Economic Nexus Laws Per State

Economic Nexus Variables and Thresholds Explained

Your Nexus Footprint Drives Liability

Managing resale and tax exemption certificates correctly across several states is getting increasingly more difficult. Each state maintains individual rules, expiration dates, and other factors to be aware of.

However, utilizing resale and tax exemption certificates accurately does provide for significant advantages, which in most cases outweigh the complexity of issuing or accepting tax certificates.

Your individual Nexus footprint dictates the scope of your tax liability, and you should ensure to be always clear what exactly is required of you and your customers.

Accept the Challenge

To stay compliant with the variety of economic nexus laws across states is an ongoing task and challenge. There are literally hundreds of forms to be aware of and complex rules to understand, digest and to apply correctly.

Knowing of applicable variables and thresholds pertaining to exemption handling is the first step in ensuring that your tax-exempt transactions are accurate and ultimately compliant for future audits.

Accept the challenge by tackling your potential Economic nexus footprint and make your way through all qualifying factors.

Deploy Your Accurate Nexus Footprint

EXEMPTAX support your business to handle your exemption and resale certificates from A to Z.

The below guidelines will help you to understand and deploy your correct Nexus footprint. Simply utilize our easy-to-follow state by state summary of all applicable variables and thresholds to gauge where exactly you qualify for Nexus and.

Economic Nexus Laws By State

Updated October 2021

Background

On June 21, 2018, the U.S. Supreme Court in South Dakota v. Wayfair , Inc. ruled in favor of the state of South Dakota, a decision that overturned the previous physical presence standard for substantial nexus; allowing states the ability to impose economic nexus laws on all online and offline remote sellers.

What is Economic Nexus?

Economic Nexus allows states to establish sales tax obligation for remote sellers if certain revenue, transaction volume or other combination of factors are met for a particular state. Even though your business might not have a physical presence established in a particular state, due to this change you might now be required to comply with local state tax laws and collect sales tax from buyers.

Are the Thresholds Standard?

Unfortunately like many tax fields, there is no one uniform standard. The thresholds which trigger economic nexus vary in each state and are influenced by a variety of factors, including the types of transactions involved, revenue and transaction amounts. In short, the days of avoiding out of state sales tax obligations are coming to an end.

Where’s My Exposure?

Even though Economic Nexus laws vary state by state, here at EXEMPTAX we may be able to point you in the right direction to this question via our Free Economic Nexus Test. Additionally for your convenience below you will find economic nexus thresholds broken out by state. Please keep in mind that laws and regulations in the field are constantly changing, and as always, we recommend that you consult with a vetted sales tax expert.

Economic Nexus Laws By State

Threshold volume triggers economic nexus: Annual Alabama sales of property in excess of $250,000.

Effective date: October 1, 2018
Qualifying transactions: Total retail sales of property (taxable and nontaxable). Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Alabama

Threshold volume triggers economic nexus: $100,000 or 200 transactions*.

Effective date: March 9, 2020
Qualifying transactions: Gross sales*
Measurement Date: Previous calendar year*
When to register once threshold is exceeded: Next transaction* (unspecified)

*Note: All details are per the Remote Seller Sales Tax Code & Common Definitions and can vary by specific locality.

Threshold volume triggers economic nexus: Gross proceeds of sales or gross income derived from business in the state (excluding marketplace sales) totaling more than $200,000 for calendar year 2019; more than $150,000 for calendar year 2020; and more than $100,000 for calendar year 2021 and subsequent calendar years

Effective date: October 1, 2019
Qualifying transactions: Retail sales of property. Marketplace sales is excluded from the threshold for individual sellers
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: 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.

Additional info: Read more about economic nexus in Arizona

Threshold volume triggers economic nexus: Aggregate sales of more than $100,000 or 200 or more separate transactions into the state.

Effective date: July 1, 2019
Qualifying transactions: Aggregate sales of tangible personal property, taxable services, digital codes, or specified digital products subject to Arkansas sales or use tax within or delivered into Arkansas. Marketplace sales is excluded from the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional information: Learn more about economic nexus in Arkansas.

Threshold volume triggers economic nexus: More than $500,000 of total combined sales of tangible personal property into the state by the retailer and all persons related to the retailer.

