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. Rules change often, so always verify with the state before you register.

Quick Reference: States by Threshold Type

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

The majority of states use a simple $100,000 gross sales threshold. Some of them also count transactions (marked below):

Arizona
Arkansas (or 200 transactions)
Colorado
Florida
Georgia (or 200 transactions)
Hawaii (or 200 transactions)
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland (or 200 transactions)
Massachusetts
Michigan (or 200 transactions)
Minnesota (or 200 transactions)
Missouri
Nebraska (or 200 transactions)
Nevada (or 200 transactions)
New Jersey (or 200 transactions)
New Mexico
North Carolina
North Dakota
Ohio (or 200 transactions)
Oklahoma
Pennsylvania
Rhode Island (or 200 transactions)
South Carolina
South Dakota
Tennessee
Utah
Vermont (or 200 transactions)
Virginia (or 200 transactions)
Washington
West Virginia (or 200 transactions)
Wisconsin
Wyoming

States with Higher Thresholds

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

State	Threshold
California	$500,000 gross revenue
Texas	$500,000 gross revenue
Alabama	$250,000 in sales
Mississippi	More than $250,000 in sales

States Requiring Both Sales AND Transaction Count

Two states require you to meet both a dollar amount and a transaction count:

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

Note: Unlike the "or 200 transactions" states above, New York and Connecticut require you to meet both thresholds, not just one.

States with No Sales Tax

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

Alaska (but many local jurisdictions collect sales tax, often through the Alaska Remote Seller Sales Tax Commission, which uses a $100,000 threshold)
Delaware
Montana
New Hampshire
Oregon

State-by-State Breakdown

Alabama

Threshold: $250,000 in sales (prior calendar year)
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 (prior or current calendar year)
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 (prior or current calendar year)
Effective Date: July 1, 2019
Notes: Standard collection applies. Register through the Arkansas Department of Finance.

California

Threshold: $500,000 in sales (prior or current calendar year)
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 (prior or current calendar year)
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 (12 months ending September 30)
Effective Date: December 1, 2018
Notes: Must meet BOTH thresholds to trigger nexus.

Florida

Threshold: $100,000 in sales (prior calendar year)
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 (prior or current calendar year)
Effective Date: January 1, 2019
Notes: Marketplace facilitator law also in effect.

Hawaii

Threshold: $100,000 in sales OR 200 transactions (prior or current calendar year)
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 (prior or current calendar year)
Effective Date: June 1, 2019
Notes: Standard implementation with streamlined filing.

Illinois

Threshold: $100,000 in sales (prior 12 months)
Effective Date: October 1, 2018
Notes: Transaction threshold removed effective January 1, 2026. Home rule municipalities can add additional taxes.

Indiana

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: October 1, 2018
Notes: Transaction threshold removed effective January 1, 2024. Member of Streamlined Sales Tax.

Iowa

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: January 1, 2019
Notes: Transaction threshold removed.

Kansas

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: July 1, 2021
Notes: Late adopter. Food is taxed at reduced rate.

Kentucky

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: October 1, 2018
Notes: Transaction threshold removed effective August 1, 2026.

Louisiana

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: July 1, 2020
Notes: Transaction threshold removed effective August 1, 2023. Complex parish-based system. Louisiana Sales and Use Tax Commission for remote sellers.

Maine

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: July 1, 2018
Notes: Transaction threshold removed in 2022.

Maryland

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

Massachusetts

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: October 1, 2019
Notes: Transaction threshold removed. Clothing up to $175 is exempt.

Michigan

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

Minnesota

Threshold: $100,000 in sales OR 200 transactions (applies to retail sales only; 12 months ending with the last full quarter)
Effective Date: October 1, 2018
Notes: Standard threshold implementation.

Mississippi

Threshold: More than $250,000 in sales (prior 12 months)
Effective Date: September 1, 2018
Notes: Higher threshold than most states.

Missouri

Threshold: $100,000 in sales (prior 12 months, checked quarterly)
Effective Date: January 1, 2023
Notes: One of the last states to adopt economic nexus.

Nebraska

Threshold: $100,000 in sales OR 200 transactions (prior or current calendar year)
Effective Date: January 1, 2019
Notes: Standard implementation.

Nevada

Threshold: $100,000 in sales OR 200 transactions (prior or current calendar year)
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 (prior or current calendar year)
Effective Date: November 1, 2018
Notes: Standard implementation.

New Mexico

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

New York

Threshold: $500,000 in sales AND more than 100 transactions (prior four sales tax quarters)
Effective Date: June 21, 2018
Notes: Like Connecticut, must meet BOTH thresholds. Higher threshold helps small sellers.

North Carolina

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: November 1, 2018
Notes: Transaction threshold removed effective July 1, 2024.

North Dakota

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: October 1, 2018
Notes: Transaction threshold removed.

Ohio

Threshold: $100,000 in sales OR 200 transactions (prior or current calendar year)
Effective Date: August 1, 2019
Notes: Standard implementation.

Oklahoma

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: November 1, 2019
Notes: Standard implementation.

Pennsylvania

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

Rhode Island

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

South Carolina

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: November 1, 2018
Notes: Standard implementation.

South Dakota

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: November 1, 2018 (post-Wayfair)
Notes: The Wayfair case originated here. Transaction threshold removed effective July 1, 2023.

Tennessee

Threshold: $100,000 in sales (prior 12 months)
Effective Date: October 1, 2019
Notes: Standard implementation. No state income tax.

Texas

Threshold: $500,000 in sales (prior 12 months)
Effective Date: October 1, 2019
Notes: Higher threshold. Single local use tax rate option for remote sellers.

Utah

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: January 1, 2019
Notes: Transaction threshold removed effective July 1, 2025.

Vermont

Threshold: $100,000 in sales OR 200 transactions (prior four calendar quarters)
Effective Date: July 1, 2018
Notes: Standard implementation.

Virginia

Threshold: $100,000 in sales OR 200 transactions (prior or current calendar year)
Effective Date: July 1, 2019
Notes: Standard implementation.

Washington

Threshold: $100,000 in sales (prior or current calendar year)
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 (prior or current calendar year)
Effective Date: January 1, 2019
Notes: Standard implementation.

Wisconsin

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: October 1, 2018
Notes: Standard implementation.

Wyoming

Threshold: $100,000 in sales (prior or current calendar year)
Effective Date: February 1, 2019
Notes: Transaction threshold removed effective July 1, 2024.

Frequently Asked Questions

What sales count toward the threshold?

Generally, only sales delivered to customers in that state count. Depending on the state, this can include:

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 (including California, New York, Texas, Ohio, Pennsylvania and Washington):

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

Others, including Illinois, Colorado, Florida, Georgia, Arizona, Tennessee and Virginia, leave marketplace sales out of your threshold.

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

When do I need to start collecting?

It varies by state. Some expect you to register and start collecting as soon as you cross the threshold, others from the first day of the next month, and states that look at the previous calendar year (like Florida and Pennsylvania) from the next calendar year. 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?

Usually. Most states calculate thresholds based on the current or previous calendar year, though some use a rolling 12-month or four-quarter period (see each state above). 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 import your orders (from Shopify, WooCommerce and Amazon order reports) and email you threshold alerts.

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 import your Shopify and WooCommerce orders and Amazon order reports, check your sales against every state's thresholds, and email you threshold alerts.