Introduction to Economic Nexus

As a remote seller, especially if you’re in the e-commerce or software industries, you’ve likely come across the term “economic nexus” and wondered how it impacts your business. Navigating the complex world of sales tax can be overwhelming, but don’t worry; we’re here to help! In this blog post, we’ll break down the concept of economic nexus, its implications for your business, and the key information you need to understand each state’s sales tax economic nexus threshold.

 

What is Economic Nexus?

Economic nexus is a tax law concept that establishes a basis for businesses to collect and remit sales tax, even if they don’t have a physical presence in a specific state. This concept gained prominence in 2018 after the U.S. Supreme Court’s decision in the South Dakota v. Wayfair, Inc. case. This landmark ruling determined that states can require remote sellers to collect sales tax if they meet certain sales or transaction thresholds, known as “economic nexus” thresholds. These thresholds vary from state to state and are based on sales volume, revenue, or the number of transactions.

Before the Wayfair ruling, businesses were only required to collect sales tax in states where they had a physical presence, such as an office, warehouse, or employee. However, the rapid growth of e-commerce and the increasing number of online transactions made it necessary for states to find new ways to generate revenue. The Wayfair decision marked a significant shift in sales tax laws, opening the door for states to require remote sellers to collect and remit sales tax based on economic nexus.

 

Why Does Economic Nexus Matter for Remote Sellers?

If you’re an e-commerce or software company selling to customers outside of your home state, understanding economic nexus is crucial. Since the Wayfair ruling, most states have implemented their own economic nexus laws with varying thresholds. As a remote seller, it’s essential to keep track of these thresholds to ensure compliance with each state’s sales tax requirements.

Failing to comply with economic nexus laws can lead to penalties, interest charges, and audit risks. Moreover, it’s important to note that these laws can be retroactive, meaning that if your business surpasses a state’s economic nexus threshold, you may be responsible for collecting and remitting sales tax from the moment you exceeded that threshold.

To help you stay on top of your sales tax obligations, our upcoming blog post will provide a detailed breakdown of each state’s sales tax economic nexus threshold. By understanding these requirements, you’ll be better equipped to navigate the ever-changing landscape of sales tax laws and maintain compliance, allowing you to focus on growing your business with confidence.

 

Economic Nexus Thresholds for Sales Tax in Every State

Alabama  |  Alaska  |  Arizona  |  Arkansas  |  California  |  Colorado  |  Connecticut  |  District of Columbia Florida  |  Georgia  |  Hawaii  |  Idaho  |  Illinois  |  Indiana  |  Iowa  |  Kansas  |  Kentucky  |  Louisiana  |  Maine  |  Maryland  |  Massachusetts  |  Michigan  |  Minnesota  |  Mississippi  |  Missouri  |  Nebraska  |  Nevada  |  New Jersey  |  New Mexico  |  New York North Carolina  |  North Dakota  |  Ohio  |  Oklahoma  |  Pennsylvania  |  Rhode Island  |  South Carolina  |  South Dakota  |  Tennessee  |  Texas  |  Utah  |  Vermont  |  Virginia  |  Washington  |  West Virginia  |  Wisconsin  |  Wyoming

 

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Alabama’s Economic Nexus Threshold for Sales Tax

Alabama’s economic nexus threshold is $250,000 in sales in the previous calendar year. To calculate the threshold, you should include retail sales made directly by the seller, whether taxable or non-taxable, and exclude wholesale and marketplace sales. 

Alabama’s economic nexus law went into effect on October 1st, 2018, so you wouldn’t need to register due to economic nexus unless you crossed the threshold after this date. You should register for a sales tax permit on the next transaction. 

For more information, you can see Alabama’s economic nexus announcement here. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Alaska’s Economic Nexus Threshold 

for Sales Tax

Alaska’s economic nexus threshold is $100,000 in sales or having 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales, including sales on marketplaces. You should register for a sales tax permit within 30 days of crossing the threshold. 

