Sales Tax Economic Nexus Thresholds by State (2026)

Just a handful of states set the bar above $100,000. Even here, read the fine print: California counts sales by related companies together, and New York needs more than 100 sales on top of the dollar figure.

A dollar-only test is now the most common rule, used by 26 jurisdictions. The 15 that still accept 200 sales as an alternative are the ones most likely to catch a seller with many small orders.

Arizona eased in, starting at $200,000 in 2019 and dropping to $150,000 in 2020 before settling at $100,000 from 2021 onward. A seller who was safely under the line in 2019 could have crossed it later without selling a dollar more.

States that dropped the 200-transaction test (dollar test kept)

Source: Washington State Department of Revenue, Bill implementation timeline: Substitute Senate Bill (SSB) 5581; North Dakota Office of State Tax Commissioner, Sales and Use Tax History; Wisconsin Department of Revenue, Remote Sellers Common Questions; Maine Legislature, Office of the Revisor of Statutes, 36 M.R.S. § 1754-B, Registration of sellers; South Dakota Department of Revenue, 2023 Legislative Updates; Louisiana State Legislature, HB 171 (2023 Regular Session) digest; Indiana Department of Revenue, Remote Sellers; North Carolina Department of Revenue, Sales and Use Tax Directive SD-24-1, Remote Sales - Repeal of Transaction Thresholds; Wyoming Legislature, W.S. 39-15-501, Sales from remote sellers (Wyoming Statutes Title 39); Alaska Remote Seller Sales Tax Commission (ARSSTC), Business/Sellers; Utah State Tax Commission, Out-of-State (Remote) Sellers; Illinois Department of Revenue, Bulletin FY 2026-12, Destination-Based Retailers' Occupation Tax Changes; Kentucky Department of Revenue, Kentucky SSUTA Annual Recertification letter. Download as image

How the highest thresholds are measured

Source: California Department of Tax and Fee Administration, Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision; Texas Comptroller of Public Accounts, Remote Sellers; New York State Department of Taxation and Finance, Registration requirement for businesses with no physical presence in New York State; Alabama Department of Revenue, Are all remote sellers required to register in Alabama? (FAQ); Mississippi Department of Revenue, Business Tax Frequently Asked Questions; Connecticut Department of Revenue Services, Registering Your Business with DRS. Download as image

Remote seller economic nexus test by state

• 3$500,000
• 2$250,000
• 1$100,000 and 200 sales (both)
• 26$100,000 only
• 15$100,000 or 200 sales
• 2No statewide sales tax

What does economic nexus mean for a small seller?

Nexus is the connection that lets a state make you collect its tax. It used to require a physical presence, such as an office, a warehouse or staff. Economic nexus replaced that with a sales test. If you sell enough into a state, you are treated as doing business there.

In practice, crossing a threshold usually means taking on a set of jobs: register for a sales tax permit, start charging the right rate on taxable sales, and file returns on the schedule the state assigns. Miss the moment you crossed and the state can come back for tax you never collected, plus penalties and interest. That money comes out of your margin, not your customer's pocket.

Two details trip people up. Each state is measured on its own, so being just under the line in several states does not add up to nexus anywhere that uses a $100,000 test. And many states measure over the previous or current calendar year, which means you can cross mid-year and have to start collecting before the year is out. Each state sets its own start date.

Which states have the highest economic nexus thresholds?

California, New York and Texas use $500,000. Alabama and Mississippi use $250,000. Every other state with a sales tax uses $100,000, either alone or paired with a transaction count.

High does not always mean easy. California adds up sales by you and all related persons, so a group of affiliated companies cannot split revenue to stay under. New York requires both more than $500,000 and more than 100 sales over the immediately preceding four sales tax quarters. Texas treats $500,000 as a safe harbor and counts total Texas revenue, including nontaxable sales and sales for resale. Mississippi looks at any 12-month period, not a tidy calendar year.

Does the 200-transaction test still apply?

In fewer places every year. The table on this page lists the states that dropped it while keeping the dollar test, from Washington in 2019 through Utah on July 1, 2025, Illinois on January 1, 2026 and Kentucky on August 1, 2026.

Where it survives, it matters most to sellers with lots of cheap orders. Think of a digital download shop selling low-priced templates. Two hundred sales in Georgia or Ohio is a modest month, and it can create nexus long before revenue gets near $100,000. Connecticut is the odd one out: it requires both $100,000 and 200 sales, measured over the 12 months ending September 30.

