Marketplace Facilitator Nexus Criteria in Every US State

by Jennifer Dunn October 8, 2021


As of this writing, every US state with a sales tax (except Missouri) requires that “marketplace facilitators” collect sales tax on behalf of the third-party sellers who sell via their marketplace.

While state definitions of “marketplace facilitator” vary, they are generally defined as an online marketplace that lists products and processes payments on behalf of third-party sellers. I.e. they are a marketplace that “facilitates” sales on behalf of third-party sellers. (Read more in our “Is my business a marketplace facilitator?” article.)

The most well known online marketplaces are sites like eBay or Amazon. But there are countless smaller marketplaces, like RubyLane for vintage goods. Houzz for home goods or BigCartel, for artists and makers. And any marketplace who facilitates sales on behalf of third-party sellers needs to determine whether they are a “marketplace facilitator” in a state. 

The table below lists each state’s criteria for when an online marketplace becomes a “marketplace facilitator” and when that marketplace is required to collect sales tax on behalf of 3rd party sellers who use the platform. 

Important note: When referencing this table, be sure to check the link under “State Guidance.” Some states, like Alabama, have additional rules and guidelines for qualifying marketplace facilitators.  Further, state laws and administrative rules are subject to change. 

When does a “marketplace facilitator” have sales tax nexus in every US state?