Please note that Alaska does not have a state sales tax, and only has local sales tax. Registration and payment can be done on the Alaska Remote Seller Sales Tax Commission’s website (or hire us to take care of it for you!).

Alaska’s economic nexus threshold went into effect March 9th, 2020, so you wouldn’t need to register due to economic nexus unless you crossed the threshold after this date. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Arizona’s Economic Nexus Threshold 

for Sales Tax

Arizona’s economic nexus threshold is $100,000 in sales in the current or previous calendar year. To calculate the threshold, you should include gross sales but exclude marketplace sales. You should register for a sales tax permit within 30 days of crossing the threshold.

Arizona’s economic nexus law went into effect on October 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date. Please note that the sales threshold was updated during 2019 through 2021: $200,000 in 2019; $150,000 in 2020; and $100,000 in 2021 and thereafter. You should register for a sales tax permit within 30 days of crossing the threshold.

You can learn more about Arizona’s economic nexus threshold on the Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Arkansas’s Economic Nexus Threshold 

for Sales Tax

Arkansas’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include taxable sales but exclude marketplace sales. You should register for a sales tax permit on the next transaction after crossing the threshold.

Arkansas’s economic nexus law went into effect on July 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

You can learn more about Arkansas’s economic nexus threshold on the Arkansas Department of Finance and Administration’s website.

 

California’s Economic Nexus Threshold 

for Sales Tax

California’s economic nexus threshold is $500,000 in sales in the current or previous calendar year. To calculate the threshold, you should include all sales of tangible personal property. You should register for a sales tax permit on the date in which you crossed the threshold.

California’s economic nexus law went into effect on April 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn  more about California’s economic nexus requirements on the CDTFA website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Colorado’s Economic Nexus Threshold 

for Sales Tax

Colorado’s economic nexus threshold is $100,000 in sales in the current or previous calendar year. To calculate the threshold, you should include retail sales (excluding marketplace sales), commodities, and services. However, it is recommended to use gross sales due to Notice and Reporting (N&R) requirements. You should register for a sales tax permit within 90 days of crossing the threshold.

Colorado’s economic nexus law went into effect on June 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Colorado’s economic nexus requirements on the Colorado Department of Revenue website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Connecticut’s Economic Nexus Threshold 

for Sales Tax

Connecticut’s economic nexus threshold is $100,000 in sales and 200 or more transactions in the 12 months preceding September 30th. To calculate the threshold, you should include gross sales, including sales on marketplaces. You must meet both thresholds to be subject to economic nexus. You should register for a sales tax permit on the next transaction after crossing the threshold.

Connecticut’s economic nexus law initially went into effect on December 1st, 2018 (and was updated on July 1st, 2019). 

You can learn more about Connecticut’s economic nexus requirements on their Q&A page.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

District of Columbia’s Economic Nexus Threshold for Sales Tax

The District of Columbia’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include retail sales of tangible personal property, taxable services, and digital goods, including sales on marketplaces. You should register for a sales tax permit on the next transaction after crossing the threshold.

The District of Columbia’s economic nexus law went into effect on January 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Washington D.C.’s economic nexus requirements in their online notice here.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Florida’s Economic Nexus Threshold 

for Sales Tax

Florida’s economic nexus threshold is $100,000 in sales in the previous calendar year. To calculate the threshold, you should include retail sales of taxable items, excluding marketplace sales. You should register for a sales tax permit on the next transaction after crossing the threshold.

Florida’s economic nexus law went into effect on July 1st, 2021. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can read more about Florida’s economic nexus statute online in the bill that was passed.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Georgia’s Economic Nexus Threshold 

for Sales Tax

Georgia’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include retail sales of tangible personal property delivered electronically or physically, including sales on marketplaces. You should register for a sales tax permit on the next transaction after crossing the threshold.

Georgia’s economic nexus law went into effect on January 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can read more about Georgia’s economic nexus requirements on the Georgia Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Hawaii’s Economic Nexus Threshold 

for Sales Tax

Hawaii’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit within 30 days of crossing the threshold.

