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ComplianceOctober 05, 2021

State-by-state economic nexus thresholds under state sales tax laws

Remote sellers are those who sell their products or services for delivery into states where they have no physical presence. They are required to register with the state tax department, collect sales tax, and remit what they collected to the state if they have an “economic nexus” with the state.

Some state sales tax laws provide that a remote seller has an economic nexus if its annual sales of products or services in the state exceeds a threshold dollar amount. Other states provide an economic nexus exists if the remote seller’s annual sales of goods or services in the state exceeds a threshold dollar amount or it has a threshold number of sales transactions in the state.

The chart below sets forth the sales and transaction thresholds of each state that imposes a sales tax. It should be noted that this chart provides general guidance only and is not legal advice. State sales tax laws can be complex and anyone with a question about their specific obligations may wish to consult tax, accounting, or legal experts.

This chart contains information compiled as of September 15, 2021.

Economic nexus thresholds under state sales tax laws

Alabama Sales dollar amount: $250,000 Number of sales transactions: ------
Alaska

Sales dollar amount: $100,000

Note: No state sales tax but many local
governments impose
a sales tax with an
economic nexus
based on
statewide sales

Number of sales transactions: 200
Arizona Sales dollar amount: $200,000 Number of sales transactions: ------
Arkansas Sales dollar amount: $100,000 Number of sales transactions: 200
California Sales dollar amount: $500,000 Number of sales transactions: ------
Colorado Sales dollar amount: $100,000 Number of sales transactions: ------
Connecticut Sales dollar amount: $100,000 Number of sales transactions: 200
Delaware Sales dollar amount: ------

Note: No sales tax
Number of sales transactions: ------
District of Columbia Sales dollar amount: $100,000 Number of sales transactions: 200
Florida Sales dollar amount: $100,000 Number of sales transactions: ------
Georgia Sales dollar amount: $100,000 Number of sales transactions: 200
Hawaii Sales dollar amount: $100,000 Number of sales transactions: 200
Idaho Sales dollar amount: $100,000 Number of sales transactions: ------
Illinois Sales dollar amount: $100,000 Number of sales transactions: 200
Indiana Sales dollar amount: $100,000 Number of sales transactions: 200
Iowa Sales dollar amount: $100,000 Number of sales transactions: ------
Kansas Sales dollar amount: $100,000 Number of sales transactions: ------
Kentucky Sales dollar amount: $100,000 Number of sales transactions: 200
Louisiana Sales dollar amount: $100,000 Number of sales transactions: 200
Maine Sales dollar amount: $100,000 Number of sales transactions: 200
Maryland Sales dollar amount: $100,000 Number of sales transactions: 200
Massachusetts Sales dollar amount: $100,000 Number of sales transactions: ------
Michigan Sales dollar amount: $100,000 Number of sales transactions: 200
Minnesota Sales dollar amount: $100,000 Number of sales transactions: 200
Mississippi Sales dollar amount: $250,000 Number of sales transactions: ------
Missouri Sales dollar amount: $100,000

Note: Effective January 1, 2023
Number of sales transactions: ------
Montana Sales dollar amount: ------

Note: No sales tax
Number of sales transactions: ------
Nebraska Sales dollar amount: $100,000 Number of sales transactions: 200
Nevada Sales dollar amount: $100,000 Number of sales transactions: 200
New Hampshire Sales dollar amount: ------

Note: No sales tax
Number of sales transactions: ------
New Jersey Sales dollar amount: $100,000 Number of sales transactions: 200
New Mexico Sales dollar amount: $100,000 Number of sales transactions: ------
New York Sales dollar amount: $500,000 Number of sales transactions: 100
North Carolina Sales dollar amount: $100,000 Number of sales transactions: 200
North Dakota Sales dollar amount: $100,000 Number of sales transactions: ------
Ohio Sales dollar amount: $100,000 Number of sales transactions: 200
Oklahoma Sales dollar amount: $100,000 Number of sales transactions: ------
Oregon Sales dollar amount: ------

Note: No sales tax
Number of sales transactions: ------
Pennsylvania Sales dollar amount: $100,000 Number of sales transactions: ------
Rhode Island Sales dollar amount: $100,000 Number of sales transactions: 200
South Carolina Sales dollar amount: $100,000 Number of sales transactions: ------
South Dakota Sales dollar amount: $100,000 Number of sales transactions: 200
Tennessee Sales dollar amount: $100,000 Number of sales transactions: ------
Texas Sales dollar amount: $500,000 Number of sales transactions: ------
Utah Sales dollar amount: $100,000 Number of sales transactions: 200
Vermont Sales dollar amount: $100,000 Number of sales transactions: 200
Virginia Sales dollar amount: $100,000 Number of sales transactions: 200
Washington Sales dollar amount: $100,000 Number of sales transactions: ------
West Virginia Sales dollar amount: $100,000 Number of sales transactions: 200
Wisconsin Sales dollar amount: $100,000 Number of sales transactions: ------
Wyoming Sales dollar amount: $100,000 Number of sales transactions: 200
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