Sales Tax Nexus for E-commerce Sellers: 2026 Guide

You generally must collect a state's sales tax once you have nexus there. Nexus comes from physical presence, such as inventory in an FBA or 3PL warehouse, or from sales above the state's economic threshold. In 2026, 41 of the 46 sales-tax jurisdictions use $100,000, and 17 still have a transaction test.

Last reviewed September 23, 2026

Selling online means selling into many states at once. Each state with a sales tax decides for itself when an out-of-state seller has to register, collect and file. The legal word for that connection is nexus. This guide explains how nexus works for e-commerce sellers in 2026. It is built from our state-by-state dataset, which we researched against official state sources and last checked on September 23, 2026.

If you'd rather see your own answer first, enter your sales by state in the free Sales Tax Nexus Checker. It runs in your browser and nothing you enter is stored.

What is sales tax nexus?

Nexus is the connection between your business and a state that lets the state require you to collect its sales tax. If you have nexus in a state, you generally need to:

1. register for a sales tax permit there;
2. collect the state's tax (and any local taxes) on taxable sales to customers in that state;
3. file returns and pay the tax you collected, on the state's schedule.

Without nexus, you usually have no obligation to collect. Your customer may technically owe use tax, but that's between them and their state.

There are two main types of nexus for online sellers: physical and economic. Either one is enough.

What's the difference between physical and economic nexus?

Physical nexus comes from having a presence in the state. That can be an office, employees, or property, including inventory stored in a warehouse. Before 2018, physical presence was the main test.

Economic nexus comes from selling enough into a state, even with no presence there. States adopted economic nexus after the US Supreme Court's decision in South Dakota v. Wayfair on June 21, 2018. Every state with a statewide sales tax now has an economic threshold for remote sellers.

Physical nexus generally applies regardless of the economic threshold. Several states say so directly. Texas, for example, says the $500,000 safe harbor does not apply once you have inventory in Texas. Pennsylvania lists keeping inventory in the state as a collection trigger.

What are the economic nexus thresholds in 2026?

Our dataset covers 51 jurisdictions: the 45 states with a statewide sales tax, the District of Columbia, and the 5 states with no statewide sales tax (Alaska, Delaware, Montana, New Hampshire and Oregon). Among the 46 jurisdictions with a sales tax:

The dollar figure is only part of the rule. Three details often change the answer:

• What counts as "sales". Most states count gross sales into the state, often including exempt sales. Five count only taxable sales: Florida, Missouri, New Mexico, North Dakota and Oklahoma. At the other end, Texas counts total Texas revenue: taxable and nontaxable sales, sales for resale, sales to exempt buyers, separately stated fees and marketplace sales. California counts sales by related companies too, and includes nontaxable sales such as sales for resale.
• Whether the state counts transactions. 17 jurisdictions still have a transaction test. More on that below.
• The period used to measure. It isn't always the calendar year.

There is one special case among the no-tax states. Alaska has no state sales tax, but many towns and boroughs levy one. Remote sellers delivering into member jurisdictions of the Alaska Remote Seller Sales Tax Commission (ARSSTC) use a $100,000 local threshold, and marketplace sales count toward it. See the Alaska page.

For every state's full rule, source link and verification date, see our 2026 state economic nexus thresholds table.

Which states still have a transaction test, and what do "AND" and "OR" mean?

As of September 23, 2026, 17 jurisdictions still count transactions as well as dollars: Arkansas, Connecticut, DC, Georgia, Hawaii, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New York, Ohio, Rhode Island, Vermont, Virginia and West Virginia.

• OR test (15 jurisdictions): you have nexus if you pass either the dollar threshold or 200 transactions. A seller with $30,000 of sales from 250 orders into New Jersey passes the transaction test, so it has economic nexus there.
• AND test (2 states): you need both. Connecticut requires at least $100,000 and 200 or more retail sales. New York requires more than $500,000 of sales of tangible goods and more than 100 sales. A seller with $2 million from 80 orders into New York does not meet New York's economic test.

The trend is repeal. Utah dropped its transaction test on July 1, 2025, Illinois on January 1, 2026 and Kentucky on August 1, 2026. Guides written before then are now out of date. Our post on which states still have a 200-transaction test lists every repeal date we recorded.

Over what period is each threshold measured?

States don't all look at the same 12 months. You enter one set of figures in most tools, so it helps to know which period each state uses.

Two examples of why this matters. Alabama looks only at the previous calendar year, so crossing $250,000 in 2026 affects 2027. Pennsylvania also measures the previous calendar year, and collection starts April 1 of the following year.

Do marketplace sales count toward my threshold?