Hawaii’s economic nexus law went into effect on July 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can read more about Hawaii’s economic nexus requirements for their General Excise Tax (GET) in their online announcement. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

TaxValet - The Ultimate Sales Tax Checklist
 
 

Idaho’s Economic Nexus Threshold 

for Sales Tax

Idaho’s economic nexus threshold is $100,000 in sales in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit on the next transaction after crossing the threshold.

Idaho’s economic nexus law went into effect on June 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can read more about Idaho’s economic nexus requirements in the state’s Online Sellers Guide.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Illinois’ Economic Nexus Threshold 

for Sales Tax

Illinois’ economic nexus threshold is $100,000 in sales or 200 or more transactions in the prior 12 months. To calculate the threshold, you should include gross receipts but exclude resale and marketplace sales. You should register for a sales tax permit on the first day of the next quarter after the threshold is crossed.

Illinois’ economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can read more about Illinois’ economic nexus requirements on their website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Indiana’s Economic Nexus Threshold 

for Sales Tax

Indiana’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales but exclude marketplace sales. You should register for a sales tax permit upon reaching the threshold.

Indiana’s economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Indiana’s economic nexus requirements on the Indiana Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Iowa’s Economic Nexus Threshold 

for Sales Tax

Iowa’s economic nexus threshold is $100,000 in sales in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit on the next transaction after crossing the threshold, as confirmed by the state notice.

Iowa’s economic nexus law went into effect on January 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Iowa’s economic nexus requirements on the Iowa Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Kansas’ Economic Nexus Threshold 

for Sales Tax

Kansas’ economic nexus threshold is $100,000 in sales in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit on the next transaction after crossing the threshold, as confirmed by the state notice.

Kansas’ economic nexus law went into effect on July 1st, 2021. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Kansas’ economic nexus requirements in their online notice for remote sellers. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Kentucky’s Economic Nexus Threshold 

for Sales Tax

Kentucky’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit by the first day of the calendar month that begins no later than 60 days (previously 30 days) after crossing the threshold, effective July 1, 2021.

Kentucky’s economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Kentucky’s economic nexus requirements on the Kentucky Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Louisiana’s Economic Nexus Threshold 

for Sales Tax

Louisiana’s economic nexus threshold is $100,000 in retail sales (wholesale and resale orders excluded) in the current or previous calendar year. To calculate the threshold, you should include gross sales but exclude marketplace sales, as well as wholesale/resale orders. You should submit your sales tax permit application within 30 calendar days and begin collecting and remitting taxes within 60 calendar days after crossing the threshold.

Louisiana’s economic nexus law went into effect on July 1st, 2020. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date. Louisiana updated its threshold effective August 1st, 2023 to eliminate the 200-transaction count threshold and remove resale orders from the $100,000 threshold calculation. 

You can learn more about Louisiana’s economic nexus requirements in their remote sellers informational bulletin.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 
 
 
TaxValet - The Ultimate Sales Tax Checklist
 
 

Maine’s Economic Nexus Threshold 

for Sales Tax

Maine’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales but exclude marketplace sales. You should register for a sales tax permit on or before the first day of the first month that begins at least 30 days after exceeding the threshold.

Maine’s economic nexus law went into effect on July 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Maine’s economic nexus requirements on the Maine Revenue Services website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Maryland’s Economic Nexus Threshold 

for Sales Tax

Maryland’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales and taxable services, which could include digital products. You should register for a sales tax permit on the first day of the month following when the threshold is crossed.

Maryland’s economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Maryland’s economic nexus requirements in their online tax alert.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Massachusetts’ Economic Nexus Threshold for Sales Tax

Massachusetts’ economic nexus threshold is $100,000 in sales in the current or previous calendar year. To calculate the threshold, you should include gross sales but exclude marketplace sales. You should register for a sales tax permit on the first day of the month beginning two months after crossing the threshold.

