Key takeaways
- Shopify charges US sales tax at checkout only in states you set up with a sales tax ID, after you register there.
- Shopify does not remit or file for most stores. Automated filing is closed to new enrollment and limited to US-based stores.
- Shop app and shop.com orders are different: Shopify collects, remits and files tax on them since January 1, 2025.
- Many states, including California, Texas, New York and Washington, count marketplace sales toward your nexus threshold.
- Illinois dropped its 200-transaction test on January 1, 2026, leaving a $100,000 sales threshold.
- California will tax digital products, including SaaS, from January 1, 2027.
In short: Shopify can calculate and charge US sales tax at checkout, but only in the states you set up, after you register there. For most stores, Shopify does not remit or file the tax. You pay it to each state and file the returns yourself. The exception is orders placed in the Shop app, where Shopify handles tax itself.
Updated October 2026. This guide reflects Shopify Help Center pages and state revenue guidance checked in October 2026, including Illinois's January 2026 threshold change.
Does Shopify collect sales tax for you?
Yes, Shopify charges sales tax to your customers at checkout, but only where you have told it to. Shopify says it "helps to automate charging sales taxes" once you configure your store (Shopify Help Center: US taxes).
Collection depends on your registrations. Shopify's setup guide says that if you need to charge sales tax in a state, you must "contact each of the relevant agencies and register with them." After that, you add the state and your sales tax ID under Settings, then Taxes and duties, then United States (Shopify Help Center: Setting up US taxes). Shopify does not register you with any state.
Does Shopify remit or file sales tax returns?
For most merchants, no. Shopify states that it "doesn't remit or file your taxes for you, unless you use" Shopify Tax with automated filing (Shopify Help Center: US taxes).
That exception is narrow for UK and EU sellers. Shopify says automated filing "is closed to new enrollment," is available "only for stores in the United States that use Shopify Tax," and files only sales "made on the Shopify platform where you are the merchant of record" (Shopify Help Center: Automated filing considerations). If your store is based in the UK or EU, plan to file and pay each state yourself or through a provider.
Shopify also does not report sales tax to states on your behalf for normal web store orders. Its liability tool states that "it's your responsibility to determine where you need to charge and to remit taxes" (Shopify Help Center: US tax liability insights).
When does Shopify act like a marketplace and handle tax itself?
Only for orders placed in the Shop channel. Since January 1, 2025, Shopify says the Shop channel "automatically collects, remits, and files taxes for all orders shipping to or within the United States," regardless of your tax settings (Shopify Help Center: Shop channel sales tax).
This covers orders placed directly in the Shop app and on shop.com. It does not cover orders paid with Shop Pay on your own online store checkout. Tax on Shop channel orders is reported under SC Commerce Services Inc. (Shopify Help Center: Understanding tax liability). Shopify adds that you "might still need to include these transactions" in your own state reporting, so check how each state treats them.
Shopify Tax also does not calculate tax on third-party and API-generated orders, such as Amazon orders (Shopify Help Center: Shopify Tax considerations). Sales on Amazon or other marketplaces fall under the marketplace's own rules.
How are marketplace facilitator rules different from Shopify?
On a marketplace, the marketplace usually collects and remits the tax. On your own Shopify store, you are the seller and the tax is your job.
California treats a marketplace facilitator as "the seller and retailer for each sale facilitated through its marketplace" since October 1, 2019 (CDTFA: Marketplace Facilitator Act guide). Texas says marketplace providers "are responsible for collecting and remitting tax on sales made through a marketplace" (Texas Comptroller: Remote sellers and marketplace FAQ). Read more in our guide to marketplace facilitator laws.
The catch: many states still count your marketplace sales toward your own nexus threshold. So Amazon or Etsy sales can push you over the line for your Shopify store, even though the marketplace already paid the tax on those orders.
When does a UK or EU Shopify seller need to register in a US state?
When you cross a state's economic nexus threshold, or have physical presence there, such as stock in a US warehouse. Shopify notes that "economic nexus rules apply to all merchants with customers in the United States," whether or not they have a physical presence (Shopify Help Center: Understanding tax liability).
These rules followed the US Supreme Court's decision in South Dakota v. Wayfair on June 21, 2018 (US Supreme Court docket 17-494). There is no single US registration. Each state has its own threshold, registration and filing rules. For the wider registration picture, see US sales tax for European and UK sellers.
Economic nexus thresholds in six large states
| State | Threshold | Period measured | Marketplace sales count? |
|---|---|---|---|
| California | Sales of tangible goods for delivery in California exceeding $500,000 (CDTFA) | Preceding or current calendar year | Yes (CDTFA) |
| Texas | Total Texas revenue of $500,000 or more (below that is a safe harbor) (Texas Comptroller) | Preceding 12 calendar months | Yes (Texas Comptroller) |
| New York | More than $500,000 in gross receipts AND more than 100 sales (NY Tax Department) | Immediately preceding four sales tax quarters | Yes |
| Florida | Taxable remote sales exceeding $100,000 (Florida DOR TIP 21A01-03) | Previous calendar year | Not stated in the TIP; check with the state |
| Illinois | $100,000 or more in gross receipts; the 200-transaction test was removed from January 1, 2026 (Illinois DOR FY 2026-12) | 12-month lookback, checked quarterly for quarters after March 31, 2026 | Not addressed in the bulletin |
| Washington | More than $100,000 in combined gross receipts (Washington DOR) | Current or prior year | Yes |
New York requires both tests. Meeting only one is not enough. For all states, see our economic nexus by state guide.