This is where many Amazon, Etsy and Walmart sellers get caught out. There are two separate questions:

1. Who collects on marketplace sales? All 46 sales-tax jurisdictions have a marketplace facilitator law. The marketplace generally collects and remits the tax on the sales it facilitates.
2. Do those sales count toward your own threshold? That depends on the state.

From the official sources we reviewed:

In a "counted" state, marketplace sales can push you over the line, and then you register and collect on your direct sales (your own website, wholesale, in-person). State examples show how this works:

• Maryland: a vendor with $25,000 of direct sales and $76,000 of marketplace sales exceeds the $100,000 threshold and must register and collect on its direct sales.
• South Carolina: $75,000 direct plus $50,000 through a marketplace exceeds $100,000. The seller remits only on its direct sales.
• DC: 100 website sales plus 150 marketplace sales exceeds the 200-sale test.

Some "counted" states don't require registration if all your sales go through collecting marketplaces. Our data records this for California, Iowa, Maryland, Michigan, Missouri and Texas (Texas says to keep records for 4 years). Connecticut is different: marketplace-only sellers still register, but can mark that their sales are marketplace-only.

"Excluded" states have their own wrinkles. Alabama excludes sales through an SSUT-participating marketplace. Pennsylvania excludes facilitated sales only where the facilitator collects Pennsylvania tax.

Where a state is unclear, the checker counts your marketplace sales to be safe and tells you if the result depends on them. The full myth-busting version is in Amazon collects sales tax, so I'm covered? Not always.

Does FBA or 3PL inventory create nexus?

Generally, yes. Inventory stored in a state is usually treated as physical presence, whatever your sales volume. That includes stock that Amazon moves between its fulfillment centers, and stock at a third-party logistics (3PL) warehouse. Many state records in our dataset say this directly, including Texas, Pennsylvania, New York, Washington, Wisconsin and West Virginia.

There are state-specific differences worth knowing:

• Nevada: a remote seller that sells only through a collecting marketplace, and whose only Nevada connection is inventory in a third-party fulfillment center, does not need a sales tax permit, per the Department of Taxation FAQ.
• Maryland: marketplace sellers whose Maryland sales are all facilitated by a registered marketplace facilitator are not required to register.
• Connecticut: an out-of-state retailer with goods on a marketplace facilitator's premises in Connecticut must register even if under the thresholds.
• Illinois: a retailer that fulfills any orders from inventory located in Illinois (including third-party warehouses) is not a "remote retailer". Its Illinois-sourced sales are taxed at the rate of the inventory or selling location (origin-based), not the destination.

Your Amazon Seller Central inventory reports can show which states have held your stock. The deep dive is in Does FBA inventory create sales tax nexus?

What should I do after crossing a threshold?

Crossing a threshold doesn't usually mean "collect tomorrow". Each state sets its own start date. Here is a sensible order of work:

1. Confirm the state's test using its official page. Our state pages link to each source.
2. Register for a sales tax permit. Some states use the Streamlined Sales Tax Registration System; others have their own portal.
3. Set up collection in your store platform for direct sales, from the state's start date.
4. Keep marketplace sales separate. Where you're registered, many states ask you to report marketplace sales and then deduct them, because the marketplace already collected.
5. File on time, even for periods with little or nothing due, if the state requires a return.

Start dates we recorded include:

Getting the start date right matters. Collect too early and you've over-charged customers; start late and you may owe tax you never collected.

What if I crossed a threshold in the past and never registered?

This is common, and fixable. Sales tax you didn't collect can still be owed by you, out of pocket, along with interest and possibly penalties. The options generally include:

• Registering now and collecting going forward, then deciding how to handle the past separately.
• A voluntary disclosure agreement (VDA) with the state. Many states offer them. The details vary, but a VDA typically limits how many past periods you pay and may waive penalties.
• The Multistate Tax Commission's Multistate Voluntary Disclosure Program, a uniform procedure for negotiating with several participating states at once. According to the MTC, you must not have had prior contact from the state about that tax type. The MTC keeps your identity confidential until you enter an agreement. In return for filing and paying tax for the look-back period, penalties are waived for that period, but interest is generally due unless the state waives it.

A VDA is not right for everyone, and it's hard to undo once you've come forward. Prior contact from a state can rule it out, so it's worth getting advice before you register in a state where you have a past exposure. This is exactly what RAHA's Nexus Study covers: a state-by-state review of your sales and inventory, registrations where you have nexus, and a plan for any past-due periods (including voluntary disclosure where appropriate). It's a fixed price, quoted upfront. Ask about a Nexus Study.

Good records make all of this faster. If your books are behind, our catch-up bookkeeping cost estimator gives an instant range, and our e-commerce accounting page explains ongoing support.

