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Economic Nexus by State (2026)

Every state's economic nexus threshold for remote sellers in one table, with the 2025 and 2026 changes that removed transaction counts in Alaska, Utah, Illinois and Kentucky.

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Key Takeaways

Economic nexus is the sales tax obligation a remote seller takes on by selling enough into a state, with no office, staff or inventory there. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, all 45 states with a statewide sales tax and Washington, D.C. have adopted one. Most set it at $100,000 in sales over the current or previous calendar year; 29 states now use a sales test alone. Once you cross a threshold, you register with the state, collect tax on taxable sales from the date it sets, and file returns.

Economic Nexus Thresholds by State

The table lists each state's test for remote sellers: the dollar threshold, any transaction count and whether it applies with the sales test (or) or only together with it (and), the measurement period, which sales count, and whether marketplace-facilitated sales count toward your own total. Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Select a state for its full guide, or check your own numbers against every threshold with the free economic nexus calculator.

Economic nexus thresholds for remote sellers in all 50 states and Washington, D.C., last verified 26 September 2026
StateSales thresholdTransaction thresholdTestMeasurement periodWhat countsMarketplace salesCurrent rule since
AlabamaUS$250,000NoneSales onlyPrevious calendar yearRetail sales (taxable and exempt); resale excludedExcluded if the marketplace collects1 October 2018
AlaskaUS$100,000 (local tax only)NoneSales onlyCurrent or previous calendar yearNo state sales tax. ARSSTC local tax: gross sales delivered into Alaska, including exempt salesIncluded1 January 2025
ArizonaUS$100,000NoneSales onlyCurrent or previous calendar yearGross proceeds from direct retail salesExcluded1 January 2021
ArkansasUS$100,000200 transactionsEitherCurrent or previous calendar yearTaxable sales of goods, services and digital productsExcluded1 July 2019
CaliforniaUS$500,000NoneSales onlyCurrent or previous calendar yearSales of goods delivered into California, including nontaxable sales and related persons' salesIncluded1 April 2019
ColoradoUS$100,000NoneSales onlyCurrent or previous calendar yearRetail sales into Colorado, taxable or notExcluded1 June 2019
ConnecticutUS$100,000200 transactionsBoth required12 months ending September 30Gross receipts from retail sales into ConnecticutIncluded1 July 2019
DelawareNo state sales taxNoneNone—No sales tax (gross receipts tax on sellers instead)——
Washington, D.C.US$100,000200 transactionsEitherCurrent or previous calendar yearGross receipts from retail sales delivered into DCIncluded1 January 2019
FloridaUS$100,000NoneSales onlyPrevious calendar yearTaxable remote sales made outside a marketplaceExcluded1 July 2021
GeorgiaUS$100,000200 transactionsEitherCurrent or previous calendar yearGross revenue from retail sales delivered into GeorgiaExcluded if the marketplace collects1 January 2020
HawaiiUS$100,000200 transactionsEitherCurrent or previous calendar yearGross receipts (general excise tax)Included1 July 2018
IdahoUS$100,000NoneSales onlyCurrent or previous calendar yearGross sales into IdahoIncluded1 June 2019
IllinoisUS$100,000NoneSales onlyPreceding 12 months, checked quarterlyGross receipts from sales of tangible personal propertyExcluded if the marketplace collects1 January 2026
IndianaUS$100,000NoneSales onlyCurrent or previous calendar yearGross revenue, taxable or notExcluded1 January 2024
IowaUS$100,000NoneSales onlyCurrent or previous calendar yearAll gross revenue, including exempt and resale salesIncluded1 July 2019
KansasUS$100,000NoneSales onlyCurrent or previous calendar yearGross receipts, including exempt salesIncluded1 July 2021
KentuckyUS$100,000NoneSales onlyCurrent or previous calendar yearGross receipts from goods and digital propertyIncluded1 August 2026
LouisianaUS$100,000NoneSales onlyCurrent or previous calendar yearGross revenue from goods, digital products and servicesExcluded1 August 2023
