Navigating U.S. tax obligations as an Amazon seller can be daunting—corporate tax, federal income tax, state sales tax, Nexus requirements, and more. This guide breaks down everything you need to confidently sell on Amazon in 2025.
Registered in the U.S.? Here’s what you’ll pay:
Sales tax is collected from buyers and remitted by sellers, with filing periods ranging from monthly to semi-annually. Any Amazon seller with a physical presence (“nexus”) in a state must register, collect, and remit sales tax in that state, with rates typically between 5.4–12%.
Traditionally, sellers must obtain a U.S. EIN and sales tax permits for each applicable state. Without these, selling may lead to severe penalties.
However, if you're using Amazon FBA, Amazon automatically collects and remits sales tax in states where it has fulfillment centers. You still manage tax settings but avoid handling remittances directly.
For FBM sellers, obtaining sales tax permits and remitting yourself—or outsourcing—is essential.
For FBA sellers, Amazon manages this entirely.
FBM sellers need to know taxable categories: essentials like groceries, magazines, prescription medication, and digital media may be exempt in some states. Most other products are taxable.
FBM sellers automatically charge combined state and local sales tax for each transaction, typically around 2.9%—unless shipping to a state with no sales tax.
Post-June 2018, any U.S. nexus (e.g., inventory in a warehouse, office, employee, etc.) mandates sales tax remittance in that state.
Amazon Seller Central → Reports → Payments → Tax Reports allows you to generate filing-specific data.
Recommended states:
