Aje, who sells on Amazon US, discovered in 2026 that: Orders from California were subject to a 7.25% sales tax, Texas to 6.25%, and New York to 8.875%. Meanwhile, when he sold products through his own Shopify store, he was actually sent a letter by the state tax authority requiring him to register for a sales tax license.

It was only then that he realized U.S. sales tax isn’t “something only Amazon has to deal with,” but is calculated on a state-by-state basis based on economic nexus. This article clearly explains the 2026 U.S. sales tax rules, thresholds, and platform collection requirements; sellers on the U.S. marketplace are advised to read it.

A Look Ahead to 2026: Most states have eliminated the “200 transactions” threshold and shifted to a revenue-only threshold; FBA inventory now constitutes a direct physical link.

01

What Is an Economic Relationship?

In the 2018 Supreme Court case South Dakota v. Wayfair, the “physical presence” requirement was eliminated: as long as annual sales exceed the state’s threshold, remote sellers must collect and remit sales tax, regardless of whether they have a warehouse.

All 45 states that levy income tax use the economic connection rule. Thresholds: $100,000 in most states; $500,000 in California, Texas, and New York; and $250,000 in Alabama and Mississippi.

The five states of DE, MT, NH, and OR have no state sales tax. Alaska has no state sales tax, but local jurisdictions may impose it. Revenue-based thresholds have become the norm (many states will eliminate transaction-based thresholds between 2025 and 2026).

02

Platform Collection vs. Self-Collection

Marketplace Facilitator Program: Amazon (49 states + DC) automatically collects and remits sales tax on your behalf; the same applies to eBay, Etsy, Walmart, and TikTok Shop. Sellers who exclusively sell on Amazon generally do not need to register for a sales tax license themselves.

Shopify stores are not platform-based tax collectors; sellers are solely responsible for sales tax (100%): they must monitor the thresholds, obtain the necessary licenses, configure tax rates, and file returns on time (including zero returns).

Key Pitfall: Sales collected by the platform on your behalf still count toward your economic affiliation threshold. Amazon: 90k+ and your independent site: 60k = 150k total; when calculating the total, don’t just count Shopify.

If you’re facing a similar situation—selling on Amazon US, unsure of the distinction between the platform’s collection of sales tax and your own filing obligations, and worried about receiving a notice from the state tax authority—we can help you set up your U.S. sales tax structure. Scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you sort out this entire process from start to finish.

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03

The Pitfalls of Physical Association in FBA

When Amazon FBA transfers your inventory to warehouses in multiple states, you establish a physical nexus in those states from day one—even with low sales—and are not exempt from the revenue threshold.

Consequences: You are required to file your own tax returns for these states (Amazon only collects tax on orders placed through its platform). If you operate your own website, you must collect the tax yourself.

If your annual sales exceed $5,000, you’ll receive a 1099-K form, which state tax authorities will use to cross-check your records. Don’t assume that “just using Amazon” means you’re in the clear.

04

Quick Reference for State Tax Rates in Key States

California: 7.251 TP3T (local taxes as high as 101 TP3T); Texas: 6.251 TP3T (separate permit required); New York: 41 TP3T, but the combined state and city tax can reach 8.8751 TP3T; Florida: 61 TP3T; Washington: 6.51 TP3T plus B&O business tax; Illinois: 6.251 TP3T (local taxes total 111 TP3T); Pennsylvania: 61 TP3T.

Sellers outside the U.S. must first apply for a U.S. EIN (IRS) and then apply for a sales tax permit on a state-by-state basis before they can collect and report sales tax.

Most states require monthly or quarterly filings; even if there are no sales, a zero return must be filed. Late filing results in penalties and interest.

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05

How to Avoid Pitfalls

First, distinguish between sales channels: Those selling exclusively on Amazon can breathe a sigh of relief; those with independent websites must handle their own taxes. Second, monitor thresholds: Use tax software to track sales across all channels in each state, and set alerts for the 80% threshold.

Third, registration and permits: Make sure to obtain your EIN and state permits before expanding into new markets—don’t wait until you receive a notice. Fourth, factor it into your pricing: Treat sales tax as an entry fee—don’t risk being hit with fines and back taxes later.

In a nutshell: By 2026, when expanding into the U.S. market, sales tax will go from being an “optional consideration” to a “compliance requirement.” When you factor in the combined costs of FBA and your own online store, it’s far more cost-effective than dealing with a visit from the state tax authorities.

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