together.

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In short

Since the Supreme Court ruling of June 21, 2018, states may tax remote sales based on economic nexus; all 45 states with a statewide sales tax, plus Washington D.C., have such laws.
The same states require marketplaces to collect and remit sales tax on behalf of their third-party sellers.
Whether you still need to register as a marketplace seller depends on whether you also sell through other channels and whether you have a physical presence in the state, such as inventory stored there.
Each state sets its own thresholds and decides which marketplace sales count toward them.
If you sell through your own online store, you alone are responsible for sales tax.

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