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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)
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
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
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
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)
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
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Retail sales, not including Marketplace sales
When To Register: Within 90 days
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
Threshold: no sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
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
Threshold: $100,000
Measured From: previous calendar year
Includable Sales: Taxable sales, not including Marketplace sales
When To Register: Next transaction
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
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
Threshold: $100,000
Measured From: previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Next transaction
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
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
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 30 days
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
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
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
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, not including Marketplace sales
When To Register: Next transaction
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
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
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
Threshold: $250,000
Measured From: Previous 12 month period
Includable Sales: Gross sales, not including Marketplace sales
When To Register: As soon as possible
*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
Threshold: No sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
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
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
Threshold: no sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
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
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
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
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
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
Threshold: $500,000
Measured From: Previous or current calendar year
Includable Sales: Retail sales, including Marketplace sales
When To Register: As soon as possible
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
Threshold: no sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
Threshold: $100,000
Measured From: Previous financial year
Includable Sales: Gross sales, including Marketplace sales
When To Register: By April 1 of following year
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
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 30 days
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
Threshold: $100,000
Measured From: Previous 12 month period
Includable Sales: Retail sales, not including Marketplace sales
When To Register: Within 90 days
Threshold: $500,000
Measured From: Previous 12 month period
Includable Sales: Gross revenue, including Marketplace sales
When To Register: Within 120 days
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
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
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
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 30 days
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
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
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
Sajid
India
Kishore Nuvvula
United Kingdom
Jiwan Neupane
Nepal
Ronnie Donaire
United Kingdom
Naomie Jean Philippe
United States
Ronnie Donaire
United Kingdom
Kishore Nuvvula
United Kingdom
Jiwan Neupane
Nepal
Naomie Jean Philippe
United States
Sajid
India
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