US taxes reference
The United States does not charge a federal sales tax. Instead, sales tax is calculated according to state, county, and municipality, according to physical or economic nexus. This page is a general guide to US taxes and doesn't replace any official government information or regulations. If you're not sure about anything related to your taxes, then contact US state tax authorities or a tax professional.
If you determine that you need to charge sales tax in one or more states, then you need to contact each of the relevant agencies and register with them. The process varies depending on where your business is based, where you sell, and individual government requirements.
Determining your tax liabilities
Whether you need to charge sales tax is based on nexus, which means a connection between your business and a state. If you have nexus in a particular state, then you probably need to charge sales taxes there. Nexus can be physical or economic.
If you're not sure where you have nexus, and you use Shopify Tax as your tax service, then you can refer to the Manage tax liability page in your Shopify admin for more information about states where you might have a tax liability.
Learn more about automatic tax liability monitoring.
Tax liability expiry
Falling below the threshold for nexus in a particular state, whether physical or economic, might not terminate your tax liability immediately. Some states have tax policies based on the idea that the behavior that created nexus, such as advertising or sales staff, continues to generate sales for some time after the behaviour stops. This concept is known as trailing nexus or residual nexus.
The following states have formal trailing nexus rules:
| State | Trailing nexus rules |
|---|---|
| California | Merchants have tax liability for the quarter the merchant stops having nexus, and for the following quarter. |
| Michigan | After the merchant stops having nexus, merchants have tax liability for the remainder of the month, and for the following eleven months. |
| Minnesota | After four days of behavior that creates nexus, merchants have tax liability for the remainder of the month, and for the following eleven months. |
| Texas | Merchants have tax liability for twelve months after the merchant stops having nexus. |
| Washington | After the merchant stops having nexus, merchants have tax liability for the remainder of the year, and for the following year. |
Other states have more subjective rulings which state that nexus continues until the behavior that created nexus stops generating sales. If you believe that you no longer have nexus in a specific state, then contact the state tax authority before you stop charging tax to your customers there.
Tax sourcing
The tax rates that you charge are affected by whether your state is an origin state or a destination state.
Sales tax for interstate sales, which are sales from one state to a different state, are typically based on destination tax rules. Some states have rules that determine tax for intrastate sales, which are sales within the same state, based on origin tax rules.
Destination states
In a destination state, the sales tax you charge is based on the address of your customer.
If you have no nexus in the state of the shipping address, then no tax is charged.
If you have nexus in the state of the shipping address, then the customer's location is used to determine taxes.
Origin states
In an origin state, the sales tax you charge is based on your location's nexus.
If you have no nexus in the state of the shipping address, then no tax is charged.
If you have a physical nexus in the state of the shipping address, then the location of your nexus is used to determine taxes. If you have a nexus but no physical location, then the customer's location is used to determine taxes.
Remote seller rules
A remote seller is a merchant that isn't physically located in a particular state, but has economic nexus there. Most states have rules determining what defines a remote seller. If you're not sure whether selling in a particular state creates economic nexus for you, then you should consult with US state tax authorities or a local tax professional.
Notice and report states
Notice and report tax laws exist in some states to ensure that customers pay a use tax. Use tax is a sales tax on purchases that a customer makes from outside their state of residence, on which no tax was collected in the state where it was purchased. If you do not have nexus in these states but you sell to customers there, then those customers are responsible for paying a use tax to their state, rather than paying sales tax to you.
Each state that uses notice and report tax laws has different rules, but in general, if your sales to customers in another state pass a certain threshold then you might be required to do the following:
- Create a notice in your store that indicates customers might need to pay use tax.
- Create a notice in your checkout process that indicates customers might need to pay use tax.
- Send an annual notice to customers spending over a certain amount in your store, reminding them that they owe use tax.
- Send an annual notice to the state, reporting information about customers that owe use tax.
The following states use notice and report tax laws:
| Alabama | Colorado | Kentucky | Louisiana | Oklahoma |
| Pennsylvania | Rhode Island | South Dakota | Tennessee | Vermont |
| Washington |
Because requirements and thresholds vary by state, you should check with US state tax authorities or a local tax professional to ensure you're following notice and report laws correctly.
