Unsure where you owe sales or use tax

Run Your Nexus Risk Check

Nexus Risk Score Tool

Measure your multistate nexus risk before it turns into audit exposure.

Revenue thresholds. Transaction testing. Physical presence flags.

The Nexus Risk Score Tool evaluates your economic and physical nexus triggers and assigns a risk rating based on threshold proximity, historical exposure, and multistate activity.

The tool analyzes:

It helps identify whether your business is low, moderate, or high risk for sales tax enforcement.

Calculate My Nexus Risk

What Is a Nexus Risk Score

A nexus risk score measures the likelihood that:

The score is based on state specific threshold rules and your sales footprint. For a formalized compliance summary, review the Sales Tax Liability Estimate Report.

Factors Included in the Risk Score

Marketplace Sales Count Toward Threshold

States where sales exceed 75 percent of threshold receive elevated risk flags.

Transaction Counts

High volume sellers may trigger transaction thresholds first.

Rolling 12 Month Evaluation

Trailing sales are tested dynamically.

Marketplace Inclusion

Platform revenue is included or excluded based on state rules.

Physical Presence Indicators

Inventory, employees, or contractors increase risk weight.

Risk Level Categories

Low Risk

Below threshold in all states with no physical presence.

Moderate Risk

Approaching threshold in multiple states or inventory present.

High Risk

Threshold exceeded in one or more states with no registration.

Critical Risk

Threshold exceeded historically with significant revenue and no compliance action.

Trigger months can be confirmed with Threshold Testing Tool.

Multistate Exposure Analysis

Businesses selling into more than five states often underestimate cumulative risk.

The tool:

Review Economic Nexus by State for rule differences.

Marketplace Seller Risk

Marketplace sellers may assume risk is low because platforms collect tax.

However risk increases if:

See Marketplace Nexus for legal context. Track multichannel thresholds with Marketplace Nexus Tracker.

What to Do If Risk Is High

If the score indicates high or critical risk:

  1. Confirm exact trigger dates.
  2. Evaluate historical liability.
  3. Determine registration timing.
  4. Consider remediation strategy.

Calculate historical exposure using Back Sales Tax Calculator. If risk is high, estimate financial impact using Sales Tax Liability Estimator. Review timing guidance on When Do I Have to Register for Sales Tax.

Risk Score vs Compliance Software

Compliance software calculates tax after registration. The Nexus Risk Score Tool identifies whether you should have registered already. Risk evaluation must come before compliance automation.

Who Should Use a Nexus Risk Score Tool

If you are unsure about exposure, measure risk first. Determine whether registration is overdue with Nexus Registration Readiness Tool.

Know Your Nexus Risk Before the State Does

Measure threshold exposure. Identify registration gaps. Act early.

FAQs

It is an evaluation of how likely your business has triggered economic or physical nexus without registering.

You may still need to register depending on direct sales, inventory presence, and state rules.

Yes. In many states marketplace sales count toward economic nexus thresholds.

Confirm trigger dates, estimate liability, and evaluate registration timing immediately.

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