Unsure where you owe sales or use tax
Run Your Nexus Risk CheckUnderstand how marketplace facilitator laws impact economic nexus, thresholds, and registration obligations.
Track Amazon, Shopify, Walmart, and direct sales in one nexus dashboard.
Marketplace nexus refers to how sales made through platforms like Amazon, Walmart, Etsy, or Shopify impact your economic nexus and sales tax registration requirements.
Most states have marketplace facilitator laws that:
Even if the marketplace collects tax, you may still create nexus.
If you are new to multistate sales tax, start with our full Economic Nexus guide to understand how revenue thresholds create obligations. You can also review the Sales Tax Nexus overview to see how physical and economic triggers work together.
Check Your Nexus RiskA marketplace facilitator is a platform that lists products and processes payments on behalf of sellers.
Common examples include:
Most states require facilitators to collect and remit sales tax on behalf of third party sellers. However, marketplace collection does not eliminate nexus tracking obligations.
Because thresholds and measurement periods vary by jurisdiction, we recommend reviewing our Economic Nexus by State breakdown along with the full Economic Nexus Thresholds by State guide for detailed comparisons.
This depends on the state.
In many states:
In some states:
Because rules vary, state by state evaluation is required. Use State Nexus Lookup Tool to verify marketplace inclusion rules. Calculate threshold dates using Nexus Threshold Calculator.
If you are unsure whether you need to register now, see When Do I Have to Register for Sales Tax for state specific timing rules and practical examples.
Marketplace collection responsibility does not always remove the need for seller registration.
Scenarios where registration may still be required:
Remember that revenue is only one trigger. Inventory, remote employees, and warehouses may create physical nexus even before thresholds are exceeded. See Physical vs Economic Nexus for a side by side comparison.
Inventory stored in fulfillment centers can create physical nexus.
For example:
Physical presence creates nexus even if the marketplace collects tax. Review Sales Tax Nexus for broader rules.
Marketplace sellers must monitor both economic and physical nexus. Instead of manually testing spreadsheets, you can automate multistate monitoring with our Economic Nexus Monitoring Software, which applies rolling 12 month calculations and state specific threshold rules in real time.
Businesses selling through:
Must consolidate total sales by state before testing thresholds.
Marketplace sales may:
Track platform specific activity using Marketplace Nexus Tracker. Monitor rolling thresholds using Rolling 12 Month Nexus Tracker.
If nexus is created but registration was delayed:
If you believe nexus may have been triggered in prior periods, use the Sales Tax Liability Estimator and Back Sales Tax Calculator to evaluate potential exposure before registering. Evaluate risk with Nexus Risk Score Tool.
Effective monitoring requires:
Manual methods fail quickly for multistate marketplace sellers.
Track every platform. Every state. Every threshold.