Shopify Fulfillment Network
Shopify Fulfillment Network (SFN) is a fulfillment service that you can use to store your inventory and fulfill orders. If you use SFN, then you ship your inventory to a single fulfillment center. Your inventory is then distributed across a network of fulfillment centers to ship to customers. Because fulfillment centers can count as having physical nexus, you might be liable for taxes in states where SFN has a fulfillment center.
Merchants that use SFN might have physical nexus in the following states:
State tax reference
There are five states that don't have a state-wide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Although there aren't any taxes levied at the state level, you still might need to collect municipal taxes.
You can refer to this table for more information about individual states, including special tax rules, information on state tax liability, and the time periods of sales data that are considered when calculating liability.
You don't need to register with all of these agencies, only those that apply to you.
Alabama
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Alabama Department of Revenue | Destination | No | Yes |
Special tax rules in Alabama
Alabama uses notice and report laws.
While Alabama is classified as a destination state, it's also defined as a home rule state. This means that some local jurisdictions might have differing tax rules. If you need to collect sales tax in one of these jurisdictions, then you can use their simplified seller use tax (SSUT) to register with them to collect and remit taxes.
If you're not sure whether you need to register, then contact US state tax authorities or a local tax professional.
Tax liability in Alabama
Nexus is determined using sales from the previous calendar year, and is based on the revenue made from sales to customers in Alabama. Digital products and sales on marketplaces such as Amazon are not included. You might have nexus in Alabama if you met the following condition in the previous calendar year:
- Your revenue from sales to customers in Alabama was 250,000 USD or greater.
If you're not sure whether you're required to remit taxes in Alabama, then contact US state tax authorities or a local tax professional.
Alaska
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Alaska Department of Revenue | Destination | Yes | Yes |
Special tax rules in Alaska
While Alaska has no state sales tax, it's defined as a home rule state. This means that some local jurisdictions might charge a destination-based rate if the seller has nexus in that state. If you need to collect sales tax in one of these jurisdictions, then you need to register with them to collect and remit taxes.
You don't need to register in all of these jurisdictions, only with those that apply to you. If you're not sure whether you need to register in a particular jurisdiction, then contact US state tax authorities or a local tax professional.
If you're a remote seller and you need to collect sales tax in one of these jurisdictions, then you can use the Alaska Remote Seller Sales Tax Commission (ARSSTC) Uniform Code to register with them to collect and remit taxes. If you're not sure whether you need to register, then contact US state tax authorities or a local tax professional.
Tax liability in Alaska
Alaska doesn't have economic nexus laws at the state level, but some local jurisdictions do. Economic nexus requirements are implemented through the ARSSTC, which has a centralized system for tax registration and reporting.
If you're not sure whether you're required to remit taxes in Alaska, then contact US state tax authorities or a local tax professional.
Arizona
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| State of Arizona Department of Revenue | Origin | No | Yes |
Special tax rules in Arizona
If you're out-of-state, selling to customers in Arizona, and have nexus there, then you need to register with the local jurisdictions you're selling into and charge destination taxes.
Arizona has implemented a single system for registering and filing taxes in its jurisdictions. Taxpayers are required to file and pay for all tax jurisdictions, including the city of Phoenix, to the state.
Tax liability in Arizona
Nexus is determined using sales from the previous calendar year or the current calendar year, and is based on the amount of revenue from sales to customers in Arizona. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Arizona if you met any of the following conditions in the previous calendar year or in the current year:
- Your revenue from sales to customers in Arizona was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Arizona, then contact US state tax authorities or a local tax professional.
Arkansas
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Arkansas Department of Finance and Administration | Destination | Yes | Yes |
Tax liability in Arkansas
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Arkansas and the number of sales made to customers in Arkansas. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Arkansas if you met any of the following conditions in the previous calendar year or in the current year:
- Your revenue from sales to customers in Arkansas was 100,000 USD or greater.
- You made 200 or more sales to customers in Arkansas.
If you're not sure whether you're required to remit taxes in Arkansas, then contact US state tax authorities or a local tax professional.
