Economic Nexus Thresholds by State

Until 2018, a state could make a seller collect its sales tax only if the seller had a physical presence there, such as a store, an office or a warehouse. In South Dakota v. Wayfair, Inc., the U.S. Supreme Court ended that rule. A state can now require a seller with no physical presence to register and collect once its sales into the state pass a set level. That level is the economic nexus threshold.

Most states set the threshold as a dollar amount of sales into the state. Some also count separate transactions. Each state measures over its own period, such as the previous or current calendar year, or the last 12 months. Crossing the threshold means you must register with that state's tax agency and collect its tax.

The table lists the threshold, the period, the date the current threshold took effect and the agency for 46 jurisdictions: every state with a statewide sales tax, plus the District of Columbia. Each state page has the registration details.

Economic nexus thresholds by state

States with no general sales tax

These states have no statewide sales tax, so there is no state threshold to cross.

• Alaska: Alaska has no state sales tax, but many cities and boroughs do.
• Delaware: Delaware has no state or local sales tax.
• Montana: Montana has no general sales tax.
• New Hampshire: New Hampshire has no statewide sales tax.
• Oregon: Oregon has no statewide sales tax.

Transaction thresholds

17 of the 46 jurisdictions in the table also count transactions: Arkansas, Connecticut, the District of Columbia, Georgia, Hawaii, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New York, Ohio, Rhode Island, Vermont, Virginia and West Virginia. In Connecticut and New York, you must cross both the dollar amount and the transaction count. In the others, crossing either one is enough. The other 29 use a dollar amount alone.

What happens when you cross it

Once you cross a state's threshold, register with its tax agency and start collecting tax on taxable sales into the state. Some states give you a short window before collection must start, and the state pages show it where the state sets one.

After you register, you file returns on the schedule the agency assigns. We prepare and file sales tax registrations for sellers who have crossed a threshold.

Marketplace sales

If you sell through an online marketplace, the marketplace usually collects and remits the tax on those sales. States differ on whether those sales count toward your own threshold. Each state page notes what that state says about marketplace sales.