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
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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)
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
doola provides sales tax registration, reseller certificates, sales tax compliance filings and any other sales tax-related guidance as required, across all 50 states in the US. To know more, reach out to our team via live chat or email us at hello@doola.com.
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