California
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| California Department of Tax and Fee Administration | Hybrid | No | Yes |
Special tax rules
California uses a mixture of origin and destination sourcing rules. State, county and city taxes are based on the origin of the purchase (the seller), but district taxes and total tax rates are based on the destination (the buyer).
Some jurisdictions in California charge district tax. If you don't collect this tax, then you're required to inform your customers so that they can include it in their income tax. If you use Shopify Tax to calculate and collect taxes from your customers in California at checkout, then district tax is collected automatically.
In California, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice. If you add handling fees, then shipping becomes taxable. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
When you enter your tax registration information for California, you can choose whether to charge taxes according to destination rules or hybrid origin rules. The default setting is Destination.
Tax liability in California
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in California. Digital products and sales on marketplaces such as Amazon are not included. You might have nexus in California if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in California was 500,000 USD or greater.
If you're not sure whether you're required to remit taxes in California, then contact US state tax authorities or a local tax professional.
Colorado
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Colorado Department of Revenue | Destination | Yes | Yes |
Special tax rules
Colorado is separated into districts. If you're a seller in Colorado, then you need to charge state tax as well as any district taxes in your buyer's location.
Colorado has special registration and filing requirements in certain localities, while other localities may participate in the Sales and Use Tax System (SUTS) that allows simplified local registration and filing.
In Colorado, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
As of July 1, 2022, orders containing taxable goods that are delivered by a motor vehicle in Colorado are subject to a 0.27 USD non-refundable Retail Delivery Fee. If the fee is added to an order in your store, then it appears on the order's detail page.
Colorado uses notice and report laws.
Tax liability in Colorado
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Colorado. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Colorado if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Colorado was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Colorado, then contact US state tax authorities or a local tax professional.
Connecticut
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Connecticut State Department of Revenue Services | Destination | Yes | No |
Tax liability in Connecticut
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Connecticut and the number of sales made to customers in Connecticut. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Connecticut if you met all of the following conditions in a twelve month rolling period:
- Your revenue from sales to customers in Connecticut was 100,000 USD or greater.
- You made 200 or more sales to customers in Connecticut.
If you're not sure whether you're required to remit taxes in Connecticut, then contact US state tax authorities or a local tax professional.
Delaware
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Delaware Tax Center | Not applicable | No | No |
Special tax rules
Delaware does not charge sales tax.
District of Columbia
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| DC Office of Tax and Revenue | Destination | Yes | No |
Tax liability in the District of Columbia
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in the District of Columbia and the number of sales made to customers in the District of Columbia. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in the District of Columbia if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in the District of Columbia was 100,000 USD or greater.
- You made 200 or more sales to customers in the District of Columbia.
If you're not sure whether you're required to remit taxes in the District of Columbia, then contact US state tax authorities or a local tax professional.
Florida
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Florida Department of Revenue | Destination | Yes | Yes |
Special tax rules
In Florida, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
Tax liability in Florida
Nexus is determined using sales from the previous calendar year, and is based on the amount of revenue from sales to customers in Florida. Digital products and sales on marketplaces such as Amazon are not included. You might have nexus in Florida if you met the following condition in the previous calendar year:
- Your revenue from sales to customers in Florida was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Florida, then contact US state tax authorities or a local tax professional.
Registering in Florida
Where to register
-
Online (recommended by the state), or
- By completing and mailing the Florida Form DR-1
Cost
- Online: free
- By mail: $5 USD
Other fees for business registration may apply.
Required details
- Business name, physical address, contact information, and mailing address
- Federal Employer Identification Number (FEIN)
- Bank routing number and account information if you’re enrolling to file and pay tax electronically
- Name, Social Security Number (SSN), driver license number, address, and contact information of owner/sole proprietor, officers, partners, managing members, and/or trustees
- North American Industry Classification System (NAICS) number
- Date(s) when business activities will begin/began
- Description of business activities
- Employment information (date of hire, number of employees, payroll amounts, payroll agent’s PTIN, if applicable)
Processing time
- Online: about 2-3 business days
- By mail: about 2 weeks
Georgia
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Georgia Tax Center | Destination | Yes | Yes |
Tax liability in Georgia
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Georgia and the number of sales made to customers in Georgia. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Georgia if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Georgia was 100,000 USD or greater.
