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 or 200 Transactions 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) $100,000 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) $500,000 4/1/2019 Previous or Current Calendar Year Gross included The day you exceed the threshold
Colorado (CO) $100,000 12/1/2018 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) $100,000 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 Next transaction (state doesn’t specify)
Georgia (GA) $100,000 OR 200 Transactions 1/1/2020 Previous or Current Calendar Year Retail excluded Next transaction (state doesn’t specify)
Hawaii (HI) $100,000 OR 200 Transactions 7/1/2018 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 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 OR 200 Transactions 10/1/2018 Previous or Current Calendar Year Gross excluded Immediately upon reaching the threshold
Iowa (IA) $100,000 7/1/2019 Previous or Current 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 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 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 7/1/2018 Previous or Current Calendar Year Gross excluded Next transaction
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) $100,000 10/1/2019 Preceding Calendar Year Gross excluded If exceed threshold by October 31, register as of January 1 the following year. If exceed threshold between November 1 and December 31, register on the first of the month following 2 months after the month you exceed 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 excluded 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 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 OR 200 Transactions 11/1/2018 Previous or Current Calendar Year
Gross included 60 days after a remote seller meets the threshold
North Dakota (ND) $100,000 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 8/1/2019 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 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 11/1/2018 Previous or Current Calendar Year Gross included Next transaction
Tennessee (TN) $100,000 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 OR 200 Transactions 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 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 10/1/2018 Previous or Current Calendar Year Gross included Next transaction
Wyoming (WY) $100,000 OR 200 Transactions 2/1/2019 Previous or Current Calendar Year Gross excluded Next transaction