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Resources Sales Tax Fundamentals
by TaxJar February 15, 2025
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While state definitions of “marketplace facilitator” vary, they are generally defined as an online marketplace that lists products and processes payments on behalf of third-party sellers. I.e. they are a marketplace that “facilitates” sales on behalf of third-party sellers. (Read more in our “ Is my business a marketplace facilitator? ” article.)
The most well known online marketplaces are sites like eBay or Amazon. But there are countless smaller marketplaces, like RubyLane for vintage goods. Houzz for home goods or BigCartel, for artists and makers. And any marketplace who facilitates sales on behalf of third-party sellers needs to determine whether they are a “marketplace facilitator” in a state.
The table below lists each state’s criteria for when an online marketplace becomes a “marketplace facilitator” and when that marketplace is required to collect sales tax on behalf of 3rd party sellers who use the platform.
Important note: When referencing this table, be sure to check the link under “State Guidance.” Some states, like Alabama, have additional rules and guidelines for qualifying marketplace facilitators. Further, state laws and administrative rules are subject to change.
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by TaxJar September 25, 2026
by TaxJar August 3, 2026
by TaxJar August 1, 2026
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