Massachusetts’ economic nexus law went into effect on October 1st, 2018, and was updated on October 1st, 2019. 

You can learn more about Massachusetts’ economic nexus requirements on the Mass.gov website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Michigan’s Economic Nexus Threshold 

for Sales Tax

Michigan’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit following January 1st (or October 1st, 2018, if the threshold was crossed in 2017).

Michigan’s economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Michigan’s economic nexus requirements on the Michigan Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Minnesota’s Economic Nexus Threshold 

for Sales Tax

Minnesota’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the prior 12 months. To calculate the threshold, you should include retail sales, including sales on marketplaces. You should register for a sales tax permit within 60 days of crossing the threshold.

Minnesota’s economic nexus law went into effect on October 1st, 2018, and was updated on October 1st, 2019. 

You can learn more about Minnesota’s economic nexus requirements on the Minnesota Department of Revenue website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Mississippi’s Economic Nexus Threshold 

for Sales Tax

Mississippi’s economic nexus threshold is $250,000 in sales in the prior 12 months. To calculate the threshold, you should include gross sales. You should register for a sales tax permit on the next transaction after crossing the threshold, as presumed by the state notice.

Mississippi’s economic nexus law went into effect on September 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Mississippi’s economic nexus requirements in their Sales and Use Tax Guidance for Online Sellers pdf.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Missouri’s Economic Nexus Threshold 

for Sales Tax

Missouri economic nexus threshold is $100,000 in taxable sales within the 12-month period ending on the last day of the most recently completed calendar quarter (that’s a mouthful). You should register for a sales tax permit within 3 months of the close of the most recent calendar quarter when the threshold was crossed, according to the bill. 

Missouri’s economic nexus law went into effect on January 1st, 2023. You shouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Missouri’s economic nexus requirements on the Missouri Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation.

 
 
 
TaxValet - The Ultimate Sales Tax Checklist
 
 

Nebraska’s Economic Nexus Threshold 

for Sales Tax

Nebraska’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include retail sales, including sales on marketplaces. You should register for a sales tax permit on the first day of the second calendar month after crossing the threshold.

Nebraska’s economic nexus law went into effect on April 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Nebraska’s economic nexus requirements in the state’s Remote Seller FAQ. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Nevada’s Economic Nexus Threshold 

for Sales Tax

Nevada’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include retail sales, including sales on marketplaces. You should register for a sales tax permit on the first day of the month within 30 days of crossing the threshold.

Nevada’s economic nexus law went into effect on November 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Nevada’s economic nexus requirements on the Nevada Department of Taxation website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

New Jersey’s Economic Nexus Threshold 

for Sales Tax

New Jersey’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit within 30 days of crossing the threshold.

New Jersey’s economic nexus law went into effect on November 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about New Jersey’s economic nexus requirements on the New Jersey Division of Taxation website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

New Mexico’s Economic Nexus Threshold 

for Sales Tax

New Mexico’s economic nexus threshold is $100,000 in sales in the previous calendar year. To calculate the threshold, you should include gross sales but exclude marketplace sales. You should register for a sales tax permit on January 1st, as presumed by the state notice.

New Mexico’s economic nexus law went into effect on July 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about New Mexico’s economic nexus requirements on the state’s website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

New York’s Economic Nexus Threshold 

for Sales Tax

New York’s economic nexus threshold is $500,000 in sales and 100 or more transactions (both thresholds must be met) in the immediately preceding 4 sales tax quarters (ending on May 31st, August 31st, November 30th, and February 28th). To calculate the threshold, you should include all sales of tangible personal property. You should register for a sales tax permit within 30 days of crossing the threshold and begin collecting and remitting sales tax within 50 days.

New York’s economic nexus law went into effect on June 21st, 2018, and was updated on June 24th, 2019. 

