Taxes / State tax rules
Selling on eBay, Poshmark or Etsy: sales tax and 1099-K rules by state
In every state below with a general sales tax, a marketplace facilitator law puts the platform in charge of collecting and sending in the tax on sales made through it (except that Oklahoma lets a facilitator over the threshold elect notice-and-reporting instead of collecting; see its page); the table gives each state's statute and start date, and each state's page covers what is still left to the seller. For Form 1099-K, the federal test is over $20,000 in more than 200 transactions, and Illinois, Maryland, Massachusetts, Montana, Vermont and Virginia set their own, while Arkansas, the District of Columbia and New Jersey give dollar figures for state copies of Forms 1099 in general; each page quotes the state's own rule.
General information, not tax advice. Check with a tax professional about your own situation.
State by state
| State | General sales tax | Marketplace facilitator law | Facilitators collect since | Form 1099-K |
|---|---|---|---|---|
| Alabama | Yes (4% state) | Code of Ala. 1975 § 40-23-199.2 (Act 2018-539, Section 3) | Federal test; copy filed with the state | |
| Alaska | Local only | No state law | n/a | No personal income tax |
| Arizona | Transaction privilege tax (TPT) | A.R.S. § 42-5044 (H.B. 2757, 2019); liability rules in § 42-5043 | No separate state threshold | |
| Arkansas | Yes (6.5% state) | Ark. Code Ann. § 26-52-111 (Act 822 of 2019, Section 19) | State figure for copies of Forms 1099: $2,500 | |
| California | Yes | Cal. Rev. & Tax. Code §§ 6040-6049.5 (Marketplace Facilitator Act, AB 147, Stats. 2019, ch. 5) | Not stated on pages checked | |
| Colorado | Yes (2.9% state) | C.R.S. §§ 39-26-102(3)(c), (5.8) and (5.9) and 39-26-105(1.5) (House Bill 19-1240) | Not stated on pages checked | |
| Connecticut | Yes (6.35% state) | Conn. Gen. Stat. § 12-408e (P.A. 18-152, § 4) | Federal test; copy filed with the state | |
| Delaware | None | No state law | n/a | Not stated on pages checked |
| District of Columbia | Yes (6% state) | D.C. Code § 47-2002.01a (D.C. Law 22-258, Internet Sales Tax Amendment Act of 2018) | State figure for copies of Forms 1099: $600 | |
| Florida | Yes (6% state) | § 212.05965, Fla. Stat. (Chapter 2021-2, Laws of Florida) | No personal income tax | |
| Georgia | Yes | O.C.G.A. § 48-8-2(8)(M.3) (H.B. 276, 2020) | Federal test; copy filed with the state | |
| Hawaii | General excise tax (GET), 4% state | Act 2, Session Laws of Hawaii 2019 (Tax Information Release 2019-03) | Not stated on pages checked | |
| Idaho | Yes | Idaho Code § 63-3605E (House Bill 259, 2019) | Not stated on pages checked | |
| Illinois | Yes (6.25% state) | Retailers' Occupation Tax Act (35 ILCS 120); 86 Ill. Adm. Code 131.145 | State threshold: $1,000 and 4+ transactions | |
| Indiana | Yes (7% state) | House Enrolled Act 1001 (2019), as described in DOR Sales Tax Information Bulletin #89 | Not stated on pages checked | |
| Iowa | Yes (6% state) | Iowa Code § 423.14A (Senate File 2417, 2018) | No separate state threshold | |
| Kansas | Yes (6.5% state) | Senate Bill 50 (2021), new Sections 1 through 4 | No separate state threshold | |
| Kentucky | Yes (6% state) | KRS 139.450 (HB 354, 2019; amended by HB 249, 2021, and HB 757, 2026) | Not stated on pages checked | |
| Louisiana | Yes (5% state) | La. R.S. 47:340.1 (Act 216 of the 2020 Regular Session) | Not stated on pages checked | |
