State Nexus: Do TikTokers and YouTubers Owe State Taxes Outside California?

If you’re a YouTuber, TikToker, Shopify seller, Amazon business owner, or creative professional in California, you probably assume you only owe taxes in California. After all, you live here, you work here, and you file a California return.

But in today’s digital economy, where income flows from multiple platforms and across state lines, you could be responsible for state taxes outside California as well.

This comes down to a tax concept called nexus.

What Is Nexus?

“Nexus” means a sufficient connection between you (or your business) and a state that gives that state the legal right to tax you.

Traditionally, nexus meant you had a physical presence like an office, employees, or a warehouse. But thanks to online commerce, many states now apply broader rules that capture remote sellers, creators, and contractors.

There are two major types of nexus:

1. Physical Nexus

You create nexus if you:

• Spend significant time working in another state
• Perform services (like recording, speaking, or appearances) in another state
• Own property or equipment there

💡 Example: A TikToker from Los Angeles travels to New York for three months to collaborate with brands and earns $60,000 in sponsorship deals filmed there. New York may claim a portion of that income is taxable in their state — even though your main residence is in California.

2. Economic Nexus

Even without stepping foot in a state, you might create nexus if you sell to customers there. Many states impose sales tax obligations if your sales into their state exceed certain thresholds, often:

• $100,000 in sales OR
• 200+ transactions in a year

💡 Example: A YouTuber with a Shopify store sells $150,000 in branded merchandise, with $110,000 of it going to customers in Texas. Even if the YouTuber never visits Texas, they may have to register, collect, and remit Texas sales tax.

Why Nexus Is Complicated for Creators and Online Businesses

Creators and professionals often have multiple revenue streams:

• Ad revenue from YouTube
• Sponsorships or brand deals
• Merchandise sales (Shopify or Amazon)
• Patreon or subscription income
• Live events or appearances

Each income source can create a different type of nexus:

• Ad revenue: Usually only taxed at federal and state level where you live (California).
• Sponsorships/Brand deals: Taxable in states where the work is performed.
• Merchandise sales: Trigger economic nexus in states where sales exceed thresholds.
• Events/Appearances: If you speak at a conference or host a meet-and-greet in another state, that state may claim tax rights.

More Examples to Make It Clear

1. The Traveling Dentist Influencer
   A dentist in Beverly Hills launches a YouTube channel and starts traveling to Nevada and Arizona for sponsored events. If they earn $50,000 in Nevada, that portion may be subject to Nevada business filing rules (though Nevada has no state income tax). But in Arizona, they may need to file a nonresident state tax return.
2. Amazon Seller in Los Angeles
   An Amazon seller based in California does $400,000 in sales nationwide. If $120,000 comes from customers in New York, and $80,000 in Illinois, both states could require sales tax registration and compliance.
3. TikTok Creator in Florida
   A TikToker temporarily relocates to Florida for six months but continues selling merchandise to California customers. Florida has no state income tax, but because their primary residence is still California, California may claim tax on all worldwide income unless the move is properly documented as a residency change.

Risks of Ignoring Nexus

Failing to recognize nexus can lead to:

• Back taxes owed to other states
• Interest and penalties for unfiled returns
• Multi-state audits — which can be expensive and stressful
• Double taxation risks if filings are not structured correctly

How to Stay Compliant

✔️ Track where your income is earned
If you film content, perform services, or travel for work, note the dates and states involved.

✔️ Watch your sales thresholds
Shopify, Amazon, and other platforms provide reports showing sales by state. Review these regularly.

✔️ Document your residency
If you move or spend extended time outside California, keep clear records (lease agreements, utility bills, travel logs).

✔️ File correctly
You may need to file:

• A California return for all income
• Nonresident returns in states where you earn money
• Sales tax returns if you exceed thresholds in other states

✔️ Hire a CPA who understands creators and online commerce
At Velin & Associates, we specialize in helping YouTubers, TikTokers, Shopify store owners, Amazon businesses, and professionals stay compliant while reducing taxes.

Bottom Line

For creators and small business owners, taxes are no longer just about California and the IRS. With state nexus rules, your digital income can create obligations across multiple states.

The key is planning ahead — tracking where money comes from, keeping records, and consulting a CPA who understands the nuances of creator income and multi-state taxation.

For more information about our tax planning services, contact us today: visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org