Online Sales Tax Calculator
Estimate online order sales tax obligations, marketplace facilitator collections (Amazon, Etsy, Shopify), and destination-based nexus compliance.
E-Commerce Checkout & Remittance
E-Commerce Destination Sales Tax Formula
Taxable Total = Order Subtotal + Shipping | Tax Amount = Taxable Total × (Destination Tax Rate % ÷ 100)- Destination-Based Sourcing: Sales tax is calculated based on the buyer’s delivery address rather than the seller’s warehouse.
- Marketplace Facilitator: Platforms like Amazon, eBay, and Etsy are legally required to calculate, collect, and remit sales tax directly on behalf of third-party merchants.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes destination shipping state taxes freight charges when combined with taxable physical merchandise.
Frequently Asked Questions
What is the South Dakota v. Wayfair Supreme Court ruling?
In 2018, the US Supreme Court ruled that states can require out-of-state online retailers to collect sales tax once they exceed economic nexus thresholds (commonly $100,000 in sales or 200 transactions annually).
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