Unsure where you owe sales or use tax
Run Your Nexus Risk CheckEconomic nexus thresholds determine when a business must register, collect, and remit sales tax in states where it sells products or services. Following the South Dakota v Wayfair Supreme Court decision, states gained the authority to require remote sellers to collect sales tax once their economic activity in the state exceeds certain thresholds. These thresholds are typically based on revenue, transaction volume, or both.
Most states use a standard economic nexus threshold of $100000 in annual sales or 200 transactions with customers located in the state. However, several states apply different thresholds, measurement periods, or compliance rules.
Businesses selling products online, providing SaaS services, delivering digital goods, or operating subscription businesses often trigger nexus in multiple states as their customer base expands. Understanding economic nexus thresholds is essential for maintaining multi state sales tax compliance and avoiding potential tax exposure.
TaxMap helps businesses analyze their sales activity across states to determine where economic nexus has been triggered and when registration may be required. If you need a practical explanation of how these thresholds create sales tax obligations across states, review the Economic Nexus by State guide.
Economic nexus laws require remote sellers to collect sales tax once their sales activity in a state exceeds defined thresholds.
These thresholds typically include one or both of the following metrics:
If either threshold is exceeded, the business must register with the state tax authority and begin collecting sales tax on taxable transactions delivered to customers located in that state.
Many ecommerce businesses exceed thresholds in several states simultaneously as their nationwide revenue grows.
Businesses commonly triggering nexus include:
To understand how these rules apply in detail, see the full guide explaining economic nexus rules in the United States.
The table below summarizes the primary economic nexus thresholds used by each state. While many states use a $100000 revenue threshold, several states apply different rules or transaction thresholds. Businesses should review the specific requirements of each state where customers are located Sales Tax Nexus Hub.
The table below lists the official economic nexus thresholds used by each state. If you want to understand how these thresholds work in practice, including marketplace inclusion rules, measurement periods, and registration triggers, review the full Economic Nexus by State guide.
| State | Revenue Threshold | Transaction Threshold | Measurement Period |
|---|---|---|---|
| Alabama | $250000 | None | Previous calendar year |
| Alaska | Local rules | Local rules | Local jurisdiction rules |
| Arizona | $100000 | None | Current or prior calendar year |
| Arkansas | $100000 | 200 transactions | Current or prior calendar year |
| California | $500000 | None | Current or prior calendar year |
| Colorado | $100000 | None | Current or prior calendar year |
| Connecticut | $100000 | 200 transactions | Previous 12 months |
| Delaware | No statewide sales tax | None | Not applicable |
| Florida | $100000 | None | Previous calendar year |
| Georgia | $100000 | None | Current or prior calendar year |
| Hawaii | $100000 | 200 transactions | Current or prior calendar year |
| Idaho | $100000 | None | Current or prior calendar year |
| Illinois | $100000 | 200 transactions | Previous 12 months |
| Indiana | $100000 | 200 transactions | Current or prior calendar year |
| Iowa | $100000 | None | Current or prior calendar year |
| Kansas | $100000 | None | Current or prior calendar year |
| Kentucky | $100000 | 200 transactions | Current or prior calendar year |
| Louisiana | $100000 | 200 transactions | Current or prior calendar year |
| Maine | $100000 | 200 transactions | Current or prior calendar year |
| Maryland | $100000 | 200 transactions | Current or prior calendar year |
| Massachusetts | $100000 | None | Current or prior calendar year |
| Michigan | $100000 | 200 transactions | Current or prior calendar year |
| Minnesota | $100000 | 200 transactions | Previous 12 months |
| Mississippi | $250000 | None | Previous 12 months |
| Missouri | $100000 | None | Previous 12 months |
| Montana | No statewide sales tax | None | Not applicable |
| Nebraska | $100000 | 200 transactions | Current or prior calendar year |
| Nevada | $100000 | 200 transactions | Current or prior calendar year |
| New Hampshire | No statewide sales tax | None | Not applicable |
| New Jersey | $100000 | 200 transactions | Current or prior calendar year |
| New Mexico | $100000 | None | Current or prior calendar year |
| New York | $500000 | 100 transactions | Prior four sales tax quarters |
| North Carolina | $100000 | None | Current or prior calendar year |
| North Dakota | $100000 | None | Current or prior calendar year |
| Ohio | $100000 | 200 transactions | Current or prior calendar year |
| Oklahoma | $100000 | None | Previous 12 months |
| Oregon | No statewide sales tax | None | Not applicable |
| Pennsylvania | $100000 | None | Previous 12 months |
| Rhode Island | $100000 | 200 transactions | Current or prior calendar year |
| South Carolina | $100000 | None | Current or prior calendar year |
| South Dakota | $100000 | None | Current or prior calendar year |
| Tennessee | $100000 | None | Previous 12 months |
| Texas | $500000 | None | Previous 12 months |
| Utah | $100000 | None | Current or prior calendar year |
| Vermont | $100000 | 200 transactions | Current or prior calendar year |
| Virginia | $100000 | 200 transactions | Current or prior calendar year |
| Washington | $100000 | None | Current or prior calendar year |
| West Virginia | $100000 | 200 transactions | Current or prior calendar year |
| Wisconsin | $100000 | 200 transactions | Current or prior calendar year |
| Wyoming | $100000 | None | Current or prior calendar year |
The table above summarizes the official economic nexus thresholds used by each state. These thresholds determine when a remote seller must register, collect, and remit sales tax. Because nexus rules vary by jurisdiction, many businesses maintain an internal reference table of state thresholds for compliance monitoring and internal finance review. TaxMap maintains an updated dataset of economic nexus thresholds including revenue limits, transaction thresholds, and measurement periods across all states. Businesses analyzing multi state compliance can use this dataset to review how nexus rules differ across jurisdictions. For a full explanation of how these thresholds trigger registration obligations, see the Economic Nexus by State guide.
Finance teams, ecommerce operators, and tax professionals often review economic nexus thresholds across multiple states when evaluating tax exposure.
This dataset provides a reference view of:
Businesses can combine this dataset with sales reporting to identify when nexus obligations begin. To evaluate your current sales activity across states, run the nexus risk analysis here:
Get StartedAs businesses expand nationwide, they often exceed economic nexus thresholds in multiple states without realizing it. When nexus is triggered but sales tax has not been collected, the business may accumulate sales tax exposure.
Potential exposure may include:
Many businesses discover nexus exposure after exceeding thresholds across several states. TaxMap provides tools that help businesses evaluate historical sales activity, identify nexus triggers, and estimate potential exposure before making registration decisions.
If you are unsure where nexus may already exist, start with the sales tax nexus risk assessment tool.
While most states follow the standard $100000 threshold, several states apply different rules.
Examples include:
Several states including Delaware, Oregon, Montana, and New Hampshire do not impose a statewide sales tax. Businesses selling nationwide should evaluate each state individually to determine when nexus obligations begin Sales Tax Nexus overview.
Each state applies its own economic nexus thresholds, measurement periods, and registration requirements. You can review detailed nexus rules for each state below.
For a full breakdown of nexus rules for every state, visit the economic nexus by state resource hub.
Tracking economic nexus thresholds manually can be difficult as businesses grow and customer locations expand.
Many businesses use sales tracking systems or nexus monitoring tools to track when new states require registration.
TaxMap helps companies monitor:
Businesses often use a sales tax nexus calculator to monitor threshold activity and determine when nexus obligations begin When Do I Have to Register for Sales Tax.