Skip to main content
Skip to main content
Education

Economic Nexus Thresholds by State: Complete 2026 Reference Table

All 46 state economic nexus thresholds in one table — revenue limits, transaction counts, and effective dates. Updated for 2026. Bookmark this page.

Economic Nexus Thresholds by State

TL;DR: Economic nexus thresholds determine when online sellers must register for and collect sales tax in a state. In 2026, most states use a revenue threshold (ranging from $100,000 to $500,000 annually), some use transaction counts, and a few use both. Marketplace sales typically count toward these thresholds. Use our free nexus calculator to instantly determine your filing obligations across all 50 states.

Understanding Economic Nexus Thresholds

Economic nexus is the foundation of modern sales tax compliance for remote sellers. Before the 2018 South Dakota v. Wayfair Supreme Court decision, only sellers with a physical presence in a state needed to collect sales tax. That changed everything.

Today, online sellers must register and collect sales tax once they exceed a state's economic nexus threshold—regardless of whether they have a physical location there. These thresholds protect small sellers from overwhelming compliance burdens while ensuring states collect tax revenue from significant out-of-state sellers.

The challenge is that thresholds vary dramatically by state. A seller doing $250,000 in annual revenue might have nexus in some states but not others. This is why understanding these thresholds is critical for anyone operating an e-commerce business.

Key Nexus Terminology You Need to Know

Revenue Threshold: The dollar amount of sales in a state that triggers nexus. Most states use annual revenue.

Transaction Threshold: The number of transactions (sales) rather than dollar amount. Only a handful of states use this metric.

Threshold Logic: Whether nexus is triggered by reaching the revenue threshold (OR the transaction threshold), or whether both must be exceeded (AND).

Threshold Period: Whether the threshold is measured over a calendar year, rolling 12 months, or the previous year.

Marketplace Sales: Whether sales made through platforms like Amazon, eBay, Etsy, and Shopify count toward your threshold.

Key ConceptDefinition
NexusConnection to a state that requires sales tax registration
Economic NexusConnection based on sales volume rather than physical presence
ThresholdDollar or transaction volume that triggers nexus
Lookback PeriodTime period used to measure sales volume
Affiliate NexusConnection through marketplace platforms

Complete 2026 Economic Nexus Thresholds Reference Table

Here's the comprehensive breakdown of economic nexus thresholds for all states that impose sales tax. These thresholds are current as of 2026, though some states adjust annually—always verify with your state's department of revenue.

StateRevenue ThresholdTransaction ThresholdLogicPeriodMarketplace Sales CountNotes
Alabama$250,000Calendar YearYesIncludes marketplace facilitators
AlaskaNo sales taxNo state sales tax
Arizona$250,000Prior 12 monthsYesIncludes remote sellers
Arkansas$100,000Previous calendar yearYesIncludes marketplace sales
California$600,000Previous calendar yearYesAdjusted for inflation annually
Colorado$100,000200 transactionsORPrior 12 monthsYesEither threshold triggers nexus
Connecticut$250,000Previous 12 monthsYesLookback period applies
DelawareNo sales taxNo state sales tax
Florida$500,000200 transactionsORCalendar yearYesLow transaction threshold
Georgia$250,000Previous 12 monthsYesMarketplace facilitator law
Hawaii$100,000Calendar yearYesOne of the lowest thresholds
Idaho$100,000200 transactionsORPrior 12 monthsYesEither threshold applies
Illinois$100,000Calendar yearYesRelatively low threshold
Indiana$100,000Previous 12 monthsYesLookback applies
Iowa$100,000Calendar yearYesMarketplace facilitator included
Kansas$100,000Previous 12 monthsYesEffective enforcement in place
Kentucky$100,000Calendar yearYesLow threshold state
Louisiana$100,000Calendar yearYesMarketplace sales included
Maine$100,000Previous 12 monthsYesIncludes affiliate sales
Maryland$100,000Previous 12 monthsYesRelatively strict enforcement
Massachusetts$100,000Calendar yearYesIncludes marketplace sales
Michigan$100,000Previous 12 monthsYesEnforced through vendors
Minnesota$100,000Previous calendar yearYesMarketplace facilitator law
Mississippi$250,000Previous 12 monthsYesHigher threshold state
Missouri$100,000Calendar yearYesEffective enforcement
MontanaNo sales taxNo state sales tax
Nebraska$100,000Previous 12 monthsYesLookback applies
Nevada$100,000Previous 12 monthsYesLower threshold
New HampshireNo sales tax**Meals and rooms tax apply
New Jersey$100,000Previous 12 monthsYesMarketplace facilitator law
New Mexico$100,000Previous 12 monthsYesIncluded in nexus rules
New York$100,000Current/previous yearYesMarketplace sales count
North Carolina$100,000Previous 12 monthsYesEnforced statewide
North Dakota$100,000Current calendar yearYesMarketplace facilitators included
Ohio$100,000Previous 12 monthsYesEffective enforcement
Oklahoma$100,000Previous 12 monthsYesRelatively strict
OregonNo sales taxNo state sales tax
Pennsylvania$100,000Previous 12 monthsYesMarketplace facilitator law
Rhode Island$100,000Calendar yearYesLow threshold enforcement
South Carolina$100,000Previous 12 monthsYesIncludes marketplace sales
South Dakota$100,000200 transactionsORPrevious 12 monthsYesOriginal Wayfair case state
Tennessee$100,000Previous 12 monthsYesMarketplace sales included
Texas$500,000Previous 12 monthsYesHigher threshold state
Utah$100,000Previous 12 monthsYesEffective enforcement
Vermont$100,000Previous 12 monthsYesLookback period applies
Virginia$100,000Previous 12 monthsYesMarketplace facilitator law
Washington$1,250,000Previous 12 monthsYesHighest threshold in US
West Virginia$100,000Previous 12 monthsYesEnforced actively
Wisconsin$100,000Previous 12 monthsYesMarketplace sales included
WyomingNo sales taxNo state sales tax

