2025 Economic Nexus: Easy 50-State Table for ECommerce

One of the most significant factors influencing sales tax obligations is the concept of nexus. This comprehensive guide will delve into the intricacies of determining nexus with every state, emphasizing the role of Kintsugi as the premier solution for sales tax compliance.

What Is Nexus in a State?

Nexus refers to the connection between a business and a state that obligates the business to collect and remit sales tax in that state. Establishing nexus means that a business has sufficient presence or economic activity within a state, triggering tax responsibilities. Understanding what nexus is in a state is fundamental for businesses operating across multiple jurisdictions.

What Is Economic Nexus?

Economic nexus refers to a tax obligation triggered by a certain level of economic activity within a state. Unlike physical nexus, which is based on a business's physical presence, economic nexus is determined by sales revenue or the number of transactions. This concept ensures that businesses contributing economically to a state fulfill their tax obligations, even without a physical presence.

Economic Nexus vs. Physical Nexus

There are two primary types of nexus:

1. Physical Nexus: This is established when a business has a tangible presence in a state, such as an office, warehouse, or employees.
2. Economic Nexus: Introduced to address the rise of e-commerce, economic nexus is based on the volume of sales or number of transactions a business conducts within a state, regardless of physical presence.

How Do You Determine Nexus Thresholds by State?

Determining whether your business has established nexus in a state involves understanding the nexus threshold by state. Each state has its own criteria, typically based on sales revenue or the number of transactions, which can significantly impact a business's overall revenues. Below is a comprehensive table outlining the economic nexus thresholds for various states:

State	Economic Nexus Threshold (Sales Revenue)	Economic Nexus Threshold (Number of Transactions)
Alabama	$250,000	N/A
Arizona	$100,000	N/A
California	$500,000	N/A
Colorado	$100,000	N/A
Florida	$100,000	N/A
Indiana	$100,000	N/A
Texas	$500,000	N/A
New York	$500,000	100 transactions
...	...	...

Note: This table is not exhaustive. For detailed thresholds by state, refer to the comprehensive nexus thresholds by state.

Kintsugi's 2025 Economic Nexus Table

Sales tax economic nexus laws vary significantly across states. While some states set high sales revenue thresholds, others incorporate transaction-based criteria. Understanding these variations is essential for accurate tax compliance. Below is a detailed breakdown of sales tax economic nexus by state.

