Summary: Marketplace facilitator laws, now in effect in nearly every state with a sales tax, make the marketplace (Amazon, Etsy, eBay, Walmart) responsible for collecting and remitting sales tax on third-party sales. Sellers are relieved of collection on marketplace orders but still owe collection on their own-website sales in nexus states, and still must track nexus thresholds in most states.
If you sell on Amazon, Etsy, or eBay, you have probably noticed the marketplace collecting sales tax on your orders without you lifting a finger. That is not a courtesy; it is the law in nearly every sales-tax state. Marketplace facilitator laws shifted the collection duty from thousands of small sellers to the platforms, and understanding exactly what they cover, and what they do not, is the difference between compliance and a surprise bill.
A marketplace facilitator law defines the platform as the seller for sales tax purposes on transactions it facilitates. The marketplace must collect the correct destination-sourced rate, file the returns, and remit the tax. The individual seller does not collect, does not file for those sales, and in most states does not even include them on their own return. The laws cover the major platforms, Amazon, eBay, Etsy, Walmart Marketplace, and smaller ones that meet the state's definition of a facilitator, which usually hinges on processing payments or setting terms.
The policy logic is efficiency: one compliant platform replaces thousands of small-seller filings. For sellers, the practical effect is that marketplace channels became dramatically simpler for sales tax, while own-website sales through Shopify, WooCommerce, or a custom cart remain fully the seller's responsibility in every nexus state.
Four gaps catch sellers. First, your own website: facilitator laws do not touch direct sales, so Shopify or WooCommerce orders into nexus states need your own permits and collection. Second, some states still count marketplace sales toward your economic nexus threshold even though you do not collect on them, which can create a filing obligation for your direct sales. Third, certain product categories and transaction types, like some B2B sales or leased goods, may fall outside a state's facilitator definition. Fourth, a few states arrived late or have narrower definitions, so verify the platform is actually registered and collecting in each state rather than assuming.
A typical multi-channel seller's map looks like this: marketplace orders are handled by the platforms; direct-website orders need permits and collection in every state where direct sales cross the nexus threshold; wholesale orders are generally exempt with resale certificates on file; and trade-show or pop-up sales create physical-presence nexus in the event state, sometimes requiring temporary permits. The resale certificate file is the unglamorous backbone: without valid certificates, your wholesale sales are taxable and the liability is yours.
Do not assume; verify. Each major platform publishes the states where it collects as a facilitator, and the lists have gaps, especially for smaller platforms and for product categories a state carves out. Check the platform's tax documentation against your nexus footprint quarterly. If you sell on your own site too, reconcile: marketplace orders should show tax collected by the platform, direct orders should show tax collected by you, and the two should never overlap on the same order.
Keep exemption documentation flowing even for marketplace sales. If you sell wholesale through a marketplace or to exempt buyers, the facilitator law does not automatically handle your exemption certificates; you still need valid resale or exemption certificates on file for the sales you claim as exempt, or the liability reverts to you in an audit.
Yes. Under marketplace facilitator laws in nearly every sales-tax state, Amazon collects and remits sales tax on third-party marketplace sales. Sellers do not collect on those orders.
In most states, no collection duty means no permit needed for marketplace-only sales, but some states still require registration or count marketplace sales toward nexus. Check each state where you have significant sales.
You do. Marketplace facilitator laws cover marketplaces, not your own website. You need seller's permits and collection in every state where your direct sales create nexus.
A document you collect from wholesale buyers certifying they will resell the goods, which exempts your sale to them from sales tax. Without a valid certificate on file, the sale is taxable.
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Figures: 2026. Sources: the Tax Foundation (2026 Sales Tax Rates, Midyear Update, as of July 1, 2026), state revenue department websites, and the US Supreme Court (South Dakota v. Wayfair, 2018). This page is for planning only and is not financial, tax, or legal advice. Verify with the cited source or a qualified professional.