Sales Tax by State: Economic Nexus State Guide

Sales Tax by State: Economic Nexus State Guide

If you sell products or services online, you may have heard of Economic Nexus. It refers to the requirement for a business to have a presence in a state to collect sales tax there. Originally defined in the Quill v. North Dakota Supreme Court case, it was later overturned by the South Dakota v. Wayfair ruling. Now, businesses must have a significant economic presence in a state, determined not just by physical presence but also by the amount of sales revenue generated from customers in that state. Each state sets its own thresholds for economic nexus—some require as little as $10,000 in sales, while others set higher thresholds or have no specific requirement at all.

Here’s a comprehensive guide on economic nexus rules by state, including the Sales Tax by State: Economic Nexus State Guide. Use Ctrl/Command + F to find specific states below.

_{(All information accurate as of February 23, 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

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

In conclusion, the “Sales Tax by State: Economic Nexus State Guide” highlights the varying sales tax obligations across states. Understanding these rules is crucial for compliance.

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