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Shopify Sales Tax 2025: State-by-State Economic Nexus Thresholds

  • Writer: LedgerLine Accounting
    LedgerLine Accounting
  • Sep 6
  • 2 min read

If you sell products on Shopify to customers in multiple states, you’ve probably asked: Do I need to collect sales tax everywhere? The answer depends on economic nexus rules. Here’s what you need to know in 2025.


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What Is Economic Nexus?


You must collect sales tax in states where you have:


  • Physical nexus — a business location, office, warehouse, or employees.

  • Economic nexus — sales or transactions into a state that exceed that state’s threshold.


Most states use a $100,000 sales threshold, though some go higher or also include transaction counts. (Avalara Guide, Streamlined Sales Tax)


Common Thresholds in 2025


  • $100,000 sales only — e.g., Florida, Washington, North Carolina, Pennsylvania.

  • $100,000 or 200 transactions — e.g., Nebraska, Georgia, New Jersey, Ohio.

  • Higher thresholds —

    • Alabama: $250K sales

    • Mississippi: $250K sales

    • California: $500K sales

    • Texas: $500K sales

    • New York: $500K and 100 transactions (Avalara, Texas Comptroller)


Examples for Shopify Sellers


  • Nebraska — Nexus if sales ≥ $100K or 200+ orders.

  • California — Nexus only if sales exceed $500K.

  • New York — Must meet both $500K and 100 transactions.

  • Georgia — Nexus if sales ≥ $100K, regardless of order count.


Shopify Sales Tax Compliance Tips


  1. Track sales by state with Shopify reports.

  2. Register in states where you cross thresholds.

  3. Enable tax collection in Shopify for those states.

  4. File and remit according to each state’s schedule.

  5. Stay current — some states are dropping the “200 transactions” rule. (Avalara Update)


Bottom Line


You don’t need to collect sales tax in all 50 states. But if you exceed a state’s economic nexus threshold, you must register, collect, and remit. With thresholds ranging from $100K to $500K, every Shopify seller should monitor sales carefully to stay compliant.


👉 Need help figuring out where your Shopify store owes sales tax? Contact LedgerLine Accounting today and let us handle compliance, so you can focus on growing your business.




 
 
 

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