Sales Tax Economic Nexus Chart for Retailers

After Wayfair, retailers wondering if states will make them remit sales tax can look at this chart showing the economic thresholds for nexus.

Our chart shows which states have:

  • economic nexus laws for sales tax; and
  • a set effective date.

It will help retailers start finding answers to the question: which states do I have sales tax nexus with?

Economic Nexus, Sales Tax Chart

State Sales Threshold Transaction Threshold Effective Date
Alabama $250,000 n/a October 1, 2018
Colorado $100,000 200 December 1, 2018
Connecticut $250,000 200 December 1, 2018
Georgia $250,000 200 January 1, 2019
Hawaii $100,000 200 January 1, 2019, other rules apply
Idaho $10,000 n/a click-through nexus, July 1, 2018
Illinois $100,000 200 October 1, 2018
Indiana $100,000 200 October 1, 2018
Iowa $100,000 200 January 1, 2019
Kentucky $100,000 200 October 1, 2018
Louisiana $100,000 200 January 1, 2019
Maine $100,000 200 July 1, 2018
Maryland $100,000 200 October 1, 2018
Massachusetts $500,000 100 October 1, 2017
Michigan $100,000 200 October 1, 2018
Minnesota $100,000 100 October 1, 2018
Mississippi $250,000 100 September 1, 2018
Nebraska $100,000 200 January 1, 2019
Nevada $100,000 200 November 1, 2018
New Jersey $100,000 200 November 1, 2018
North Carolina $100,000 200 November 1, 2018
North Dakota $100,000 200 October 1, 2018
Ohio $500,000 n/a January 1, 2018, other rules apply
Oklahoma $10,000 n/a July 1, 2018
Pennsylvania $10,000 n/a March 1, 2018
Rhode Island $100,000 200 August 17, 2017
South Carolina $100,000 n/a August 17, 2017
South Dakota $100,000 200 November 1, 2018
Utah $100,000 200 January 1, 2019
Vermont $100,000 200 July 1, 2018
Washington $100,000 200 October 1, 2018
West Virginia $100,000 200 January 1, 2019
Wisconsin $100,000 200 October 1, 2018
Wyoming $100,000 200 February 1, 2019

The State of Sales Tax Nexus after Wayfair

In June 2018, South Dakota v. Wayfair changed the sales tax landscape when it ruled that physical presence in a state wasn’t required for a state to impose collection duties on retailers. The Wayfair court did not define what level of activity should occur in a state before the state could require sales tax collection. However, South Dakota, the state whose laws were under challenge, had two economnic thresholds which would trigger nexus:

  • over $100,000 in revenue from sales in South Dakota; or
  • 200 or more sales transactions in South Dakota.

These two thresholds generally have become known as:

  • the sales threshold; and
  • the transaction threshold.

Many states adopted the South Dakota thresholds in the Wayfair case, including South Dakota itself after the Supreme Court decision. Others set different thresholds.

In addition, some states have pending legislation or regulations that will impose economic nexus on retailers. This chart will be updated to reflect new laws.

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup