Understanding economic nexus thresholds is crucial for any online seller. Since the 2018 South Dakota v. Wayfair Supreme Court decision, states can require you to collect sales tax even without a physical presence — if you exceed their economic nexus threshold.

This comprehensive guide covers every state's current thresholds, updated for 2026.

Quick Reference: States by Threshold Type

States with $100,000 Sales Threshold Only (Most Common)

The majority of states use a simple $100,000 gross sales threshold:

Alabama
Arizona
Arkansas
Colorado
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Nebraska
Nevada
New Jersey
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

States with Higher Thresholds ($500,000)

A few states have higher thresholds, giving small sellers more runway:

State	Threshold
California	$500,000 gross revenue
Texas	$500,000 gross revenue

States Requiring Both Sales AND Transaction Count

Some states require you to meet either a dollar amount or a transaction count:

State	Sales OR	Transactions
New York	$500,000	AND 100 transactions
Connecticut	$100,000	AND 200 transactions

Note: New York is unique — you must meet both the $500,000 AND 100 transaction thresholds, not just one.

States with No Sales Tax

These five states have no state-level sales tax, so economic nexus doesn't apply:

Alaska (but some local jurisdictions do collect sales tax)
Delaware
Montana
New Hampshire
Oregon

State-by-State Breakdown

Alabama

Threshold: $250,000 in sales
Effective Date: October 1, 2018
Notes: Simplified Sellers Use Tax program available. Remote sellers can collect a flat 8% rate.

Arizona

Threshold: $100,000 in sales
Effective Date: October 1, 2019
Notes: Transaction privilege tax (TPT) — unique structure where seller is taxed, not buyer.

Arkansas

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2019
Notes: Standard collection applies. Register through the Arkansas Department of Finance.

California

Threshold: $500,000 in sales
Effective Date: April 1, 2019
Notes: Higher threshold benefits smaller sellers. Combined rates can exceed 10% in some areas.

Colorado

Threshold: $100,000 in sales
Effective Date: December 1, 2018
Notes: Complex due to home-rule cities. Many localities administer their own sales tax.

Connecticut

Threshold: $100,000 in sales AND 200 transactions
Effective Date: December 1, 2018
Notes: Must meet BOTH thresholds to trigger nexus.

Florida

Threshold: $100,000 in sales
Effective Date: July 1, 2021
Notes: Relatively late adopter. No state income tax makes sales tax revenue important.

Georgia

Threshold: $100,000 in sales OR 200 transactions
Effective Date: January 1, 2019
Notes: Marketplace facilitator law also in effect.

Hawaii

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2018
Notes: Hawaii uses a General Excise Tax (GET), not traditional sales tax. Applied to gross income.

Idaho

Threshold: $100,000 in sales
Effective Date: June 1, 2019
Notes: Standard implementation with streamlined filing.

Illinois

Threshold: $100,000 in sales OR 200 transactions
Effective Date: October 1, 2018
Notes: Home rule municipalities can add additional taxes.

Indiana

Threshold: $100,000 in sales OR 200 transactions
Effective Date: October 1, 2018
Notes: Member of Streamlined Sales Tax.

Iowa

Threshold: $100,000 in sales
Effective Date: January 1, 2019
Notes: Transaction threshold removed in 2022.

Kansas

Threshold: $100,000 in sales
Effective Date: July 1, 2021
Notes: Late adopter. Food is taxed at reduced rate.

Kentucky

Threshold: $100,000 in sales OR 200 transactions
Effective Date: October 1, 2018
Notes: Standard threshold implementation.

Louisiana

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2020
Notes: Complex parish-based system. Louisiana Sales and Use Tax Commission for remote sellers.

Maine

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2018
Notes: Standard implementation.

Maryland

Threshold: $100,000 in sales OR 200 transactions
Effective Date: October 1, 2018
Notes: Digital advertising tax also in effect (separate from sales tax).

Massachusetts

Threshold: $100,000 in sales
Effective Date: October 1, 2019
Notes: Transaction threshold removed. Clothing up to $175 is exempt.

Michigan

Threshold: $100,000 in sales OR 200 transactions
Effective Date: October 1, 2018
Notes: Standard threshold implementation.

Minnesota

Threshold: $100,000 in sales OR 200 transactions (applies to retail sales only)
Effective Date: October 1, 2018
Notes: Small seller exception available for those making under 10 retail sales.

Mississippi

Threshold: $250,000 in sales
Effective Date: September 1, 2018
Notes: Higher threshold than most states.

Missouri

Threshold: $100,000 in sales
Effective Date: January 1, 2023
Notes: One of the last states to adopt economic nexus.

