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 volume in 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, with notes on which states have unique rules.

What Is Economic Nexus?

Economic nexus is triggered when your sales into a state exceed a certain threshold — typically measured by:

• Dollar amount: Total revenue from sales to customers in that state
• Transaction count: Number of separate orders shipped to that state
• Both: Many states use a combined "either/or" test

Once you cross the threshold, you have 30-60 days (depending on the state) to register for a sales tax permit and begin collecting. If you don't, you're legally responsible for the uncollected tax — potentially for prior periods too.

The 2026 State-by-State Threshold Table

Note: Thresholds listed are the most common rules as of early 2026. Some states update thresholds annually. Always verify with your state's department of revenue or a tax professional before registering.

States with No Sales Tax (No Nexus Obligation)

These 5 states have no state sales tax:

State	Notes
Alaska	No state tax, but some local jurisdictions have taxes
Delaware	No sales tax
Montana	No sales tax
New Hampshire	No sales tax
Oregon	No sales tax

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$100,000 or 200 Transactions (Most Common)

The Wayfair decision itself involved South Dakota's $100,000/200-transaction threshold, and the majority of states adopted similar rules.

State	Revenue Threshold	Transaction Threshold	Measurement Period
Alabama	$250,000	N/A (revenue only)	Prior calendar year
Arizona	$100,000	N/A	Prior or current calendar year
Arkansas	$100,000	200	Prior or current calendar year
California	$500,000	N/A	Prior or current calendar year
Colorado	$100,000	N/A	Prior or current calendar year
Connecticut	$100,000	200	Prior 12 months
Florida	$100,000	200	Prior calendar year
Georgia	$100,000	200	Prior or current calendar year
Hawaii	$100,000	200	Prior or current calendar year
Idaho	$100,000	N/A	Prior or current calendar year
Illinois	$100,000	200	Prior 12 months
Indiana	$100,000	200	Prior or current calendar year
Iowa	$100,000	N/A	Prior or current calendar year
Kansas	$100,000	N/A	Prior or current calendar year
Kentucky	$100,000	200	Prior or current calendar year
Louisiana	$100,000	200	Prior or current calendar year
Maine	$100,000	200	Prior or current calendar year
Maryland	$100,000	200	Prior or current calendar year
Massachusetts	$100,000	N/A	Prior or current calendar year
Michigan	$100,000	200	Prior or current calendar year
Minnesota	$100,000	200	Prior 12 months
Mississippi	$250,000	N/A	Prior 12 months
Missouri	$100,000	N/A	Prior 12 months
Nebraska	$100,000	200	Prior or current calendar year
Nevada	$100,000	200	Prior or current calendar year
New Jersey	$100,000	200	Prior or current calendar year
New Mexico	$100,000	N/A	Prior or current calendar year
New York	$500,000	100	Prior 4 quarters
North Carolina	$100,000	200	Prior or current calendar year
North Dakota	$100,000	N/A	Prior or current calendar year
Ohio	$100,000	200	Prior or current calendar year
Oklahoma	$100,000	N/A	Prior or current calendar year
Pennsylvania	$100,000	N/A	Prior 12 months
Rhode Island	$100,000	200	Prior calendar year
South Carolina	$100,000	N/A	Prior or current calendar year
South Dakota	$100,000	200	Prior or current calendar year
Tennessee	$100,000	N/A	Prior 12 months
Texas	$500,000	N/A	Prior 12 months
Utah	$100,000	200	Prior or current calendar year
Vermont	$100,000	200	Prior or current calendar year
Virginia	$100,000	200	Prior or current calendar year
Washington	$100,000	N/A	Prior or current calendar year
West Virginia	$100,000	200	Prior or current calendar year
Wisconsin	$100,000	200	Prior or current calendar year
Wyoming	$100,000	200	Prior or current calendar year
District of Columbia	$100,000	200	Prior or current calendar year

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States with Different or Unique Rules

A few states have thresholds or rules that differ from the standard:

State	Revenue Threshold	Notes
Alabama	$250,000	Revenue only, no transaction count
California	$500,000	Revenue only, no transaction count
Mississippi	$250,000	Revenue only, higher threshold
New York	$500,000 + 100 transactions	Both must be met (AND, not OR)
Texas	$500,000	Revenue only, higher threshold

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What Counts Toward Your Threshold?

