Sales Tax Economic Nexus

In the post-Wayfair era, where physical presence is no longer required to be subject to a state’s sales tax, states continue to enact sales tax economic nexus provisions for remote sellers. If you are a business selling goods into multiple states, it is important for you to keep track of your sales and transactions by state, so that once you exceed a state’s annual economic nexus threshold, you can timely register and begin to collect and remit sales tax.

Economic Nexus Requirements by State

NOTE: Though we believe this information to be correct as of November 15, 2020, we do not guarantee its accuracy. Check with a tax professional before taking action.
State Annual Sales Threshold And/Or Annual Transaction # Threshold
Alabama $250,000    
Alaska (local jurisdictions only) $100,000 Or 200
Arizona $150,000 for 2020
$100,000 for 2021
Arkansas $100,000 Or 200
California $500,000    
Colorado $100,000    
Connecticut $100,000 And 200
Georgia $100,000 Or 200
Hawaii $100,000 Or 200
Idaho $100,000    
Illinois $100,000 Or 200
Indiana $100,000 Or 200
Iowa $100,000    
Kentucky $100,000 Or 200
Louisiana $100,000 Or 200
Maine $100,000 Or 200
Massachusetts $100,000    
Maryland $100,000 Or 200
Michigan $100,000 Or 200
Minnesota $100,000 Or 200
Mississippi $250,000    
Nebraska $100,000 Or 200
Nevada $100,000 Or 200
New Jersey $100,000 Or 200
New Mexico $100,000    
New York $500,000 And 100
North Carolina $100,000 Or 200
North Dakota $100,000    
Ohio $100,000 Or 200
Oklahoma $100,000    
Pennsylvania $100,000    
Puerto Rico $50,000 Or 200
Rhode Island $100,000 Or 200
South Carolina $100,000    
South Dakota $100,000 Or 200
Tennessee $100,000    
Texas $500,000    
Utah $100,000 Or 200
Vermont $100,000 Or 200
Virginia $100,000 Or 200
Washington $100,000    
Washington, D.C. $100,000 Or 200
West Virginia $100,000 Or 200
Wisconsin $100,000 Or 200
Wyoming $100,000 Or 200

To learn more about the tax implications of the South Dakota v. Wayfair Inc. decision, you can read Supreme Court Decision Allows States to Impose Sales Tax on Online Retailers.

If you have any questions regarding sales tax exposure or multistate economic nexus rules, our state and local tax team would be glad to help you.

Contact Us

  1. Kansas has not adopted a sales/use tax economic nexus provision. However, the Kansas Department of Revenue takes the position that a remote seller with no physical presence in Kansas is required to collect and remit applicable sales/use tax on sales delivered to Kansas, as provided under the Constitution and the laws of the United States. A conservative approach is to apply the Wayfair economic nexus standard to determine Kansas nexus, following the $100,000 annual revenue or 200 annual transactions thresholds.