How does the Sales Tax Nexus Checker work?

The checker applies the same dataset this guide uses, state by state:

• You enter direct sales, marketplace sales, transactions and whether you store inventory in each state.
• Inventory in a state with a sales tax shows as Nexus likely, with that state's physical-presence note.
• Marketplace sales are counted, excluded or (where unclear) counted conservatively, following the state's rule.
• AND and OR tests are applied as each state defines them.
• A state shows Approaching at 80% or more of a threshold. That 80% line is our early-warning rule, not a legal one.
• States flagged in our data as needing re-verification show a warning.

It can't see everything. It doesn't know which period each of your figures covers, and it doesn't assess other triggers such as employees, contractors or trade shows. Treat the result as a starting point for a conversation, not a filing decision.

Frequently asked questions

Is the $100,000 threshold based on gross or taxable sales?

It depends on the state. Most count gross sales into the state, and many include exempt sales. Florida, Missouri, New Mexico, North Dakota and Oklahoma count only taxable sales. Texas counts total Texas revenue, including nontaxable sales and sales for resale. Each state page quotes that state's own measure.

If I sell only on Amazon, do I need to register anywhere?

Maybe not for economic nexus, but check each state. Amazon generally collects on the sales it facilitates. Several states, including California, Iowa, Maryland, Michigan, Missouri and Texas, say a seller selling only through collecting marketplaces doesn't need to register. Connecticut says such sellers still register. Inventory stored in a state can create physical nexus separately.

Do I have nexus in a state just because Amazon stored my inventory there?

Generally yes, because inventory is usually physical presence. Nevada and Maryland describe exceptions for sellers whose sales there all go through a collecting marketplace. See our FBA inventory guide for the state details we recorded.

What is the difference between Connecticut's and New Jersey's tests?

Both use $100,000 and 200 transactions. New Jersey is an OR test, so meeting either one creates nexus. Connecticut is an AND test, so you need both $100,000 and 200 or more retail sales, measured over the 12 months ending September 30.

I'm based in a state with no sales tax. Does that change anything?

No. Being based in Delaware, Montana, New Hampshire, Oregon or Alaska doesn't change other states' rules. You may still need to collect in states where you meet their thresholds or store inventory.

How often do these thresholds change?

Often enough that a yearly check is sensible. In our data, the current rule took effect on or after January 1, 2024 in Illinois, Indiana, Kentucky, North Carolina, Utah and Wyoming. Each of those changes removed a transaction test.

Are all the figures in your dataset verified?

Every record was researched against official sources where they could be reached, and each shows a "last verified" date. 18 of the 51 records are flagged as being re-verified, usually because a state website blocked access or its guidance was silent on a point. Those states show a warning in the checker and on their state pages.

Sources

• State-by-state official sources: see the "Official source" link for each state in our 2026 thresholds table. Key ones cited above:
  • Texas Comptroller, remote sellers: https://comptroller.texas.gov/taxes/sales/remote-sellers.php
  • New York DTF, nexus: https://www.tax.ny.gov/pubs_and_bulls/publications/sales/nexus.htm
  • California CDTFA, Wayfair guidance: https://www.cdtfa.ca.gov/industry/wayfair.htm
  • Connecticut DRS, registering: https://portal.ct.gov/drs/businesses/new-business-resource-center/registering-with-drs
  • Alabama DOR, remote sellers FAQ: https://www.revenue.alabama.gov/faqs/are-all-remote-sellers-required-to-register-in-alabama/
  • Pennsylvania DOR, online retailers: https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/online-retailers
  • Illinois DOR, Bulletin FY 2026-12: https://tax.illinois.gov/research/publications/bulletins/fy-2026-12.html
  • Kentucky 2026 Acts ch. 161 (HB 757): https://apps.legislature.ky.gov/law/acts/26RS/documents/0161.pdf
  • Nevada Department of Taxation, marketplace FAQ: https://tax.nv.gov/faqs/marketplace-facilitator-seller-faqs/
  • Maryland COMAR 03.06.01.33: https://regs.maryland.gov/us/md/exec/comar/03.06.01.33
  • DC OTR, sales and use tax FAQs: https://otr.cfo.dc.gov/page/sales-and-use-tax-faqs
  • Alaska Remote Seller Sales Tax Commission: https://arsstc.org/business-sellers/
• Multistate Tax Commission, Multistate Voluntary Disclosure Program: https://www.mtc.gov/nexus/multistate-voluntary-disclosure-program/

This guide provides general information for educational purposes and is not tax, legal or accounting advice. Consult a qualified professional before acting.