- You made 200 or more sales to customers in Georgia.
If you're not sure whether you're required to remit taxes in Georgia, then contact US state tax authorities or a local tax professional.
Hawaii
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| State of Hawaii Department of Taxation | Destination | Yes | Yes |
Tax liability in Hawaii
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Hawaii and the number of sales made to customers in Hawaii. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Hawaii if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Hawaii was 100,000 USD or greater.
- You made 200 or more sales to customers in Hawaii.
If you're not sure whether you're required to remit taxes in Hawaii, then contact US state tax authorities or a local tax professional.
Idaho
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Idaho State Tax Commission | Destination | No | Yes |
Special tax rules
If you don't have a location in Idaho, but have economic nexus there, then you only charge the state tax at the destination.
Tax liability in Idaho
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Idaho. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Idaho if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Idaho was 100,000 USD or greater.
- You made 200 or more sales to customers in Idaho.
If you're not sure whether you're required to remit taxes in Idaho, then contact US state tax authorities or a local tax professional.
Illinois
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Illinois Department of Revenue | Origin | Yes | Yes |
Special tax rules
Illinois follows origin sourcing rules for sales within the state. For out-of-state sales, destination sourcing applies.
In Illinois, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice and there is a choice of means to get the product, such as local pickup. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
Tax liability in Illinois
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Illinois and the number of sales made to customers in Illinois. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Illinois if you met any of the following conditions in a twelve month rolling period:
- Your revenue from sales to customers in Illinois was 100,000 USD or greater.
- You made 200 or more sales to customers in Illinois.
If you're not sure whether you're required to remit taxes in Illinois, then contact US state tax authorities or a local tax professional.
Registering in Illinois
Where to register
Cost
Free (other fees for business registration may apply)
Required details
- Business name, physical address, contact information, and mailing address
- Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
- Name, Social Security Number (SSN), driver license number, address, and contact information of owner/sole proprietor, officers, partners, managing members, and/or trustees
- North American Industry Classification System (NAICS) number
- Date(s) when business activities will begin/began
- Estimated yearly tax liability with the state of Illinois
Processing time
- Online: about 2-3 business days
- By mail: about 4-6 weeks
Indiana
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Indiana Department of Revenue | Destination | Yes | No |
Tax liability in Indiana
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Indiana and the number of sales made to customers in Indiana. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Indiana if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Indiana was 100,000 USD or greater.
- You made 200 or more sales to customers in Indiana.
If you're not sure whether you're required to remit taxes in Indiana, then contact US state tax authorities or a local tax professional.
Iowa
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Iowa Department of Revenue | Destination | No | Yes |
Special tax rules
Taxes in Iowa are calculated on a destination basis. If you're located in the state and have nexus there, then you need to charge taxes based on the destination of the buyer. If you're an out-of-state seller, then only the state tax rate applies.
Tax liability in Iowa
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Iowa. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Iowa if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Iowa was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Iowa, then contact US state tax authorities or a local tax professional.
Kansas
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Kansas Department of Revenue | Destination | Yes | Yes |
Tax liability in Kansas
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Kansas. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Kansas if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Kansas was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Kansas, then contact US state tax authorities or a local tax professional.
Kentucky
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Kentucky Department of Revenue | Destination | Yes | No |
Special tax rules
Kentucky uses notice and report laws.
Tax liability in Kentucky
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Kentucky and the number of sales made to customers in Kentucky. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Kentucky if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Kentucky was 100,000 USD or greater.
- You made 200 or more sales to customers in Kentucky.
If you're not sure whether you're required to remit taxes in Kentucky, then contact US state tax authorities or a local tax professional.
Louisiana
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Louisiana Department of Revenue | Destination | No | Yes |
Special tax rules
Louisiana is generally a destination state, but has some particular rules regarding the state's jurisdictions. Different jurisdictions might have different rules on what counts as nexus based on physical or economic presence. If you're not sure whether you have nexus in a particular jurisdiction, then contact a local tax authority.
