Marketplace Facilitator Tax: What Online Sellers Need to Know in 2026
Last updated: April 2026
Researched by the NexusFlag Research Team
A marketplace facilitator law requires online platforms like Amazon, Etsy, Walmart, and Shopify to collect and remit sales tax on behalf of third-party sellers for orders placed through the marketplace.
Which Marketplaces Collect Sales Tax For You?
Amazon, Etsy, eBay, and Walmart Marketplace are all marketplace facilitators — they collect and remit sales tax on your behalf in all states where sales tax applies. You do not need to set up tax collection for sales made through those platforms. Your own Shopify store is a completely different story.
Shopify does not collect or remit sales tax on behalf of merchants. Unlike Amazon and Etsy, Shopify is a platform, not a marketplace facilitator. Shopify merchants are responsible for their own sales tax compliance — including determining nexus, setting tax rates, collecting at checkout, filing returns, and remitting payments to each state.
Sales Tax Collection by Platform
| Platform | Collects in all states? |
|---|---|
| Amazon | Yes |
| Etsy | Yes |
| Walmart Marketplace | Yes |
| eBay | Yes |
| Shopify (own store) | No |
| WooCommerce (own store) | No |
| BigCommerce (own store) | No |
Your Obligations as a Marketplace Seller
Selling through Amazon or Etsy does not eliminate your sales tax responsibilities — it shifts some of them. The marketplace handles collection and remittance for orders placed through their platform, but you still have independent obligations to track and potentially act on.
Sales through Amazon / Etsy / eBay / Walmart
The marketplace collects and remits the sales tax. You do not need to set up tax collection for those orders. However, you must still track your sales volume into each state, because in some states those marketplace sales count toward your nexus threshold. If your Amazon sales push you over the threshold in a state that counts marketplace volume, you may need to register and collect independently for other channels.
Sales through your own Shopify or WooCommerce store
You are fully responsible for sales tax compliance. This means determining where you have nexus, registering with each state, configuring your checkout to collect the correct tax rate, filing returns on schedule, and remitting payments to each state. Shopify provides tools to help calculate rates, but Shopify does not file or remit on your behalf.
Do Marketplace Sales Count Toward Nexus?
This is the most misunderstood aspect of marketplace facilitator laws. The answer varies by state and is the primary reason multi-channel sellers — those who sell on both Amazon and their own website — can unknowingly create nexus obligations they did not expect.
Most states exclude marketplace-facilitated sales from your personal nexus threshold calculation. The logic: since the marketplace is already collecting tax on those sales, there is no need to count them against your threshold. A handful of states, however, include all sales into the state — regardless of channel — in the threshold total. California and Texas are the most significant examples.
Sample State Rules: Marketplace Sales in Nexus Threshold
| State | Marketplace sales included in threshold? |
|---|---|
| California | Yes — included |
| Minnesota | Yes — included |
| Washington | Yes — included |
| Texas | Yes — included |
| New York | No — excluded |
| Florida | No — excluded |
| Illinois | No — excluded |
| Ohio | No — excluded |
This table shows a representative sample. Verify the current rule in each state with the state Department of Revenue before making compliance decisions. View full state data.
Marketplace Facilitator Laws by State
46 states plus Washington D.C. have enacted marketplace facilitator laws that require qualifying platforms to collect and remit sales tax on behalf of third-party sellers. The five states without a statewide sales tax — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no such requirement at the state level.
Most states define a "marketplace facilitator" as a business that contracts with sellers to facilitate sales, handles payment processing, and has the ability to collect from the buyer. Platforms that only provide infrastructure but do not process payments or facilitate the actual transaction may not qualify as marketplace facilitators under some state definitions.
46
States + D.C. with marketplace facilitator laws
5
States with no statewide sales tax (no law needed)
2020
Year all major marketplaces were fully compliant
See exactly where you have nexus
NexusFlag tracks your marketplace and direct sales separately, applies each state's specific rules, and tells you where and when you need to register.
Frequently asked questions about marketplace facilitator tax
Is Shopify a marketplace facilitator?
No. Shopify is not a marketplace facilitator. Shopify provides e-commerce infrastructure — hosting, payment processing, storefront tools — but Shopify does not collect or remit sales tax on behalf of merchants selling through their own Shopify stores. Shopify merchants are legally responsible for their own sales tax collection and remittance in every state where they have nexus.
Do Amazon sales count toward my nexus threshold?
It depends on the state. Most states exclude marketplace-facilitated sales from your personal nexus threshold because Amazon is already collecting and remitting the tax on those sales. However, some states — including California, Minnesota, and others — include all sales into the state in your threshold calculation regardless of the channel. Check each state's specific rules, because getting this wrong can mean either over-registering or under-registering.
Do I still need to register if a marketplace collects for me?
If you sell exclusively through marketplaces like Amazon and Etsy and those marketplaces are collecting tax in every state, you may not have an independent nexus obligation in states where marketplace sales are excluded from your threshold. However, if you also sell through your own website or have physical nexus in a state, you will need to register and collect independently. Many sellers have both marketplace and direct sales, which complicates this significantly.
What if I sell on Amazon AND my own website?
Selling on both Amazon and your own direct website means you have two separate streams of sales to track. Amazon handles collection for Amazon orders. For your direct website sales, you must collect and remit sales tax in every state where you have nexus. In states that include marketplace sales in your nexus threshold calculation, your Amazon volume could push you over the threshold and require registration for your direct sales too — even if direct sales alone would not have crossed the threshold.
Which states have marketplace facilitator laws?
46 states plus Washington D.C. have marketplace facilitator laws requiring qualifying platforms to collect and remit sales tax on behalf of third-party sellers. The five states without statewide sales tax — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no such requirement at the state level. Alaska has local marketplace facilitator rules in some jurisdictions through the Alaska Remote Seller Sales Tax Commission.
Disclaimer: NexusFlag provides informational data about marketplace facilitator laws and state nexus thresholds — not tax advice. Platform policies and state rules change. Always verify current requirements with a qualified sales tax professional or each state's Department of Revenue before making compliance decisions.