How To Avoid Online Sales Tax

Avoiding online sales tax is tricky because most states in the U.S. require collection of sales tax on online purchases when the seller has a nexus (a significant presence) in that state. Since the 2018 South Dakota v. Wayfair ruling, many online retailers must charge sales tax even if they don’t have a physical store in your state.

Here’s what you should know:

Why Online Sales Tax Is Collected Now

States want to capture tax revenue lost from online shopping.
Sellers with enough sales or transactions in a state must collect sales tax.
Many big platforms (Amazon, eBay) automatically charge sales tax.

How to Minimize or Avoid Online Sales Tax (Legally)

1. Shop from Retailers Without Nexus in Your State

Smaller or out-of-state sellers with no nexus may not charge tax.
But this is becoming rare as more states enforce nexus laws.

2. Shop on Marketplaces That Don’t Charge Sales Tax

Some international or specialty marketplaces may not charge U.S. sales tax.
Be cautious of customs duties and import taxes.

3. Buy from Tax-Exempt Organizations

Some nonprofits or government sites may sell tax-exempt items.

4. Use Resale Certificates (If You’re a Business)

If you’re purchasing for resale, use a valid resale certificate to avoid tax.

5. Shop During Tax Holidays

Some states offer temporary sales tax holidays on certain items.

Important Notes

Trying to avoid sales tax by providing false information is illegal and can lead to fines.
Import duties or VAT may still apply for international purchases.
Sales tax is often included in the total price transparently now due to law changes.

TL;DR

Method	Feasibility
Buy from no-nexus sellers	Increasingly rare
Shop tax-exempt or nonprofits	Limited scope
Use resale certificates	Only if you have one
Shop international sites	Possible but watch for customs
Ignore tax (illegal)	Not recommended