Key Threshold Patterns to Notice

The $100,000 Standard: The vast majority of states (32+) use a $100,000 annual revenue threshold. This is the most common nexus trigger in America, making it the baseline for most e-commerce sellers.

Higher Thresholds: A few states are more generous. Washington has the highest threshold at $1.25 million, while Texas and Florida use $500,000. California's threshold is $600,000 and adjusts annually for inflation—in 2026, it may be higher than stated here.

Lower Thresholds: Hawaii uses $100,000, making it equal to the standard. No state currently has a threshold lower than $100,000, though this could change.

Transaction Counts: Only Colorado, Florida, Idaho, and South Dakota use transaction thresholds alongside or instead of revenue thresholds. Colorado and Idaho use an OR logic—reach either the revenue OR transaction threshold. Florida uses an OR logic with a $500,000 revenue threshold plus 200 transactions.

No Sales Tax States: Alaska, Delaware, Montana, New Hampshire (with caveats), Oregon, and Wyoming have no state sales tax, so economic nexus doesn't apply.

Understanding Lookback Periods and Timing

One of the most confusing aspects of economic nexus is how states measure the threshold period. There are three main approaches:

Calendar Year Measurement: Some states look at whether you've exceeded the threshold within the current calendar year (January–December). Once you hit the threshold, you typically must register by the end of the month or within 30 days.

Previous 12-Month Lookback: Other states examine the prior 12 months of sales. This means your threshold measurement constantly rolls forward. A sale from January 2024 doesn't count once it's been 13 months, even if you've had no sales since.

Previous Calendar Year: Some states measure last year's sales to determine this year's obligation. If you did $150,000 in 2025, you'd need to register for 2026 based on 2025's performance.

The difference matters significantly. If you're a seasonal seller, the timing of your sales can determine whether you're over or under a threshold depending on which measurement your state uses.

How Marketplace Sales Affect Your Thresholds

If you sell through Amazon, Etsy, Shopify, eBay, or similar platforms, marketplace sales typically count toward your economic nexus threshold in every state listed above. This is critical because many sellers significantly underestimate their sales volume if they ignore marketplace channels.

A seller doing $40,000 on their own website plus $65,000 on Amazon is at $105,000 total—exceeding the $100,000 threshold in most states. Your threshold measurement includes all your sales channels combined, not just direct sales.

Some states have "marketplace facilitator" laws where the platform itself collects and remits tax on your behalf. Even then, those sales count toward your nexus threshold. Understanding whether your state requires you to collect or the marketplace does is critical for compliance.

Special Cases and Important Notes

California's Inflation Adjustment: California's $600,000 threshold increases annually for inflation. In 2024, it increased to approximately $675,000. Verify the current threshold with California's Department of Tax and Fee Administration before assuming 2026 amounts.

South Dakota's Original Case: South Dakota was the plaintiff in the landmark Wayfair case. It has a dual threshold: $100,000 in revenue OR 200 transactions. Reaching either one triggers nexus.

Washington State's High Threshold: Washington's $1.25 million threshold is the highest in the nation, reflecting the state's online retail dominance and political considerations around tech companies.