Subscription businesses should pay attention here too. If you bill monthly, each renewal may count as a separate sale, so a modest customer base in one state can reach 200 transactions over a year.

If you checked your exposure in 2025 and wrote off Illinois or Kentucky because you were under 200 orders, look again. Only the dollar test matters there now. For most small sellers that is a relief, and it may mean a registration you made for the count alone is worth reviewing with your accountant.

What counts toward the threshold?

This is where states differ most, and where sellers most often guess wrong. Some count only retail or taxable sales. Others count everything.

Iowa and South Carolina include exempt, wholesale and marketplace sales. Washington counts combined gross receipts, including wholesaling and services. Colorado counts all retail sales, taxable or not. On the other side, Alabama counts only retail sales you make directly, and Arizona and Florida leave out sales made through a marketplace that collects the tax for you. New Mexico ignores receipts that qualify for an exemption or deduction.

So the same revenue can put you over the line in one state and leave you under it in another. Pull your sales by state, then apply each state's own definition rather than one number across the board.

What should you do before you cross a threshold?

The sellers who get caught are rarely the ones growing fast in a single market. They are the ones spread thin across many states, each total quietly creeping upward while nobody is watching.

Growth from one big customer is the other trap. A SaaS company that lands a single large account in Washington or Iowa can cross the line on one invoice, since those states count gross receipts broadly. The state's clock starts when you cross, not the next time you happen to check.

The fix is boring and it works. Put a recurring reminder on your calendar, export sales by ship-to or billing state, and compare each total against that state's rule on this page. Then work through the steps below.

• Run a sales-by-state report every quarter, not once a year, since many tests use the current calendar year and several use rolling 12-month windows.
• Flag any state where you are within reach of the threshold, and any state with a 200-sale test if your average order is small.
• Check whether your sales platform or marketplace already collects in states where you sell through it, and whether that state still counts those sales toward your total.
• Register as soon as you cross, and check that state's start date. Some expect you to collect right away, others from a set later date.
• Price your contracts and invoices so tax can be added on top, rather than coming out of a fixed fee.
• Keep exemption certificates from business buyers who claim an exemption, so a later audit does not land on you.

How does nexus show up in your contracts?

Tax rules set what you owe. Your contracts decide who pays it. A software vendor that crosses a threshold in your state may start adding tax to renewals, and a fixed-price client agreement can leave you absorbing tax you did not plan for.

Look for a clause that says prices exclude taxes and who bears them, how new taxes are handled mid-term, and whether either side has to indemnify the other for unpaid tax. If you buy software, check whether the vendor can pass through tax increases at renewal. If you sell, make sure your terms let you add tax that becomes due later.

Sources and method

Every number on this page comes from the sources below, each opened and read on or before October 18, 2026. A second, independent review checked every figure against its source and corrected anything that did not match. 49 of 51 state entries were confirmed; any that could not be are marked "Not yet confirmed" and left out of every count and chart.