StateMarketplace Facilitator Nexus CriteriaState Guidance
AlabamaMakes sales through the marketplace of $250,000 or more in the preceding 12 monthsAlabama Department of Revenue
AlaskaGross remote sales to buyers in Alaska meets or exceeds $100,000 OR 200 transactions in the current or previous calendar yearAlaska Remote Seller Sales Tax Division
ArizonaSales via the marketplace OR income in the state is over $100,000 annuallyArizona Department of Revenue
ArkansasAggregate sales within the state, or deliveries to locations within the state, exceeding $100,000 OR 200 transactions in the previous or current calendar yearArkansas Department of Finance and Administration
CaliforniaAll marketplaces are considered to be marketplace facilitators if they both facilitate marketplace sales and are registered, or are required to register, for a California sales tax permitCalifornia Department of Tax & Fee Administration
ColoradoRetailers who sell more than $100,000 tangible personal property, services or commodities in the previous yearColorado Department of Revenue 
ConnecticutAll marketplace retailers are considered marketplace facilitators Connecticut Department of Revenue 
FloridaRemote sales in the previous calendar year in which the sum of the sales prices exceeded $100,000Florida Department of Revenue
Georgia Any number of taxable sales in Georgia exceeding $100,000 in the previous calendar yearGeorgia Department of Revenue
HawaiiMakes over $100,000 in retail sales OR seller makes 200 or more retail sales of sales into the stateHawaii Department of Taxation
IdahoOver $100,000 in Idaho sales in the previous or current calendar yearIdaho State Tax Commission
IllinoisTotal revenues from sales by the marketplace facilitator and marketplace sellers are $100,000 or more AND the marketplace facilitator and marketplace sellers enter into 200 or more sales transactionsIllinois Revenue
IndianaMost marketplaces (internet or physical) are considered marketplace facilitatorsIndiana Department of Revenue 
IowaSells over $100,000 in products or servicesIowa Department of Revenue 
KansasA marketplace facilitator with annual gross receipts from sales sourced to Kansas in excess of $100,000, must collect and remit sales tax. Any marketplace facilitator who meets the $100,000 threshold for the first time in the current calendar year must collect tax on cumulative gross receipts from sales into the state in excess of $100,000 during the current calendar year.Kansas Marketplace Facilitator Law / Governor’s Announcement
KentuckySales of at least $100,000 OR 200 or more separate sales into the stateKentucky Department of Revenue
LouisianaRemote sellers selling through a marketplace or similar arrangement may register and voluntarily collectLouisiana Department of Revenue
MaineMakes over $100,000 in retail sales OR seller makes 200 or more retail sales shipped to the state in the previous or current calendar yearMaine Revenue Services
MarylandMakes over $100,000 in retail sales OR seller makes 200 or more retail sales shipped to the state in the previous or current calendar yearComptroller of Maryland
MassachusettsSales exceed $100,000 in the prior or current calendar yearMassachusetts Department of Revenue
MichiganMakes over $100,000 in retail sales OR seller makes 200 or more retail sales shipped to the state in the previous calendar yearMichigan Department of Treasury
MinnesotaMakes over $100,000 in retail sales or seller makes 200 or more retail sales shipped to the state Minnesota Department of Revenue
MississippiSales exceed $250,000 in any 12-month periodMississippi Department of Revenue 
Missouri(Effective Jan 1, 2023) Marketplace facilitators must collect sales tax on their own sales and sales made for a 3rd party sellerTaxJar – Missouri Becomes Final State to Pass Marketplace Facilitator Law
NebraskaMakes over 200 sales OR $100,000 in sales in the state annuallyNebraska Department of Revenue
NevadaMakes cumulative gross receipts exceeding $100,000 from retail sales in Nevada, OR at least 200 separate retail sales transactions in Nevada in the previous or current calendar yearNevada Department of Taxation
New JerseyAll marketplace facilitators are required to collect sales tax on behalf of 3rd party marketplace sellers for transactions made into New JerseyNew Jersey Department of the Treasury
New MexicoAll marketplace facilitators are required to collect sales tax on behalf of 3rd party marketplace sellers for transactions made into New MexicoTaxJar – New Mexico’s Marketplace Facilitator Law
New YorkMakes or facilitates more than $500,000 in sales of tangible personal property delivered in New York AND makes or facilitates more than 100 sales of tangible personal property delivered in New YorkNew York Department of Taxation
North CarolinaMakes more than $100,000 in sales OR more than 200 transactions sourced to North CarolinaNorth Carolina Department of Revenue
North DakotaMakes more than $100,000 in gross sales to North Dakota in the previous or current calendar yearNorth Dakota Office of the State Tax Commissioner
OhioHas gross receipts exceeding $100,000 OR 200 or more separate transactions in Ohio Ohio Department of Taxation
OklahomaMakes $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period; Marketplace facilitator can also choose to instead comply with notice and report requirementsTaxJar – Oklahoma Passes Marketplace Facilitator Law
PennsylvaniaMakes more than $100,000 in sales to PennsylvaniaPennsylvania Department of Revenue
Rhode IslandMakes more than $100,000 in sales to Rhode Island in 200 or more separate transactionsRhode Island Division of Taxation
South CarolinaMakes more than $100,000 in sales into South Carolina in the previous or current calendar yearTaxJar – South Carolina’s Marketplace Facilitator Law
South DakotaMakes $100,000 or more OR at least 200 separate retail sales transactions in the previous or current calendar year South Dakota Department of Revenue
TennesseeMade $100,000 during the previous 12-month periodTennessee Department of Revenue
TexasMakes $500,000 or more per year in gross revenue from sales into TexasTexas Comptroller
UtahMakes $100,000 in gross revenue into the state OR 200 separate transactions into the state in the previous or current calendar yearUtah State Tax Commission
VermontMakes $100,000 in gross revenue into the state OR 200 separate transactions into the state during any 12-month period preceding the monthly period with respect to which that person’s sales and use tax liability is determinedVermont Department of Taxes
VirginiaMakes $100,000 in gross revenue into the state OR 200 separate transactions into the state Virginia Department of Taxation
WashingtonVendors with more than $100,000 in gross receipts in the state in the current or prior calendar yearWashington Department of Revenue 
Washington DCMakes at least $100,000 in sales in the state OR 200 or more transactions in the previous or current calendar yearDC Office of Tax and Revenue
West VirginiaMakes at least $100,000 in sales in the state OR 200 or more transactions in the immediately preceding or current calendar yearWest Virginia State Tax Department
WisconsinAll marketplace facilitators are required to collect sales tax on behalf of 3rd party sellersWisconsin Department of Revenue
WyomingMakes $100,000 in gross revenue into the state OR 200 separate transactions into the state in the previous or current calendar yearWyoming Department of Revenue

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