What is trailing nexus?

Most states make you keep filing for a while after you drop below their threshold. California runs through the next full calendar year. Texas uses a rolling twelve months. We track each state's rule so you cancel on the right date, not too early.

Will I get in trouble for canceling a permit?

Not if you do it in the right order. We file every outstanding and final return first, then guide the cancellation. The real risk is canceling early or skipping a final return, which is exactly what we prevent.

Which platforms do you support?

Amazon, Shopify and WooCommerce, with BigCommerce, Etsy, Walmart and eBay supported through manual entry. You can also enter your states by hand on any platform.

Do you file my returns?

Yes. During the wind-down we file the zero-dollar returns so nothing lapses, and once you're deregistered in a state there's nothing left to file.

How is this different from Avalara or TaxJar?

They help you register and file more. We help you deregister and file less. We only charge for the states you keep.

No. TrailingZero is software that flags deregistration opportunities and handles filings. For complex situations we tell you when to bring in your accountant.

Is TrailingZero live?

Yes. Free audits are live now — run yours in minutes. Connect a store read-only or enter your registered states by hand to see which you can cancel and what it saves.

If I only sell on Amazon, do I need to register in Tennessee?

Often no for those facilitated sales, since the marketplace collects and remits.

No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

Marketplace facilitator law

Tennessee marketplace facilitator law

If you sell on Amazon, Etsy, eBay or Walmart, Tennessee's marketplace facilitator law decides who collects the tax — the platform or you. Here's how it works and what it means for your own registration.

By John DoeReviewed by Jane Doe, CPAUpdated June 2026How we verify

Confidence: moderate

Parts of this page (often the trailing-nexus timing) are still being verified, so our confidence here is moderate rather than high. Confirm anything you act on with Tennessee Department of Revenue or a tax professional before you register or deregister.

Has a marketplace law?: Yes
Facilitator collects & remits?: Yes
In effect since: October 2020
Counts toward your threshold?: No

Source: Tennessee Department of Revenue

Does Tennessee have a marketplace facilitator law?

Senate Bill 2182 signed April 1, 2020, effective October 1, 2020. Marketplace facilitators must collect and remit Tennessee sales tax on facilitated sales if they exceed $100,000 in combined own sales plus facilitated sales during the previous 12 months. Exemptions exist if substantially all marketplace sellers are already registered, or if sellers with over $1 billion in annual US sales contractually assume tax collection.

Do you still need your own permit?

If you sell only through registered marketplaces in Tennessee, the platform collects and remits the tax, so you often don't need your own permit for those sales. And in Tennessee, facilitated sales don't count toward your own threshold.

Direct sales (Shopify, WooCommerce) are different

Sales through your own store aren't facilitated by anyone — you collect Tennessee tax on those yourself once you're registered. Many sellers are registered in Tennessee only because of marketplace sales the platform already handles, which is exactly the kind of registration worth reviewing.

Where TrailingZero fits

TrailingZero connects to your store read-only, maps where you actually have nexus state by state, and separates your marketplace-collected sales from your direct sales in Tennessee, so you only stay registered where you truly need to be. During any wind-down it can file the zero-dollar returns so nothing lapses — and you only pay for the states you genuinely keep. Run a free audit anytime; this page is free education either way.

Tennessee Marketplace law FAQ

Does Tennessee require marketplaces to collect sales tax?: Yes. Senate Bill 2182 signed April 1, 2020, effective October 1, 2020.
If I only sell on Amazon, do I need to register in Tennessee?: Often no for those facilitated sales, since the marketplace collects and remits.
Is this tax advice?: No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

See what you can stop paying in Tennessee

Run a free audit and see which registrations you can drop — in minutes, no card required.

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Other states

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Sources

Primary sources reviewed for this page. Data current as of June 2026.

TrailingZerois software, not a CPA or law firm, and this page is general education — not tax or legal advice. State rules and thresholds change frequently; confirm your situation with the state's tax authority or your accountant before you register or deregister. See how we research and review this data in our editorial & accuracy policy.