If Amazon already collects sales tax for me, do I still need to register in those states?

It depends on why you have nexus there, and most sellers get this wrong. Amazon collecting tax on your Amazon sales does not eliminate your registration obligation if you have physical nexus in a state (like FBA inventory). And if you sell on any channel besides Amazon, Amazon’s collection doesn’t cover those sales at all.

What Amazon actually handles, and what it doesn’t

Amazon is a marketplace facilitator. Under marketplace facilitator laws, Amazon collects and remits sales tax on your behalf for transactions completed through Amazon in all US states with a sales tax.

That covers exactly one thing: sales made through Amazon.

It does not cover:

Sales through your own Shopify or WooCommerce store
Sales through your own website
Sales through any other channel
Your registration status or permit in any state
Any filing obligation you have in states where you have nexus for other reasons

Amazon handling your Amazon transactions does not mean you have no sales tax relationship with those states. It means Amazon has satisfied the collection obligation on Amazon transactions. Your broader nexus situation is separate.

The two scenarios where you still need to register

Scenario 1: You have FBA inventory in the state

If Amazon stores your inventory in a fulfillment center in a state, you have physical nexus in that state, regardless of whether Amazon collects on your sales there.

Physical nexus creates a registration obligation. The fact that a marketplace is collecting on your Amazon sales doesn’t change that. You still need a sales tax permit in every state where FBA inventory sits.

This is the most common gap sellers have. They see Amazon collecting in California, Texas, and Ohio, and assume they’re covered. But if Amazon is storing their inventory in fulfillment centers in those states, they have physical nexus and an independent registration requirement.

Related: How do I find out which states Amazon stores my FBA inventory in?

Scenario 2: You have other sales channels in the state

If you sell through your own Shopify store, WooCommerce site, or any direct channel (and you have nexus in the state) you must collect and remit tax on those sales yourself. Amazon’s collection covers nothing outside of Amazon transactions.

A seller with $200K in Amazon sales in Texas and $50K in Shopify sales in Texas needs to be registered in Texas and collecting on their Shopify sales, even though Amazon is handling the Amazon side.

The one scenario where you might not need to register

If all three of the following are true:

Your only channel is Amazon (no other sales)
Your only nexus in the state comes from economic activity, no FBA inventory, no employees, no physical presence
Amazon covers all your transactions in that state

— then your exposure in that state may be covered by Amazon’s collection, and you may not need a separate permit.

This is a narrow scenario. Most mid-market sellers have at least one other channel, or have FBA inventory creating physical nexus, or both. If you’re not certain you fit all three criteria, register.

The threshold question: do Amazon sales count even if I don’t register?

Yes, in most states, your Amazon sales count toward your economic nexus threshold even though Amazon is collecting the tax. This matters because crossing the threshold via Amazon sales can create a registration requirement for your own-channel sales.

Example: You have $120K in Amazon sales in Illinois and $30K in Shopify sales in Illinois. Amazon collects on the $120K. But you’ve crossed Illinois’s $100K threshold, which means you have economic nexus in Illinois. Your $30K in Shopify sales are now taxable, and you need a permit to collect on them.

Related: Do Amazon and Etsy sales count toward my state nexus threshold?

What to audit right now

If you sell on Amazon and have other channels:

Pull your Amazon FBA inventory report and identify every state where inventory is stored
Register in every state with FBA inventory, that’s physical nexus regardless of Amazon’s collection
Identify states where your combined Amazon + own-channel sales exceed $100K
In those states, confirm you’re registered and collecting on your own-channel sales
Confirm your own-channel sales tax settings are configured for those states