How do I configure nexus states in Shopify?

Nexus configuration in Shopify tells the platform where to calculate and collect tax. Only configure states where you’re actually registered.

Key takeaways

• Location: Settings > Taxes and duties > United States > Tax regions
• Adding a state: select the state from the list; Shopify begins calculating applicable state + local tax rates for orders shipping there
• Only add registered states: Shopify will collect tax as soon as a state is added; if you’re not registered, you have no way to legally remit what you collect; don’t add states until you’re registered
• Shopify uses your store address for home-state rates: your primary store address determines which state’s rules apply when you ship from your location; this affects nexus in your home state
• Overrides within a state: for states with product-specific exemptions, Shopify allows per-product or per-collection tax overrides; use these for categories with state-variable taxability (clothing, food, etc.)
• Third-party engine replaces this: if you connect a certified tax engine (TaxCloud, Avalara, TaxJar) via API, that engine handles all rate calculation; the Shopify nexus configuration becomes secondary or irrelevant depending on the integration
• Removing a state: if you close a permit (e.g., nexus drops below threshold and you de-register), remove the state from your Shopify configuration so you stop collecting tax you can no longer remit
• Shopify doesn’t alert on nexus threshold breach: if your sales into a non-configured state cross the economic nexus threshold, Shopify won’t tell you; nexus monitoring must be done separately