In Louisiana, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice and there is a choice of means to get the product, such as local pickup. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
Louisiana uses notice and report laws.
Tax liability in Louisiana
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Louisiana and the number of sales made to customers in Louisiana. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Louisiana if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Louisiana was 100,000 USD or greater.
- You made 200 or more sales to customers in Louisiana.
If you're not sure whether you're required to remit taxes in Louisiana, then contact US state tax authorities or a local tax professional.
Maine
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Maine Revenue Services | Destination | No | No |
Special tax rules
In Maine, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice and there is a choice of means to get the product, such as local pickup. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
Tax liability in Maine
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Maine and the number of sales made to customers in Maine. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Maine if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Maine was 100,000 USD or greater.
- You made 200 or more sales to customers in Maine.
If you're not sure whether you're required to remit taxes in Maine, then contact US state tax authorities or a local tax professional.
Maryland
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Comptroller of Maryland | Destination | Yes | No |
Special tax rules
In Maryland, shipping is not taxable if the actual cost of shipping is listed on a separate line on the invoice. If you add handling fees, then shipping becomes taxable. You can choose whether you want to charge taxes on shipping when you set up your taxes and enter your sales tax ID. If you're not sure whether you should charge taxes on shipping, then leave this option on the default setting and check with US state tax authorities or a local tax professional.
Tax liability in Maryland
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Maryland and the number of sales made to customers in Maryland. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Maryland if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Maryland was 100,000 USD or greater.
- You made 200 or more sales to customers in Maryland.
If you're not sure whether you're required to remit taxes in Maryland, then contact US state tax authorities or a local tax professional.
Massachusetts
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Massachusetts Department of Revenue | Destination | No | No |
Special tax rules
In Massachusetts, clothing products with a price under 175 USD are exempt from state sales tax, and clothing products with a price of over 175 USD will collect tax only on the amount that their price is over 175 USD. For example, an item of clothing with a price of 200 USD will be taxed on 25 USD, because the first 175 USD is not taxable.
To set up a tax override for clothing items, refer to Tax overrides and exemptions.
Tax liability in Massachusetts
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Massachusetts. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Massachusetts if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Massachusetts was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Massachusetts, then contact US state tax authorities or a local tax professional.
Michigan
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Michigan Department of Treasury | Destination | Yes | No |
Tax liability in Michigan
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Michigan and the number of sales made to customers in Michigan. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Michigan if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Michigan was 100,000 USD or greater.
- You made 200 or more sales to customers in Michigan.
If you're not sure whether you're required to remit taxes in Michigan, then contact US state tax authorities or a local tax professional.
Minnesota
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Minnesota Department of Revenue | Destination | Yes | Yes |
Tax liability in Minnesota
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Minnesota and the number of sales made to customers in Minnesota. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Minnesota if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Minnesota was 100,000 USD or greater.
- You made 200 or more sales to customers in Minnesota.
If you're not sure whether you're required to remit taxes in Minnesota, then contact US state tax authorities or a local tax professional.
Mississippi
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Mississippi Department of Revenue | Origin | Yes | Yes |
Tax liability in Mississippi
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Mississippi. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Mississippi if you met the following condition in a twelve month rolling period:
- Your revenue from sales to customers in Mississippi was 250,000 USD or greater.
If you're not sure whether you're required to remit taxes in Mississippi, then contact US state tax authorities or a local tax professional.
Missouri
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Missouri Department of Revenue | Origin | No | Yes |
Special tax rules
Missouri is an origin state for sellers with nexus and a location within the state. If you're selling to customers in the state and have economic nexus, but do not have a location in-state, you're required to charge use tax.
Tax liability in Missouri
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Missouri. Sales on marketplaces such as Amazon are included, but digital products are not. You might have nexus in Missouri if you met the following condition in a twelve month rolling period:
- Your revenue from sales to customers in Missouri was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Missouri, then contact US state tax authorities or a local tax professional.
Montana
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Montana Department of Revenue | Not applicable | No | No |
Special tax rules
Montana does not charge sales tax.