State	Included Transactions	Exempt Transactions Treatment	Trigger	Sales/Transactions Threshold	Enforcement Date
Alabama	Total retail sales of tangible personal property delivered into the state. Sales through non-collecting marketplaces are included; registered marketplace facilitators are excluded.	Exempt sales (except wholesale) are included in the threshold. Exempt services are not included.	Sales only	$250,000	N/A
Alaska	Statewide gross sales of goods, property, products, or services delivered or rendered in the state, including sales through a marketplace.	Exempt sales and exempt services are included in the threshold.	Sales or transactions	$100,000 or 200 transactions	N/A
Arizona	Gross proceeds from sales of tangible personal property or services, or gross income from business in the state. Services are included; sales through marketplaces are excluded.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000 (2021 onward)	N/A
Arkansas	Aggregated sales of taxable tangible personal property, taxable services, digital codes, or specified digital products delivered into the state. Excludes sales through registered marketplaces.	Exempt sales and exempt services are not included in the threshold.	Sales or transactions	$100,000 or 200 transactions	N/A
California	Combined sales of tangible personal property delivered into the state by the retailer and related persons. Services are excluded.	Exempt sales (e.g., sales for resale) are included; exempt services are not included.	Sales only	$500,000	N/A
Colorado	Retail sales of tangible personal property, commodities, or services delivered into the state.	Exempt sales and exempt services are included, except wholesale transactions.	Sales only (since April 1, 2019)	$100,000	April 1, 2019
Connecticut	Before July 1, 2019: Gross receipts from tangible personal property sold into the state, excluding sales for resale. After July 1, 2019: Gross receipts from tangible personal property or services.	Before July 1, 2019: Exempt sales included; sales for resale excluded; exempt services excluded. After: Exempt sales and services included in sales threshold, excluded from transaction threshold.	Sales and transaction volume	Before July 1, 2019: $250,000 & 200 transactions After: $100,000 & 200 transactions	N/A
Florida	Taxable sales of tangible personal property delivered physically into the state. Taxable services are excluded.	Exempt sales and exempt services are not included in the threshold.	Sales volume only	$100,000	N/A
Georgia	Gross revenue from retail sales of tangible personal property delivered electronically or physically for use, consumption, or storage in the state. Services excluded.	Exempt sales (except resales) are included; exempt services are not included.	Sales or transaction volume	Before Jan 1, 2020: $250,000 or 200 transactions After: $100,000 or 200 transactions	N/A
Hawaii	Gross income or proceeds from tangible personal property, intangible property, or services delivered or consumed in the state.	Exempt sales and exempt services are included in the threshold.	Sales or transaction volume	$100,000 or 200 transactions	July 1, 2018
Idaho	Cumulative gross receipts from sales, including taxable products and services delivered into the state.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	June 1, 2019
Illinois	Cumulative gross receipts from sales of tangible personal property and property sold with services into the state, excluding occasional sales. Marketplace facilitator sales excluded since Jan 1, 2020.	Exempt sales (including property with services) are included; sales for resale excluded; exempt services excluded.	Sales or transaction volume	$100,000 or 200 transactions	October 1, 2018 (state use tax) January 1, 2021 (local use tax)
Indiana	Gross revenue from sales of tangible personal property, electronically delivered products, and services into the state.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	October 1, 2018
Iowa	Gross revenue from sales of tangible personal property, specified electronically delivered products, and services into the state.	Exempt sales and exempt services are included in the threshold.	Before July 1, 2019: Sales or transactions After: Sales only	Before July 1, 2019: $100,000 or 200 transactions After: $100,000 (transactions threshold eliminated)	July 1, 2019
Kansas	Cumulative gross receipts from sales by the retailer to Kansas customers.	Awaiting clarification on exempt sales and services treatment.	Sales only	$100,000	July 1, 2021
Kentucky	Gross receipts from sales of tangible personal or digital property delivered or transferred electronically into the state. Services excluded.	Exempt sales are included; exempt services are not included in the threshold.	Sales or transaction volume	$100,000 or 200 transactions	October 1, 2018
Louisiana	Gross revenue from sales of products, electronically transferred products, or services into the state.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	July 1, 2020
Maine	Gross sales of tangible personal property and taxable services delivered into the state.	Exempt sales are included in the threshold; exempt services are not included.	Through 2021: Sales or transactions From 2022: Sales only	Through Dec 31, 2021: $100,000 or 200 transactions From Jan 1, 2022: $100,000	July 1, 2018
Maryland	Gross revenue from sales of tangible personal property or taxable services delivered into the state, including software and digital goods.	Exempt sales of tangible personal property, software, and digital goods are included; exempt services are not included.	Sales or transaction volume	$100,000 or 200 transactions	N/A
Massachusetts	Sales of tangible personal property and services.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	October 1, 2019
Michigan	Sales of tangible personal property or taxable services delivered into the state.	Exempt sales and exempt services are included in the threshold.	Sales or transactions	$100,000 or 200 transactions	After September 30, 2018
Minnesota	Retail sales made into the state from outside, including taxable services (except resales).	Exempt sales and sales to tax-exempt entities are included; sales for resale and exempt services are excluded.	Sales or transaction volume	Before Oct 1, 2019: 10 sales totaling $100,000 or 100 retail sales After: $100,000 or 200+ retail sales	October 1, 2018; amended Oct 1, 2019
Mississippi	Total sales into the state by remote sellers who purposefully or systematically exploit the market. Services included.	Exempt sales and exempt services are included in the threshold.	Sales only	$250,000	September 1, 2018