1. Alabama Department of Revenue, Are all remote sellers required to register in Alabama? (FAQ) (Undated web page, read October 2026)
2. Alaska Remote Seller Sales Tax Commission (ARSSTC), Business/Sellers (Undated web page, read October 2026)
3. Arizona State Legislature, A.R.S. § 42-5044, Nexus; out-of-state businesses; threshold (Current statute text, read October 2026)
4. Arkansas Department of Finance and Administration, Remote Sellers and Marketplace Facilitators (Undated web page, read October 2026)
5. California Department of Tax and Fee Administration, Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision (Undated web page, read October 2026)
6. Colorado Department of Revenue, Out-of-State Businesses (Undated web page, read October 2026)
7. Connecticut Department of Revenue Services, Registering Your Business with DRS (Undated web page, read October 2026)
8. DC Office of Tax and Revenue, Sales and Use Tax FAQs (Undated web page, read October 2026)
9. Florida Department of Revenue, Tax Information Publication 21A01-03, Remote Sales and Marketplace Sales (May 14, 2021)
10. Georgia Department of Revenue, Policy Bulletin SUT-2019-02, Remote Sellers - Sales and Use Tax Obligations (2019)
11. Hawaii Department of Taxation, Hawaii General Excise Tax (GET) (Undated web page, read October 2026)
12. Idaho State Tax Commission, Online Sellers Guide (Undated web page, read October 2026)
13. Illinois Department of Revenue, Bulletin FY 2026-12, Destination-Based Retailers' Occupation Tax Changes (December 2025)
14. Indiana Department of Revenue, Remote Sellers (Undated web page, read October 2026)
15. Iowa Department of Revenue, Remote Sellers & Marketplace Facilitators (Undated web page, read October 2026)
16. Kansas Department of Revenue, Notice 21-17, Remote Sellers (2021)
17. Kentucky Department of Revenue, Kentucky SSUTA Annual Recertification letter (July 29, 2026)
18. Louisiana State Legislature, HB 171 (2023 Regular Session) digest (2023)
19. Maine Legislature, Office of the Revisor of Statutes, 36 M.R.S. § 1754-B, Registration of sellers (Generated 10.05.2026)
20. Comptroller of Maryland, 2025 Tax Updates Webinar presentation (2025)
21. Massachusetts Department of Revenue, Remote Seller and Marketplace Facilitator FAQs (Undated web page, read October 2026)
22. Michigan Department of Treasury, Remote Seller FAQ (Undated web page, read October 2026)
23. Minnesota Department of Revenue, Sales Tax for Remote Sellers (Undated web page, read October 2026)
24. Mississippi Department of Revenue, Business Tax Frequently Asked Questions (Undated web page, read October 2026)
25. Missouri Department of Revenue, FAQs - Remote Seller and Marketplace Facilitator (Undated web page, read October 2026)
26. Montana Department of Revenue, Sales Tax Guidance for Montana Business and Residents (Undated web page, read October 2026)
27. Nebraska Department of Revenue, Remote Seller and Marketplace Facilitator FAQs (Undated web page, read October 2026)
28. Nevada Department of Taxation, Remote Sellers (Wayfair decision) FAQs (Undated web page, read October 2026)
29. New Jersey Division of Taxation, Remote Sellers (Undated web page, read October 2026)
30. New Mexico Taxation and Revenue Department, Determining Nexus (Undated web page, read October 2026)
31. New York State Department of Taxation and Finance, Registration requirement for businesses with no physical presence in New York State (Updated July 29, 2026)
32. North Carolina Department of Revenue, Sales and Use Tax Directive SD-24-1, Remote Sales - Repeal of Transaction Thresholds (July 1, 2024)
33. North Dakota Office of State Tax Commissioner, Local Taxes by Location Guideline (October 1, 2026)
34. North Dakota Office of State Tax Commissioner, Sales and Use Tax History (Undated web page, read October 2026)
35. Ohio Department of Taxation, Out-of-State Sellers (Undated web page, read October 2026)
36. Oklahoma Tax Commission, Help Center: Businesses (Undated web page, read October 2026)
37. Oregon Department of Revenue, Sales Tax in Oregon (Undated web page, read October 2026)
38. Pennsylvania Department of Revenue, Online Retailers (Undated web page, read October 2026)
39. Rhode Island Division of Taxation, Non-Collecting Retailers (Undated web page, read October 2026)
40. South Carolina Department of Revenue, Remote Sellers (Undated web page, read October 2026)
41. South Dakota Department of Revenue, 2023 Legislative Updates (2023)
42. Tennessee Department of Revenue, Out of State Dealers & Marketplace Facilitators (Undated web page, read October 2026)
43. Texas Comptroller of Public Accounts, Remote Sellers (Undated web page, read October 2026)
44. Utah State Tax Commission, Out-of-State (Remote) Sellers (Undated web page, read October 2026)
45. Vermont Department of Taxes, Sales Tax and Wayfair FAQs (Undated web page, read October 2026)
46. Virginia Tax, Remote Sellers, Marketplace Facilitators, Economic Nexus (Undated web page, read October 2026)
47. Washington State Department of Revenue, Remote sellers (Undated web page, read October 2026)
48. Washington State Department of Revenue, Bill implementation timeline: Substitute Senate Bill (SSB) 5581 (Undated web page, read October 2026)
49. West Virginia Tax Division, Remote Sellers and West Virginia Sales and Use Tax (Undated web page, read October 2026)
50. Wisconsin Department of Revenue, Remote Sellers Common Questions (Undated web page, read October 2026)
51. Wyoming Legislature, W.S. 39-15-501, Sales from remote sellers (Wyoming Statutes Title 39) (Current compiled Title 39, read October 2026)