Online Shopping and Sales Tax: What You Owe
4 min
The Wayfair Decision
Since 2018, states can require out-of-state sellers to collect sales tax if they meet economic thresholds. Most states now require collection after $100,000 or 200 transactions.
What This Means for You
If a seller doesn't collect tax, you may owe use tax directly to your state. This is reported on your annual state tax return in most states.
Marketplace Facilitators
Amazon, eBay, and Etsy now collect and remit sales tax on behalf of third-party sellers in most states, simplifying compliance for buyers.
Tip
Tax laws vary by state and change frequently. Use our calculators for the most up-to-date rates and estimates for your specific situation.
Related Guides
How Sales Tax Works: A State-by-State Breakdown
Understand how state and local sales taxes work, what's taxable, and which states have the highest and lowest rates.
Sales Tax Exemptions by State
Which items are exempt from sales tax varies dramatically by state. We break down exemptions for groceries, clothing, prescriptions, and more.