Not all platforms are created equal. Some collect for you, some don't. Know the difference — before you get a compliance notice.
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Choose all channels where you currently make sales. We'll tell you which ones handle sales tax for you and which ones don't.
Don't see your platform? Anything not listed here is almost certainly not a marketplace facilitator — you handle your own tax compliance.
NexusFlag Research Team
Last updated: April 2026
As of 2026, 46 US states and the District of Columbia have enacted marketplace facilitator laws requiring platforms like Amazon, Etsy, and Walmart to collect and remit sales tax on behalf of third-party sellers. Only the five NOMAD states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no statewide sales tax and therefore no marketplace facilitator requirements.
The legal shift began after the 2018 South Dakota v. Wayfair Supreme Court ruling, which eliminated the physical presence requirement for sales tax collection. States quickly followed with marketplace facilitator laws, recognizing that placing the compliance burden on thousands of small sellers was impractical. Amazon began collecting in all applicable states by January 2020. eBay, Etsy, and Walmart Marketplace followed within the same year.
Under a marketplace facilitator law, the platform (not the individual seller) is legally responsible for calculating, collecting, and remitting sales tax on each transaction. The seller is generally relieved of the collection obligation for sales made through that platform — though they may still need to track those sales toward their own economic nexus thresholds in some states.
Shopify, WooCommerce, and BigCommerce are e-commerce platforms, not marketplaces. Legally, a marketplace facilitator must bring together buyers and sellers and facilitate the sale. A platform that simply provides software for a merchant to run their own store does not meet this definition. Merchants on these platforms own the customer relationship and are therefore fully responsible for sales tax compliance in every state where they have nexus.
A seller who generates $150,000 in annual revenue through their own Shopify store must independently determine nexus in each state, register for a sales tax permit, configure their store to collect the correct rate, and file periodic returns. The same seller generating $150,000 through Amazon has none of those obligations for the Amazon-facilitated portion — Amazon handles all of it.
Many states require that marketplace-facilitated sales still count toward the seller's economic nexus threshold, even though the marketplace collects the tax. For example, in California, a seller with $80,000 in Shopify sales and $70,000 in Amazon sales has $150,000 in total California revenue. That exceeds California's $500,000 threshold only when combined — but in states with a $100,000 threshold, both channels together could push the seller over. Tracking total volume across all channels matters, even when some channels collect tax automatically.
A marketplace facilitator is a company that operates a digital marketplace — like Amazon, Etsy, or eBay — and is required by state law to collect and remit sales tax on behalf of third-party sellers using the platform. As of 2026, 46 US states and DC have enacted marketplace facilitator laws. This shifts the tax collection burden from individual sellers to the platform itself.
Yes. Amazon is a marketplace facilitator in all US states with a sales tax. Amazon has collected and remitted sales tax on behalf of third-party sellers since 2019. Both FBA (Fulfilled by Amazon) and merchant-fulfilled orders are covered. Sellers do not need to separately register or collect tax on Amazon sales in states where Amazon facilitates.
No. Shopify is not a marketplace facilitator. Shopify is an e-commerce platform, not a marketplace. While Shopify Tax can calculate sales tax rates, Shopify does not collect or remit sales tax on your behalf. Shopify merchants are fully responsible for determining nexus, registering for sales tax permits, collecting tax from customers, and filing returns in each applicable state.
Yes. Etsy is a marketplace facilitator and automatically collects and remits sales tax in all US states with marketplace facilitator laws. Sellers on Etsy will see a 'Sales tax collected by Etsy' line on their transactions. Etsy handles the entire tax collection and remittance process — Etsy sellers are not required to separately collect or file for Etsy sales in those states.
It depends on the channel. For your Amazon sales, Amazon collects and remits — you don't need to do anything. For your Shopify sales, you are responsible for the full tax compliance cycle: determining economic nexus, registering in required states, collecting tax, and filing returns. Note that in many states, your Amazon sales still count toward your economic nexus threshold even though Amazon handles the collection.
Now that you know which platforms handle tax for you, find out whether your own-channel sales have triggered nexus in any state.
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