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    E-commerce Sales Tax Nexus: State-by-State Guide

    Understand when you have sales tax obligations in each US state, economic nexus thresholds, and registration requirements.

    Since the 2018 Supreme Court decision in South Dakota v. Wayfair, e-commerce sellers must collect and remit sales tax in states where they have "economic nexus" - even without a physical presence. This guide helps you understand when and where you have sales tax obligations.

    What is Economic Nexus?

    Economic nexus means you must collect sales tax in a state once you exceed specific sales thresholds, regardless of physical presence.

    Most Common Threshold:

    $100,000 in sales OR 200 transactions in a calendar year

    Used by 30+ states including California, Texas, Florida, New York

    State-by-State Economic Nexus Thresholds

    High Volume States

    • California: $500,000 in sales
    • Texas: $500,000 in sales
    • New York: $500,000 AND 100 transactions
    • Florida: $100,000 in sales

    Standard Threshold States

    • Illinois: $100,000 OR 200 transactions
    • Pennsylvania: $100,000 in sales
    • Ohio: $100,000 OR 200 transactions
    • Michigan: $100,000 OR 200 transactions

    Special Rules for Marketplace Sellers

    If you sell through Amazon, eBay, Etsy, or Walmart Marketplace, these platforms typically handle sales tax collection for you in most states.

    Amazon FBA Sellers:

    Amazon collects sales tax in all states with marketplace facilitator laws (44 states). You may still need to file returns even if Amazon collects.

    Shopify Sellers:

    You must register and collect sales tax yourself. Shopify can automate collection if you configure it correctly.

    Multi-Channel Sellers:

    If you sell on your own website AND marketplaces, you'll need to track nexus separately for each channel.

    Step-by-Step Compliance Process

    1

    Determine Where You Have Nexus

    Review sales data by state for the past 12 months. Use tools like TaxJar or Avalara to automate tracking.

    2

    Register for Sales Tax Permits

    Apply for a permit in each nexus state. Processing time: 2-6 weeks. Costs vary ($0-$100 per state).

    3

    Configure Your Shopping Cart

    Set up sales tax collection in Shopify, WooCommerce, or your e-commerce platform for each registered state.

    4

    File Returns (Monthly, Quarterly, or Annually)

    Filing frequency depends on sales volume. High-volume states may require monthly filing.

    5

    Remit Tax Collected

    Pay states the sales tax you collected from customers by the filing deadline.

    Cost-Effective Compliance Solutions

    Software Solutions:

    • • TaxJar: $19-99/mo - Automated calculations and filing
    • • Avalara: $59+/mo - Enterprise-level automation
    • • Shopify Tax: Built-in for Shopify stores

    Outsourced Solutions:

    • • Synergy Pro CPA: Full-service multi-state filing
    • • Sales Tax Accountants: Specialized CPAs
    • • DIY Filing: Manual process via state portals

    SynergyPro CPA | U.S. CPA-Led Accounting Services

    📧 contact@synergyprocpa.com | 🌐 www.synergyprocpa.com | 📅 Schedule: calendly.com/synergyprocpa/30min

    This resource is provided free of charge. For personalized guidance, schedule a consultation with our team.