Shopify doesn't handle nexus for you. NexusFlag does — starting free.
The distinction that matters: Shopify calculates the tax rate to charge. We tell you where you need to collect in the first place.
Not tax advice. NexusFlag tracks published state nexus thresholds — consult a CPA for guidance on your specific situation.
Export your order data from Shopify and upload via CSV. Direct Shopify integration is in development — for now, the CSV import covers everything.
NexusFlag maps your trailing-12-month revenue to each state's economic nexus threshold. States you've crossed are flagged red. States approaching threshold are flagged yellow.
As your sales grow, NexusFlag sends email alerts at 50%, 80%, and 100% of each state's threshold. When you cross, it surfaces the registration deadline specific to that state.
If you're selling across 5 or fewer states, the Starter plan at $49/mo covers everything you need.
14-day free trial on all paid plans. No credit card required to start.
"I had no idea I'd crossed nexus in three states until NexusFlag flagged it. Saved me from a very expensive conversation with my accountant."
No. Shopify calculates the correct tax rate to charge once you've told it where to collect — but Shopify does not tell you which states you're legally required to collect in. That determination is yours to make, and it changes as your sales grow.
Economic nexus means you're legally required to collect sales tax in a state based on your sales volume there — even if you have no warehouse, employees, or physical presence in that state. Following the 2018 South Dakota v. Wayfair Supreme Court decision, all states with sales tax now enforce economic nexus. For most states, the threshold is $100,000 in revenue or 200 transactions per year.
If you're under $50,000 in annual sales, most state thresholds are far away. But the time to set up monitoring is before you cross a threshold, not after. NexusFlag's free plan monitors one state at zero cost — start there.
You likely need to register for a sales tax permit in that state, begin collecting, and potentially file for prior periods. This is a situation where a CPA or sales tax attorney should be involved. NexusFlag can help you identify which states you've crossed — acting on it requires professional guidance.
Free plan available. See your nexus exposure in minutes.
Start free — no credit card neededNot tax advice. NexusFlag monitors published state nexus thresholds — consult a CPA for guidance specific to your situation.