Sales Tax by State: Economic Nexus State Guide

If you sell products or services online, you’re likely familiar with the term Economic Nexus. If not - don’t worry, “economic nexus” is essentially just a fancy way of saying that a business must have a presence in a state in order to collect sales tax there.

If you sell products or services online, you’re likely familiar with the term Economic Nexus. If not - don’t worry, “economic nexus” is essentially just a fancy way of saying that a business must have a presence in a state in order to collect sales tax there. 

The term was first defined after the Quill v. North Dakota supreme court case but was overturned after the supreme court ruling in the South Dakota v. Wayfair court case, so now a business must have a significant economic presence in a state to collect sales tax. 

That means they do not necessarily have to have a physical presence there, they just need to make a certain amount of money from customers in that state to have a significant economic presence there. 

While may sound straightforward, it isn’t always. The latter court ruling now means that every state can create its own thresholds for what economic nexus is. While one state may say that you only need to make $10,000 in sales in their state to have economic nexus, another may set theirs at $500,000, and another may not have one. 

So… how are you supposed to know? We’ve laid everything out in the list below, so make sure you bookmark this page! 

To find a specific state, just press Ctrl/Command + F and type in the state you need.

(All information is correct as of 23 February 2022) 

Economic Nexus State Guide 

Alabama 

Threshold: $250,000 + some specified activities 

Measured From: Previous calendar year 

Includable Sales: All retail sales, not including Marketplace sales 

When To Register: By January 1 of the year after you reach the threshold 

Alaska

Threshold: $100,000 or 200 transactions 

Measured From: Previous calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: The first day of the month after 30 days of being adopted by a city or borough 

Arizona 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: When you meet the threshold you must obtain a TPT license 

Arkansas 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Taxable sales, not including Marketplace sales 

When To Register: The next transaction (so as soon as possible) 

California 

Threshold: $500,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales of tangible personal property, including Marketplace sales 

When To Register: The same day you exceed the threshold

Colorado 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Retail sales, not including Marketplace sales 

When To Register: Within 90 days 

Connecticut 

Threshold: $100,000 and 200 transactions 

Measured From: 12 month period to 30 September 

Includable Sales: Retail sales, including Marketplace sales 

When To Register: By October 1 of the year you cross the threshold 

Delaware 

Threshold: no sales tax 

Measured From: n/a 

Includable Sales: n/a

When To Register: n/a

District of Columbia 

Threshold: $100,000 or 200 transactions 

Measured From: previous or current calendar year 

Includable Sales: Retail sales, including Marketplace sales 

When To Register: Next transaction 

Florida 

Threshold: $100,000

Measured From: previous calendar year 

Includable Sales: Taxable sales, not including Marketplace sales 

When To Register: Next transaction 

Georgia 

Threshold: $100,000 or 200 transactions 

Measured From: previous or current calendar year 

Includable Sales: Retail sales, not including Marketplace sales 

When To Register: Next transaction 

Hawaii 

Threshold: $100,000 or 200 transactions 

Measured From: current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: The month following when you meet the threshold 

Idaho 

Threshold: $100,000 

Measured From: previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Next transaction 

Illinois 

Threshold: $100,000 or 200 transactions 

Measured From: 12-month preceding period 

Includable Sales: Retail sales, not including Marketplace sales 

When To Register: When you believe you meet the criteria for the past 12 months 

Indiana 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: As soon as possible 

Iowa 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Within 30 days 

Kansas 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales (latter is gross sales) 

When To Register: Next transaction 

Kentucky 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Within 60 days 

Louisiana 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: Within 30 days 

Maine 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: Next transaction 

Maryland 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: First day of next month  

Massachusetts

Threshold: $100,000

Measured From: Previous calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: By 1 January of the following year, though you have an additional 2 months if you exceed it between November and December

Minnesota 

Threshold: $100,000 or 200 transactions 

Measured From: 12-month period ending ending on the last day of the previous quarter 

Includable Sales: Retail sales, including Marketplace sales 

When To Register: Within 60 days 

Mississippi 

Threshold: $250,000 

Measured From: Previous 12 month period 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: As soon as possible 

Missouri 

*Note, this won’t come into effect until Jan 1, 2023 

Threshold: $100,000 

Measured From: Previous 12 month period 

Includable Sales: Taxable sales 

When To Register: Within 90 days of the preceding quarter ending 

Montana 

Threshold: No sales tax 

Measured From: n/a

Includable Sales: n/a

When To Register: n/a

Nebraska 

Threshold: $100,000 or 200 transactions 

Measured From: previous or current calendar year 

Includable Sales: Retail sales, including Marketplace sales 

When To Register: By the end of the calendar month 

Nevada 

Threshold: $100,000 or 200 transactions 

Measured From: previous or current calendar year 

Includable Sales: Retail sales, including Marketplace sales 

When To Register: within 30 days 

New Hampshire 

Threshold: no sales tax 

Measured From: n/a

Includable Sales: n/a

When To Register: n/a

New Jersey 

Threshold: $100,000 or 200 transactions  

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: As soon as possible 

New Mexico 

Threshold: $100,000 

Measured From: Previous calendar year 

Includable Sales: Taxable sales, not including Marketplace sales 

When To Register: By 1 January of following year 

New York

Threshold: $500,000 of tangible personal goods and 100 transactions 

Measured From: 12 months previous 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Register within 30 days, start collecting tax within 20 days thereafter 

North Carolina 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Within 60 days 

North Dakota 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Taxable sales, not including Marketplace sales 

When To Register: Within 60 days or the end of the calendar year 

Ohio

Threshold: $500,000 

Measured From: Previous or current calendar year 

Includable Sales: Retail sales, including Marketplace sales 

When To Register: As soon as possible 

Oklahoma 

Threshold: $100,000 in aggregate sales of TPP 

Measured From: Previous or current calendar year 

Includable Sales: Taxable sales, not including Marketplace sales 

When To Register: By the first of the following month  

Oregon 

Threshold: no sales tax 

Measured From: n/a

Includable Sales: n/a

When To Register: n/a

Pennsylvania 

Threshold: $100,000 

Measured From: Previous financial year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: By April 1 of following year 

Rhode Island 

Threshold: $100,000 or 200 transactions 

Measured From: Previous calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: By January 1 of following year 

South Carolina 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Within 30 days 

South Dakota 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: As soon as possible 

Tennessee 

Threshold: $100,000

Measured From: Previous 12 month period 

Includable Sales: Retail sales, not including Marketplace sales 

When To Register: Within 90 days 

Texas

Threshold: $500,000

Measured From: Previous 12 month period 

Includable Sales: Gross revenue, including Marketplace sales 

When To Register: Within 120 days 

Utah

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, not including Marketplace sales 

When To Register: As soon as possible 

Vermont 

Threshold: $100,000 or 200 transactions 

Measured From: Previous 12 month period  

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Within 30 days of the end of the quarter you exceed the threshold 

Virginia 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Retail sales, not including Marketplace sales 

When To Register: As soon as possible 

Washington 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: Within 30 days 

West Virginia 

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales 

When To Register: As soon as possible 

Wisconsin 

Threshold: $100,000 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, including Marketplace sales (not for individual sellers) 

When To Register: As soon as possible 

Wyoming

Threshold: $100,000 or 200 transactions 

Measured From: Previous or current calendar year 

Includable Sales: Gross sales, not including Marketplace sales for individual sellers

When To Register: As soon as possible 

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