Economic Nexus Thresholds by State (2026 Updated Guide)
Before 2018, you only had to collect sales tax in states where you had a physical presence — an office, warehouse, or employees. The South Dakota v. Wayfair Supreme Court decision changed everything.
Now every state with a sales tax can require you to collect sales tax based purely on your sales into that state — even if you've never set foot there. This is called economic nexus, and it's the most important sales tax concept for online sellers in 2026.
This guide covers every state's current economic nexus threshold, how each state measures it, and whether your marketplace sales count.
What Is Economic Nexus?
Economic nexus is triggered when your sales into a state pass a threshold, measured by:
- Dollar amount: Your sales to customers in that state (every state with a sales tax uses this)
- Transaction count: The number of separate sales into that state (only some states still use this)
The 200-transaction test is disappearing. Since 2022, Maine, South Dakota, Louisiana, Indiana, Wyoming, North Carolina, Utah, Illinois and — most recently — Kentucky (August 1, 2026) have dropped it, so in most states only the dollar amount matters now.
The 2026 State-by-State Threshold Table
Last reviewed September 25, 2026 against the Sales Tax Institute's Economic Nexus State Guide and Avalara's tracker of repealed transaction thresholds. Rules change — always confirm with the state's department of revenue or a tax professional before registering.
States with No Statewide Sales Tax
| State | Notes |
|---|---|
| Alaska | No state sales tax, but many local governments collect through the Alaska Remote Seller Sales Tax Commission, which uses its own $100,000 threshold |
| Delaware | No sales tax |
| Montana | No sales tax |
| New Hampshire | No sales tax |
| Oregon | No sales tax |
Every State with a Sales Tax
"OR 200" means you have nexus if you pass either the dollar amount or 200 transactions. "AND" means you must pass both. A dash means the state only looks at dollars.
| State | Sales threshold | Transactions | Measured over | Marketplace sales count? |
|---|---|---|---|---|
| Alabama | $250,000 | — | Prior calendar year | No |
| Arizona | $100,000 | — | Prior or current calendar year | No |
| Arkansas | $100,000 | OR 200 | Prior or current calendar year | No |
| California | $500,000 | — | Prior or current calendar year | Yes |
| Colorado | $100,000 | — | Prior or current calendar year | No |
| Connecticut | $100,000 | AND 200 | 12 months ending Sept 30 | Yes |
| District of Columbia | $100,000 | OR 200 | Prior or current calendar year | Yes |
| Florida | $100,000 | — | Prior calendar year | No |
| Georgia | $100,000 | OR 200 | Prior or current calendar year | No |
| Hawaii | $100,000 | OR 200 | Prior or current calendar year | Yes |
| Idaho | $100,000 | — | Prior or current calendar year | Yes |
| Illinois | $100,000 | — | Prior 12 months | No |
| Indiana | $100,000 | — | Prior or current calendar year | No |
| Iowa | $100,000 | — | Prior or current calendar year | Yes |
| Kansas | $100,000 | — | Prior or current calendar year | Yes |
| Kentucky | $100,000 | — | Prior or current calendar year | Yes |
| Louisiana | $100,000 | — | Prior or current calendar year | Yes |
| Maine | $100,000 | — | Prior or current calendar year | No |
| Maryland | $100,000 | OR 200 | Prior or current calendar year | Yes |
| Massachusetts | $100,000 | — | Prior or current calendar year | No* |
| Michigan | $100,000 | OR 200 | Prior calendar year | Yes |
| Minnesota | $100,000 | OR 200 | 12 months ending last full quarter | Yes |
| Mississippi | More than $250,000 | — | Prior 12 months | No |
| Missouri | $100,000 | — | Prior 12 months (checked quarterly) | Yes |
| Nebraska | $100,000 | OR 200 | Prior or current calendar year | Yes |
| Nevada | $100,000 | OR 200 | Prior or current calendar year | Yes |
| New Jersey | $100,000 | OR 200 | Prior or current calendar year | Yes |
| New Mexico | $100,000 | — | Prior calendar year | No |
| New York | $500,000 | AND more than 100 | Prior 4 sales tax quarters | Yes |
| North Carolina | $100,000 | — | Prior or current calendar year | Yes |
| North Dakota | $100,000 | — | Prior or current calendar year | No |
| Ohio | $100,000 | OR 200 | Prior or current calendar year | Yes |
| Oklahoma | $100,000 | — | Prior or current calendar year | No |
| Pennsylvania | $100,000 | — | Prior calendar year | Yes |
| Rhode Island | $100,000 | OR 200 | Prior calendar year | Yes |
| South Carolina | $100,000 | — | Prior or current calendar year | Yes |
| South Dakota | $100,000 | — | Prior or current calendar year | Yes |
| Tennessee | $100,000 | — | Prior 12 months | No |
| Texas | $500,000 | — | Prior 12 months | Yes |
| Utah | $100,000 | — | Prior or current calendar year | No |
| Vermont | $100,000 | OR 200 | Prior 4 calendar quarters | Yes |
| Virginia | $100,000 | OR 200 | Prior or current calendar year | No |
| Washington | $100,000 | — | Prior or current calendar year | Yes |
| West Virginia | $100,000 | OR 200 | Prior or current calendar year | Yes |
| Wisconsin | $100,000 | — | Prior or current calendar year | Yes* |
| Wyoming | $100,000 | — | Prior or current calendar year | No |
* Massachusetts leaves out marketplace sales when the marketplace collects the tax (Amazon, Etsy, eBay and Walmart do). Wisconsin counts them, but if all of your Wisconsin sales go through marketplaces that collect the tax, you don't need to register.
