Sales Tax
Category: tax
A US-only tax collected at the point of sale, varying by state and locality.
US sales tax is a state and local-level tax collected at the point of sale, with rates and rules varying across 45 states plus the District of Columbia. Since the 2018 South Dakota v. Wayfair Supreme Court decision, states can require out-of-state sellers to collect sales tax based on economic nexus (typically $100K-$500K in sales or 200 transactions). Cross-border sellers must determine nexus in each state, register, collect, remit, and file returns.
Examples
- • An Amazon US seller with $500K in Texas sales must register for Texas sales tax (6.25% state + local rates up to 8.25%).
- • A Shopify store shipping to California with $500K+ in sales must collect California sales tax (7.25% state rate plus district taxes).
- • Amazon is a marketplace facilitator in all 45 US states with sales tax, so it collects and remits tax on marketplace orders, but sellers must handle DTC orders themselves.