Why Nexus Matters
Since the 2018 Wayfair Supreme Court decision, U.S. states can require sellers to collect and remit sales tax even if they don’t have a physical presence.
This is called economic nexus – and it’s one of the most important concepts for Amazon, Shopify, and Walmart sellers.
Missing a nexus trigger means penalties, late fees, or even account suspension.
How Economic Nexus Works
- Each state sets its own threshold.
- Most thresholds are $100,000 in sales or 200 transactions per year.
- Some states (like California and Texas) have higher thresholds (e.g., $500,000).
- Once you cross a threshold, you must:
1. Register for a sales tax permit in that state.
2. Collect sales tax on applicable sales.
3. File returns on time (monthly, quarterly, or annually).
Common Seller Questions
1. Does Amazon collect for me?
Yes, Amazon and other marketplaces collect sales tax as facilitators. But many states still require you to register for a permit.
2. What if I don’t hit the threshold?
You don’t need to register yet, but you must track your sales – thresholds can be crossed quickly as you grow.
3. Do international sellers also have nexus?
Yes. Economic nexus applies regardless of where you’re based. If you cross a state’s threshold, you’re required to comply.
How We Help
We:
- Monitor your sales across all states.
- Identify where you’ve crossed thresholds.
- Register and file on your behalf.
- Keep you compliant as you expand into new states.
Whether you’re a U.S. seller or expanding into the U.S. from abroad, we make nexus compliance simple.
Want to see which states apply to you? Visit our U.S. Sales Tax Compliance Hub
See how California’s threshold compares – California Sales Tax Guide
