Unsure where you owe sales or use tax
Run Your Nexus Risk CheckHow online downloads, digital goods, and remote sales create multistate sales tax obligations.
Digital taxability rules. Rolling thresholds. Multistate tracking.
Digital products economic nexus is created when revenue from online downloads, digital goods, or electronically delivered products exceeds a state’s threshold and that state taxes digital items. Because digital products are sold remotely, sellers can trigger economic nexus in multiple states quickly.
Digital sellers must evaluate:
If you are unfamiliar with threshold rules, review economic nexus and compare jurisdiction differences in Economic Nexus by State.
Check My Digital Nexus RiskDigital products may include:
Taxability varies significantly by state. Some states tax most digital goods. Others exempt certain categories. Understanding digital taxability is as important as understanding economic thresholds.
Not all states treat digital products the same way.
States may:
Because taxability differs, nexus analysis must combine revenue threshold testing with product classification. Review state threshold models in Economic Nexus Thresholds by State before evaluating liability.
Digital sellers often scale nationally from day one. In rolling 12 month states, revenue may exceed 100,000 dollars mid year. If you rely only on annual totals, you may miss the trigger month. Use the Nexus Threshold Calculator to determine exact trigger timing. For trailing evaluations, the Rolling 12 Month Nexus Tracker applies dynamic calculations automatically..
Digital sellers may distribute through:
Marketplace facilitator laws may apply depending on structure. Marketplace revenue may still count toward economic nexus thresholds. For legal background see Marketplace Nexus. To separate direct and platform revenue and apply state inclusion rules, use the Marketplace Nexus Tracker.
Many digital businesses operate subscription models. Recurring revenue accumulates steadily and can push sellers over thresholds faster than expected. Continuous monitoring using automated threshold tracking ensures that trigger states are identified before registration deadlines are missed.
Once economic nexus is established in a state:
If nexus existed in prior periods and tax was not collected, back tax exposure may exist. Review When Do I Have to Register for Sales Tax for timing guidance. Use the Nexus Registration Readiness Tool. to confirm whether registration is currently required. If thresholds were exceeded previously, estimate exposure using the Sales Tax Liability Estimator and calculate historical liability with the threshold testing tool.
Digital businesses selling nationally require centralized oversight.
A unified Sales Tax Exposure Dashboard provides:
This is especially important for high growth digital brands.
If digital revenue approaches 75,000 dollars in any state, evaluate nexus immediately.
Confirm taxability. Test thresholds. Register with clarity.