Etsy Collected Sales Tax. What Changes on Your Own Store?

On a marketplace, the platform often collects and pays sales tax on eligible orders. On your own website, you're responsible for working out where you owe it. This is general information and not tax advice, so talk to a CPA about your own situation.

The basic change

A marketplace facilitator can collect and remit sales tax on sales made through its own marketplace. That doesn't automatically cover the orders on your own website. Once you sell directly, you need to check where you may have to collect tax.

What economic nexus means

Since the Wayfair decision in 2018, states can require out-of-state sellers to collect sales tax once they pass a sales threshold, even without a physical presence. Physical presence can still create a duty by itself. So being under one state's threshold doesn't mean you owe nothing anywhere.

Some states, including Texas and New York, count your marketplace sales toward the threshold. So your Etsy or Amazon sales can matter when you add a store.

A few sample thresholds

These are examples, checked Nov 9, 2026. Thresholds, periods and definitions differ by state and change over time. Use the official state pages.

StateThreshold
CaliforniaCombined sales of tangible goods delivered into California above $500,000 in the current or previous calendar year
TexasMore than $500,000 in Texas revenue in the previous 12 calendar months
New YorkMore than $500,000 in tangible goods sales and more than 100 sales in the previous four sales tax quarters
AlabamaAbove $250,000 in the previous calendar year, no transaction count
FloridaAbove $100,000 in taxable sales in the previous calendar year
Alaska$100,000 or more in the previous or current calendar year, with local rules

The Streamlined Sales Tax state tables are a good starting place for the full picture. Rates, product exemptions, local taxes and start dates are separate questions.

What Shopify Tax does

Shopify Tax's US standard rate is 0.35% of the order, with a cap of $0.99 per order. It has a free tier up to $100,000 in sales, with different rules for stores opened before and after May 13, 2026. Shopify's automated filing service is ending after the last 2026 returns, with a separate exception for New York. Calculating tax is one task. Registering, filing and paying are others. No tool takes the decision off you.

A workable routine

  1. Add up sales by state across every channel, including marketplaces.
  2. Ask a CPA to check physical and economic nexus.
  3. Register where needed.
  4. Set up product and shipping tax rules in your store.
  5. Write down who files, when, and how.

Our technical setup can configure tax settings in your store, but the tax decisions stay with your accountant.

What to do next

  1. Export last year's orders by state.
  2. Compare them with the official thresholds for your top five states.
  3. Bring both to your CPA before you open your store.

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Sources

Rules, numbers and dates change often. This page reflects the sources below as checked on Nov 9, 2026. Confirm current figures with the official source before you act.

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