The States with Unusual Rules
| State | What's different |
|---|---|
| Alabama | $250,000, measured on the previous calendar year only |
| California | $500,000 |
| Connecticut | $100,000 AND 200 transactions — you need both |
| Mississippi | More than $250,000 over the prior 12 months |
| New York | $500,000 AND more than 100 sales — you need both |
| Texas | $500,000 over the prior 12 months |
| Florida, Michigan, New Mexico, Pennsylvania, Rhode Island | Only the previous calendar year counts — passing the threshold this year means you register starting next year |
What Counts Toward Your Threshold?
This is where it gets nuanced, and it varies by state:
- Which sales: Some states count all your gross sales (taxable and exempt), some count retail sales, and some count only taxable sales. If you sell exempt products — like clothing in Pennsylvania — this can make a real difference.
- Marketplace sales: Most states count sales you make through Amazon, Etsy, eBay or Walmart toward your threshold, even though the marketplace collected the tax. About 18 states don't (see the table).
- Sales for resale: Wholesale sales to resellers with a valid certificate are usually excluded, but check the state's rule.
The safest approach: Count all your sales into a state, then look up how that state treats exempt and marketplace sales. If you're close to a threshold, talk to a tax professional before deciding what to leave out.
Marketplace Facilitator Laws and Economic Nexus
If you sell through Amazon, Etsy, Walmart Marketplace or similar platforms, the platform collects and remits sales tax on those sales for you. Every state with a sales tax now has a marketplace facilitator law.
But those sales can still count toward your own economic nexus threshold — depending on the state.
Example: You sell $60,000 directly through your WooCommerce site and $60,000 through Amazon, all shipped to customers in Ohio. Amazon collected tax on the Amazon sales. Ohio counts marketplace sales toward your threshold, so you're at $120,000 — above Ohio's $100,000 threshold — and you may need to register and collect tax on your direct WooCommerce sales.
Ship the same orders to Illinois instead and the answer changes: Illinois doesn't count marketplace sales, so you're at $60,000 — below its threshold.
When Do You Need to Register?
It depends on the state. Some expect you to register as soon as you pass the threshold, others by the first day of the following month, and states that measure the previous calendar year (like Florida and Pennsylvania) start your obligation on January 1 of the next year.
Key point: The obligation begins when you cross the threshold, not when you notice you crossed it. That's why it pays to check your numbers regularly.
What Happens If You Don't Register?
If you cross a threshold and don't register, you can be liable for:
- Uncollected tax — You owe the tax you should have collected, even though you didn't collect it
- Interest on the unpaid tax
- Penalties — often a percentage of the tax owed
- Back periods — states can look back several years if you never registered
How to Monitor Your Economic Nexus Exposure
The manual approach
Download your order data from each sales channel, total your sales (and, where it matters, your number of orders) by state, and compare against the table above — using each state's own measurement period. Update monthly.
This works if you have one or two sales channels. It gets unwieldy fast.
With Sails
Sails imports your orders from Shopify or WooCommerce (other platforms are in beta) plus your Amazon order reports, and checks them against every state's current rules — including each state's measurement period and whether it counts marketplace sales. For each state it shows why, how sure it is and what to do next, and you'll get an email when you're approaching a threshold, so you have time to register.
State Sales Tax Registration: Quick Overview
When you determine you have economic nexus in a new state:
- Apply for a sales tax permit on the state's department of revenue website. It's free in most states; a few charge a small fee.
- Receive your permit number — some states issue it instantly online, others take a week or two.
- Turn on tax collection for that state in your store.
- Note your filing schedule — the state assigns it (monthly, quarterly or annually), usually based on how much tax you collect.
Streamlined Sales Tax (SST): About two dozen states participate in the Streamlined Sales Tax program, which lets you register in all of them at once.
Key Takeaways
- $100,000 in sales is the most common threshold. California, New York and Texas use $500,000; Alabama and Mississippi use $250,000.
- The 200-transaction test is fading. Only about a third of sales tax states still use it, and Kentucky dropped it in August 2026.
- Marketplace sales count in most states — but not all. Check the table.
- Each state measures a different period. Some look at the calendar year, some at the last 12 months, some only at last year.
- Crossing a threshold usually means registering first, then collecting.
Want this checked for you? Sails compares your sales with every state's rules and alerts you before you cross a threshold. Start free →
Last reviewed: September 25, 2026. Sources: Sales Tax Institute — Economic Nexus State Guide (updated September 23, 2026); Avalara — States eliminating economic nexus transaction thresholds (updated August 3, 2026). Tax law changes frequently; verify current requirements with the state's department of revenue or a qualified tax professional before making compliance decisions.
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