Amazon FBA Sales Tax: What Sellers Need to Know in 2026
Last updated: April 2026
Researched by the NexusFlag Research Team
Amazon collects and remits sales tax on behalf of third-party sellers in all US states with marketplace facilitator laws. However, Amazon sellers may still have independent nexus obligations from their own website sales, and Amazon's FBA inventory storage can create physical nexus in states where Amazon warehouses are located.
Amazon as a Marketplace Facilitator
Amazon became a marketplace facilitator in all applicable US states by 2020. Under marketplace facilitator laws, Amazon is legally required to collect and remit sales tax on behalf of third-party sellers for orders placed through Amazon.com. This applies to both FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) orders.
When a customer in California buys a product from an Amazon third-party seller, Amazon collects the California sales tax at checkout, holds it, and remits it to the California Department of Tax and Fee Administration. The seller does not receive the tax amount, does not need to track it separately, and does not need to file California returns for those Amazon sales alone.
All 46
States with sales tax where Amazon collects
2020
Year Amazon completed marketplace facilitator adoption
100%
Of Amazon US orders covered by marketplace collection
In your Amazon Seller Central account, you can see this activity under Reports → Tax Document Library → Marketplace Tax Collection. Amazon provides a summary of tax collected and remitted on your behalf by state for each filing period.
The FBA Physical Nexus Trap
This is the most important — and most often overlooked — sales tax issue for Amazon FBA sellers. Amazon collects and remits tax on Amazon orders, which is straightforward. The problem is what Amazon's fulfillment network does to a seller's obligations on every other sales channel.
Amazon FBA sellers should be aware that inventory stored in Amazon fulfillment centers creates physical nexus in those states, which can trigger sales tax collection obligations on non-Amazon sales channels. A seller with FBA inventory in Tennessee, for example, has physical nexus in Tennessee and must collect sales tax on all Shopify or website sales shipped to Tennessee customers — regardless of Tennessee revenue volume.
Physical nexus has no revenue threshold. Any inventory in a state — even one unit sitting in an Amazon warehouse for one day — is enough to trigger physical nexus. Economic nexus requires crossing $100,000 in annual revenue (or a state's set threshold). Physical nexus requires nothing more than presence.
The scenario that catches FBA sellers off guard
- 1You sell on Amazon FBA and recently launched a Shopify store
- 2Amazon distributes your FBA inventory to fulfillment centers in 12 states, including Tennessee and Georgia
- 3Your Shopify store has $30,000 in Tennessee revenue — well below the $100,000 economic nexus threshold
- 4But your FBA inventory in Tennessee means you already have physical nexus there
- 5You should have been collecting on every Shopify sale to Tennessee customers from day one
Amazon Fulfillment Center States
Amazon operates more than 110 fulfillment centers across 25+ US states. Amazon does not guarantee which fulfillment center your inventory will be sent to — the network is optimized dynamically based on demand patterns, storage capacity, and shipping proximity to customers.
Most FBA sellers with inventory in the system have exposure in 8 to 15 states at any given time. The states below are the most common locations and represent the highest nexus risk for multi-channel sellers.
States with Major Amazon Fulfillment Centers
Fulfillment center locations change as Amazon expands its network. Check Amazon Seller Central for the current inventory distribution of your specific SKUs.
How to check your current FBA inventory locations: Amazon Seller Central → Inventory → Inventory Planning → Inventory Age. Select a product and look at the "Fulfillment Center" breakdown to see which states currently hold your stock.
What Amazon Reports to States
Amazon reports marketplace-facilitated sales to state revenue departments as part of its marketplace facilitator obligations. This covers all Amazon orders where Amazon collected the tax. It does not cover a seller's non-Amazon sales, off-platform B2B transactions, or sales made before a seller joined FBA.
Amazon reports on your behalf
- ✓All sales tax collected from Amazon.com orders
- ✓Remittances made to each state Department of Revenue
- ✓Marketplace tax collection summaries by state and period
You are responsible for reporting
- —Sales from your own Shopify store, website, or other direct channels
- —Sales from other platforms not covered by marketplace facilitator rules
- —In-person sales at trade shows, pop-up events, or retail locations
- —Any B2B sales made off-platform under separate purchase orders
Multi-channel sellers with both Amazon and a Shopify store need to reconcile these two reporting streams. Amazon's Marketplace Tax Collection reports show what Amazon handled. The gap between that and your total sales is what you're responsible for independently. The Shopify sales tax guide covers the non-Amazon side in detail.
Find your FBA nexus exposure in seconds
NexusFlag maps Amazon FBA physical nexus against your non-Amazon sales to show exactly where you have registration obligations you might be missing.
Frequently asked questions about Amazon FBA sales tax
Does Amazon collect sales tax for FBA sellers?
Yes. Amazon collects and remits sales tax on behalf of third-party FBA sellers in all US states with marketplace facilitator laws. Amazon acts as the marketplace facilitator for orders placed through Amazon.com, meaning Amazon collects the tax from the customer and remits it to the state. FBA sellers do not need to separately set up tax collection for their Amazon orders. This applies to both FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) orders placed through the Amazon marketplace.
Does Amazon FBA inventory in a state create nexus for my Shopify store?
Yes. Amazon FBA inventory stored in a state creates physical nexus in that state for the FBA seller — regardless of the seller's sales volume there. Physical nexus is triggered by the presence of inventory, not by revenue thresholds. If you also operate a Shopify store or any other direct sales channel, you have nexus in those warehouse states and must register and collect sales tax on your non-Amazon sales from customers in those states.
How do I find out which states Amazon stores my FBA inventory?
Amazon does not guarantee which fulfillment centers your inventory is sent to, and the locations change dynamically based on Amazon's network optimization. To see where your inventory currently resides, go to Amazon Seller Central → Inventory → Inventory Planning → Inventory Age report. The report shows inventory distribution across Amazon's fulfillment network. For a historical record, the FBA Inventory Ledger report in Seller Central shows movement logs. Common states with major Amazon fulfillment centers include California, Texas, New Jersey, Pennsylvania, Illinois, Florida, Georgia, Tennessee, Arizona, and Washington.
Do my Amazon sales count toward the nexus threshold in other states?
It depends on the state. Most states exclude marketplace-facilitated Amazon sales from your personal economic nexus threshold calculation, since Amazon is already collecting and remitting the tax. However, several states — including California, Texas, Minnesota, and Washington — include all sales into the state in the threshold calculation, regardless of the sales channel. In those states, your Amazon volume could push you over the threshold and require registration for your direct-channel sales even if those direct sales alone would not have crossed the threshold.
What Amazon sales tax reports are available in Seller Central?
Amazon Seller Central provides several reports relevant to sales tax: the Sales Tax Report (transaction-level tax collected by Amazon for each order), the Marketplace Tax Collection report (summary of what Amazon remitted on your behalf by state), and the FBA Inventory Ledger (which helps determine physical nexus exposure by state). These reports are available under Seller Central → Reports → Tax Document Library and Fulfillment reports. You should download and review these reports regularly — especially the Marketplace Tax Collection summary — when preparing your overall sales tax filing picture.
Disclaimer: NexusFlag provides informational data about marketplace facilitator laws, FBA nexus rules, and state thresholds — not tax advice. Amazon's fulfillment network and state laws change frequently. Verify current requirements with a qualified sales tax professional or each state's Department of Revenue before making compliance decisions.