Nebraska
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Nebraska Department of Revenue | Destination | Yes | Yes |
Tax liability in Nebraska
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Nebraska and the number of sales made to customers in Nebraska. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Nebraska if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Nebraska was 100,000 USD or greater.
- You made 200 or more sales to customers in Nebraska.
If you're not sure whether you're required to remit taxes in Nebraska, then contact US state tax authorities or a local tax professional.
Nevada
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| State of Nevada Department of Taxation | Destination | No | Yes |
Special tax rules
Shipping is not taxable in Nevada if it's stated as a separate line item. If the prices of your products include shipping or handling, then taxes need to be charged.
Tax liability in Nevada
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Nevada and the number of sales made to customers in Nevada. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Nevada if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Nevada was 100,000 USD or greater.
- You made 200 or more sales to customers in Nevada.
If you're not sure whether you're required to remit taxes in Nevada, then contact US state tax authorities or a local tax professional.
New Hampshire
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| New Hampshire Department of Revenue Administration | Not applicable | No | No |
Special tax rules
New Hampshire does not charge sales tax.
New Jersey
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| New Jersey Treasury Division of Taxation | Destination | Yes | No |
Tax liability in New Jersey
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in New Jersey and the number of sales made to customers in New Jersey. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in New Jersey if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in New Jersey was 100,000 USD or greater.
- You made 200 or more sales to customers in New Jersey.
If you're not sure whether you're required to remit taxes in New Jersey, then contact US state tax authorities or a local tax professional.
New Mexico
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| New Mexico Taxation and Revenue | Destination | Yes | Yes |
Tax liability in New Mexico
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in New Mexico. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in New Mexico if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in New Mexico was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in New Mexico, then contact US state tax authorities or a local tax professional.
New York
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| New York State Department of Taxation and Finance | Destination | Yes | Yes |
Special tax rules
In New York, clothing products, footwear products, and items used to repair clothing products with an individual price under 110 USD are exempt from state sales tax. For example, two items with a combined price of 200 USD will each be exempt from sales tax, but one item with an individual price of 110 USD will be subject to sales tax.
To set up a tax override for these items, refer to Tax overrides and exemptions.
New York uses quarters to determine tax liability that differ from other juridictions. Tax quarters in New York are the following:
- March, April, and May
- June, July, and August
- September, October, and November
- December, January, and February
Tax liability in New York
Nexus is determined using sales from the previous four tax quarters, and is based on the amount of revenue from sales to customers in New York and the number of sales made to customers in New York. Sales on marketplaces such as Amazon are included, but digital products are not. You might have nexus in New York if you met all of the following conditions in the previous four tax quarters:
- Your revenue from sales to customers in New York was 500,000 USD or greater.
- You made 100 or more sales to customers in New York.
If you're not sure whether you're required to remit taxes in New York, then contact US state tax authorities or a local tax professional.
North Carolina
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| North Carolina Department of Revenue | Destination | Yes | Yes |
Tax liability in North Carolina
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in North Carolina and the number of sales made to customers in North Carolina. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in North Carolina if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in North Carolina was 100,000 USD or greater.
- You made 200 or more sales to customers in North Carolina.
If you're not sure whether you're required to remit taxes in North Carolina, then contact US state tax authorities or a local tax professional.
North Dakota
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| North Dakota Office of State Tax Commissioner | Destination | Yes | Yes |
Tax liability in North Dakota
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in North Dakota. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in North Dakota if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in North Dakota was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in North Dakota, then contact US state tax authorities or a local tax professional.
Ohio
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Ohio Department of Taxation | Origin | Yes | Yes |
Special tax rules
Ohio follows origin sourcing. However, if a seller is based outside of Ohio, sells to customers in the state, and has economic nexus in Ohio, then they should charge destination sales tax based on the customer's location.
Tax liability in Ohio
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Ohio and the number of sales made to customers in Ohio. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Ohio if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Ohio was 100,000 USD or greater.
- You made 200 or more sales to customers in Ohio.
If you're not sure whether you're required to remit taxes in Ohio, then contact US state tax authorities or a local tax professional.