MaineUS$100,000NoneSales onlyCurrent or previous calendar yearGross revenue from goods, digital products and taxable servicesExcluded1 January 2022
MarylandUS$100,000200 transactionsEitherCurrent or previous calendar yearGross revenue from goods, digital products and taxable servicesIncluded1 October 2018
MassachusettsUS$100,000NoneSales onlyCurrent or previous calendar yearSales into MassachusettsExcluded1 October 2019
MichiganUS$100,000200 transactionsEitherPrevious calendar yearGross sales, including exempt salesIncluded1 October 2018
MinnesotaUS$100,000200 transactionsEitherPrior 12 monthsRetail sales shipped to Minnesota; resale excludedIncluded1 October 2019
MississippiUS$250,000NoneSales onlyAny 12-month periodSales into MississippiExcluded1 July 2018
MissouriUS$100,000NoneSales onlyPreceding 12 months, checked quarterlyTaxable sales of tangible personal propertyIncluded1 January 2023
MontanaNo state sales taxNoneNone—No general sales tax——
NebraskaUS$100,000200 transactionsEitherCurrent or previous calendar yearRetail sales (all sales except resale)Included1 April 2019
NevadaUS$100,000200 transactionsEitherCurrent or previous calendar yearRetail sales into NevadaIncluded1 October 2018
New HampshireNo state sales taxNoneNone—No general sales tax——
New JerseyUS$100,000200 transactionsEitherCurrent or previous calendar yearGross revenue from goods, digital products and taxable servicesIncluded1 November 2018
New MexicoUS$100,000NoneSales onlyPrevious calendar yearTaxable gross receipts onlyExcluded1 July 2019
New YorkUS$500,000100 transactionsBoth requiredPrevious four sales tax quartersGross receipts from tangible personal property; more than $500,000 and more than 100 salesIncluded21 June 2018
North CarolinaUS$100,000NoneSales onlyCurrent or previous calendar yearGross sales sourced to North CarolinaIncluded1 July 2024
North DakotaUS$100,000NoneSales onlyCurrent or previous calendar yearTaxable salesExcluded1 January 2019
OhioUS$100,000200 transactionsEitherCurrent or previous calendar yearGross receipts from goods and services for use in OhioIncluded1 August 2019
OklahomaUS$100,000NoneSales onlyCurrent or previous calendar yearTaxable sales of tangible personal propertyExcluded if the marketplace collects1 November 2019
OregonNo state sales taxNoneNone—No general sales tax——
PennsylvaniaUS$100,000NoneSales onlyPrevious calendar yearGross sales into PennsylvaniaExcluded if the marketplace collects1 July 2019
Rhode IslandUS$100,000200 transactionsEitherPrevious calendar yearGross revenue from sales into Rhode IslandIncluded1 July 2019
South CarolinaUS$100,000NoneSales onlyCurrent or previous calendar yearGross revenue from goods, digital products and servicesIncluded1 October 2018
South DakotaUS$100,000NoneSales onlyCurrent or previous calendar yearGross sales, including electronically delivered productsIncluded1 July 2023
TennesseeUS$100,000NoneSales onlyPrevious 12 monthsRetail sales, including exempt; resale excludedExcluded if the marketplace collects1 October 2020
TexasUS$500,000NoneSales onlyPreceding 12 calendar monthsAll Texas revenue, including nontaxable and resale salesIncluded1 October 2019
UtahUS$100,000NoneSales onlyCurrent or previous calendar yearGross revenue from goods, digital products and servicesExcluded if the marketplace collects1 July 2025
VermontUS$100,000200 transactionsEither12 months before the monthly tax periodSales to Vermont destinationsIncluded1 July 2018
VirginiaUS$100,000200 transactionsEitherCurrent or previous calendar yearGross retail salesExcluded1 July 2019
WashingtonUS$100,000NoneSales onlyCurrent or previous calendar yearAll gross receipts sourced to Washington, including exempt and wholesaleIncluded1 January 2020
West VirginiaUS$100,000200 transactionsEitherPrevious calendar year, or current year once metGross sales, taxable and nontaxableIncluded1 January 2019
WisconsinUS$100,000NoneSales onlyCurrent or previous calendar yearTaxable and nontaxable sales into WisconsinIncluded20 February 2021
WyomingUS$100,000NoneSales onlyCurrent or previous calendar yearGross revenue from goods, admissions and servicesExcluded1 July 2024

Thresholds change. Each state's source and verification date is listed under Sources below; confirm with the state before you register.