Nebraska

Threshold: $100,000 in sales OR 200 transactions
Effective Date: January 1, 2019
Notes: Standard implementation.

Nevada

Threshold: $100,000 in sales OR 200 transactions
Effective Date: October 1, 2018
Notes: No state income tax. Sales tax is major revenue source.

New Jersey

Threshold: $100,000 in sales OR 200 transactions
Effective Date: November 1, 2018
Notes: Standard implementation.

New Mexico

Threshold: $100,000 in sales
Effective Date: July 1, 2019
Notes: Uses Gross Receipts Tax (GRT), not traditional sales tax.

New York

Threshold: $500,000 in sales AND 100 transactions
Effective Date: June 21, 2018
Notes: Unique requirement — must meet BOTH thresholds. Higher threshold helps small sellers.

North Carolina

Threshold: $100,000 in sales OR 200 transactions
Effective Date: November 1, 2018
Notes: Standard implementation.

North Dakota

Threshold: $100,000 in sales
Effective Date: October 1, 2018
Notes: Transaction threshold removed in 2021.

Ohio

Threshold: $100,000 in sales OR 200 transactions
Effective Date: August 1, 2019
Notes: Standard implementation.

Oklahoma

Threshold: $100,000 in sales
Effective Date: November 1, 2019
Notes: Standard implementation.

Pennsylvania

Threshold: $100,000 in sales
Effective Date: July 1, 2019
Notes: Standard implementation. Philadelphia has additional local taxes.

Rhode Island

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2019
Notes: Standard implementation.

South Carolina

Threshold: $100,000 in sales
Effective Date: November 1, 2018
Notes: Standard implementation.

South Dakota

Threshold: $100,000 in sales OR 200 transactions
Effective Date: November 1, 2018 (post-Wayfair)
Notes: The Wayfair case originated here. Standard implementation.

Tennessee

Threshold: $100,000 in sales
Effective Date: October 1, 2019
Notes: Standard implementation. No state income tax.

Texas

Threshold: $500,000 in sales
Effective Date: October 1, 2019
Notes: Higher threshold. Single local use tax rate option for remote sellers.

Utah

Threshold: $100,000 in sales OR 200 transactions
Effective Date: January 1, 2019
Notes: Standard implementation.

Vermont

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2018
Notes: Standard implementation.

Virginia

Threshold: $100,000 in sales OR 200 transactions
Effective Date: July 1, 2019
Notes: Standard implementation.

Washington

Threshold: $100,000 in sales
Effective Date: October 1, 2018
Notes: No state income tax. Also has Business & Occupation (B&O) tax.

West Virginia

Threshold: $100,000 in sales OR 200 transactions
Effective Date: January 1, 2019
Notes: Standard implementation.

Wisconsin

Threshold: $100,000 in sales
Effective Date: October 1, 2018
Notes: Standard implementation.

Wyoming

Threshold: $100,000 in sales OR 200 transactions
Effective Date: February 1, 2019
Notes: Standard implementation.

Frequently Asked Questions

What sales count toward the threshold?

Generally, only sales delivered to customers in that state count. This includes:

Taxable sales
Non-taxable sales (like wholesale)
Exempt sales

Most states look at gross sales, not net sales. Returns and refunds may or may not reduce your count, depending on the state.

Are marketplace sales included?

It depends on the state. Many states:

Include marketplace sales for determining if you have nexus
Exclude them from your direct collection responsibility (since the marketplace collects)

This means selling $90,000 directly + $20,000 on Amazon could trigger nexus in a $100,000 threshold state, even though Amazon remits the tax on their portion.

When do I need to start collecting?

Most states give you 30-60 days after crossing the threshold to register and begin collecting. Don't wait — register promptly to avoid penalties.

What's the penalty for not collecting?

Penalties vary by state but can include:

Back taxes owed on uncollected sales
Interest (typically 10-12% annually)
Penalties (often 10-25% of tax owed)
In extreme cases, personal liability

Do thresholds reset each year?

Yes. Most states calculate thresholds based on the current or previous calendar year. If you exceeded the threshold last year, you typically have nexus for the entire current year.

How do I track my sales by state?

Use your e-commerce platform's built-in reporting, or tools like Sails that aggregate sales across all your platforms and alert you when you're approaching thresholds.

Next Steps

Know your numbers — Track sales by state across all channels
Set up alerts — Get notified when approaching thresholds
Register on time — Don't wait until you've exceeded the threshold
Collect correctly — Use proper rates for each destination
File and remit — Stay on schedule to avoid penalties

Managing nexus across multiple states can be complex, but tools exist to automate most of the heavy lifting.

Need help tracking your nexus exposure? Try Sails free — we monitor your sales across all platforms and alert you when you're approaching thresholds in new states.