Economic Nexus State Chart
Economic Nexus State Chart
Economic Nexus is the concept that a business must collect and remit sales tax in states that meet a certain economic threshold. This chart gives the threshold for every state that collects sales tax in the US. It’s important for businesses to be aware of the economic nexus in every state where they sell goods or services. Failure to comply could result in hefty fines and penalties.
| State | Economic Nexus Threshold | Effective Date | Measurement Date | Includable Sales | Marketplace Sales | When to Register |
| Alabama (AL) | $250,000 | 10/1/2018 | Previous Calendar Year | Retail | excluded | January 1 following the year the threshold is exceeded |
| Alaska (AK) | $100,000 – Alaska removed their 200 transactions threshold effective January 1, 2025. | 1/6/2020 | Previous Calendar Year | Gross | included | The first day of the month following 30 days from adoption by the city or borough |
| Arizona (AZ) | $200,000 in 2019; $150,000 in 2020; and $100,000 in 2021 and thereafter | 10/1/2019 | Previous or Current Calendar Year | Gross | excluded | The seller must obtain a TPT license once the threshold is met and begin remitting the tax on the first day of the month that starts at least thirty days after the threshold is met for the remaining of the current year and the next calendar year. |
| Arkansas (AR) | $100,000 or 200 Transactions | 7/1/2019 | Previous or Current Calendar Year | Taxable | excluded | Next transaction (state doesn’t specify) |
| California (CA) | 12/1/2018-4/1/2019 – $100,000 or 200 transactions | 4/1/2019 | Previous or Current Calendar Year | Gross | included | The day you exceed the threshold |
| Colorado (CO) | $100,000 – Colorado removed its 200 transactions threshold, effective April 14, 2019. | December 1, 2018 with grace period through May 31, 2019 | Previous or Current Calendar Year | Retail | excluded | The first day of the month after the ninetieth day the retailer made retail sales in the current calendar year that exceed $100,000 |
| Connecticut (CT) | $250,000 and 200 transactions | 12/1/2018 | 12 Month Period ending Sept 30 | Retail | included | October 1 of the year in which you cross the threshold on September 30 |
| Delaware | N/A | N/A | N/A | N/A | N/A | No sales tax |
| Florida (FL) | $100,000 | 7/1/2021 | Previous Calendar Year | Taxable | excluded | First of calendar year after you meet the threshold. |
| Georgia (GA) | $250,000 or 200 or more sales (effective January 1, 2019 through January 1, 2020) | 1/1/2019 | Previous or Current Calendar Year | Retail | excluded | Next transaction (state doesn’t specify) |
| Hawaii (HI) | $100,000 OR 200 Transactions | July 1, 2018 and applies to taxable years beginning after December 1, 2017 | Current or Immediately Preceding Calendar Year | Gross | included | The first of the month following when the threshold is met. |
| Idaho (ID) | $100,000 | 6/1/2019 | Previous or Current Calendar Year | Gross | included | Next transaction (state doesn’t specify) |
| Illinois (IL) | $100,000 OR 200 Transactions – Illinois will remove their 200 transactions threshold effective January 1, 2026. | 10/1/2018 | Preceding 12 months | Retail | excluded | The retailer shall determine on a quarterly basis whether they meet the criteria for the preceding 12-month period |
| Indiana (IN) | $100,000 | 10/1/2018 | Previous or Current Calendar Year | Gross | excluded | Immediately upon reaching the threshold |
| Iowa (IA) | $100,000 – effective July 1, 2019* $100,000 or 200 or more separate transactions prior to July 1, 2019 Iowa removed its 200 transactions threshold, effective May 3, 2019. | 7/1/2019 | Current or immediately preceding calendar year | Gross | included | The first day of the next calendar month that starts at least 30 days from the day the remote seller first exceeded the threshold |
