By El Ghali Bennis · Published
State Economic Nexus Thresholds: Chart by State (2026)
See state economic nexus thresholds in one chart: sales limits, transaction tests, lookback periods and how to track them before you owe tax.
State economic nexus thresholds are the sales or transaction limits that force an out-of-state seller to register and collect sales tax. Most states use $100,000 in sales, and some add 200 transactions. California, Texas and New York set higher dollar limits. Cross a state's line and you owe tax there, even with no physical presence.
The rule comes from the 2018 U.S. Supreme Court decision South Dakota v. Wayfair, which let states tax remote sellers based on economic activity alone. Since then, nearly every state with a sales tax has written its own threshold. They look similar, but the details differ, and the details are where sellers get burned. This guide gives you a state-by-state chart, explains how the counting works, and shows you how to track it without a spreadsheet nightmare.
One caveat: thresholds change, and many states have dropped their transaction tests since 2018. Treat the chart below as a starting point and confirm the current rule on each state's department of revenue site before you register or ignore a state.
What Are Economic Nexus Thresholds and How Do They Work?
An economic nexus threshold is a state-set limit on your sales into that state. Once your sales or order count passes it, you have nexus, which means a legal duty to register, collect and remit sales tax there. Physical offices or warehouses aren't required.
Before Wayfair, the rule was physical presence. A seller with no stores, staff or inventory in a state could ignore its sales tax. South Dakota's law set the template: $100,000 in sales or 200 separate transactions in the current or prior calendar year. Other states copied it, and the phrase "100000 sales or 200 transactions" became shorthand for the standard test. South Dakota has since dropped the transaction test and now uses sales only.
Two points trip up new sellers:
- The test is per state. Selling $60,000 into ten states doesn't trigger anything. Selling $101,000 into one does.
- Nexus is not the same as owing tax. It means you must register. Some of your sales may still be exempt, such as resale or certain product categories.
If you want the broader picture of how this fits your business, read our guide on economic nexus for online sellers.
State Economic Nexus Thresholds Chart (2026)
This economic nexus by state chart lists the sales threshold and whether the state also has a transaction test. "Or" means crossing either limit triggers nexus. "And" means you must cross both. The figures reflect published department of revenue guidance, but rules are amended often, so verify against the state's own site before acting. Utah and a few other states have adjusted their transaction tests more than once, so give those rows an extra check.
Sales tax threshold by state
| State | Sales threshold | Transaction test |
|---|---|---|
| Alabama | $250,000 | None |
| Alaska (local jurisdictions only) | $100,000 | Or 200 transactions |
| Arizona | $100,000 | None |
| Arkansas | $100,000 | None |
| California | $500,000 | None |
| Colorado | $100,000 | None |
| Connecticut | $100,000 | And 200 transactions |
| District of Columbia | $100,000 | Or 200 transactions |
| Florida | $100,000 | None |
| Georgia | $100,000 | None |
| Hawaii | $100,000 | Or 200 transactions |
| Idaho | $100,000 | None |
| Illinois | $100,000 | None |
| Indiana | $100,000 | None |
| Iowa | $100,000 | None |
| Kansas | $100,000 | None |
| Kentucky | $100,000 | Or 200 transactions |
| Louisiana | $100,000 | None |
| Maine | $100,000 | Or 200 transactions |
| Maryland | $100,000 | Or 200 transactions |
| Massachusetts | $100,000 | None |
| Michigan | $100,000 | Or 200 transactions |
| Minnesota | $100,000 | Or 200 retail transactions |
| Mississippi | $250,000 | None |
| Missouri | $100,000 | None |
| Nebraska | $100,000 | None |
| Nevada | $100,000 | Or 200 transactions |
| New Jersey | $100,000 | Or 200 transactions |
| New Mexico | $100,000 | None |
| New York | $500,000 | And 100 transactions |
| North Carolina | $100,000 | None |
| North Dakota | $100,000 | None |
| Ohio | $100,000 | None |
| Oklahoma | $100,000 | None |
| Pennsylvania | $100,000 | None |
| Rhode Island | $100,000 | Or 200 transactions |
| South Carolina | $100,000 | None |
| South Dakota | $100,000 | None |
| Tennessee | $100,000 | None |
| Texas | $500,000 | None |
| Utah | $100,000 | Or 200 transactions |
| Vermont | $100,000 | Or 200 transactions |
| Virginia | $100,000 | Or 200 transactions |
| Washington | $100,000 | None |
| West Virginia | $100,000 | Or 200 transactions |
| Wisconsin | $100,000 | None |
| Wyoming | $100,000 | Or 200 transactions |
Transaction tests are the part that moves most
Transaction tests hit very small sellers, a shop with 200 orders of $15 each is nowhere near $100,000, and many states have repealed them. Arizona, Arkansas, Georgia, Illinois, Louisiana, Ohio and South Dakota are examples of states that now use a sales-dollar test only. That's why older charts, including ones still ranking on search results, often list "or 200 transactions" for states that no longer have it. Check that column first when you verify a state.
