South Dakota v. Wayfair (2018) · 46 states + DC MF laws · 2025 thresholds

reseller sales taxeBay sales taxmarketplace facilitatoreconomic nexusWayfaironline seller1099Kstate sales tax

//// Tax · HBTax Suite

HBTax: Reseller State Sales Tax Guide

Select your platforms and home state — see which are marketplace facilitators, your economic nexus exposure in all 50 states, and whether you need to register anywhere.

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Your Situation

Home State

Annual Sales Volume (all platforms)

I have physical presence in other states (warehouse, office, etc.)

Your Platforms

Select all platforms where you sell. Marketplace facilitators (MF) handle tax collection for you.

◎ Monitor your volume

Your platforms collect tax on your behalf as marketplace facilitators. You may need to register in your home state if you reach the economic nexus threshold. Watch your annual sales volume.

Below most thresholds — free monitoring sufficient

Your Platforms — Tax Coverage

✓

eBay

eBay collects and remits sales tax in 47 states as a marketplace facilitator. Sellers are not responsible for tax on eBay sales in MF states.

✓

Etsy

Etsy collects and remits sales tax in 45 states + DC as a marketplace facilitator.

Economic Nexus Thresholds — Top 15 States

Applies to YOUR direct sales, not sales through marketplace facilitators

State	Threshold	Transactions	MF Law
California	$500,000	—	Yes
Texas (you)	$500,000	—	Yes
New York	$500,000	100	Yes
Florida	$100,000	—	Yes
Illinois	$100,000	200	Yes
Pennsylvania	$100,000	—	Yes
Ohio	$100,000	200	Yes
Georgia	$100,000	200	Yes
North Carolina	$100,000	200	Yes
Michigan	$100,000	200	Yes
New Jersey	$100,000	200	Yes
Virginia	$100,000	200	Yes
Washington	$100,000	—	Yes
Arizona	$100,000	—	Yes
Massachusetts	$100,000	—	Yes

South Dakota v. Wayfair (2018) — The ruling that changed everything

Economic Nexus Threshold: $100,000 in sales OR 200 transactions in a state

Before Wayfair: physical presence required. After Wayfair: economic activity alone creates nexus.

= 45 states + DC now enforce economic nexus for remote sellers

The Supreme Court's 5-4 ruling in South Dakota v. Wayfair, Inc. overturned Quill Corp. v. North Dakota (1992) and eliminated the physical presence requirement for sales tax collection. Any seller exceeding a state's economic nexus threshold must register and collect sales tax there.

South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018) · IRC §4371

Marketplace Facilitator Laws — Why eBay pays your tax

If Platform = Marketplace Facilitator → Platform collects & remits tax

eBay, Etsy, Poshmark, Amazon, Mercari = Marketplace Facilitators in 45–47 states

= Sellers on MF platforms have NO sales tax obligation for those sales in MF states

As of 2025, 46 states + DC have marketplace facilitator laws. These laws shift the sales tax collection and remittance obligation from individual sellers to the platform. eBay began collecting in all required states in 2020. IMPORTANT: You still may owe tax in your HOME STATE for in-state sales if your state requires it.

State marketplace facilitator statutes (2018–2023); eBay Seller Center — Tax policy

Physical nexus — The original rule (still applies)

Physical Presence → Automatic Nexus

Warehouse, office, employee, inventory stored in state = physical nexus

= Physical nexus = must register and collect regardless of MF laws

Even if all your sales go through marketplace facilitators, having physical presence in a state (warehouse, office, home) creates nexus. MF laws only cover the platform's obligation — your own nexus still applies for direct sales from your own website or off-platform sales.

Quill Corp. v. North Dakota (1992) — physical nexus standard still in effect for non-remote sellers

Your home state nexus

Home State Threshold: $500,000

Texas: $500K threshold

= Register in Texas if your direct (non-MF platform) sales exceed the threshold

Your home state always has physical nexus by default. If you sell directly (own website, in-person, non-MF platforms) and exceed the threshold, you must register even if you're below the economic nexus threshold.

Texas Department of Revenue — Sales Tax Registration

Top 15 states economic nexus thresholds

Threshold = $ amount in annual in-state sales that triggers registration

CA, TX, NY, FL, IL, PA, OH, GA, NC, MI, NJ, VA, WA, AZ, MA

= See table below — most states use $100K; CA, NY, TX use higher thresholds

These thresholds apply to your DIRECT sales only (not MF platform sales). If all your sales are through eBay/Etsy/Poshmark/Amazon, these thresholds rarely apply to you.

Multistate Tax Commission · Individual state revenue department websites (2025)

Your verdict

Verdict = f(platforms, home state, annual volume, physical presence)

Platforms: ebay, etsy | Volume: $35,000 | Home: TX

= Monitor your volume

Your platforms collect tax on your behalf as marketplace facilitators. You may need to register in your home state if you reach the economic nexus threshold. Watch your annual sales volume.

Based on marketplace facilitator law coverage and economic nexus thresholds as of 2025

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