Missouri	Gross receipts from taxable sales of tangible personal property delivered into the state.	Exempt sales are not included in the threshold.	Sales only	$100,000	January 1, 2023
Nebraska	Total retail sales made to customers in Nebraska.	Exempt sales and exempt services are included, except for resales, subleases, or sub-rents.	Sales or transaction volume	$100,000 or 200 transactions	N/A
Nevada	Gross revenue from retail sales of tangible personal property into the state, excluding sales for resale. Services are excluded.	Exempt sales (except sales for resale) are included; exempt services are not included.	Sales or transactions	$100,000 or 200 transactions	October 1, 2018
New Jersey	Gross revenue from tangible personal property, specified digital products, or taxable services delivered into the state.	Nontaxable retail sales of tangible personal property and specified digital products are included. Taxable services are included even if exempt under specific circumstances. Exempt services are excluded.	Sales or transactions	$100,000 or 200 transactions	November 1, 2018
New Mexico	Total taxable gross receipts from sales, leases, and licenses of tangible personal property, and sales of licenses and services for real property use sourced to the state.	Exempt sales and exempt services are not included in the threshold.	Sales only	$100,000	July 1, 2019
New York	Cumulative gross receipts from sales of tangible personal property delivered into the state (including SaaS). Services are excluded.	Exempt sales are included; exempt services are excluded.	Sales and transaction volume	$500,000 and 100 transactions	N/A
North Carolina	Gross sales sourced to North Carolina, including tangible personal property, digital property, and services unless otherwise specified.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	November 1, 2018
North Dakota	Gross taxable sales of tangible personal property and other items, including taxable services; excludes sales through marketplaces.	Exempt sales and exempt services are not included in the threshold.	Before July 1, 2019: Sales or transactions After: Sales only	Before Jan 1, 2019: $100,000 or 200 transactions After: $100,000	N/A
Ohio	Gross receipts from sales of tangible personal property for storage, use, or consumption in the state or from providing enumerated services benefiting the state. Excludes resales.	Exempt sales are included in the threshold.	Sales or transactions	$100,000 or 200 transactions	August 1, 2019
Oklahoma	Aggregate sales of taxable tangible personal property delivered within the state. Services are excluded.	Exempt sales and exempt services are not included in the threshold.	Sales only	$100,000	November 1, 2019
Pennsylvania	Gross sales of products and services in the Commonwealth, including sales by agents, representatives, or subsidiaries.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	July 1, 2019
Puerto Rico	Total gross sales delivered into the state.	Exempt sales are included in the threshold.	Sales or transactions	$100,000 or 200 transactions	January 1, 2021
Rhode Island	Gross revenue from sales of tangible personal property, prewritten software delivered electronically or by load-and-leave, vendor-hosted software, specified digital products, and taxable services delivered into the state.	Exempt sales are included; exempt services are not included in the threshold.	Sales or transactions	$100,000 or 200 transactions	July 1, 2019
South Carolina	Gross revenue from sales of tangible personal property, electronically transferred products, or services delivered into the state.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	N/A
South Dakota	Gross revenue from sales of tangible personal property, electronically delivered products, or services into the state.	Exempt sales and exempt services are included in the threshold.	Sales only	$100,000	November 1, 2018
Tennessee	Sales to customers in Tennessee, excluding resales.	Exempt sales and exempt services are included; sales for resale and online marketplace sales excluded (from Oct 1, 2020).	Sales only	Before Oct 1, 2020: $500,000 After: $100,000	September 30, 2018; October 1, 2020
Texas	Gross revenue from sales of tangible personal property and services into the state.	Exempt sales and exempt services are included in the threshold.	Sales only	$500,000	N/A
Utah	Gross revenue from sales of tangible personal property, electronically transferred products, or services delivered into the state.	Exempt sales and exempt services are included in the threshold.	Sales or transactions	$100,000 or 200 transactions	N/A
Vermont	Sales of tangible personal property, electronically transferred products, or services in the state, provided the retailer regularly or systematically solicits in-state customers.	Exempt sales and exempt services are included in the threshold. Businesses selling only tax-exempt items do not need to register.	Sales or transactions	$100,000 or 200 transactions	N/A
Virginia	Gross revenue from retail sales and taxable services into the commonwealth, including sales by related corporations; excludes sales for resale.	Exempt sales (except resales) are included; exempt services are excluded.	Sales or transactions	$100,000 or 200 transactions	N/A
Washington	Until Dec 31, 2019: Cumulative gross receipts from retail sales and taxable services. From Jan 1, 2020: Cumulative gross annual income in Washington.	Exempt sales and exempt services are included; resales included from Jan 1, 2020.	Sales only	$100,000	N/A
Washington, D.C.	Gross receipts from all retail sales delivered into the District.	Exempt sales are included except for sales for resale and exempt services.	Sales or transactions	$100,000 or 200 transactions	January 1, 2021
West Virginia	Gross sales of tangible personal property or services into the state.	Exempt sales and exempt services are included in the threshold.	Sales or transactions	$100,000 or 200 transactions	N/A
Wisconsin	Annual gross sales of tangible personal property and services into the state.	Exempt sales and exempt services are included; businesses making only nontaxable sales are not required to register.	Sales only (transactions threshold eliminated as of Feb 20, 2021)	$100,000 (transactions threshold eliminated)	February 20, 2021
Wyoming	Gross revenue from sales of tangible personal property, admissions, or services delivered into the state (includes taxable, exempt, and wholesale sales).	Exempt sales and exempt services are included in the threshold count.	Sales only	$100,000	N/A