You can find more information on New York’s economic nexus requirements on the New York Department of Taxation and Finance website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 


North Carolina’s Economic Nexus Threshold for Sales Tax

North Carolina’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include gross sales. You should register for a sales tax permit on the first day of the second calendar month after crossing the threshold.

North Carolina’s economic nexus law went into effect on November 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about North Carolina’s economic nexus requirements on the North Carolina Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

North Dakota’s Economic Nexus Threshold for Sales Tax

North Dakota’s economic nexus threshold is $100,000 in taxable sales in the current or previous calendar year. You should register for a sales tax permit either in the following calendar year or within 60 days of crossing the threshold, whichever is earlier.

North Dakota’s economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about North Dakota’s economic nexus requirements on the North Dakota Tax website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Ohio’s Economic Nexus Threshold 

for Sales Tax

Ohio’s economic nexus threshold is $100,000 in sales or 200 or more transactions in the current or previous calendar year. To calculate the threshold, you should include retail sales, excluding exempt sales. You should register for a sales tax permit upon your next transaction after crossing the threshold, as confirmed by the state notice.

Ohio’s economic nexus law went into effect on January 1st, 2018, and was updated on August 1st, 2019. 

You can learn more about Ohio’s economic nexus requirements on the Ohio Department of Taxation website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 


Oklahoma’s Economic Nexus Threshold 

for Sales Tax

Oklahoma’s economic nexus threshold is $100,000 in taxable merchandise sales, excluding marketplace sales, in the current or previous calendar year. You should register for a sales tax permit on the first day of the month following the month in which you crossed the threshold.

Oklahoma’s economic nexus law went into effect on November 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Oklahoma’s economic nexus requirements in their online FAQ pdf.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Pennsylvania’s Economic Nexus Threshold 

for Sales Tax

Pennsylvania’s economic nexus threshold is $100,000 in gross sales, excluding marketplace sales, in the previous fiscal calendar year. The fiscal year begins on July 1st for 2018 and April 1st for subsequent years. You should register for a sales tax permit on April 1st for crossing the threshold in the prior calendar year. However, if you crossed the threshold in 2018, use July 1st, 2019, as the start date.

Pennsylvania’s economic nexus law went into effect on April 1st, 2018, and was updated on July 1st, 2019. 

You can learn more about Pennsylvania’s economic nexus requirements on the Pennsylvania Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 
 
 
TaxValet - The Ultimate Sales Tax Checklist
 
 

Rhode Island’s Economic Nexus Threshold 

for Sales Tax

Rhode Island’s economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the previous calendar year. You should register for a sales tax permit on January 1st.

Rhode Island’s economic nexus law went into effect on August 17th, 2017, and was updated on July 1st, 2019. 

You can learn more about Rhode Island’s economic nexus requirements on the Rhode Island Division of Taxation website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

South Carolina’s Economic Nexus Threshold for Sales Tax

South Carolina’s economic nexus threshold is $100,000 in gross sales in the current or previous calendar year. You should register for a sales tax permit on the first day of the second calendar month after crossing the threshold.

South Carolina’s economic nexus law went into effect on November 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about South Carolina’s economic requirements on the South Carolina Department of Revenue website. 

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

South Dakota’s Economic Nexus Threshold for Sales Tax

South Dakota’s economic nexus threshold is $100,000 in gross sales in the current or previous calendar year. You should register for a sales tax permit upon your next transaction after crossing the threshold, as confirmed by the state notice.

South Dakota’s economic nexus law went into effect on November 1st, 2018, but was updated effective July 1st, 2023 to eliminate the 200-transaction count threshold. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about South Dakota’s economic nexus requirements on the South Dakota Department of Revenue website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Tennessee’s Economic Nexus Threshold 

for Sales Tax

Tennessee’s economic nexus threshold is $500,000 in retail sales, including taxable services, excluding marketplace and resale sales, in the prior 12 months. You should register for a sales tax permit on the first day of the third calendar month after crossing the threshold.

