This article was originally written in October 2025 and was updated in February 2026
The Highlights
- You can comply with multi-state sales taxes by determining your sales tax nexus, registering for a permit, and then collecting, filing, and remitting sales taxes.
- States can each have varying thresholds for a sales tax nexus, and tax rates can vary significantly as well.
- Programs like SST and marketplace facilitator laws can streamline sales tax compliance.
- Use a multi-state sales tax filing service for a hassle-free experience.
Whether you’re expanding your operations or steadily maintaining growth across multiple states, multi-state sales tax compliance has never been trickier. The first half of 2025 alone saw 408 sales tax rate and rule changes enacted across the country, keeping businesses on their toes and causing many to wonder what the best way forward is. RJM Tax Exemption expects 2026 to follow the same pattern.
Non-compliance is equally tricky. Percentage fees on unpaid taxes and accruing interest can mount very steadily across multiple states, and without an actionable strategy, you might find yourself prey to audits. Get the answers you need with this RJM Tax Exemption blog.
Step 1: Determining Your Sales Tax Nexus
What ecommerce sellers need to know about sales tax compliance in 2026 is that everything hinges on their sales tax nexus. The first step in staying compliant with multi-state sales tax is understanding where you’re actually liable to pay it.
The 2018 South Dakota v. Mayfair Supreme Court ruling evolved the meaning of ‘nexus’ to include ecommerce businesses that have a significant digital footprint in a state. This compels remote sellers to collect and remit taxes even if they don’t necessarily have a physical presence in a state.
State-Wise Differences
Cross $100,000 in annual sales or 200 transactions, and boom, you’re looking at a nexus in over 22 states. While some states are gradually moving away from transaction thresholds, this remains the general trend for now.
Other states play by their own rules entirely, making it harder to stay compliant with multi-state sales tax and prompting a renewed interest in multi-state sales tax filing services.
- Florida can consider having remote employees in the state as a nexus trigger.
- New York can treat any inventory storage as a nexus trigger.
- Texas can use extended trade show participation as a nexus trigger.
Learn more about state-by-state thresholds right here at RJM.
Step 2: Registering For Sales Tax Permits
A legal sales tax permit is the gatekeeper to legal collection and multi-state sales tax compliance. Skipping this means getting hit with potential penalties and retroactive taxes that can balloon to up to 50% of your owed amount.
The silver lining? SST. The Streamlined Sales Tax program makes it much easier to stay compliant with multi-state sales tax by syncing tax rules and rates for participating states. A single application can let businesses collect sales tax in all participating states, and yes, you can still register if you already have a permit in a state.
Non-Participating States
If you have a nexus in a non-participating state, you’ll need to go to that state’s revenue department portal to sign up for a permit. These states can have varying requirements for sales tax registration, but they’ll generally require a:
- EIN or SSN (for sole proprietors)
- Estimated sales volume
- Business details
- Nexus proof, like transaction logs
Some states will allow you to mark yourself as a ‘remote seller’ to skip address verification. If you’re not going through a multi-state sales tax filing service, this whole process can take up to a little over 2 weeks to complete.
Step 3: Collecting, Filing, and Remitting Sales Tax
If you’re looking to stay compliant with multi-state sales tax, this is another big hurdle. With over 400 state-level tax tweaks this year, compliance means manually keeping track of state-wise rules and a ton of room for error, especially in accurately sourcing rates for multiple states.
Most states follow destination-based sourcing. For example, a hoodie shipped from Texas to New York will be taxed at New York’s combined 8.875% rate as opposed to Texas’s 6.25%.
Marketplace Facilitators
If you’re selling through marketplaces like Amazon, eBay, and Etsy, you’re in luck. Marketplaces under marketplace facilitator laws are bound to collect, file, and remit sales tax on your behalf. Staying compliant with multi-state sales tax in this case is as easy as getting your 1099-K for income reporting.
Note that you will still have to file returns for non-marketplace facilitator sales, whether that’s through a physical store or your own website.
Non-SST Filing
Filing frequency for multi-state sales tax compliance comes down to sales volume for most states. Most states will require taxpayers to file on the 20th of the month after the taxable period. By using a multi-state sales tax filing service like RJM, they will take care of the filing, and you’ll never have to worry about missing a deadline.
Multi-State Compliance Can Be Easy
Staying compliant with multi-state sales tax often means juggling reams of paperwork and double-checking rate sourcing all day, but it doesn’t have to. RJM Tax Exemption takes the complexity out of taxes with phenomenal customer service and tax planning strategies that outpace new tax rules and rate changes.
Get a free consultation today and find out how you can save more on multi-state sales taxes with RJM.
Frequently Asked Questions
How do marketplace facilitators like Amazon impact sales tax compliance?
Marketplaces like Amazon make it much easier to stay compliant by handling sales tax collection, filing, and remittance in the states where sellers have a nexus. However, sellers still need to file returns for non-marketplace sales.
What should I know about staying compliant with multi-state sales tax in 2026?
Various states have introduced sales tax changes this year. For example:
- Maryland now applies a 3% sales tax on certain B2B services, including SaaS and IT services.
- Mississippi has reduced sales taxes on groceries.
- States like Arkansas, Kansas, and Minnesota have modified tax rules around data centers.
Do I need a tax consultant to comply with multi-state sales taxes?
You don’t need a multi-state sales tax filing service to comply, but it helps. Compliance in this case requires accounting for dozens of different sales tax thresholds and tax rates simultaneously, which can be challenging if you’re focusing on growing your business.