Effective date: April 1, 2019
Qualifying transactions: Tangible personal property into the state; exempt sales of property, including sales for resale, are included but exempt services are not; total should include sales of affiliated companies/subsidiaries. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Preceding or current calendar year
When to register once threshold is exceeded: The day you exceed the threshold

Additional info: Read more about economic nexus in California.

Threshold volume triggers economic nexus: Retail sales of more than $100,000 into the state.

Effective date: May 31, 2019
Qualifying transactions: Retail sales of tangible personal property and services, including exempt sales. Marketplace sales is excluded from the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: The first day of the month after the ninetieth day the retailer made retail sales in the current calendar year that exceed $100,000

Additional info: Read more about economic nexus in Colorado.

Threshold volume triggers economic nexus: Prior to July 1, 2019: Gross receipts of $250,000 and 200 retail transactions. As of July 1, 2019, Gross receipts of $100,000 and 200 transactions.

Effective date: December 1, 2018 (amended as of July 1, 2019)
Qualifying transactions: Retail sales of property; exempt sales and exempt services are included in the sales threshold. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Connecticut.

Delaware has no general sales tax.

Threshold volume triggers economic nexus: More than $100,000 or 200 separate retail sales delivered into the District.

Effective date: January 1, 2019

Qualifying transactions: Taxable products and taxable services, including digital property. Marketplace sales included towards the threshold for individual sellers

Measurement Date: Previous or current calendar year

When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Washington, D.C.

Threshold volume triggers economic nexus: Retail sales of more than $100,000 more separate transactions.

Effective date: July 1, 2021
Qualifying transactions: Taxable sales of tangible personal property delivered physically into the state. Taxable services are not included in the threshold.
Measurement Date: Previous calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about Florida Senate Bill 50.

Threshold volume triggers economic nexus: Gross revenue exceeding $100,000 or 200 separate retail transactions.

Effective date: January 1, 2020
Qualifying transactions: Property delivered electronically or physically. Retail sales, including taxable and exempt.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Georgia.

Threshold volume triggers economic nexus: Gross income or gross proceeds from sales into Hawaii of at least $100,000 or 200 or more separate transactions.

Effective date: July 1, 2018
Qualifying transactions: Gross income or gross proceeds of property, intangible property, or services. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Current or immediately preceding calendar year
When to register once threshold is exceeded: The first filing deadline is based on when the threshold was first met

Additional info: Read more about economic nexus in Hawaii.

Threshold volume triggers economic nexus: More than $100,000 in cumulative gross receipts from sales delivered into Idaho.

Effective date: June 1, 2019
Qualifying transactions: Sales into the state. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Idaho.

Threshold volume triggers economic nexus: Cumulative gross receipts from the sale of property in Illinois of $100,000 or more or 200 or more separate sales transactions into the state.

Effective date: October 1, 2018

Qualifying transactions: Property, including exempt sales but not sales for resale or occasional sales. As of January 1, 2020, marketplace sales is excluded from the threshold for individual sellers.

Measurement Date: Preceding 12-month period
When to register once threshold is exceeded: The retailer himself shall determine on a quarterly basis whether they meet the criteria for the preceding 12-month period

Additional info: Read more about economic nexus in Illinois.

Threshold volume triggers economic nexus: Gross revenue from Indiana sales of $100,000 or more or 200 or more separate transactions into the state.

Effective date: October 1, 2018
Qualifying transactions: Property, electronically transferred products, and services. Marketplace sales is excluded from the threshold for individual sellers.
Measurement Date: The calendar year in which the retail transaction is made or for the calendar year preceding the calendar year in which the retail transaction is made.
When to register once threshold is exceeded: Immediately upon reaching the threshold.

Additional info: Read more about economic nexus in Indiana.

Threshold volume triggers economic nexus: Prior to July 1, 2019: $100,000 or 200 transactions. As of July 1, 2019. Gross revenue from Iowa sales of at least $100,000 into the state.

Effective date: January 1, 2019
Qualifying transactions: All sales into the state. Marketplace sales is excluded from the threshold for individual sellers. As of July 1, 2019, the transactions threshold is eliminated.
Measurement Date: Current or immediately preceding calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Iowa.

