Shopify doesn't determine your nexus, register you with state agencies, or remit your sales tax. That's your responsibility — and most growing Shopify stores have more exposure than they realize.
Amazon is a marketplace facilitator. In most states, Amazon is legally required to collect and remit sales tax on behalf of third-party sellers. Shopify is not.
Shopify is a technology platform. It can help you configure tax collection at checkout — but only for states where you've determined you have nexus and have registered. Shopify does not make that determination for you, and it does not remit collected taxes to state agencies on your behalf.
This means Shopify sellers carry the full responsibility for nexus analysis, state registration, tax collection, and remittance. For fast-growing e-commerce businesses, this exposure grows with revenue.
Your Responsibility
What Shopify Does
Most states impose economic nexus when your sales into that state exceed $100,000–$500,000 annually. Crossing this threshold may require you to register and collect.
Some states — like Florida and New York — also consider transaction count (e.g., 200 transactions). Either threshold alone, or both together, may apply depending on the state.
If you have a customer service rep, warehouse person, or marketing contractor in another state, that physical presence may create nexus regardless of your sales volume there.
Pull a Shopify sales report broken down by customer state. Identify states where you have significant revenue or transaction volume.
Use our nexus center to compare your state-by-state numbers against economic nexus thresholds. Note any state where you may be at or near the threshold.
For any state showing potential exposure, run a nexus readiness assessment. You'll get an instant risk indicator — Low, Review Recommended, or Potential Exposure.
For states showing yellow or red risk levels, submit a review request. Get a written nexus assessment before deciding whether to register.
Shopify Sellers
Run a free assessment for any state where you have significant Shopify revenue. No account required to start.
Educational Disclaimer: This guide is provided by Hive Tax Book for educational purposes only and does not constitute legal advice or a formal state tax nexus opinion. Consult a qualified CPA or tax attorney for guidance specific to your situation.