Quick answer

State sales tax responsibilities for online course creators mean deciding where your business has enough presence (nexus) to require registration, whether each state treats your online courses as taxable, and then collecting, remitting, and reporting the right tax to that state. The rules vary widely by state and change often; confirm requirements with state tax departments or the NCSL before acting (National Conference of State Legislatures).

Why this matters now

In 2018 the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. allowed states to require remote sellers to collect sales tax even without a physical presence. That ruling expanded the chance that course creators who sell to customers across state lines will have collection duties (U.S. Supreme Court, South Dakota v. Wayfair, Inc., 2018).

How to determine your responsibilities

  • Establish whether your activities create nexus. Nexus can be: physical (office, employees), economic (sales volume or number of transactions), or click-through/affiliate-based in some states. Thresholds differ by state. See a current state map at the National Conference of State Legislatures (NCSL).
  • Classify your product. States treat digital products, online courses, subscriptions, and bundled services differently. Some states exempt educational content; others tax it.
  • Check marketplace facilitator rules. If you sell through platforms (Udemy, Teachable, Gumroad), many states require the marketplace to collect and remit tax on your behalf.
  • Register, collect, remit, and file. Once nexus and taxability are clear, get a sales tax permit from the state, charge the correct tax rate for the buyer’s location, remit payments on the required schedule, and file returns.

Practical checklist (step-by-step)

  1. Review sales by buyer location and count transactions for the last 12 months.
  2. Compare results to each state’s economic nexus thresholds (varies by state).
  3. Determine whether your course is taxable in each state (look up state guidance).
  4. If required, register for a sales tax permit and configure your checkout to collect tax by buyer location.
  5. File returns and remit collected tax on schedule; keep accurate records for audits.
  6. Use automation tools or tax engines to apply changing rates and rules.

For help with multistate rules and registration steps, see FinHelp’s guide: Multistate Sales Tax Basics for Online Sellers. If your content is primarily digital, review our piece on digital goods taxability: State Sales Tax for Digital Goods: Who Must Collect?.

Real-world, practical note from practice

In my work advising online educators I’ve seen two recurring patterns: (1) creators who rely on a single‑state view and later face back-tax notices from states where their students live, and (2) creators who sell via marketplaces and assume they never need to register — while some states still require the seller to report. Running a quarterly nexus review and using a sales-tax engine prevents surprise liabilities.

Common mistakes to avoid

  • Assuming all online courses are exempt. Taxability is state-specific.
  • Ignoring marketplace facilitator rules. Platforms often collect, but not always for every state or product type.
  • Waiting until an audit to sort out permit registration and back tax — penalties and interest can be substantial.

Tools and strategies

  • Automate tax calculation and filing with a tax engine or integrated accounting software.
  • Maintain buyer location data to support sourcing decisions.
  • Work with a CPA or sales‑tax specialist for multistate audits and nexus studies.

Short FAQ

  • Do I always charge sales tax on courses? Only if you have nexus in the buyer’s state and the state treats the course as taxable. Check state rules. (NCSL state-by-state guidance.)
  • Can a marketplace collect tax for me? Often yes—many states have marketplace facilitator laws—but verify what the platform actually reports for your product.

Sources and further reading

  • South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018).
  • National Conference of State Legislatures — state sales tax resources (NCSL).

Professional disclaimer

This article is educational and does not replace personalized tax or legal advice. Tax rules change; consult a qualified tax professional or state tax authority for decisions specific to your business.