US Sales Tax Nexus and Your 3PL Warehouse
Where your inventory physically sits can create a sales tax obligation, called nexus, in that state. For sellers using FBA or a 3PL, this is widely misunderstood. Here is what actually triggers nexus and what marketplace rules now cover.
Holding stock in a state can create physical nexus there; passing sales thresholds creates economic nexus. But marketplace facilitator laws now mean Amazon and Walmart collect and remit sales tax on marketplace sales in most states, which covers a lot of sellers. Your own-store (off-marketplace) sales are where you still need to watch nexus. This is not tax advice; confirm with a US tax professional.
What's in this guide
What nexus means
Nexus is the connection between your business and a US state that obliges you to collect and remit that state's sales tax. No nexus, no obligation. The two main triggers are physical presence and economic activity.
Physical vs economic nexus
Physical nexus comes from having property or people in a state, including inventory. Economic nexus comes from exceeding a sales or transaction threshold in a state, even with no physical presence. Both can apply.
Does a 3PL create nexus
Storing stock in a 3PL or FBA warehouse can create physical nexus in that state, because your goods are there. This is why FBA sellers, whose stock Amazon spreads across many states, worried about multi-state nexus for years. Concentrating stock in one 3PL location is simpler than FBA's scatter, but the principle stands.
Marketplace facilitator rules
The picture changed with marketplace facilitator laws: in most states, Amazon and Walmart are now required to collect and remit sales tax on sales made through their marketplaces. For a seller whose sales are all on Amazon and Walmart, that covers a large part of the obligation automatically, see US sales tax for Amazon sellers and taxes for Indian sellers.
Where you still have exposure
Your own-store sales, off Amazon and Walmart, are not covered by marketplace facilitator collection. If you sell through Shopify or your own site, those sales can create obligations where you have nexus. That is the area to watch as you diversify channels.
Getting it right
This is genuinely state-by-state and it changes, so treat this as orientation, not advice, and confirm with a US sales tax professional. Our nexus checker tool gives a starting read. We can also point you to compliance help as part of setup. See sales tax compliance or get a quote.