| Kansas | $100,000 | 7/1/2021 | Current or immediately preceding calendar year – Only for calendar year 2021 sales since January 1, 2021 | Gross | included | Next transaction (state doesn’t specify) |
| Kentucky (KY) | $100,000 OR 200 Transactions | 10/1/2018 | Previous or Current Calendar Year | Gross | included | First of the calendar month that is at most 60 days after threshold is met |
| Louisiana (LA) | $100,000 – Louisiana removed its 200 transactions threshold, effective August 1, 2023 | 7/1/2020 | Previous or Current Calendar Year | Gross | excluded | Within 30 days of exceeding the threshold, the remote seller must submit an application to the Louisiana Remote Seller Commission and must begin collecting state and local sales and use tax based upon actual applicable bases and rates on sales for delivery into Louisiana within 60 days. |
| Maine (ME) | $100,000 – Maine removed its 200 transactions threshold, effective January 1, 2022. | 7/1/2018 | Previous or Current Calendar Year | Gross | excluded | First day of the first month that begins at least thirty days after the seller has exceeded the threshold. |
| Maryland (MD) | $100,000 OR 200 Transactions | 10/1/2018 | Previous or Current Calendar Year | Gross | included | First day of the month following when threshold is met |
| Massachusetts (MA) | $500,000 and 100 or more transactions $100,000* Massachusetts removed its 100 transactions threshold and lowered the dollar threshold to $100,000, effective October 1, 2019. | 10/1/2019 | Previous or current calendar year | Gross | excluded | First day of the first month that starts two months after the month in which the remote retailer first exceeded the $100,000 threshold, in the first year that it exceeds the threshold. |
| Michigan (MI) | $100,000 OR 200 Transactions | 10/1/2018 | Preceding Calendar Year | Gross | included | January 1 following the year the threshold is exceeded |
| Minnesota (MN) | $100,000 OR 200 Transactions | 10/1/2018 | The 12-month period ending on the last day of the most recently completed calendar quarter | Retail | included | On the first taxable retail sale into Minnesota that occurs no later than 60 days after you exceed the Small Seller Exception |
| Mississippi (MS) | $250,000 | 9/1/2018 | Prior 12 months | Retail | excluded | Next transaction |
| Missouri (MO) | $100,000 | 1/1/2023 | Previous 12 months | Taxable | included | Not more than three months following close of preceding calendar quarter |
| Montana | N/A | N/A | N/A | N/A | N/A | No sales tax |
| Nebraska (NE) | $100,000 OR 200 Transactions | 4/1/2019 | Previous or Current Calendar Year | Retail | included | The first day of the second calendar month after the threshold was exceeded |
| Nevada (NV) | $100,000 OR 200 Transactions | 11/1/2018 | Previous or Current Calendar Year | Retail | included | By the first day of the calendar month that begins at least 30 calendar days after they hit the threshold |
| New Hampshire | N/A | N/A | N/A | N/A | N/A | No sales tax |
| New Jersey (NJ) | $100,000 OR 200 Transactions | 11/1/2018 | Previous or Current Calendar Year | Gross | included | Next transaction (state doesn’t specify) |
| New Mexico (NM) | $100,000 | 7/1/2019 | Previous Calendar Year | Taxable | excluded | January 1 following the year the threshold is exceeded |
| New York (NY) | $500,000 AND 100 Transactions – New York raised its threshold from $300,000 to $500,000 on June 24, 2019. The number of transactions thresholds remains the same at 100 sales. | 6/21/2018 | Immediately Preceding four sales tax quarters | Gross | included | Register within 30 days after meeting the threshold and begin to collect tax 20 days thereafter |
| North Carolina (NC) | $100,000 – North Carolina removed it’s transaction threshold, effective July 1, 2024 | 11/1/2018 | Previous or Current Calendar Year | Gross | included | 60 days after a remote seller meets the threshold |