Oklahoma
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Oklahoma Tax Commission | Destination | No | Yes |
Special tax rules
Oklahoma uses notice and report laws.
Tax liability in Oklahoma
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Oklahoma. Digital products and sales on marketplaces such as Amazon are not included. You might have nexus in Oklahoma if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Oklahoma was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Oklahoma, then contact US state tax authorities or a local tax professional.
Oregon
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Oregon Department of Revenue | Not applicable | No | No |
Special tax rules
Oregon does not charge sales tax.
Pennsylvania
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Pennsylvania Department of Revenue | Origin | Yes | Yes |
Special tax rules
Pennsylvania uses notice and report laws.
Tax liability in Pennsylvania
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Pennsylvania. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Pennsylvania if you met the following condition in a twelve month rolling period:
- Your revenue from sales to customers in Pennsylvania was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Pennsylvania, then contact US state tax authorities or a local tax professional.
Puerto Rico
| Tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Finance Department of Puerto Rico | Destination | Yes | Yes |
Tax liability in Puerto Rico
Nexus is determined using sales from the previous calendar year or the current calendar year, and is based on the amount of revenue from sales to customers in Puerto Rico and the number of sales made to customers in Puerto Rico. Digital products and sales on marketplaces such as Amazon are not included. You might have nexus in Puerto Rico if you met either of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Puerto Rico was 100,000 USD or greater.
- You made 200 or more sales to customers in Puerto Rico.
If you're not sure whether you're required to remit taxes in Puerto Rico, then contact US state tax authorities or a local tax professional.
Rhode Island
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| State of Rhode Island Division of Taxation | Destination | Yes | No |
Special tax rules
In Rhode Island, clothing and footwear products with an individual price of 250 USD or less are exempt from state sales tax, and only the incremental amount above 250 USD is subject to sales tax. For example, if a suit costs 275 USD, then the tax applies only to 25 USD.
To set up a tax override for these items, refer to Tax overrides and exemptions.
Rhode Island uses notice and report laws.
Tax liability in Rhode Island
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Rhode Island and the number of sales made to customers in Rhode Island. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Rhode Island if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Rhode Island was 100,000 USD or greater.
- You made 200 or more sales to customers in Rhode Island.
If you're not sure whether you're required to remit taxes in Rhode Island, then contact US state tax authorities or a local tax professional.
South Carolina
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| South Carolina Department of Revenue | Destination | Yes | Yes |
Tax liability in South Carolina
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in South Carolina. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in South Carolina if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in South Carolina was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in South Carolina, then contact US state tax authorities or a local tax professional.
South Dakota
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| South Dakota Department of Revenue | Destination | Yes | Yes |
Special tax rules
South Dakota uses notice and report laws.
Tax liability in South Dakota
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in South Dakota and the number of sales made to customers in South Dakota. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in South Dakota if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in South Dakota was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in South Dakota, then contact US state tax authorities or a local tax professional.
Tennessee
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Tennessee Department of Revenue | Origin | Yes | Yes |
Special tax rules
In Tennessee, whether or not shipping is taxable is dependent on whether or not the product itself is taxable. If your product is taxable, then you need to charge tax on shipping. If the product isn't taxable, then you don't need to charge tax on shipping.
Tennessee uses notice and report laws.
Tax liability in Tennessee
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Tennessee. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Tennessee if you met the following condition in a twelve month rolling period:
- Your revenue from sales to customers in Tennessee was equal to 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Tennessee, then contact US state tax authorities or a local tax professional.
Texas
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Texas Comptroller of Public Accounts | Origin | Yes | Yes |
Special tax rules
Texas is an origin state for sellers that have both a physical presence and economic nexus in the state. If you have nexus in Texas but do not have a physical location there, then Texas is considered a destination state.
Tax liability in Texas
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Texas. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Texas if you met the following condition in a twelve month rolling period:
- Your revenue from sales to customers in Texas was 500,000 USD or greater.
If you're not sure whether you're required to remit taxes in Texas, then contact US state tax authorities or a local tax professional.
