First things first: you’re a “remote seller” if you sell products or services into a state where you don’t have a physical presence.
Say you have a physical location in Michigan, but you sell goods to consumers in other states. Congratulations! You’re officially a remote seller – one who may be required to collect and file sales taxes to states other than your own.
Calculating Your US Sales Tax Obligations
To determine whether or not you need to pay US sales taxes to other states, you have to first find out whether or not you have a “nexus” (or, “connection”) in the state.
You might have a nexus in an external state if you meet any of the following conditions, among others:
- Having a physical location in another state
- Generating a sufficient sales or transaction volume in the state to create an “economic nexus”
- Making sales through an affiliate arrangement with a local business in another state
You’ll also have to make sure that the state you have a potential nexus with actually has a local or state sales tax. No sales tax? No obligations on your part.
US Sales Tax Thresholds
If you think you might have a nexus in another state, use the table below to calculate whether or not you meet the state-by-state sales and/or transaction requirements to be required to collect and remit sales tax:
|US State||Sales Threshold||Transaction Requirement|
Use this table for guidance only. Rates change. States add restrictions and repeal others.
To confirm whether or not you need to calculate sales tax as a remote seller, use a tool like Quaderno that automates US sales tax compliance. Never worry again about whether you’ve calculate the right taxes, at the right rates. Our software takes the headache out of sales tax management so that you can get back to what you’re best at.