Sales Tax Questions
Intermediate Quick Answer

Which marketplaces are covered by facilitator laws in all 45 states?

⚡ TL;DR

Amazon, Etsy, Walmart Marketplace, eBay, TikTok Shop, Wayfair, and other major platforms all collect and remit in all 45 states with a sales tax. Smaller or niche B2B platforms may collect in only some states — verify with the platform directly. Being covered doesn't eliminate your obligations: you still need to aggregate marketplace sales toward nexus thresholds and maintain registrations where you sell direct.

All major marketplaces collect in all 45 sales tax states. The question is what obligations remain for you as the underlying seller.

Key takeaways

  • Full coverage (all 45 states): Amazon, Etsy, Walmart Marketplace, eBay, TikTok Shop, Shopify (for sales through Shopify’s own Shop Pay channel, not independent stores), Target Plus, Wayfair, Chewy, Best Buy Marketplace
  • Partial or niche platforms: smaller B2B marketplaces, industry-specific platforms, and newer entrants may collect in some states but not all; verify with the platform directly
  • Faire (wholesale B2B): Faire operates as a marketplace facilitator for sales tax purposes in states where it meets the definition; as a B2B wholesale marketplace, many sales are exempt under resale certificates, which reduces the practical impact
  • What “covered” means: the marketplace collects tax from the buyer and remits directly to each state; the seller receives the sale proceeds without the tax component; the seller doesn’t file or remit for those specific transactions
  • What sellers still need to do:
    • Monitor nexus thresholds, most states count marketplace sales toward the threshold
    • Report marketplace-facilitated sales on state returns (as a deduction from gross sales in states that require it)
    • Maintain registrations in states where you sell direct in addition to marketplace sales
    • Confirm the platform’s coverage regularly, marketplace facilitator law enforcement is still evolving in a few states
  • International marketplaces: platforms like Mercado Libre, Rakuten, and others with primarily non-US customer bases may not be required to collect US state sales tax; treat those as direct sales

Frequently asked questions

Which major marketplaces collect sales tax on behalf of sellers in all states?
Amazon, Etsy, Walmart Marketplace, eBay, and TikTok Shop all collect and remit sales tax in all 45 states with a sales tax. These platforms are large enough that they qualify as marketplace facilitators in every state's definition and have implemented collection in all applicable states. Smaller platforms may collect in some states but not others.
Does marketplace facilitator coverage mean I have no sales tax obligations for those sales?
It means you don't collect tax directly on those sales: the marketplace does. But you still have obligations: aggregating those sales toward economic nexus thresholds (in most states), potentially reporting marketplace-facilitated sales on state returns as a deduction, and maintaining your own registrations in states where you also sell direct-to-consumer.

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