Alaska: local rules only
Alaska has no statewide sales tax, but some local jurisdictions, such as Juneau and the Kenai Peninsula Borough, do. Many of them collect through the Alaska Remote Seller Sales Tax Commission, which applies a $100,000 or 200-transaction test to remote sellers. Check that commission's site if you ship into Alaska in volume.
Higher limits and notes on specific states
Alabama and Mississippi use $250,000 instead of $100,000, which gives sellers more room before registering. Alabama's test is based on retail sales into the state, so confirm how it defines them. Texas counts total revenue from sales delivered into Texas, taxable and nontaxable, over the preceding 12 calendar months, so exempt sales still push you toward the $500,000 line. Minnesota's transaction test counts only retail sales, not every order.
The big three to watch first
For many online sellers, three states cause most of the early exposure because they're large markets:
- California: $500,000 in sales. High limit, but California is a huge market, so fast-growing brands cross it early.
- Texas: $500,000 in total revenue over the preceding 12 months.
- New York: $500,000 in sales and 100 transactions. Both conditions must be met.
Notice the "and" in New York's rule, and in Connecticut's. Most other states use "or." Reading that one word wrong is how sellers register too early, or too late.
States without a sales tax
Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, so you won't have sales tax nexus there, though other taxes may apply. Alaska has no state-level tax but has the local rules described above.
A worked example
Say you run a candle shop with $240,000 in annual sales. Over the year, $62,000 ships to Florida, $41,000 to Virginia (620 orders), $38,000 to California and the rest is spread across other states. Florida is under $100,000, so no nexus yet. Virginia is under $100,000 in dollars, but 620 orders crosses its 200-transaction test, so you have nexus there despite the low revenue. California is far below $500,000. The takeaway: small order sizes can trigger nexus in "or" states well before revenue does.
What Counts Toward the State Economic Nexus Threshold?
Counting rules vary by state. Generally, gross sales into the state count, but states differ on whether exempt sales, shipping and marketplace orders are included. Check each state's definition, because the same orders can put you over the line in one state and under it in another.
Do marketplace sales count toward nexus?
It depends on the state. Most states now have marketplace facilitator laws, meaning Amazon, Etsy or Walmart collect and remit tax on orders placed through their platforms. Some states exclude those sales from your threshold count. Others still include them, even though you don't collect the tax on them. So marketplace sales count toward nexus in some states and not in others, and you have to look up each one.
This matters when you sell on Amazon and also run your own store. Your Amazon volume may push you over a threshold, and then your direct-site orders in that state become taxable and need collecting.
Gross sales, taxable sales and transactions
Here's how the common measures differ:
- Gross sales: total revenue from the state, including exempt items. Many states use this.
- Retail or taxable sales: only sales that would be taxed. Some states use this narrower number.
- Transactions: separate orders, not units. One order with ten items is one transaction.
Dropshippers face an extra layer, since the inventory may ship from a supplier in another state. We cover that in dropshipping sales tax nexus.
Nexus Lookback Period and Effective Dates
The nexus lookback period is the window a state uses to measure your sales. Most states look at the current or previous calendar year. Some use a rolling 12-month window or a set number of preceding quarters. Once you pass the threshold, you typically must register within a set number of days, and the effective date of your obligation varies by state.
Here's what the lookback looks like in practice, using a few states whose rules are published by their revenue departments:
- Calendar-year test: California and Washington check the current or preceding calendar year. If you crossed the threshold last year, you have nexus this year from the start. If you cross mid-year, nexus generally begins at that point or shortly after, depending on the state's grace period.