Recent Changes (2025–2026)

  • Alaska (1 January 2025): The ARSSTC repealed its 200-transaction test. Remote sellers now register for local sales tax in member jurisdictions on $100,000 in Alaska sales alone.

  • Utah (1 July 2025): Utah dropped its 200-transaction test; nexus is now $100,000 in gross revenue over the current or previous calendar year.

  • Illinois (1 January 2026): Public Act 104-0006 removed the 200-transaction test. Only $100,000 in gross receipts over the preceding 12 months counts.

  • Kentucky (1 August 2026): House Bill 757 removed the 200-transaction test for remote retailers and marketplace providers. Kentucky now uses only the $100,000 gross receipts test over the current or previous calendar year.

  • Connecticut and New York: Both still require the sales and transaction tests together: $100,000 and 200 transactions in Connecticut; more than $500,000 and more than 100 sales in New York.

What Counts Toward a Threshold

The dollar figure is only part of each state's test. Before deciding whether you have crossed a threshold, check how the state defines it:

  • Whether it counts gross sales, retail sales, or only taxable sales.

  • Whether marketplace-facilitated sales are included.

  • Whether exempt and wholesale (resale) sales count.

  • The measurement period, such as the current or previous calendar year, or a rolling 12 months.

  • When collection must begin after the threshold is reached.

A Practical Nexus Review Process

  • 1. Collect all sales channels. Include direct ecommerce, marketplaces, subscriptions, invoices, and other taxable revenue sources.

  • 2. Separate the relevant transaction types. Identify taxable, exempt, wholesale, and marketplace-facilitated sales.

  • 3. Measure activity by state. Compare the correct sales and transaction totals with each state's current threshold and measurement period.

  • 4. Review physical presence. Inventory, employees, contractors, offices, and fulfilment arrangements can create an obligation independently of economic nexus.

  • 5. Document the trigger date. Record when the threshold was reached and when registration and collection should begin.

  • 6. Monitor on a schedule. Recheck activity regularly and keep evidence of the rules you applied.

What Happens After You Cross a Threshold

Crossing a threshold starts a compliance workflow: register, configure tax collection, confirm product taxability, file returns, and remit the tax you collect. Each state sets its own start date, from the next transaction (Kansas) to the first day of the third month after the threshold is met (Tennessee).

If you should have registered or collected in an earlier period, assess the historical exposure before contacting the state. A voluntary disclosure agreement may be an option in some states when the state has not already contacted you. For how physical presence creates nexus on its own, see what is physical nexus.

Frequently Asked Questions

Economic nexus is a sales tax obligation created by the volume of your sales into a state rather than by physical presence there. Since South Dakota v. Wayfair (2018), a remote seller that crosses a state's threshold must register, collect sales tax on taxable sales, and file returns in that state.

$100,000 in sales into the state over the current or previous calendar year. California, New York and Texas use $500,000, and Alabama and Mississippi use $250,000.

Arkansas, Washington, D.C., Georgia, Hawaii, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Jersey, Ohio, Rhode Island, Vermont, Virginia and West Virginia still apply a 200-transaction test alongside the sales test, and either one creates nexus. Connecticut and New York count transactions too, but only in combination with the sales test.

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.

It depends on the state. Some count every sale into the state, including sales through Amazon or another marketplace facilitator (for example California, Texas and Washington). Others exclude sales the marketplace already collected tax on (for example Georgia and Tennessee). Arizona leaves every sale made through a marketplace facilitator out of the remote seller's threshold. Check the Marketplace sales column for each state.

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

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

Sources

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