Sales tax nexus by state
Sales Tax Nexus by State: Economic Nexus Thresholds (2026)
Remote sellers generally must collect a state's sales tax once their sales there pass its economic nexus threshold, or once they have a physical presence such as inventory. Of the 46 jurisdictions with a statewide sales tax (45 states and DC), 41 use $100,000, 2 (Alabama and Mississippi) use $250,000 and 3 (California, New York and Texas) use $500,000. 17 also use a transaction count.
Thresholds for every state with a sales tax
Select a state for its full rules, official sources, what to do after crossing the threshold and a quick checker. "Needs re-verification" means at least one detail could not be confirmed from an official source.
| State | Sales threshold | Transactions | Test | Marketplace sales count? | Measured over |
|---|---|---|---|---|---|
| Alabama | $250,000 | — | Sales only | No | Previous calendar year |
| Arizona | $100,000 | — | Sales only | No | Previous or current calendar year |
| Arkansas Needs re-verification | $100,000 | 200 | Sales OR transactions | No | Current or previous calendar year |
| California | $500,000 | — | Sales only | Yes | Preceding or current calendar year |
| Colorado Needs re-verification | $100,000 | — | Sales only | No | Previous or current calendar year |
| Connecticut | $100,000 | 200 | Sales AND transactions (both required) | Yes | 12-month period ending September 30 immediately preceding the monthly or quarterly period for which tax liability is determined |
| District of Columbia | $100,000 | 200 | Sales OR transactions | Yes | Previous calendar year or current calendar year |
| Florida Needs re-verification | $100,000 taxable sales only |
— | Sales only | No | Previous calendar year |
| Georgia | $100,000 | 200 | Sales OR transactions | No | Previous or current calendar year |
| Hawaii | $100,000 | 200 | Sales OR transactions | Yes | Current or immediately preceding calendar year |
| Idaho | $100,000 | — | Sales only | Yes | Current or previous calendar year |
| Illinois | $100,000 | — | Sales only | No | Rolling 12-month lookback period, tested quarterly (periods ending March 31, June 30, September 30, December 31). Once met, collect beginning the first day of the following quarter for one year, then re-test |
| Indiana | $100,000 | — | Sales only | No | Current or preceding calendar year |
| Iowa | $100,000 | — | Sales only | Yes | Current or immediately preceding calendar year |
| Kansas Needs re-verification | $100,000 | — | Sales only | Unclear | Current or immediately preceding calendar year. A retailer that first meets the threshold in the current year collects on sales in excess of $100,000 of cumulative current-year gross receipts |
| Kentucky | $100,000 | — | Sales only | Yes | Previous calendar year or current calendar year |
| Louisiana Needs re-verification | $100,000 | — | Sales only | Unclear | Previous or current calendar year |
| Maine Needs re-verification | $100,000 | — | Sales only | No | Previous calendar year or current calendar year |
| Maryland | $100,000 | 200 | Sales OR transactions | Yes | Previous calendar year or current calendar year |
| Massachusetts | $100,000 | — | Sales only | No | Prior calendar year or current calendar year |
| Michigan | $100,000 | 200 | Sales OR transactions | Yes | Previous calendar year |
| Minnesota | $100,000 | 200 | Sales OR transactions | Yes | Prior 12-month period (rolling 12 calendar months) |
| Mississippi Needs re-verification | $250,000 | — | Sales only | No | Prior twelve months (35 Miss. Admin. Code Pt. IV, Rule 3.09.100); DOR FAQ phrases it as 'over any twelve month period' |
| Missouri | $100,000 taxable sales only |
— | Sales only | Yes | Preceding 12-month period, tested at the end of each calendar quarter |
| Nebraska | $100,000 | 200 | Sales OR transactions | Yes | Prior calendar year or current calendar year |
| Nevada | $100,000 | 200 | Sales OR transactions | Yes | Previous or current calendar year |
| New Jersey | $100,000 | 200 | Sales OR transactions | Yes | Current or prior calendar year |
| New Mexico | $100,000 taxable sales only |
— | Sales only | No | Previous calendar year |
| New York | $500,000 | 100 | Sales AND transactions (both required) | Yes | Immediately preceding four sales tax quarters (quarters: Mar 1-May 31, Jun 1-Aug 31, Sep 1-Nov 30, Dec 1-Feb 28/29) |
| North Carolina | $100,000 | — | Sales only | Yes | Previous or current calendar year |
| North Dakota Needs re-verification | $100,000 taxable sales only |