- Rolling test: Texas looks at the preceding 12 calendar months, and New York looks at the four preceding sales tax quarters. You can cross the line in any month, not just in December.
- Prior-year plus current-year: Many states check both, so a big prior year carries forward.
Because the lookback differs by state, the same seller can have nexus in one state on January 1 and not in another until later in the year. Confirm the measurement period and the registration deadline on each state's revenue site.
The practical lesson: don't wait for year-end. A seller who adds up sales every December can discover they crossed a threshold in March and owe months of uncollected tax. States can come after that tax, and you can't go back and charge customers for it. You usually pay it out of your own margin.
What happens if you register late?
You owe the tax you should have collected, plus penalties and interest in many cases. Many states offer voluntary disclosure programs that reduce penalties if you come forward before they contact you. Those programs are worth asking a tax professional about if you've already missed a deadline.
How to Track State Economic Nexus Thresholds Step by Step
To track sales tax nexus, export your orders by ship-to state, total gross sales and order counts per state, and compare them to each state's threshold monthly. Many sellers flag anything above 70% of the limit. That figure is a practical rule of thumb, not a legal requirement, and it gives you time to register before you cross, not after.
- Export orders by destination. Pull a report from your store and every marketplace, grouped by ship-to state, for the current year and the prior year.
- Separate channels. Keep direct-site, Amazon, Etsy and wholesale numbers in different columns, since states treat them differently.
- Total sales and orders per state. Record both dollars and transaction count.
- Compare to the threshold. Use the state's own rule: "or," "and," gross or taxable, and its lookback window.
- Set an early-warning line. A 70% trigger is a common choice. When a state hits it, start the registration paperwork. Fast-growing sellers may want a lower line.
- Register, collect, then file. Follow the steps in how to collect and file sales tax for an online store.
- Repeat monthly. Nexus is a moving target while you grow.
Spreadsheet or software?
A spreadsheet works while you ship to a few states. Once you're selling into 15 or 20, manual tracking breaks down, and you'll want automated monitoring. Our roundup of sales tax automation tools for ecommerce compares the options on cost and coverage.
Whichever route you take, make sure your store records ship-to state and order totals cleanly. If your platform scatters that data across apps, tracking gets harder.
Remote Seller Sales Tax Thresholds: Common Questions
Remote seller sales tax thresholds raise the same questions again and again. Here are the quick answers.
Do I need to register in every state?
No. You register only where you've crossed the threshold, or where you have physical nexus such as an office, employee or inventory. Inventory in a fulfillment center counts as physical presence in many states.
Does the threshold apply to services and digital goods?
Some states tax digital products and some don't. Thresholds usually count sales of taxable items, so what's taxable matters. If you sell downloads, see how to create a website to sell digital products for more context.
Do I need a sales tax permit before I hit the threshold?
You need one once you have nexus, and most states won't issue a collection obligation before then. Registering a little early, around 70% of the limit, avoids a scramble. Our guide on whether you need a sales tax permit to sell online walks through the application process.
What about wholesale and resale sales?
Wholesale orders backed by a valid exemption certificate usually aren't taxed, though they may still count toward the gross sales threshold in some states. Learn more in resale certificate for an online store.
Where do I confirm the current numbers?
Go to the source. The Streamlined Sales Tax Governing Board publishes information on member states, and the Federation of Tax Administrators links to each state's revenue department. For the legal background, the Wikipedia entry on South Dakota v. Wayfair is a decent primer.
Keep Your Thresholds Under Control
State economic nexus thresholds are simple in principle and messy in practice. Most states use $100,000, some add 200 transactions, a few use $250,000 or $500,000, and the counting rules differ on marketplaces, exempt sales and lookback periods. The sellers who stay out of trouble track monthly, register before they cross the limit, and verify every rule with the state itself.
Start this week: export last year's orders by ship-to state and check them against the chart. If you're building or rebuilding a store and want order data, analytics and checkout in one admin dashboard, Rovela builds a complete store from a plain-language conversation. See pricing or explore Rovela to see how it works.
This article is educational and isn't tax advice. Talk to a CPA or tax professional about your specific situation.
