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Economic Nexus Rules by State for Sales and Use Tax

Economic nexus is triggered when a business exceeds thresholds defined by a state, even without physical presence. These thresholds typically depend on revenue, transaction counts, and the measurement period. Because rules differ by state, tracking economic nexus for sales and use tax manually is error prone. If you want to understand the concept first, see sales tax nexus explained. If you want to see how this applies to your data, see how TaxMap works.

How to use this page

This page is designed to help you understand the general structure and what to look for, then map sales and use tax exposure using your own data. TaxMap evaluates your activity against jurisdiction rules and flags where you may be triggered, near threshold, or currently compliant. For the product view, see TaxMap Product.

What economic nexus typically considers

States commonly evaluate:

Why thresholds alone are not enough

Even if you know a threshold, you still need to answer:

This is why many businesses start with education, then move to automated exposure analysis and compliance. See pricing for the simplest way to start.

Available state nexus guides

What to do after you identify likely economic nexus

Once you know where thresholds may be triggered, the next step is mapping sales and use tax exposure and moving toward compliance.

See filing options for details. If you are concerned about historical exposure, review exposure cleanup guides.

Related resources

Use tax is often missed even when sales tax thresholds are actively tracked. Review use tax explained. For a full explanation of nexus, see sales tax nexus.

Frequently asked questions

No. Physical nexus can also create sales and use tax obligations. See sales tax nexus explained.

Not necessarily. TaxMap can start from spreadsheets, exports, and PDFs to evaluate sales tax and use tax nexus. See how TaxMap works.

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