Question 1

Do I owe sales tax if I sell on eBay, Shopify, TikTok Shop, or Facebook Marketplace?

Accepted Answer

Yes, if your sales exceed the economic nexus threshold in a state — typically $100,000 in sales or 200 transactions per year — you owe sales tax there regardless of which platform you use. Marketplace facilitator laws mean some platforms (like eBay and Amazon) collect and remit tax on your behalf in many states, but that doesn't eliminate your registration or filing obligations in states where you exceed thresholds through direct sales or other channels.

Question 2

What is economic nexus and how does it work?

Accepted Answer

Economic nexus is a legal connection to a state based purely on your sales volume there — no physical presence required. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, every U.S. state with a sales tax has enacted economic nexus laws. Once you cross a state's threshold (usually $100,000 in revenue or 200 transactions in a calendar year), you're required to register, collect, and remit sales tax in that state.

Question 3

I only sell in one state — do I owe tax in other states?

Accepted Answer

If you only ship to customers in one state and your revenue from other states is below their thresholds, you likely don't owe tax elsewhere. But if you ship to customers in multiple states and your sales are growing, you may have crossed thresholds in more states than you realize. Taxero's free Nexus Calculator shows you exactly where you have exposure right now.

Question 4

What's the $100,000 / 200 transaction rule?

Accepted Answer

Most states trigger economic nexus when you exceed $100,000 in gross sales OR 200 separate transactions in that state within a calendar year. Some states have dropped the transaction count and use only the revenue threshold. Once you cross either threshold, you must register with the state's department of revenue and begin collecting sales tax on orders shipped there.

Question 5

I resell used items — do I still owe sales tax?

Accepted Answer

In most states, yes. Used goods are taxable at retail just like new goods. The main exception is if you hold a valid resale certificate — meaning you bought the item specifically to resell it, not for personal use. Reselling used items on eBay or Facebook Marketplace does not automatically exempt you from sales tax; the same nexus rules apply.

Question 6

How does Taxero know which states I owe tax in?

Accepted Answer

Taxero imports your sales data from connected platforms (Shopify, eBay, TikTok Shop, Amazon, and more) and calculates your revenue and transaction counts state by state. It compares those numbers against each state's current nexus thresholds and flags every state where you've crossed the line. The analysis updates automatically as your sales grow.

Question 7

Does Taxero file my sales tax returns automatically?

Accepted Answer

Yes, on the Managed plan. Taxero prepares your returns, calculates the exact tax owed per state, and submits them directly to each state's revenue department on your behalf — every quarter, every deadline. On the Self-Serve plan, Taxero prepares the returns and you approve and submit them yourself.

Question 8

What happens after I sign up?

Accepted Answer

After signing up, you connect your selling platforms or upload a sales export. Taxero calculates your nexus exposure within 24 hours and shows you exactly which states require action. From there, you can register in new states, file overdue returns, or set up automatic filing going forward — all from one dashboard.

Question 9

Which selling platforms does Taxero support?

Accepted Answer

Taxero currently supports Shopify, eBay, Amazon, TikTok Shop, Whatnot, WooCommerce, and manual CSV import. If you sell on multiple platforms, Taxero consolidates all your sales into a single nexus view so nothing slips through the cracks.

Question 10

I haven't filed sales tax in years. What should I do?

Accepted Answer

Start by calculating your actual exposure — which states you had nexus in and for how many periods. Then get those returns filed as quickly as possible, because penalties and interest compound the longer you wait. Taxero's Forgotten Filer service handles the full catch-up: exposure analysis, past-due return preparation, and state filing at $19.99 per return.

Question 11

What is voluntary disclosure and can it reduce my penalties?

Accepted Answer

Voluntary disclosure (VDA) is a formal program offered by most states that lets sellers proactively come forward, cap the lookback period (often 3 to 4 years instead of indefinite), and have penalties reduced or waived entirely. It's almost always better than waiting for an audit notice. Taxero can help you identify which states offer favorable VDA terms and guide you through the process.

Question 12

How far back can states go to collect unpaid sales tax?

Accepted Answer

Most states have a statute of limitations of 3 to 4 years for sales tax assessments — but that clock only starts when you file. If you've never registered or filed, many states can go back indefinitely. Voluntary disclosure agreements typically cap the lookback at 3 to 4 years, which is one of the main reasons to act proactively rather than wait.

Question 13

How much does Taxero cost?

Accepted Answer

Taxero has three tiers: Free (nexus monitoring and calculator, no filing), Self-Serve at $19.99 per filing (you approve and submit each return), and Managed at $49.99/month (Taxero files everything automatically on your behalf). There are no setup fees, no contracts, and no per-state surcharges beyond the per-filing fee.

Question 14

What's included in the free plan?

Accepted Answer

The free plan includes the Nexus Calculator, real-time nexus monitoring across all 50 states, compliance alerts when you cross a threshold, and sales data import from your connected platforms. You can see exactly where you owe tax and get registered — filing is the only thing that requires a paid plan.

Question 15

What does Managed mean?

Accepted Answer

Managed means Taxero handles everything end to end. We monitor your nexus, register you in new states as you cross thresholds, prepare your sales tax returns each quarter, and file them directly with the state — all without requiring you to log in. At $49.99/month, it's built for sellers who want zero involvement in the compliance process.

Answers to the sales tax questions every online seller is asking.

Do I owe sales tax?

How does Taxero work?

Forgotten filers

Pricing & plans