— | Sales only | Unclear | Previous or current calendar year |
| Ohio Needs re-verification | $100,000 | 200 | Sales OR transactions | Unclear | Current or preceding calendar year |
| Oklahoma Needs re-verification | $100,000 taxable sales only |
— | Sales only | No | Preceding or current calendar year |
| Pennsylvania | $100,000 | — | Sales only | No | Previous calendar year; collection begins April 1 of the following year |
| Rhode Island Needs re-verification | $100,000 | 200 | Sales OR transactions | Unclear | Immediately preceding calendar year |
| South Carolina | $100,000 | — | Sales only | Yes | Previous or current calendar year |
| South Dakota Needs re-verification | $100,000 | — | Sales only | Unclear | Previous or current calendar year |
| Tennessee | $100,000 | — | Sales only | No | Previous 12-month period (rolling, regardless of where you are in the year) |
| Texas | $500,000 | — | Sales only | Yes | Preceding twelve calendar months |
| Utah Needs re-verification | $100,000 | — | Sales only | Unclear | Previous or current calendar year |
| Vermont Needs re-verification | $100,000 | 200 | Sales OR transactions | Unclear | The 12-month period preceding the monthly period for which liability is determined (DOR: 'any preceding twelve-month period') |
| Virginia | $100,000 | 200 | Sales OR transactions | No | Previous or current calendar year |
| Washington | $100,000 | — | Sales only | Yes | Current or prior calendar year |
| West Virginia Needs re-verification | $100,000 | 200 | Sales OR transactions | Unclear | Immediately preceding calendar year or current calendar year |
| Wisconsin | $100,000 | — | Sales only | Yes | Previous or current calendar year |
| Wyoming Needs re-verification | $100,000 | — | Sales only | Unclear | Current calendar year or immediately preceding calendar year |
Patterns worth knowing
- Transaction tests. 17 jurisdictions still count transactions (AR, CT, DC, GA, HI, MD, MI, MN, NE, NV, NJ, NY, OH, RI, VT, VA and WV). 6 states have removed theirs since January 1, 2024. Connecticut and New York require both the dollar and the transaction test.
- Marketplace sales. They count toward your own threshold in 20 jurisdictions, are excluded in 16, and official guidance is unclear in 10 (KS, LA, ND, OH, RI, SD, UT, VT, WV and WY).
- Taxable sales only. Florida, Missouri, New Mexico, North Dakota and Oklahoma count only taxable sales. Most others count gross sales, often including exempt sales.
- Different look-back periods. Some states test the current or previous calendar year, some only the previous year, and others a rolling 12 months or sales-tax quarters. Each state page shows its period.
States without a statewide sales tax
Alaska has no state sales tax, but many local governments levy one. Remote sellers delivering into jurisdictions that belong to the Alaska Remote Seller Sales Tax Commission use a local threshold of $100,000 in sales.
- Delaware: Delaware imposes no state or local sales tax, so there is no sales tax collection obligation. Businesses conducting business in Delaware must obtain a Delaware business license (via Delaware One Stop) and may owe the gross receipts tax, which is imposed on the seller. Source
- Montana: Montana has no general sales tax. Businesses providing lodging or rental vehicles in Montana must collect the state's selective sales taxes on those items. Designated resort communities and areas may levy a local resort tax on specified goods and services. Source
- New Hampshire Needs re-verification: New Hampshire has no general sales tax. Operators of restaurants, lodging, and motor vehicle rentals in New Hampshire must hold an operator's license and collect the Meals & Rooms (Rentals) Tax. Source
- Oregon Needs re-verification: Oregon has no general sales or use tax, so there is no sales tax collection obligation. Businesses with Oregon commercial activity may owe the Corporate Activity Tax (CAT). Oregon vehicle dealers owe the vehicle privilege tax. Source
Businesses based in these states may still need to collect sales tax in other states where they meet the thresholds.
Dataset last researched September 23, 2026. 18 of 51 entries are flagged for re-verification.
Disclaimer: This page provides general information for educational purposes and is not tax, legal or accounting advice. State rules change. Confirm with each state's official guidance or a qualified professional before acting. RAHA Financials is not affiliated with any state tax agency.
