Amazon FBA Inventory and State Tax Nexus: What Sellers Need to Know
Updated 2026-08-03
Storing inventory in Amazon FBA warehouses creates physical nexus — also called physical presence nexus — in each US state where your inventory is held, regardless of your business location. This obligates you to collect and remit sales tax on taxable sales to customers in those states and potentially file state income tax returns. Amazon frequently moves inventory between fulfillment centers, so you must monitor your inventory locations and register in all applicable states.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
Does FBA inventory create sales tax nexus?+
Yes. Storing inventory in Amazon FBA warehouses is universally recognized as creating physical nexus in the state where the warehouse is located. This means you must register for a sales tax permit and collect/remit sales tax on taxable sales to customers in that state. This is separate from and in addition to any economic nexus you may have.
How do I track which states hold my FBA inventory?+
In Amazon Seller Central, navigate to Reports > Fulfillment > Inventory Event Detail to see all inventory movements and current locations. Amazon may redistribute your inventory to new fulfillment centers without explicit notice. Check this report regularly — at least monthly — and register for sales tax in any new state where inventory appears.
Do I need to file state income tax in FBA states?+
Generally yes. Having inventory in a state creates nexus for state income or franchise tax purposes in most states. This means you may need to file state income tax returns in addition to sales tax returns. The specific filing requirements and apportionment methods vary by state. Consult a multi-state tax professional for your specific situation.
Which states have Amazon FBA warehouses?+
Amazon operates fulfillment centers in over 35 US states, with major concentrations in California, Texas, Pennsylvania, New Jersey, Virginia, Illinois, Arizona, Indiana, Ohio, Kentucky, and many others. The network is constantly expanding. Assume your inventory could end up in any state with an Amazon facility and plan your tax registrations accordingly.
Can I limit which states my FBA inventory goes to?+
Amazon's Inventory Placement Service allows some control, but Amazon may still redistribute inventory. You can opt out of programs like Distributed Inventory Placement that spread inventory to more locations, though this may increase fulfillment costs and delivery times. Weigh the tax compliance burden against the operational benefits of wider distribution.
What about Alaska, which has no state sales tax?+
Alaska has no state sales tax, but some local jurisdictions within Alaska do impose local sales taxes. Amazon does not currently have major FBA warehouses in Alaska. The other four no-sales-tax states (Delaware, Montana, New Hampshire, Oregon) also generally don't have FBA facilities, but if your inventory were stored there, you would not need to collect state sales tax, though you might still have income tax filing obligations.
Continue checking
Do Amazon FBA sellers have to collect US sales tax? (2026)
Whether FBA sellers owe US sales tax, how marketplace facilitator laws cover Amazon sales, and when FBA inventory creates nexus.
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