Sales tax in the US is set at state and local levels, and online sellers can have obligations in states where they reach certain sales thresholds. This is general information; consult a tax professional.
Understand nexus
Physical presence and economic activity can both create obligations to collect tax in a state.
Use automated calculation
Platforms such as Shopify and tools like Avalara or TaxJar calculate rates based on the delivery address.
Register before collecting
Register with a state before collecting its sales tax.
Marketplaces
Major marketplaces often collect and remit tax on your behalf for marketplace sales.
Keep records
Accurate order data makes filing returns far easier.
FAQs
Do we charge tax in every state?
Only where you have obligations; your adviser can help determine where.
Are some products exempt?
Yes, rules differ by state and product type.
Can our store handle this automatically?
Calculation can be automated; registration and filing still need oversight.