Montana and Oregon: These states genuinely have no sales tax, so economic nexus rules don't apply. You won't collect sales tax there at the state level.

New Hampshire Complexity: New Hampshire has no general sales tax but does tax meals and room rentals. If you sell these items, different rules apply.

Practical Scenarios for E-Commerce Sellers

Scenario 1: Multi-State DTC Seller You sell $180,000 annually through your website, split evenly across all 50 states. You're over the $100,000 threshold in most states based on the total, even though individual state revenue is only $3,600 each. You must register in 39 states using a $100,000 threshold.

Scenario 2: Amazon Seller You do $120,000 annually in Amazon sales. These count toward nexus thresholds in every state. You're over the $100,000 threshold in most states and need to register accordingly.

Scenario 3: Seasonal Business Your business peaks in November–December, generating $80,000 in sales then and $40,000 the rest of the year. If your state uses a current-calendar-year measurement, you likely hit the $100,000 threshold in November and December, requiring registration by month-end. If they use a previous-year lookback, you don't trigger nexus until the following year.

Scenario 4: Hybrid Seller You operate your own website ($60,000) plus sell on Etsy ($50,000) and Amazon ($20,000). Total: $130,000. All of this counts toward nexus thresholds in every state using a $100,000 benchmark. You need to register in 39+ states.

Staying Current With Threshold Changes

State economic nexus thresholds do change, though infrequently. The most common change is inflation adjustments (like California's). Some states may lower thresholds to increase revenue collection, though this is rare.

To stay compliant in 2026 and beyond:

  • Check state revenue websites annually before your anniversary dates
  • Use our free nexus calculator to instantly see your obligations across all states
  • Subscribe to sales tax updates from your state departments of revenue
  • Work with accountants or software that flags threshold changes automatically

NexusMonitor helps e-commerce businesses automatically track thresholds, flag when you're approaching nexus triggers, and alert you when state laws change. This eliminates the guesswork around compliance.

Registration Deadlines After Hitting Nexus

Once you exceed a threshold, most states require registration within 30 days. Some require registration by the end of the month in which you exceed the threshold. A few states are more lenient.

Missing registration deadlines can result in penalties, back tax assessments, and interest charges. The moment you believe you've crossed a threshold, you should register immediately rather than waiting.

Common Mistakes to Avoid

Not Including Marketplace Sales: Many sellers forget Amazon, Etsy, and Shopify sales count toward thresholds. This is the #1 compliance mistake.

Misunderstanding the Period: Confusing a calendar-year measurement with a rolling 12-month lookback can cause you to register too early or too late.

Ignoring Multiple Channels: Sellers sometimes calculate thresholds by individual platform, not total sales across all channels.

Not Monitoring Throughout the Year: Check your sales quarterly rather than once annually. Threshold triggers can happen mid-year, requiring fast action.

Forgetting Returns: Most states measure gross sales, not net sales after returns. A $100,000 threshold typically means $100,000 in gross transactions.

Quick Reference: State Tiers by Threshold

Tier 1 ($100,000 threshold): 32+ states Most common tier. Includes IL, IN, NY, PA, OH, MA, NJ, and many others.

Tier 2 ($250,000 threshold): Alabama, Connecticut, Georgia, Mississippi More generous to small sellers.

Tier 3 ($500,000 threshold): Florida, Texas Very seller-friendly thresholds.

Tier 4 ($600,000+ threshold): California, Washington Highest thresholds in the nation.

No Sales Tax: Alaska, Delaware, Montana, Oregon, Wyoming No nexus concerns at the state level.

Using the Nexus Calculator

Rather than manually checking your obligations against this table, our free nexus calculator lets you input your state-by-state sales and instantly see where you have nexus. It updates automatically when state thresholds change, ensuring you're always current.


Frequently Asked Questions

Q: Do I have economic nexus in every state once I reach $100,000 in sales?

A: No. You have nexus in every state with an economic nexus law that uses a $100,000 threshold (about 32 states), but not in states with higher thresholds like Washington ($1.25M) or California ($600,000+). Use the calculator above to see exactly which states trigger for your sales volume.

Q: If I sell $90,000 through my website and $20,000 on Amazon, do I have nexus at $100,000?

A: Yes. All your sales

Stop tracking nexus thresholds manually

NexusMonitor connects to your Shopify, WooCommerce, or Square store and tracks your sales against all 46+ state thresholds. Free 14-day trial, no credit card required.

Start Free 14-Day Trial

Monitor your nexus thresholds automatically

NexusMonitor tracks your sales across all US states and alerts you before you hit a threshold. Start your free 14-day trial — no credit card required.