Threshold volume triggers economic nexus: Gross sales of at least $100,000 into the state.

Effective date: July 1, 2021
Qualifying transactions: Gross sales
Measurement Date: Current or immediately preceding calendar year
When to register once threshold is exceeded: Immediately upon reaching the threshold

Additional info: Read more about economic nexus in Kansas.

Threshold volume triggers economic nexus: Gross receipts from sales into the state of more than $100,000 or 200 or more separate retail transactions into the state.

Effective date: October 1, 2018
Qualifying transactions: Property, digital property delivered or transferred electronically retail sales (taxable and exempt). Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Kentucky.

Threshold volume triggers economic nexus: Gross revenue of more than $100,000 or 200 or more sales in Louisiana.

Effective date: July 1, 2020
Qualifying transactions: Gross sales of property, electronically transferred products, or taxable services delivered into the state.
Measurement Date: Previous or current calendar year

When to register once threshold is exceeded: Remote businesses to register, collect and, remit sales and use tax within 30 days of surpassing the economic nexus threshold.

Additional info: Read more about economic nexus in Louisiana.

Threshold volume triggers economic nexus: Gross revenue of more than $100,000 or 200 or more separate transactions in Maine.

Effective date: July 1, 2018
Qualifying transactions: Gross revenue of tangible personal property, electronically transferred products, or taxable services delivered into the state. Marketplace sales is excluded from the threshold for individual sellers and don’t include marketplace sales on return if reported by marketplace.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Maine.

Threshold volume triggers economic nexus: Gross revenue exceeding $100,000 or 200 or more separate transactions.

Effective date: October 1, 2018
Qualifying transactions: Gross sales, taxable or exempt property or taxable services. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Maryland.

Threshold volume triggers nexus: Sales of more than $100,000 into the state.

Effective date: October 1, 2019
Qualifying transactions: Gross sales, taxable and non-taxable sales of tangible personal property and services. Marketplace sales is excluded towards the threshold for individual sellers if the marketplace facilitator is collecting.
Measurement Date: Previous or current taxable year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about software nexus in Massachusetts.

Threshold volume triggers economic nexus: Sales into the state in excess of $100,000 or 200 or more separate transactions.

Effective date: October 1, 2018
Qualifying transactions: Gross sales, taxable and non-taxable sales of property and services into the state. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Michigan.

Threshold volume triggers economic nexus: Prior to October 1, 2019: 10 or more sales totaling $100,000 or 100 retail sales. As of October 1, 2019: Sales into the state in excess of $100,000 or 200 transactions in the state.

Effective date: October 1, 2019
Qualifying transactions: Retail sales of property and taxable services, excluding resales. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: The 12-month period ending on the last day of the most recently completed calendar quarter
When to register once threshold is exceeded: On the first taxable retail sale into Minnesota that occurs no later than 60 days after you exceed the Small Seller Exception

Additional info: Read more about economic nexus in Minnesota.

Threshold volume triggers economic nexus: Annual Mississippi sales in excess of $250,000.

Effective date: September 1, 2018
Qualifying transactions: All gross sales
Measurement Date: Prior twelve month period
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Mississippi.

Threshold volume triggers economic nexus: Sales in excess of $100,000

Effective date: January 1, 2023
Qualifying transactions: Gross receipts from taxable sales of tangible personal property delivered into Missouri
Measurement Date: Current or previous calendar year, determined quarterly
When to register once threshold is exceeded: Current or previous calendar year, determined quarterly

Additional info: Read more about Missouri Senate Bill 153.

Montana has no general sales tax

Threshold volume triggers economic nexus: Retail sales of more than $100,000 or 200 or more separate transactions into the state.

Effective date: April 1, 2019 (amended from January 1, 2019 previously)
Qualifying transactions: Gross sales into the state. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Current calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Nebraska.

Threshold volume triggers economic nexus: Gross revenue of more than $100,000 or 200 or more separate transactions into the state.

Effective date: October 1, 2018
Qualifying transactions: Retail sales. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: By the first day of the calendar month that begins at least 30 calendar days after they hit the threshold

Additional info: Read more about economic nexus in Nevada.

New Hampshire has no general sales tax.