| Maine | Yes | 36 M.R.S. § 1951-C (P.L. 2019, c. 441) | Federal test; copy filed with the state | |
| Maryland | Yes (6% state) | Md. Code, Tax-General § 11-403.1 (Chapter 735 of 2019, House Bill 1301) | State threshold: the IRC § 6041(a) amount | |
| Massachusetts | Yes (6.25% state) | G.L. c. 64H, § 34 (St. 2019, c. 41, § 32) | State threshold: $600 | |
| Minnesota | Yes | Minn. Stat. § 297A.66, subd. 2(b); § 297A.77 | Not stated on pages checked | |
| Missouri | Yes | RSMo 144.752 (with the $100,000 test in RSMo 144.605) | Not stated on pages checked | |
| Montana | None | No state law | n/a | State threshold: $600 |
| Nebraska | Yes (5.5% state) | Neb. Rev. Stat. § 77-2701.13(3) (LB 284, 2019) | No separate state threshold | |
| Nevada | Yes (6.85% state) | NRS 372.746 to 372.754 (AB 445, 2019) | No personal income tax | |
| New Hampshire | None | No state law | n/a | No personal income tax |
| New Jersey | Yes (6.625% state) | N.J.S.A. 54:32B-3.6 (P.L.2018, c.132, § 2) | State figure for copies of Forms 1099: $1,000 | |
| New Mexico | Gross receipts tax, 4.875% state | NMSA 1978 §§ 7-9-3(J), 7-9-3.3 and 7-9-3.5 (marketplace provider), § 7-9-117 (marketplace seller deduction) | Not stated on pages checked | |
| New York | Yes (4% state) | N.Y. Tax Law §§ 1101(e) and 1132(l) | Not stated on pages checked | |
| North Carolina | Yes (4.75% state) | N.C. Gen. Stat. § 105-164.4J (S.L. 2019-246) | Federal test; copy filed with the state | |
| North Dakota | Yes | N.D.C.C. § 57-39.2-02.3 | Not stated on pages checked | |
| Ohio | Yes (5.75% state) | Ohio Rev. Code 5741.01(E), (I)(4) and (Q) (Am. Sub. H.B. 166, 2019) | Not stated on pages checked | |
| Oklahoma | Yes (4.5% state) | 68 O.S. §§ 1392-1393 (as amended by SB 513, 2019, and SB 1339, 2022) | Not stated on pages checked | |
| Oregon | None | No state law | n/a | Federal test; copy filed with the state |
| Pennsylvania | Yes (6% state) | Tax Reform Code of 1971, § 237(b.1), 72 P.S. § 7237(b.1) (Act 13 of 2019) | Not stated on pages checked | |
| Rhode Island | Yes (7% state) | R.I. Gen. Laws § 44-18.2-3 | Not stated on pages checked | |
| South Carolina | Yes (6% state) | S.C. Code Ann. §§ 12-36-70 and 12-36-71 (Act No. 21 of 2019) | Not stated on pages checked | |
| South Dakota | Yes (4.2% state) | SDCL 10-65-5 (SL 2018 (SS), ch 3) | Not stated on pages checked | |
| Tennessee | Yes (7% state) | Tenn. Code Ann. §§ 67-6-901 to 67-6-902 (Public Chapter 646 (2020)) | No personal income tax | |
| Texas | Yes (6.25% state) | Tex. Tax Code § 151.0242 (HB 1525, 2019) | Not stated on pages checked | |
| Utah | Yes (4.85% state) | Utah Code § 59-12-107.6 | No separate state threshold | |
| Vermont | Yes (6% state) | 32 V.S.A. § 9713 (Act 46 of 2019) | State threshold: $2,000 | |
| Virginia | Yes | Va. Code § 58.1-612.1 (2019 Acts, chs. 815 and 816) | State threshold: $600 | |
| Washington | Yes (6.5% state) | RCW 82.08.0531 | No personal income tax | |
| West Virginia | Yes (6% state) | W. Va. Code § 11-15A-6b (HB 2813, 2019) | Not stated on pages checked | |
| Wisconsin | Yes (5% state) | Wis. Stat. §§ 77.52(3m)(a) and 77.523(1) (2019 Wis. Act 10); Wis. Admin. Code § Tax 11.555 | Not stated on pages checked | |
| Wyoming | Yes (4% state) | W.S. 39-15-502 (2019 Wyo. Sess. Laws, Enrolled Act No. 23, HB0069) | Not stated on pages checked |
Not on this table yet: Michigan and Mississippi. A state is added only when its own official pages can be read and checked.