| North Dakota (ND) | $100,000 – North Dakota removed its 200 transactions threshold, effective December 31, 2018 | 10/1/2018 | Previous or Current Calendar Year | Taxable | excluded | The following calendar year or 60 days after the threshold is met, whichever is earlier |
| Ohio (OH) | $100,000 OR 200 Transactions – Ohio lowered its threshold from $500,000 to $100,000 or 200 transactions effective August 1, 2019. | 1/1/2018 | Previous or Current Calendar Year | Retail | included | Next transaction (state doesn’t specify) |
| Oklahoma (OK) | $100,000 | 11/1/2019 | Preceding Calendar or Current Calendar Year | Taxable | excluded | The first calendar month following the month when the threshold is met |
| Oregon | N/A | N/A | N/A | N/A | N/A | No sales tax |
| Pennsylvania (PA) | $100,000 | 7/1/2019 | Prior calendar year and then starting in the 2nd quarter – collection period 7/1/19 through 3/31/20 using CY 2018; and then collection period 4/1/20-3/31/21 using calendar year 2019 | Gross | included | April 1 following the calendar year when threshold was exceeded |
| Puerto Rico (PR) | $100,000 OR 200 Transactions | 7/1/2021 | Previous Calendar Year | Gross | included | Next transaction |
| Rhode Island (RI) | $100,000 OR 200 Transactions | 7/1/2019 | Immediately Preceding Calendar Year | Gross | included | January 1 following the year the threshold is exceeded |
| South Carolina (SC) | $100,000 | 11/1/2018 | Previous or Current Calendar Year | Gross | included | The first day of the second calendar month after economic nexus is established |
| South Dakota (SD) | $100,000 – South Dakota removed its transaction threshold, effective July 1, 2023. | 11/1/2018 | Previous or Current Calendar Year | Gross | included | Next transaction |
| Tennessee (TN) | $100,000 – Tennessee passed legislation that lowers the threshold from $500,000 to $100,000, effective October 1, 2020. | 10/1/2019 | Previous 12 months | Retail | excluded | The first day of the third month following the month in which the dealer met the threshold, but no earlier than July 1, 2017 |
| Texas (TX) | $500,000 | 10/1/2019 | Previous 12 months | Gross | included | The first day of the fourth month after the month in which the seller exceeded the safe harbor threshold |
| Utah (UT) | $100,000 – Utah removed their 200 transactions threshold effective July 1, 2025. | 1/1/2019 | Previous or Current Calendar Year | Gross | excluded | Next transaction (state doesn’t specify) |
| Vermont (VT) | $100,000 OR 200 Transactions | 7/1/2018 | Prior 4 Calendar Quarters | Gross | included | First of the month after 30 days from the end of the quarter that you exceed the threshold |
| Virginia (VA) | $100,000 OR 200 Transactions | 7/1/2019 | Previous or Current Calendar Year | Retail | excluded | Next transaction (state doesn’t specify) |
| Washington (WA) | $100,000 – October 1, 2018 through December 31, 2019, sellers with 200 or more separate transactions into Washington must collect. However, effective March 14, 2019 the threshold will only be $100,000. The state removed the 200 transactions threshold. | 10/1/2018 | Current or Preceding Calendar Year | Gross | included | The first day of the month that starts at least 30 days after you meet the threshold |
| Washington DC (DC) | $100,000 OR 200 Transactions | 1/1/2019 | Previous or Current Calendar Year | Retail | included | Next transaction (not specified by District) |
| West Virginia (WV) | $100,000 OR 200 Transactions | 1/1/2019 | Previous or Current Calendar Year | Gross | included | Next transaction (state doesn’t specify) |
| Wisconsin (WI) | $100,000 – Wisconsin removed its 200 transactions threshold effective February 20, 2021. | 10/1/2018 | Previous or Current Calendar Year | Gross | included | Next transaction |
| Wyoming (WY) | $100,000 – Wyoming removed its transactions threshold, effective July 1, 2024. | 2/1/2019 | Previous or Current Calendar Year | Gross | excluded | Next transaction |