This is where it gets nuanced. Most states count:

✅ Included in threshold calculation:

• Direct sales from your website shipped to that state
• Marketplace sales through Amazon, Etsy, etc. (in some states)
• Sales of taxable and non-taxable products (in most states)

⚠️ State-by-state rules:

• Some states exclude marketplace sales (where the marketplace collected tax) from your threshold
• Some states count gross sales; others count only taxable sales
• Wholesale and resale sales are excluded in most states

The safest approach: Count all your sales to customers in a state. If you're close to a threshold, consult a tax professional before deciding what to exclude.

Marketplace Facilitator Laws and Economic Nexus

If you sell through Amazon, Etsy, Walmart Marketplace, or other platforms, those platforms typically collect and remit sales tax on your behalf (marketplace facilitator laws). This is true in almost all states with sales tax.

However, those sales may still count toward your economic nexus threshold — even if you didn't collect the tax yourself.

Example: You sell $60K directly through your WooCommerce site and $60K through Amazon FBA, all shipped to customers in Illinois. Amazon collected tax on the Amazon sales. But you've now hit $120K total in Illinois — above the $100K threshold. You may need to register and collect on your direct WooCommerce sales.

The rules on this vary by state and are actively evolving. Illinois, California, and Washington have been particularly active in updating their rules.

When Do You Need to Register?

Once you cross a state's threshold, most states give you:

• 30 days from the end of the month in which you crossed the threshold (common)
• 60 days in some states
• Immediate obligation in a few strict states

Key point: The obligation begins when you cross the threshold, not when you know you crossed it. Ignorance isn't a defense. This is why monitoring your sales in real time matters.

What Happens If You Don't Register?

If you cross a threshold and don't register, you're liable for:

1. Uncollected tax — You owe the tax you should have collected, even though you didn't
2. Interest — Typically 0.5–1% per month on unpaid tax
3. Penalties — Usually 5–25% of the tax owed
4. Potential back-period liability — Some states can go back 3–7 years

States have become increasingly aggressive about nexus enforcement since Wayfair. Several have deployed data analytics to identify sellers who exceed thresholds without registering.

How to Monitor Your Economic Nexus Exposure

The manual approach

Download your order data from each sales platform, sort by state, and sum your revenue and transaction counts per state. Compare against the table above. Update monthly.

This works if you have 1-2 sales channels and limited states to watch. It becomes unwieldy fast.

The automated approach

Use a tool like Sails that connects to your Shopify, WooCommerce, or BigCommerce store and automatically monitors your sales in all 50 states. You'll get alerts when you're approaching a threshold — before you cross it — so you have time to register without falling behind.

Sails also aggregates across multiple platforms, so if you sell on Shopify and import CSV data from Amazon, it gives you one unified nexus picture.

State Sales Tax Registration: Quick Overview

When you determine you have economic nexus in a new state, registration involves:

1. Apply for a sales tax permit at the state's department of revenue website. Free in most states; a few charge $5–$50.
2. Receive your permit number (usually within 1-2 weeks; some states issue instantly online)
3. Add the registration to your store so it collects tax for customers in that state
4. Set up your filing schedule — most states assign you quarterly filing to start; you may be bumped to monthly as volume grows

Streamlined Sales Tax (SST): 24 states participate in the Streamlined Sales Tax program, which simplifies registration and compliance. SST registration lets you register in all participating states at once.

Key Takeaways

1. The $100K / 200-transaction rule covers most states. A few states (California, New York, Texas) have higher thresholds.
2. Five states have no sales tax at all. Alaska, Delaware, Montana, New Hampshire, Oregon.
3. Marketplace sales may still count. Even if Amazon collected the tax, those sales might count toward your nexus threshold.
4. Monitor proactively. Crossing a threshold without registering means liability for uncollected tax.
5. Timing matters. You typically have 30-60 days to register after crossing a threshold.

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Keep track of your nexus exposure automatically. Sails monitors your sales in all 50 states and alerts you before you cross a threshold — so you're always one step ahead. Start free →

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Last updated: March 2026. This guide reflects our best understanding of current state thresholds. Tax law changes frequently; verify current requirements with your state's department of revenue or a qualified tax professional before making compliance decisions.