Form 1099-K: the states with their own test
The federal test is over $20,000 in more than 200 transactions through one platform in a calendar year. Of the 49 places on this table, 6 set a 1099-K test of their own, below the federal one, for payees there, 3 give a dollar figure for state copies of Forms 1099 in general, and 6 more have platforms file a copy of the federal form with the state. Each figure below is the state's own wording, from its revenue department or statute; a reporting figure says nothing about tax owed.
| State | Figure | Transactions | The state's wording | Rule |
|---|---|---|---|---|
| Massachusetts | $600 | No count | gross payments to a payee of $600 or greater that are subject to taxation under G.L. c. 62, regardless of the number of transactions | 830 CMR 62C.8.1, under G.L. c. 62C, § 8 |
| Montana | $600 | No count | $600, the amount the department's guide lists for Forms 1099-K filed with Montana for a distribution to a Montana resident or Montana business | Revenue department guidance |
| Virginia | $600 | No count | a third-party settlement organization paid $600 or more to a Virginia payee, or to a payee at a Virginia mailing address | Va. Code § 58.1-356(B) |
| Illinois | $1,000 | 4 or more | four or more separate transactions with a cumulative total over $1,000, for a payee with an Illinois address | 35 ILCS 5/703A (Illinois Income Tax Act § 703A, as amended by P.A. 101-10) |
| Vermont | $2,000 | No count | a third-party payment processor, gig work platform or marketplace pays an individual $2,000 or more | 32 V.S.A. § 5862d(b) |
| Maryland | § 6041(a) amount | No count | reportable payment transactions to a payee that meet or exceed the filing threshold under § 6041(a) of the Internal Revenue Code (no dollar figure in the statute), for a payee required to file a Maryland return or declaration | Md. Code, Tax-General § 10-825 (Chapter 538 of 2020, Senate Bill 192) |
| State | Figure | The state's wording | Rule |
|---|---|---|---|
| District of Columbia | $600 | copies of federal Forms 1099 reporting income of $600 or more paid to a DC resident individual in a calendar year | Revenue department guidance |
| New Jersey | $1,000 | copies of 1099 information returns when the amount paid or credited is $1,000 or more in a calendar year | Revenue department guidance |
| Arkansas | $2,500 | $2,500 for filing a 1099 with Arkansas when no Arkansas income tax is withheld | Revenue department guidance |
Federal test, with a copy filed with the state: Alabama, Connecticut, Georgia, Maine, North Carolina and Oregon. No state personal income tax: Alaska, Florida, Nevada, New Hampshire, Tennessee and Washington. No separate state 1099-K requirement, on the state's own pages: Arizona, Iowa, Kansas, Nebraska and Utah. For the other 23, the state pages read for this table say nothing about Form 1099-K either way, so each of those pages says only that.
$600 or $2,000? Virginia, Vermont and Maryland tie their 1099-K test by statute to the Form 1099-MISC limits of IRC § 6041(a), and the IRS Instructions for Forms 1099-MISC and 1099-NEC (reviewed Jul 1, 2026) say that minimum threshold increased to $2,000 for tax years beginning after 2025. Each of those pages sets the IRS change beside the figure the state's own pages give (Maryland's statute names none); ask the state which figure applies to a given payment year.
How to read the table
- Marketplace facilitator law: the state statute that treats the platform as the seller (or makes it collect) for sales it facilitates once its own sales into the state pass a threshold. Each state page quotes the statute or the revenue department and says what it means for someone who sells only through marketplaces, including the states that still ask such sellers to register.
- Form 1099-K: the federal test applies everywhere. Some states set a lower threshold of their own for payees tied to the state (by address, residence or state income tax); others ask platforms to send them a copy of the federal form, and a few give a dollar figure for state copies of Forms 1099 in general. The IRS notes that platforms may send a 1099-K for less than the federal threshold, and the Instructions for Form 1099-K say the box 1a gross amount isn't reduced for credits, discounts, fees, refunds or shipping, so the form shows gross payments, not profit.
- No sales tax: a state with no general sales tax has nothing for a marketplace to collect, but it may tax sellers another way; the state's page says how.
More on the federal rule: Form 1099-K for resellers. Where the selling apps keep their reports: sales reports for taxes.
General information, not tax advice
These pages summarize each state's own published guidance and statutes. They don't say what you should file, register for or pay. Check with a tax professional, or with the state's revenue department.
Free 1-page Reseller Cheat Sheet: fees on 8 platforms, Media Mail and stamp prices
What each platform takes from a $10, $25 and $50 sale, Media Mail 1-10 lb, Ground Advantage to Zones 1, 5 and 8, and the Forever stamp, on one printable page. The link appears as soon as you sign up.