Tennessee’s economic nexus law went into effect on October 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Tennessee’s economic nexus requirements in their online webinar presentation.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Texas’s Economic Nexus Threshold 

for Sales Tax

Texas’s economic nexus threshold is $500,000 in gross sales in the prior 12 months. You should register for a sales tax permit on the first day of the fourth calendar month after crossing the threshold.

Texas’s economic nexus law went into effect on October 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Texas’s economic nexus requirements on the Texas Comptroller website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Utah’s Economic Nexus Threshold for Sales Tax

Utah’s economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the current or previous calendar year, excluding marketplace sales. You should register for a sales tax permit upon your next transaction after crossing the threshold, as presumed by the state notice.

Utah’s economic nexus law went into effect on January 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Utah’s economic nexus requirements in their online publication.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Vermont’s Economic Nexus Threshold 

for Sales Tax

Vermont’s economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the last 4 completed calendar quarters. You should register for a sales tax permit on the first of the month, 2 calendar months after crossing the threshold evaluated quarterly (February 1st, May 1st, August 1st, November 1st).

Vermont’s economic nexus law went into effect on July 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Vermont’s economic nexus requirements on its state website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Virginia’s Economic Nexus Threshold 

for Sales Tax

Virginia’s economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the current or previous calendar year, excluding marketplace sales. You should register for a sales tax permit within 30 days after crossing the threshold.

Virginia’s economic nexus law went into effect on July 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Virginia’s economic nexus requirements on the Virginia Tax website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Washington’s Economic Nexus Threshold 

for Sales Tax

Washington’s economic nexus threshold is $100,000 in gross sales in the current or previous calendar year. You should register for a sales tax permit on the first day of the month at least 30 days after crossing the threshold.

Washington’s economic nexus law went into effect on January 1st, 2018, and was updated on October 1st, 2018. 

You can learn more about Washington’s economic nexus requirements on the Washington Department of Revenue website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

West Virginia’s Economic Nexus Threshold 

for Sales Tax

West Virginia’s economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the current or previous calendar year. You should register for a sales tax permit upon your next transaction after crossing the threshold, as confirmed by the state notice.

West Virginia’s economic nexus law went into effect on January 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about West Virginia’s economic nexus requirements on the West Virginia Tax Division website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Wisconsin’s Economic Nexus Threshold 

for Sales Tax

Wisconsin’s economic nexus threshold is $100,000 in gross sales in the current or previous calendar year. You should register for a sales tax permit upon your next transaction after crossing the threshold, as confirmed by the state notice.

Wisconsin’s economic nexus law went into effect on October 1st, 2018. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Wisconsin’s economic nexus requirements on the State of Wisconsin Department of Revenue website.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

 

Wyoming’s Economic Nexus Threshold 

for Sales Tax

Wyoming’s economic nexus threshold is $100,000 in gross sales or 200 or more transactions in the current or previous calendar year. You should register for a sales tax permit upon your next transaction after crossing the threshold, as presumed by the state notice.

Wyoming’s economic nexus law went into effect on February 1st, 2019. You wouldn’t need to register due to economic nexus unless you crossed the threshold after this date.

You can learn more about Wyoming’s economic nexus requirements in their remote sellers online pdf.

If you want a team of experts to determine where you’ve crossed economic nexus thresholds and then register for sales tax permits for you, you might want to check out our  done-for-you sales tax service. You can get started by scheduling a free initial consultation. 

Keeping up with ever-changing sales tax laws, especially for multi-state e-commerce businesses can feel like a full-time job. The Wayfair decision added more complexity (and confusion) to understanding nexus, making it all the more challenging for entrepreneurs to ensure compliance as their companies grow. 

At TaxValet, we offer clients complete peace of mind when handling sales tax. From navigating audits to understanding nexus to making accurate payments on time, we’ve got you covered. Ready to take sales tax off your plate? Book a no-obligation introduction today.

TaxValet - The Ultimate Sales Tax Checklist

 
 

Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.

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