Utah
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Utah State Tax Commission | Origin | No | Yes |
Special tax rules
If you do not have nexus in Utah, your customers in that state are responsible for filing their purchases as a use tax on their income tax. If you want, you can register with the state of Utah to collect this tax.
Tax liability in Utah
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Utah and the number of sales made to customers in Utah. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Utah if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Utah was 100,000 USD or greater.
- You made 200 or more sales to customers in Utah.
If you're not sure whether you're required to remit taxes in Utah, then contact US state tax authorities or a local tax professional.
Vermont
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Vermont Department of Taxes | Destination | Yes | Yes |
Special tax rules
Vermont uses notice and report laws.
Tax liability in Vermont
Nexus is determined using sales from a twelve month rolling period, and is based on the amount of revenue from sales to customers in Vermont and the number of sales made to customers in Vermont. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Vermont if you met any of the following conditions in a twelve month rolling period:
- Your revenue from sales to customers in Vermont was 100,000 USD or greater.
- You made 200 or more sales to customers in Vermont.
If you're not sure whether you're required to remit taxes in Vermont, then contact US state tax authorities or a local tax professional.
Virginia
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Virginia Tax | Origin | No | Yes |
Special tax rules
Shipping is not taxable in Virginia if it's stated as a separate line item. If the prices of your products include shipping, then taxes need to be charged.
Virginia is considered an origin state, but out-of-state sellers should apply destination rules for determining tax.
Tax liability in Virginia
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Virginia and the number of sales made to customers in Virginia. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Virginia if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Virginia was 100,000 USD or greater.
- You made 200 or more sales to customers in Virginia.
If you're not sure whether you're required to remit taxes in Virginia, then contact US state tax authorities or a local tax professional.
Washington
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Washington State Department of Revenue | Destination | Yes | Yes |
Special tax rules
Washington uses notice and report laws.
Tax liability in Washington
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Washington. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Washington if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Washington was 100,000 USD or greater.
- You made 200 or more sales to customers in Washington.
If you're not sure whether you're required to remit taxes in Washington, then contact US state tax authorities or a local tax professional.
West Virginia
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| West Virginia State Tax Department | Destination | Yes | Yes |
Tax liability in West Virginia
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in West Virginia and the number of sales made to customers in West Virginia. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in West Virginia if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in West Virginia was 100,000 USD or greater.
- You made 200 or more sales to customers in West Virginia.
If you're not sure whether you're required to remit taxes in West Virginia, then contact US state tax authorities or a local tax professional.
Wisconsin
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| State of Wisconsin Department of Revenue | Destination | Yes | Yes |
Special tax rules
In Wisconsin, whether or not shipping is taxable is dependent on whether or not the product itself is taxable. If your product is taxable, then you need to charge tax on shipping. If the product isn't taxable, then you don't need to charge tax on shipping. If the products in an order are a mix of taxable and non-taxable items, then the portion of shipping that applies to the taxable items is taxable.
Tax liability in Wisconsin
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Wisconsin. Digital products and sales on marketplaces such as Amazon are included. You might have nexus in Wisconsin if you met the following condition in the previous or current calendar year:
- Your revenue from sales to customers in Wisconsin was 100,000 USD or greater.
If you're not sure whether you're required to remit taxes in Wisconsin, then contact US state tax authorities or a local tax professional.
Wyoming
| State tax website | Sourcing | Taxable shipping | Local taxes |
|---|---|---|---|
| Wyoming Department of Revenue | Destination | No | No |
Special tax rules
Wyoming is a destination state, but doesn't have local taxes. For that reason, buyers always pay the same state level tax rate.
Tax liability in Wyoming
Nexus is determined using sales from the previous or current calendar year, and is based on the amount of revenue from sales to customers in Wyoming and the number of sales made to customers in Wyoming. Digital products are included, but sales on marketplaces such as Amazon are not. You might have nexus in Wyoming if you met any of the following conditions in the previous or current calendar year:
- Your revenue from sales to customers in Wyoming was 100,000 USD or greater.
- You made 200 or more sales to customers in Wyoming.
If you're not sure whether you're required to remit taxes in Wyoming, then contact US state tax authorities or a local tax professional.