Online retailers wondering if states will require them to pay sales tax can look at this chart showing the economic thresholds for sales tax nexus. If you think your business might be a threshold in a state, the next step is determining whether your business’s revenues and sales activity surpass the thresholds.
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 will require my business to collect sales tax?
|State||Sales Threshold||Transaction Threshold||Effective Date|
|Alabama||$250,000||n/a||October 1, 2018|
|California||$100,000||200||April 1, 2019|
|Colorado||$100,000||200||December 1, 2018|
|Connecticut||$250,000||200||December 1, 2018|
|District of Columbia||$100,000||200||January 1, 2019|
|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||$100,000||n/a||July 1, 2019|
|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|
|Texas||$500,000||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 economic 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.