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 | 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 (200 transactions threshold ends 7/1/24) | 2/1/2019 | Previous or Current Calendar Year | Gross | excluded | Next transaction |