If you buy something from a seller in another country, you very likely owe sales tax on that international purchase, even when nothing gets added at checkout. Whether the seller collects it depends on their connection to your state and whether the sale runs through a large marketplace. When no one collects, the obligation shifts to you as use tax, reported on your state income tax return. And since August 2025, federal customs duties apply to international shipments of any value, so the total cost of ordering from overseas now involves several layers of charges from different agencies.
When a Foreign Seller Collects Sales Tax at Checkout
U.S. sales tax is a state-level charge. A foreign seller is required to collect it only if they have “nexus” in your state, meaning a legal connection that gives the state authority to require collection. After the Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc., states can base that connection on economic activity alone, without any physical presence.1Supreme Court of the United States. South Dakota v. Wayfair Inc. Every state with a sales tax now uses some version of an economic nexus threshold, commonly around $100,000 in annual sales into the state.
Most small overseas sellers never cross those thresholds in any U.S. state. That means when you order directly from a foreign website, the seller usually doesn’t collect anything. The rate that would apply is based on your delivery address, not the seller’s location, and five states have no general sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. If you live in one of those, sales tax isn’t part of the equation.
The situation flips when you buy through a large marketplace. All states with sales tax have marketplace facilitator laws that push the collection duty onto the platform. Amazon, eBay, and Etsy calculate the rate for your address, add it at checkout, and remit the money to your state, regardless of whether the individual overseas seller has any nexus. So the practical pattern is simple: purchases through major platforms almost always include sales tax; purchases directly from foreign websites usually don’t.
Use Tax: What You Owe When Nothing Was Collected
When sales tax isn’t collected, the obligation doesn’t vanish. Every state that has a sales tax also imposes a use tax at the same rate on goods you buy untaxed and then use, store, or consume in the state. An international order that arrives with no tax added is exactly the situation use tax was written for.
Reporting is usually built into your annual state income tax return. Most states include a line for untaxed purchases where you enter the amount and pay the use tax owed. Some states also publish a lookup table tied to your income, letting you pay a small flat amount instead of listing each receipt. Those tables are meant for people with minor untaxed purchases and no detailed records. For a significant international purchase, like electronics or furniture, report the actual amount rather than relying on the table.
Individual compliance with use tax is low, and states rarely audit consumers for small sums. That doesn’t erase the legal obligation. States can assess penalties and interest on unpaid use tax, and the statute of limitations for unfiled returns is often open-ended, meaning no deadline closes the state’s ability to collect. If you’re buying regularly from overseas, or making a single large purchase, reporting is worth the small effort.
Customs Duties Apply on Top, and the $800 Exemption Is Gone
Sales and use tax are only one layer. Customs duties are a separate federal tax on imported goods, collected by U.S. Customs and Border Protection at the border, and they vary by product type and country of origin.2International Trade Administration. Import Tariffs and Fees Overview and Resources
For years, shipments valued at $800 or under entered duty-free under the Section 321 de minimis exemption.3Office of the Law Revision Counsel. 19 U.S. Code 1321 – Administrative Exemptions That rule is what let small overseas orders arrive without any federal charges. Effective August 29, 2025, an executive order suspended the de minimis exemption for shipments from all countries.4The White House. Suspending Duty-Free De Minimis Treatment for All Countries A February 2026 order continued the suspension.5The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries Every international shipment is now subject to duties and entry requirements, no matter how small.
How the duty gets calculated depends on how the package travels:6U.S. Customs and Border Protection. E-Commerce Frequently Asked Questions
- Packages shipped by private courier such as FedEx, UPS, or DHL go through formal or informal entry in the government’s Automated Commercial Environment system. Duties, taxes, and fees are assessed, and the carrier or broker passes the charges to you.
- Packages sent through international postal services are subject to duties based on the tariff rate for the country of origin. CBP applies either an ad valorem duty (a percentage of the item’s value) or a flat per-package duty ranging from $80 to $200, depending on the applicable rate.
The only exceptions are humanitarian donations like food, clothing, and medicine, and informational materials such as books, films, and news feeds.7Federal Register. Notice of Implementation of the Presidents Executive Order 14324 Suspending Duty-Free De Minimis For ordinary consumer purchases from overseas, a $30 item can now trigger federal charges that exceed its price.
One point that trips up first-time buyers: a purchase price that includes shipping does not include customs duties. The seller can’t predict the exact duty amount, and broker fees for clearing the package are billed on top.8U.S. Customs and Border Protection. Internet Purchases The total landed cost of an international order can include the item price, shipping, customs duties, carrier brokerage fees, and state sales or use tax, each billed by a different entity.
Carrier Brokerage and Processing Fees
Private shipping carriers charge their own fees for handling customs clearance. These aren’t government charges; they’re service fees the carrier adds for doing the paperwork, and they surprise many first-time international buyers. Common items on a carrier invoice include:
- A disbursement or customs clearance fee, covering the carrier advancing funds to pay CBP and then billing you.
- Entry preparation charges for submitting the customs entry documentation.
- Partner government agency clearance charges when goods require review by agencies like the FDA or EPA.
- A single entry bond fee for posting a one-time import bond.
- Warehouse storage charges if a shipment sits in the carrier’s facility beyond the free period.
These fees can add $10 to $50 or more per shipment.9UPS – United States. Understanding Import Fees Carriers publish their fee schedules online, and reviewing them before a large order is worthwhile. Some sellers offer a “Delivered Duty Paid” option that prepays duties and brokerage, giving you a predictable total at checkout.
Bringing Purchases Home Yourself
Different rules apply when you travel abroad and carry purchases back in your luggage. Each returning U.S. resident can bring back up to $800 worth of goods acquired abroad without paying duty, as long as the items accompany you and are for personal or household use.10eCFR. 19 CFR Part 148 – Personal Declarations and Exemptions The limit rises to $1,600 for returns from U.S. insular possessions like the U.S. Virgin Islands or Guam, but no more than $800 of that can come from goods acquired elsewhere.
This traveler exemption is separate from the suspended de minimis rule for shipped goods. When you walk through customs at the airport, the $800 personal exemption still applies. Anything above that amount is dutiable, and all items must be declared regardless of value. The exemption covers federal customs duties only. Your state may still expect use tax on items bought abroad and brought home if no sales tax was collected.
Gifts Shipped from Overseas
Gifts have their own threshold. A bona fide gift shipped to you can enter duty-free if it’s valued at $100 or less, provided one person doesn’t receive more than $100 in gifts on a single day.11U.S. Customs and Border Protection. Gifts The limit rises to $200 for gifts from U.S. insular possessions. If any single item in the package is worth more than $100, the whole package becomes dutiable.
The exemption applies only to real gifts sent by individuals. Ordering something for yourself and labeling the shipment a “gift” to avoid duty is customs fraud. And even when a gift clears duty-free at the border, your state’s use tax on the value may still apply.