Every state has its own threshold. See where you need to remit.
Selling to customers in the US? Then each state decides for itself when you must collect and remit sales tax. Choose a state and see the threshold, the period and what you need to arrange.
- $100,00040 states
- $250,0002 states
- $500,0002 states
- No sales threshold2 states
- No sales tax4 states
All 50 states in a table
| State | Sales threshold | Transactions | Since |
|---|---|---|---|
| Alabama | $250,000 | None | 1 October 2018 |
| Alaska | $100,000 | Removed | 6 January 2020 |
| Arizona | $100,000 | None | 1 October 2019 |
| Arkansas | $100,000 | 200 | 1 July 2019 |
| California | $500,000 | None | 1 April 2019 |
| Colorado | $100,000 | None | 1 December 2018 |
| Connecticut | $100,000 | 200 | 1 December 2018 |
| Delaware | No sales tax | None | None |
| Florida | $100,000 | None | 1 July 2021 |
| Georgia | $100,000 | 200 | 1 January 2019 |
| Hawaii | $100,000 | 200 | 1 July 2018 |
| Idaho | $100,000 | None | 1 June 2019 |
| Illinois | $100,000 | 200 | 1 October 2018 |
| Indiana | $100,000 | 200 | 1 October 2018 |
| Iowa | $100,000 | None | 1 July 2019 |
| Kansas | None | None | 1 October 2019 |
| Kentucky | $100,000 | 200 | 1 October 2018 |
| Louisiana | $100,000 | 200 | 1 July 2020 |
| Maine | $100,000 | 200 | 1 July 2018 |
| Maryland | $100,000 | 200 | 1 October 2018 |
| Massachusetts | $100,000 | None | 1 October 2019 |
| Michigan | $100,000 | 200 | 1 October 2018 |
| Minnesota | $100,000 | 200 | 1 October 2018 |
| Mississippi | $250,000 | None | 1 September 2018 |
| Missouri | $100,000 | None | 1 January 2023 |
| Montana | No sales tax | None | None |
| Nebraska | $100,000 | 200 | 1 January 2019 |
| Nevada | $100,000 | 200 | 1 October 2018 |
| New Hampshire | No sales tax | None | None |
| New Jersey | $100,000 | 200 | 1 November 2018 |
| New Mexico | $100,000 | None | 1 July 2019 |
| New York | None | 100 | 21 June 2018 |
| North Carolina | $100,000 | 200 | 1 November 2018 |
| North Dakota | $100,000 | None | 1 October 2018 |
| Ohio | $100,000 | 200 | 1 August 2019 |
| Oklahoma | $100,000 | None | 1 November 2018 |
| Oregon | No sales tax | None | None |
| Pennsylvania | $100,000 | None | 1 July 2019 |
| Rhode Island | $100,000 | 200 | 1 July 2019 |
| South Carolina | $100,000 | None | 1 November 2018 |
| South Dakota | $100,000 | 200 | 1 November 2018 |
| Tennessee | $100,000 | None | 1 October 2019 |
| Texas | $500,000 | None | 1 October 2019 |
| Utah | $100,000 | 200 | 1 January 2019 |
| Vermont | $100,000 | 200 | 1 July 2018 |
| Virginia | $100,000 | 200 | 1 July 2019 |
| Washington | $100,000 | None | 1 October 2018 |
| West Virginia | $100,000 | 200 | 1 January 2019 |
| Wisconsin | $100,000 | 200 | 1 October 2018 |
| Wyoming | $100,000 | 200 | 1 February 2019 |
No office needed. Just sales.
Economic nexus is the tax connection between you and a state. It comes from your sales, not your address. For online stores, that happens fast.
- Wayfair ruling: sales count
- 2018
- states with sales tax
- 46
- threshold in 40 states
- $100,000
- offices needed for nexus
- 0
Not your location, but your activity.
It used to be physical presence only. Since 2018, your sales count. Almost every state with sales tax now sets its own thresholds, and no two do it the same way.
South Dakota v. Wayfair, U.S. Supreme Court, 21 June 2018.
This is how you stay compliant
Step 1Register
Apply for a permit in every state where you are required to. You'll need your EIN and business details. The application goes through the Department of Revenue, under Sales and Use Tax. Usually free, sometimes under 20 dollars. Expect two to six weeks.
Step 2Collect and remit
Apply the correct rate per sale. That depends on your customer's location, often by zip code, and what you sell. Each state has its own exemptions. Classify your product correctly. Remit according to the state's schedule.
Step 3Record keeping
Document everything. Collected tax, product classifications, and proof of remittance. You'll need it for your filing and during an audit. Track your sales per state and your position relative to each threshold.
Manual tracking is not an option
Dozens of states, varying thresholds, changing laws. Tax software monitors your thresholds, calculates rates, prepares returns, and stores your records for an audit. If you sell across state lines, automation is not a luxury.
Marketplaces. Many states require large platforms to collect sales tax on behalf of their sellers. If you sell through such a platform, some of this may already be taken care of for you.
Doing nothing costs more than getting it right.
Back taxes with interest
The state assesses the sales tax you should have collected, with interest over the whole period.
Penalties that add up
Registering or filing late costs you a penalty, per return and per state.
Audits
An audit costs time and money, even when it turns out fine.
Permits and reputation
In the worst case you lose your permit. Customers and partners notice when it gets out.
Questions? We'll answer them.
The obligation to collect and remit sales tax as soon as your sales in a state exceed the threshold. This applies regardless of physical presence.
Each state sets its own threshold. This is usually based on annual revenue, transactions, or both. If you exceed it, nexus is established.
Physical nexus is created by property, personnel, or a physical location in a state. Economic nexus is created purely by your economic activity.
In almost every state with sales tax. The details vary widely.
Back taxes, interest, penalties, audits, and reputational damage.
With tax software that tracks thresholds, applies rates, and prepares returns.
Partner to help you with this
Meet the specialists behind this solution; your direct contacts for strategic advice.
Etienne GrosveldPartner – Strategy Consultant