How does Shopify help you track nexus?
Shopify's Tax liability insights page flags states where you may have nexus. It marks a state "Action required" when you may be liable, and "Monitoring" when your sales reach at least 80% of that state's threshold (Shopify Help Center: US tax liability insights).
It counts transactions that occur within Shopify, including marketplace transactions where state law requires. It does not see sales you make outside Shopify, so add those yourself. Shopify also says the tool "is not a substitute for advice from a tax authority or a tax professional."
How to set up US sales tax on Shopify as a UK or EU seller
Register first, then switch on collection in Shopify, then file with each state. In practice:
- Check nexus. Add up your sales into each state across all channels, including marketplaces where the state counts them. Compare them with each state's threshold and period.
- Register in each state where you have nexus. Apply to the state revenue agency for a sales tax permit. Shopify cannot do this for you.
- Add the registration in Shopify. Go to Settings, then Taxes and duties, then United States. Add the state and enter your sales tax ID (Shopify Help Center).
- Collect tax at checkout. Shopify then charges tax on orders shipped to that state. Check product categories and any exempt customers.
- File and remit on each state's schedule. Use Shopify's tax reports to prepare returns. File and pay each state by the deadline it sets for your account.
- Keep monitoring. Review liability insights and your marketplace sales each quarter, and register when a new state crosses its threshold.
Our guide on how to automate US sales tax filing in every state covers the filing side in more detail.
What does Shopify Tax cost?
Shopify Tax calculations are free until your store's sales reach $100,000 (or €100,000 or £100,000 depending on region). After that, US calculations cost 0.35% on Basic, Grow and Advanced plans and 0.25% on Shopify Plus, capped at $0.99 per order (Shopify Help Center: Shopify Tax pricing).
For stores created on or after May 13, 2026, the free tier is based on lifetime sales. Older stores use an annual threshold. Fees apply only in regions where you have turned on tax collection. Shopify's guide to choosing a tax service lists options by where your store is located and does not say whether a UK or EU store can use Shopify Tax for US orders (Shopify Help Center: Choose a tax service). Check this in your admin or with Shopify Support.
What changes are coming for Shopify sellers of digital products?
California will tax digital products from January 1, 2027. Under Senate Bill 122, the definition of tangible personal property expands to include digital products, and prewritten SaaS providers are among the groups affected (CDTFA Special Notice L-1036).
If you sell downloads, digital templates or software through Shopify to California customers, review your product tax categories before that date. Also remember that your EU and UK VAT duties continue alongside US sales tax. Our Shopify VAT guide covers that side.
Sources
- Shopify Help Center: US taxes
- Shopify Help Center: Setting up US taxes
- Shopify Help Center: Understanding tax liability
- Shopify Help Center: US tax liability insights
- Shopify Help Center: Automated filing considerations
- Shopify Help Center: Shop channel sales tax
- Shopify Help Center: Shopify Tax pricing
- CDTFA: Tax Guide for Marketplace Facilitator Act
- CDTFA: Use tax collection requirements after Wayfair
- CDTFA Special Notice L-1036
- Texas Comptroller: Remote sellers
- Texas Comptroller: Remote sellers and marketplace FAQ
- New York State Tax Department: Registration without physical presence
- Florida Department of Revenue: TIP 21A01-03
- Illinois Department of Revenue: Bulletin FY 2026-12
- Washington DOR: Remote sellers
- US Supreme Court: Docket 17-494, South Dakota v. Wayfair
How Taxually handles this
LumaTax covers US sales tax nexus analysis, state registration, return preparation, filing and remittance. It is currently available to enterprises and to service providers such as accounting firms. Shopify merchants and other e-commerce sellers can join the LumaTax waitlist, while CrossTax handles their EU and UK VAT registrations and returns, including OSS and IOSS.
Related guides:
Frequently asked questions
Does Shopify collect sales tax automatically?
Shopify charges sales tax at checkout only in the US states you add in Settings, Taxes and duties, United States, with your sales tax ID. You must register with each state first. Orders placed in the Shop app are the exception: Shopify collects, remits and files tax on those itself.
Does Shopify remit sales tax to the states?
Not for most stores. Shopify says it does not remit or file your taxes unless you use Shopify Tax with automated filing. Automated filing is closed to new enrollment and only available to US-based stores, so UK and EU sellers pay each state themselves.
Does Shopify file sales tax returns for me?
Generally no. You file returns with each state where you are registered. Shopify's reports and liability insights help you prepare, but filing stays with you unless your US store was already enrolled in automated filing.
Does Shopify report sales tax to states?
Not for orders on your own online store. Shopify reports tax only on Shop channel orders (the Shop app and shop.com), under SC Commerce Services Inc. Shopify notes you might still need to include those orders in your own state reporting.
Do Amazon or Etsy sales count toward nexus for my Shopify store?
In many states, yes. California, Texas, New York and Washington count marketplace sales toward the seller's threshold, even though the marketplace collects the tax on those orders.
Does a UK or EU Shopify seller need a US sales tax permit?
Only in states where you have nexus. That usually means crossing a state's economic threshold, such as $500,000 in California or $100,000 in Washington, or holding stock in the state. Register before you turn on collection in Shopify.
