Sales Tax Nexus Checker
Check which US states you have economic nexus in based on your sales volume and transaction count. Covers all 50 states with current thresholds.
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Check every state where you have customers. Common high-volume states are listed first.
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Economic Nexus After South Dakota v. Wayfair
Before 2018, businesses only needed to collect sales tax in states where they had a physical presence — an office, warehouse, or employees. The Supreme Court's landmark ruling in South Dakota v. Wayfair, Inc. changed that entirely. The Court held that states can require remote sellers to collect and remit sales tax based purely on economic activity, even without any physical connection to the state.
The decision opened the door for every state with a sales tax to adopt economic nexus laws, and nearly all of them did so within two years. Today, 45 states plus the District of Columbia impose a general sales tax, and all of them have economic nexus provisions on the books. The only states without a statewide sales tax are Alaska (though some local jurisdictions levy their own), Delaware, Montana, New Hampshire, and Oregon.
How Economic Nexus Thresholds Work
Most states followed South Dakota's original framework: $100,000 in gross sales or 200 separate transactions within a 12-month period. However, several states have set their own thresholds. Texas and California both use a $500,000 sales threshold with no transaction count. New York requires $500,000 in sales and more than 100 transactions — both conditions must be met. Some states measure on a calendar year basis while others use a trailing 12-month window, which can trigger obligations mid-year.
Why This Matters for E-Commerce Sellers
If you sell products online, through marketplaces, or via your own website to customers across multiple states, you could have nexus obligations in dozens of states simultaneously. Each state has its own tax rates, product taxability rules, filing frequencies, and registration processes. Marketplace facilitator laws (in effect in most states) shift the collection responsibility to platforms like Amazon, Etsy, and Shopify for sales made through those channels — but if you also sell directly, those direct sales still count toward your nexus thresholds.
Staying Compliant
Use this checker to identify which states require your attention right now and which ones you are approaching. Once you establish nexus, you must register for a sales tax permit, begin collecting tax on applicable sales, and file returns on the schedule the state assigns. Many businesses use sales tax automation software such as TaxJar, Avalara, or Vertex to manage multi-state compliance. Pair this tool with our quarterly estimated tax calculator and business deduction estimator to get a complete picture of your tax obligations.
Frequently Asked Questions
What is economic nexus for sales tax?
Economic nexus is a legal obligation to collect and remit sales tax in a state where your business has no physical presence but exceeds certain sales thresholds. After the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require remote sellers to collect sales tax once they surpass a dollar amount of sales, a number of transactions, or both within the state during a specified period (usually a calendar year or trailing 12 months).
What are the most common economic nexus thresholds?
The most common threshold is $100,000 in gross sales OR 200 transactions in a state within a calendar year or trailing 12 months. This was the standard set by South Dakota in the Wayfair case. However, several states have different thresholds. Texas and California use $500,000 in sales with no transaction threshold. New York requires $500,000 in sales AND more than 100 transactions. Always verify the current threshold directly with each state department of revenue.
What happens if I exceed the nexus threshold in a state?
Once you exceed a state's economic nexus threshold, you are required to register for a sales tax permit in that state, collect the appropriate sales tax rate on taxable transactions sold to buyers in that state, and file sales tax returns on the schedule the state assigns (monthly, quarterly, or annually). Most states require you to begin collecting within 30 to 60 days of exceeding the threshold. Failing to comply can result in penalties, interest, and back taxes.
Do I need to worry about sales tax nexus if I only sell services?
It depends on the state and the type of service. Most states tax tangible personal property and digital goods, but taxation of services varies widely. Some states tax nearly all services (Hawaii, New Mexico, South Dakota), while others tax very few. SaaS products are taxed in roughly half of US states. If you sell services, check whether your specific service category is taxable in each state before determining your nexus obligations.
What is the difference between physical nexus and economic nexus?
Physical nexus is established by having a tangible presence in a state — such as an office, warehouse, employee, inventory, or even attending a trade show. Economic nexus is established purely through sales activity, with no physical presence required. A business can have both types of nexus in the same state. Even if you do not meet economic nexus thresholds, having physical presence in a state typically creates a sales tax collection obligation.
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