Economic Nexus Calculator

Economic nexus calculator FAQ

• What is an economic nexus calculator?

  An economic nexus calculator compares your sales and transaction counts in each state with that state's published economic nexus threshold. It shows which states you have likely crossed, which you are approaching, and the rule each state applies, so you know where to register for sales tax.

• How does the calculator decide whether I've crossed a threshold?

  It applies each state's own test. 29 states use a sales test only, 15 (including DC) create nexus if you meet either the sales or the transaction test, and Connecticut and New York require both. A state is marked approaching once you reach 80% of a test that can still trigger nexus there.

• Which sales should I enter for each state?

  Enter your sales into the state over the measurement period shown next to it, such as the current or previous calendar year or the preceding 12 months. States differ on whether exempt, wholesale and marketplace-facilitated sales count, so open “What counts toward it?” on each state before relying on the result.

• Which states require both the sales and the transaction threshold?

  Connecticut and New York. Connecticut requires $100,000 in sales and 200 transactions; New York requires more than $500,000 in sales and more than 100 sales in the preceding four sales tax quarters. If you leave the transaction count blank for these states, the calculator asks for it instead of guessing.

• Does an office or employee in a state create nexus?

  Yes. An office, an employee (remote ones included) or inventory in a state, such as stock in an Amazon FBA warehouse, is physical presence, and it creates sales tax nexus with your first sale there, whatever the economic threshold. Washington's applies even before your first sale, and in a few states, such as Colorado and Ohio, it takes a taxable sale. Tick the office, employee or inventory box on a state to check it this way.

• Do states without a sales tax have economic nexus?

  Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska is the exception to watch: local jurisdictions in the Alaska Remote Seller Sales Tax Commission (ARSSTC) require remote sellers with $100,000 in Alaska sales to register and collect local sales tax, and the calculator checks that threshold.

• Is the data I enter or upload sent anywhere?

  No. The calculator runs entirely in your browser. Numbers you type and CSV files you upload are read on your device and are not sent to Kintsugi or anyone else.

• What should I do if I've crossed a threshold?

  Register for a sales tax permit in that state, start collecting tax on taxable sales by the date the state sets, and file returns on the schedule it assigns. If you crossed the threshold in an earlier period, assess that exposure first; a voluntary disclosure agreement can limit penalties in many states.