List of States With Economic Nexus: Sales Tax Thresholds

What is each state's economic nexus threshold?

A seller with no office or inventory in a state generally has to register and collect that state's sales tax once its sales into the state pass the state's dollar line. Most states use $100,000. California, New York and Texas use $500,000; Alabama and Mississippi use $250,000. The table below covers every state with a sales tax, plus DC. Each state name links to the official source behind its row: the state's page, or its statute where that is the clearer source.

What makes a case not simple: lines are counted per state, some states also count a number of sales, each state sets its own period, and a state with inventory or staff has nexus with no sales minimum (see where you have to collect sales tax). Gather sales by destination state and month, split between your own checkout and marketplaces, with resale and exempt sales marked.

Wording differs by state: some pages say "more than" the line and some say "at least" the line. A seller exactly at the line should read that state's text. The District of Columbia's FAQ says "more than 200" sales, but the D.C. Code says 200 or more, and the table follows the Code. Massachusetts's row follows the Streamlined Sales Tax chart, because the state's own page could not be read for this check; the chart's header date is January 11, 2023, so read the state's page before relying on it. Arizona, Hawaii and New Mexico name their tax differently (transaction privilege tax, general excise tax and gross receipts tax); the line is the same idea.

Which states have no statewide sales tax, and do any still reach remote sellers?

Delaware, Montana, New Hampshire and Oregon have no general statewide sales tax, so there is no economic nexus line to measure. Alaska has no state sales tax, but local governments do, and remote sellers can owe them through a commission.

A seller located in one of these states still has to test every other state it ships into. Not owing sales tax at home says nothing about the other states.

Which states still use a transaction count, and which dropped it?

Nineteen of the rows above also count sales, and in most of them the sales count is an alternative: crossing either the dollar line or the count is enough. Connecticut and New York require both. In the rest, only the dollar line matters.

A state page can lag its statute: Louisiana's commission FAQ still shows a count of 200 separate transactions, while the statute has only the dollar line (R.S. 47:301, FAQ). Sources for the dropped dates: Alaska, Illinois, Indiana, Utah, Wisconsin, Wyoming, North Carolina, North Dakota, South Dakota.

What period does each state measure?

Most states look at the previous calendar year or the current calendar year, whichever is over the line first. A few use a rolling twelve months, so the answer can change from quarter to quarter.

Where the table shows two years, the current year counts too: a seller that was under the line last year is in once its running total for this year passes it.

Which sales count toward the line?

It depends on the state: some count all sales, some only taxable ones, and some exclude resale. The table lists what each state's own page says; a state not listed has a page that does not settle the question, so check it.

For what nexus is and how marketplaces and warehouse inventory change it, see where you have to collect sales tax.

When does collection start after I cross?

Each state sets its own start date after the line is passed. The table lists the states whose page gives one.

For a state not listed here, the guidance page checked did not give a start date. Confirm it before registering. If you passed a line and did not register, see catching up on uncollected sales tax.

How do local and home-rule taxes change the answer?

In Alaska, Colorado and Louisiana the state line is only part of the picture, because local governments tax and administer on their own terms.

Other states add local tax at the delivery address too; the rate is a registration and return question, covered in filing sales tax returns.

How do I check a state's current rule before registering?

Open the state revenue department's own page, not a chart, and read four things: the dollar line, whether a sales count still applies, the period measured, and the start date. Then compare with the table above.

1. Find the state's remote seller page from its revenue department site; the Streamlined Sales Tax chart links to each one. The chart's header date is January 11, 2023, and several states have changed since.
2. Read the state's wording on "more than" versus "at least", and on whether exempt, resale and marketplace sales count.
3. Where a state page and the statute disagree, as Louisiana's do, the statute is the law; note the difference in your file.
4. Write down the date you checked each state and the page you read, so a later change can be told from a mistake.

Single-state detail is in the guides for California, New York and Texas.

Example

These examples are illustrative; all figures are US dollars.

A store ships into Washington and Texas

A store sells $150,000 into Washington and $300,000 into Texas in one calendar year, with nothing the year before. Washington's line is $100,000, so the store has passed it. Texas's line is $500,000, so it has not. The store registers in Washington and keeps watching Texas.

A seller is under the dollar line but over the count

A seller ships $90,000 into a state whose line is $100,000. It is under the dollar line. If that $90,000 is 250 separate orders and the state also counts 200 sales, the seller has passed the count and may need to register. In a state with no count, it stays under. In both cases it rechecks the total each month, in the state's measuring period.

A seller ships only to Oregon and Montana

A seller ships only to customers in Oregon and Montana. Neither state has a general sales tax, so there is no statewide sales tax to collect. If it starts shipping to other states, it tests each one.

Different for you?

• You have inventory, staff or a marketplace warehouse in a state: physical presence can create the duty with no sales minimum. See where you have to collect sales tax.
• You passed a line and did not register: see catching up on uncollected sales tax.
• You are registered and need to file: see filing sales tax returns.
• You sell software or subscriptions: taxability differs by state. See sales tax on SaaS and software.
• Your business is outside the US: see foreign sellers and sales tax.
• Payouts, fees and refunds make state totals hard to build: see reconciling sales and payouts.
• You sell into many states at once, or already hold a notice: the totals and filings across states are the work of bookkeeping.