Threshold volume triggers economic nexus: Gross revenue of more than $100,000 or 200 or more separate transactions into the state.

Effective date: November 1, 2018
Qualifying transactions: Gross revenue from sales of tangible personal property, specified digital products, and taxable services, excluding resales. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: New Jersey requires a remote business to register, collect and remit sales tax within 30 calendar days after crossing the economic nexus threshold. Note: Remote sellers that only make nontaxable retail sales are required to register with New Jersey upon reaching the economic threshold, but may then request to be placed on a non-reporting basis by completing Form C-6205-ST.

Additional info: Read more about economic nexus in New Jersey.

Threshold volume triggers economic nexus: At least $100,000 in total taxable gross receipts.

Effective date: July 1, 2019
Qualifying transactions: Total taxable gross receipts from sales, leases and licenses of tangible personal property, sales of licenses and sales of services and licenses for use of real property sourced to this state. Marketplace sales is excluded from the threshold for individual sellers.
Measurement Date: Previous calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in New Mexico.

Threshold volume triggers economic nexus: More than $500,000 in gross sales of tangible personal property delivered in New York and more than 100 sales of tangible personal property delivered in the state.

Effective date: June 21, 2018
Qualifying transactions: Taxable and exempt sales of tangible personal property. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Immediately preceding four sales tax quarters
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in New York.

Threshold volume triggers economic nexus: Gross sales in North Carolina in excess of $100,000 or 200 or more separate transactions into the state.

Effective date: November 1, 2018
Qualifying transactions: Gross sales and property and digital products sourced to North Carolina. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: 60 days after a remote seller meets the threshold

Additional info: Read more about economic nexus in North Carolina.

Threshold volume triggers economic nexus: Prior to January 1, 2019: $100,000 or 200 transactions. As of January 1, 2019: Taxable sales in excess of $100,000.

Effective date: October 1, 2018
Qualifying transactions: Taxable sales of property and services.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: 60 days after a remote seller meets the threshold

Additional info: Read more about economic nexus in North Dakota.

Threshold volume triggers economic nexus: More than $100,000 in gross sales or at least 200 transactions of tangible personal property and services delivered into the state.

Effective date:August 1, 2019

Qualifying transactions: Gross sales, taxable and exempt property and services. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Ohio.

Threshold volume triggers economic nexus: Aggregate sales of tangible personal property of at least $100,000 delivered into the state.

Effective date: November 1, 2019
Qualifying transactions: Aggregate taxable sales of tangible personal property. Marketplace sales is included towards the threshold for individual seller.
Measurement Date: Preceding or current calendar year
When to register once threshold is exceeded: The first calendar month following the month when the threshold is met

Additional info: Read more about remote seller nexus in Oklahoma.

Oregon has no general sales tax.

Threshold volume triggers economic nexus: Gross sales in the commonwealth of more than $100,000.

Effective date:July 1, 2019

Qualifying transactions: Gross sales on all channels including taxable, exempt, and marketplace sales.
Measurement Date: 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

When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Pennsylvania.

Threshold volume triggers economic nexus: Total sales of $100,000 or 200 transactions.

Effective date: January 1, 2021
Qualifying transactions: Total gross sales delivered into the state.
Measurement Date: Threshold applies to the seller’s accounting year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about Puerto Rico Treasury Department.

Threshold volume triggers economic nexus: Gross revenue of $100,000 or more or 200 separate transactions.

Effective date: July 1, 2019
Qualifying transactions: Gross revenue from sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, and/or taxable services. Marketplace sales is excluded from the threshold for individual seller.
Measurement Date: Immediately preceding calendar year
When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about sales tax nexus in Rhode Island.

Threshold volume triggers economic nexus: Gross revenue exceeding $100,000 from all sales.

Effective date: November 1, 2018
Qualifying transactions: Taxable and exempt property, electronically-transferred products, and services. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: The first day of the second calendar month after economic nexus is established

Additional info: Read more about economic nexus in South Carolina.

Threshold volume triggers economic nexus: Gross sales exceeding $100,000 or 200 or more separate transactions into the state.

Effective date: November 1, 2018
Qualifying transactions: Taxable and exempt property, electronically transferred products, or services. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Previous or current calendar year
When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in South Dakota.