Notes: Thresholds and regulations are subject to change. Always consult the respective state's official tax guidelines, including the economic nexus threshold by state, or a tax professional for the most current information.

For an exhaustive list, explore economic nexus by state.

FAQs

What Is Marketplace Nexus?

Marketplace nexus refers to the tax obligations that marketplaces (like Amazon or eBay) have when facilitating sales on behalf of third-party sellers. In many states, marketplaces are required to collect and remit sales tax on behalf of their sellers. Understanding marketplace nexus is essential for both marketplaces and individual sellers to ensure compliance with dollar threshold requirements.

How Does Kintsugi Handle Marketplace Nexus?

Kintsugi efficiently manages marketplace nexus by automatically calculating and remitting the appropriate sales tax for transactions facilitated through marketplaces. This automation ensures that businesses remain compliant without the need for manual intervention. Learn more about our Marketplace Nexus solutions.

Specifics About Arizona Nexus Threshold

Focusing on Arizona nexus threshold, businesses must collect sales tax if they exceed $100,000 in sales within the state. Understanding this specific requirement is crucial for businesses operating in or expanding to Arizona. Kintsugi simplifies this process by providing accurate calculations and automated remittances tailored to Arizona's regulations. Visit our Arizona Tax page for detailed information.

What Are the Sales Tax Compliance Challenges for E-commerce?

E-commerce businesses face unique challenges in sales tax compliance, including navigating the complexities of Arizona economic nexus and Indiana sales tax nexus legislation:

• Diverse State Laws: Each state has its own set of taxation laws and state sales tax thresholds, including nexus laws by state.
• Frequent Law Changes: Tax regulations are subject to change, requiring businesses to stay updated.
• Complex Calculations: Accurate tax calculations across multiple jurisdictions can be intricate.

How Can Kintsugi Overcome These Challenges?

Kintsugi addresses these challenges by providing:

• Real-Time Updates: The platform stays current with the latest tax laws, ensuring compliance.
• Accurate Calculations: Automated tax calculations eliminate the risk of errors.
• Centralized Management: Manage all your tax obligations from a single, intuitive dashboard.

Explore our Sales Tax Compliance features for more information.

How Can Kintsugi Simplify Sales Tax Compliance?

Navigating the complexities of sales tax compliance can be daunting, especially for businesses operating in multiple states with nexus. Kintsugi emerges as the best option, offering a robust platform that streamlines the entire process. Unlike other providers, Kintsugi provides seamless integration, accurate tax calculations, and automated filings, ensuring businesses remain compliant effortlessly.

Why Choose Kintsugi Over Other Providers?

When comparing sales tax automation tools, Kintsugi stands out due to its comprehensive features and user-friendly interface. Here’s why Kintsugi is the superior choice:

• Comprehensive Integration: Kintsugi integrates seamlessly with major e-commerce platforms, ensuring real-time tax calculations.
• Automated Compliance: The platform automates tax filings and remittances, reducing the risk of errors and penalties.
• Scalable Solutions: Whether you're a small business or a large enterprise, Kintsugi scales to meet your needs.
• Reliable Support: Our dedicated support team is always ready to assist.

For more details on Kintsugi's offerings, visit our Product Platform page.

Final Thoughts

Why Kintsugi Is Your Go-To Solution for Remitting Sales Tax

In the ever-evolving realm of e-commerce, understanding and complying with ecommerce sales tax nexus laws is essential for sustained success. Kintsugi stands out as the best option for businesses seeking reliable, efficient, and comprehensive sales tax compliance solutions. By leveraging Kintsugi's advanced features, businesses can navigate the complexities of remitting sales tax with ease, ensuring compliance and fostering growth.

Embrace the future of sales tax compliance with Kintsugi and stay ahead of the curve. For more information, visit our Home Page or explore our Pricing options to find the perfect plan for your business needs.

Additional Resources

• Sales Tax by State: Explore detailed tax information for each state on our Tax by State page.
• Kintsugi Intelligence: Gain insights into sales tax trends and compliance tips with our Kintsugi Intelligence feature.

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