Do I need to pay taxes in every state I sell in?

You only need to collect and pay sales tax in states where you have nexus, a significant connection like physical presence or a certain level of sales. Once you meet that threshold in a state, you must register and remit taxes there.

How often should I file?

Filing frequency depends on the state and your total sales volume. Most states require filing monthly, quarterly, or annually. High-volume sellers often file monthly.

What items are usually exempt from sales tax?

Common exemptions include groceries, prescription medicine, and certain clothing items. However, every state has its own list, always check state-specific rules.

What is physical and economic nexus, and how do I calculate it?

Physical nexus happens when you have a tangible presence in a state, like an office, warehouse, or employees. Economic nexus applies when your sales or number of transactions in a state cross that state’s threshold.

Do I still have to remit sales tax if I work with a marketplace facilitator?

Usually not. Major platforms like Amazon or Etsy collect and remit sales tax on your behalf. But you might still need to file a return to report those sales.

Are digital goods taxable?

It depends on the state. Some states tax digital downloads and subscriptions, while others don’t. Always confirm local laws before charging customers.