Threshold volume triggers economic nexus: Prior to October 1, 2020: Excess of $500,000 sales. As of October 1, 2020: Excess of 100,000 sales

Effective date: July 1, 2019
Qualifying transactions: Retail sales
Measurement Date: Previous 12-month period
When to register once threshold is exceeded: Tennessee requires remote businesses to register and begin collecting and remitting Tennessee sales and use tax by the first day of the third calendar month following the month they cross the economic nexus threshold.

Additional info: Read more about economic nexus in Tennessee.

Threshold volume triggers economic nexus: Gross sales exceeding $500,000.

Effective date: October 1, 2019
Qualifying transactions: Taxable and exempt property and services. Marketplace sales is excluded from the threshold for individual sellers if the marketplace facilitator is collecting.
Measurement Date: Preceding twelve calendar months

When to register once threshold is exceeded: The first day of the fourth month after the month in which the seller exceeded the safe harbor threshold

Additional info: Read more about economic nexus in Texas.

Threshold volume triggers economic nexus: Gross revenue of more than $100,000 or 200 separate transactions.

Effective date: January 1, 2019
Qualifying transactions: Taxable and exempt property, electronically transferred products, and services. Marketplace sales is excluded from the threshold for individual sellers.
Measurement Date: Previous or current calendar year

When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Utah.

Threshold volume triggers economic nexus: At least $100,000 of sales or 200 separate transactions.

Effective date: July 1, 2018
Qualifying transactions: Taxable and exempt property and services. Marketplace sales is included towards the threshold for individual sellers
Measurement Date: 12-month period preceding

When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Vermont.

Threshold volume triggers economic nexus: More than $100,000 in gross or 200 separate retail.

Effective date: July 1, 2019
Qualifying transactions: Retail sales into the state, including sales by members of same controlled group of corporations. Marketplace sales is excluded from the threshold for individual sellers.
Measurement Date: Previous or current calendar year

When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in Virginia.

Threshold volume triggers economic nexus: More than $100,000 in annual gross or cumulative gross retail sales to Washington consumers.

Effective date: October 1, 2018

Qualifying transactions: Taxable and exempt products and taxable and exempt services. Marketplace sales is included towards the threshold for individual sellers.
Measurement Date: Current or preceding calendar year

When to register once threshold is exceeded: The first day of the month that starts at least 30 days after you meet the threshold

Additional info: Read more about economic nexus in Washington.

Threshold volume triggers economic nexus: Gross revenue of more than $100,000 or 200 or more separate transactions into the state.

Effective date: January 1, 2019

Qualifying transactions: Taxable and exempt property and services. Marketplace sales is included towards the threshold for individual sellers.

Measurement Date: Immediately preceding calendar year

When to register once threshold is exceeded: Next transaction (unspecified)

Additional info: Read more about economic nexus in West Virginia

Threshold volume triggers economic nexus: Prior to February 20, 2021, Sales of more than $100,000 or 200 transactions. Effective February 20, 2021: $100,000 (elimination of the 200 transactions threshold).

Effective date: October 1, 2018
Qualifying transactions: Annual gross sales of taxable and nontaxable products, electronically delivered products, or services. Marketplace sales is included towards the threshold for individual sellers – but if all sales are made through a marketplace that is collecting, the individual seller is not required to register.
Measurement Date: Previous or current calendar year

When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Wisconsin.

Threshold volume triggers economic nexus: Gross revenue exceeding $100,000 or 200 or more separate sales transactions.

Effective date: February 1, 2019
Qualifying transactions: Taxable, exempt, or wholesale sales of property, admissions, or services
Measurement Date: Previous or current calendar year

When to register once threshold is exceeded: Next transaction

Additional info: Read more about economic nexus in Wyoming.

Economic Nexus Laws Per State

Plan your business activities with your potentially largest nexus footprint in mind.

Economic Nexus Variables and Thresholds Explained

Your Nexus Footprint Drives Liability

Accept the Challenge

Deploy Your Accurate Nexus Footprint

The advantages of accepting resale certificates significantly outweigh the risks.

Economic Nexus Laws By State

Background

What is Economic Nexus?

Are the Thresholds Standard?

Where’s My Exposure?

Economic Nexus Laws By State