Marketplace Facilitator Tax Liability Calculator

A marketplace facilitator tax liability calculator helps e-commerce sellers understand how marketplace facilitator lawsaffect their sales tax obligations across US states. These laws, which are now active in over 40 states following the Supreme Court's 2018 South Dakota v. Wayfair decision, require marketplace platforms like Amazon, eBay, and Etsy to collect and remit sales tax on behalf of sellers for sales made through their platform. This calculator separates your sales into marketplace-covered (handled by the platform) and seller-responsible (your direct sales, own website, or non-marketplace channels) to give you a clear picture of where you still have tax obligations. All calculations run locally in your browser with no data uploaded to any server. Always consult with a qualified tax professional for your specific situation.

Select your marketplace platform from Amazon, eBay, Etsy, Walmart Marketplace, or Shopify. Enter your seller state (home state where you are physically located) and your primary customer state. Enter your total annual sales across all channels and use the slider to indicate what percentage of those sales go through your marketplace platform. Click Calculate Tax Liability to see a comprehensive breakdown: total estimated sales tax liability at an effective rate of 7.5%, the portion handled by your marketplace, the portion you are responsible for, states where your marketplace collects tax, states where you have economic nexus from non-marketplace sales, states where you need to register for tax collection, and a summary of your filing obligations. The tool includes a state-by-state economic nexus threshold reference for all 50 states and DC, with threshold amounts, transaction counts, state rates, and marketplace facilitator law status.

Marketplace facilitator laws shift the responsibility for sales tax collection and remittance from individual sellers to the marketplace platform itself. Under these laws, if a platform (like Amazon or Etsy) facilitates a sale between a third-party seller and a customer, the platform is treated as the seller for sales tax purposes and must collect and remit the tax. This means that for sales made through Amazon, eBay, Etsy, Walmart Marketplace, and similar platforms, the marketplace handles the sales tax - you do not need to register, collect, or remit for those specific transactions. However, you are still responsible for sales tax on non-marketplace sales (your own website, in-person sales, wholesale, etc.) if you have economic nexusin a state. Economic nexus means your sales into a state exceed that state's threshold (typically $100,000-$500,000 or 100-200 transactions annually). There are currently over 40 states with active marketplace facilitator laws, though the details vary by state.

This calculator provides estimates for informational purposes only. Sales tax laws, economic nexus thresholds, and marketplace facilitator laws vary by state, change frequently, and depend on your specific products, business structure, and state registration status. This tool does not constitute professional tax advice. Always consult with a qualified tax professional or CPA for your specific situation. Your data privacy is protected - all tax calculations, sales data, and state comparisons are processed locally in your browser using JavaScript. No data is ever sent to any server, stored in any database, or tracked across sessions. There is no signup, no account creation, and no usage limits.