Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
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?
| State | Marketplace facilitator nexus criteria | State guidance |
| Alabama | Makes sales through the marketplace of $250,000 or more in the preceding 12 months | Alabama Department of Revenue |
| Alaska | Gross remote sales to buyers in Alaska meets or exceeds $100,000 OR 200 transactions in the current or previous calendar year | Alaska Remote Seller Sales Tax Division |
| Arizona | Sales via the marketplace OR income in the state is over $100,000 annually | Arizona Department of Revenue |
| Arkansas | Aggregate sales within the state, or deliveries to locations within the state, exceeding $100,000 OR 200 transactions in the previous or current calendar year | Arkansas Department of Finance and Administration |
| California | All 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 permit | California Department of Tax & Fee Administration |
| Colorado | Retailers who sell more than $100,000 tangible personal property, services or commodities in the previous year | Colorado Department of Revenue |
| Connecticut | All marketplace retailers are considered marketplace facilitators | Connecticut Department of Revenue |
| Florida | Remote sales in the previous calendar year in which the sum of the sales prices exceeded $100,000 | Florida Department of Revenue |
| Georgia | Any number of taxable sales in Georgia exceeding $100,000 in the previous calendar year | Georgia Department of Revenue |
| Hawaii | Makes over $100,000 in retail sales OR seller makes 200 or more retail sales of sales into the state | Hawaii Department of Taxation |
| Idaho | Over $100,000 in Idaho sales in the previous or current calendar year | Idaho State Tax Commission |
| Illinois | Total 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 transactions | Illinois Revenue |
| Indiana | Most marketplaces (internet or physical) are considered marketplace facilitators | Indiana Department of Revenue |
| Iowa | Sells over $100,000 in products or services | Iowa Department of Revenue |
| Kansas | A 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 |
| Kentucky | Sales of at least $100,000 OR 200 or more separate sales into the state | Kentucky Department of Revenue |
| Louisiana | Remote sellers selling through a marketplace or similar arrangement may register and voluntarily collect | Louisiana Department of Revenue |
| Maine | Makes over $100,000 in retail sales OR seller makes 200 or more retail sales shipped to the state in the previous or current calendar year | Maine Revenue Services |
| Maryland | Makes over $100,000 in retail sales OR seller makes 200 or more retail sales shipped to the state in the previous or current calendar year | Comptroller of Maryland |
| Massachusetts | Sales exceed $100,000 in the prior or current calendar year | Massachusetts Department of Revenue |
| Michigan | Makes over $100,000 in retail sales OR seller makes 200 or more retail sales shipped to the state in the previous calendar year | Michigan Department of Treasury |
| Minnesota | Makes over $100,000 in retail sales or seller makes 200 or more retail sales shipped to the state | Minnesota Department of Revenue |
| Mississippi | Sales exceed $250,000 in any 12-month period | Mississippi 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 seller | TaxJar – Missouri Becomes Final State to Pass Marketplace Facilitator Law |
| Nebraska | Makes over 200 sales OR $100,000 in sales in the state annually | Nebraska Department of Revenue |
| Nevada | Makes 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 year | Nevada Department of Taxation |
| New Jersey | All marketplace facilitators are required to collect sales tax on behalf of 3rd party marketplace sellers for transactions made into New Jersey | New Jersey Department of the Treasury |
| New Mexico | All marketplace facilitators are required to collect sales tax on behalf of 3rd party marketplace sellers for transactions made into New Mexico | TaxJar – New Mexico’s Marketplace Facilitator Law |
| New York | Makes 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 York | New York Department of Taxation |
| North Carolina | Makes more than $100,000 in sales OR more than 200 transactions sourced to North Carolina | North Carolina Department of Revenue |
| North Dakota | Makes more than $100,000 in gross sales to North Dakota in the previous or current calendar year | North Dakota Office of the State Tax Commissioner |
| Ohio | Has gross receipts exceeding $100,000 OR 200 or more separate transactions in Ohio | Ohio Department of Taxation |
| Oklahoma | Makes $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 requirements | TaxJar – Oklahoma Passes Marketplace Facilitator Law |
| Pennsylvania | Makes more than $100,000 in sales to Pennsylvania | Pennsylvania Department of Revenue |
| Rhode Island | Makes more than $100,000 in sales to Rhode Island in 200 or more separate transactions | Rhode Island Division of Taxation |
| South Carolina | Makes more than $100,000 in sales into South Carolina in the previous or current calendar year | TaxJar – South Carolina’s Marketplace Facilitator Law |
| South Dakota | Makes $100,000 or more OR at least 200 separate retail sales transactions in the previous or current calendar year | South Dakota Department of Revenue |
| Tennessee | Made $100,000 during the previous 12-month period | Tennessee Department of Revenue |
| Texas | Makes $500,000 or more per year in gross revenue from sales into Texas | Texas Comptroller |
| Utah | Makes $100,000 in gross revenue into the state OR 200 separate transactions into the state in the previous or current calendar year | Utah State Tax Commission |
| Vermont | Makes $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 determined | Vermont Department of Taxes |
| Virginia | Makes $100,000 in gross revenue into the state OR 200 separate transactions into the state | Virginia Department of Taxation |
| Washington | Vendors with more than $100,000 in gross receipts in the state in the current or prior calendar year | Washington Department of Revenue |
| Washington DC | Makes at least $100,000 in sales in the state OR 200 or more transactions in the previous or current calendar year | DC Office of Tax and Revenue |
| West Virginia | Makes at least $100,000 in sales in the state OR 200 or more transactions in the immediately preceding or current calendar year | West Virginia State Tax Department |
| Wisconsin | All marketplace facilitators are required to collect sales tax on behalf of 3rd party sellers | Wisconsin Department of Revenue |
| Wyoming | Makes $100,000 in gross revenue into the state OR 200 separate transactions into the state in the previous or current calendar year | Wyoming Department of Revenue |
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