Economic Nexus Threshold Changes — 2026
What's changed, what's coming, and what sellers need to watch.
Last updated: April 2026
Researched by the NexusFlag Research Team
Updated quarterlyExecutive Summary — Q2 2026
As of Q2 2026, 45 US states and the District of Columbia enforce economic nexus laws requiring remote sellers to collect sales tax. The trend continues toward simplification: states are dropping transaction count thresholds and relying solely on revenue thresholds. The most common threshold remains $100,000 in annual revenue.
The most significant change entering 2026: Illinois eliminated its 200-transaction threshold effective January 1, 2026, joining at least 6 other states that have made the same move since 2019. For Illinois, nexus now triggers solely when a remote seller exceeds $100,000 in gross revenue in a calendar year.
46
States with economic nexus
Including DC
5
No-sales-tax states
AK, DE, MT, NH, OR
41
States at $100K threshold
Most common rule
26
Still have txn thresholds
Down from 40+ in 2019
Key Changes in 2025–2026
States removing transaction thresholds is the defining legislative trend of this period. Each change below is drawn from state department of revenue publications.
Illinois — transaction threshold removed (January 1, 2026)
Illinois remote sellers previously triggered nexus by exceeding either $100,000 in revenue OR 200 transactions in a calendar year. Effective January 1, 2026, the 200-transaction prong was eliminated. Nexus in Illinois now requires only $100,000 in gross revenue from Illinois customers. Sellers below the revenue threshold are no longer at risk from a high volume of low-value orders.
Source: Illinois Department of Revenue →Transaction Threshold Removals — 2019 to 2026
States that moved from dual OR-logic rules to revenue-only thresholds
At least 7 states have dropped transaction count thresholds since 2019. Sources: individual state department of revenue publications.
States to Watch in 2026–2027
These states still maintain dual OR-logic thresholds and are candidates for simplification in upcoming legislative sessions.
$100K OR 200 transactions
Legislative session 2026. CT has tracked other states on threshold simplification.
$100K OR 200 transactions
Revenue-only bills introduced in prior sessions. Watch 2026 General Assembly.
$100K OR 200 transactions
High volume of small sellers crossing via transaction count. Reform discussions ongoing.
$100K OR 200 transactions
Streamlined Sales Tax member state. May align with SSUTA simplification efforts.
$100K OR 200 transactions
The Wayfair plaintiff state. Any SD change would carry symbolic weight and likely trigger a wave of similar changes.
Other developments to monitor
- •Marketplace facilitator expansion: Several states are revisiting which platform types qualify as marketplace facilitators, which can shift tax collection responsibility from sellers to platforms.
- •Digital services taxes: A handful of states are exploring nexus rules specific to SaaS and digital goods — different from the Wayfair framework. Maryland's digital advertising tax litigation continues to shape this landscape.
- •Federal legislation: Congress has not enacted a uniform federal nexus standard since Wayfair, despite periodic proposals. No federal legislation is expected in 2026 based on current Congressional calendars.
Current Threshold Landscape
A full reference of all 50 states plus DC, sorted by revenue threshold. Five states have no statewide sales tax and are excluded from nexus calculations.
41
States at $100,000
The most common threshold. Adopted by most states in 2018–2019 to mirror the South Dakota statute at the center of Wayfair.
3
States at $500,000
California, Texas, and New York chose higher thresholds given their larger economies. New York also requires 100 transactions (AND logic).
2
States at $250,000
Alabama and Mississippi use a $250,000 threshold — higher than most but below the $500K tier. Neither has a transaction threshold.
AND vs. OR threshold logic
45
States using OR logic
Nexus triggers when a seller exceeds either the revenue threshold OR the transaction count threshold — whichever comes first. Most states use this approach.
1
States using AND logic
Nexus requires exceeding both thresholds simultaneously. New York is the primary example: $500,000 in revenue AND 100 transactions must both be met.
All Economic Nexus Thresholds — 2026 Reference
Sorted by revenue threshold (high to low). Click a state for full details.
| State | Revenue |
|---|---|
| California | $500,000 |
| New York | $500,000 |
| Texas | $500,000 |
| Alabama | $250,000 |
| Mississippi | $250,000 |
| Arizona | $100,000 |
| Arkansas | $100,000 |
| Colorado | $100,000 |
| Connecticut | $100,000 |
| District of Columbia | $100,000 |
| Florida | $100,000 |
| Georgia | $100,000 |
| Hawaii | $100,000 |
| Idaho | $100,000 |
| Illinois | $100,000 |
| Indiana | $100,000 |
| Iowa | $100,000 |
| Kansas | $100,000 |
| Kentucky | $100,000 |
| Louisiana | $100,000 |
| Maine | $100,000 |
| Maryland | $100,000 |
| Massachusetts | $100,000 |
| Michigan | $100,000 |
| Minnesota | $100,000 |
| Missouri | $100,000 |
| Nebraska | $100,000 |
| Nevada | $100,000 |
| New Jersey | $100,000 |
| New Mexico | $100,000 |
| North Carolina | $100,000 |
| North Dakota | $100,000 |
| Ohio | $100,000 |
| Oklahoma | $100,000 |
| Pennsylvania | $100,000 |
| Rhode Island | $100,000 |
| South Carolina | $100,000 |
| South Dakota | $100,000 |
| Tennessee | $100,000 |
| Utah | $100,000 |
| Vermont | $100,000 |
| Virginia | $100,000 |
| Washington | $100,000 |
| West Virginia | $100,000 |
| Wisconsin | $100,000 |
| Wyoming | $100,000 |
What This Means for Sellers
The practical impact of these changes on your compliance exposure.
Fewer transaction thresholds = simpler compliance
When transaction count thresholds exist, sellers need to track two separate metrics per state. Revenue-only rules reduce the compliance surface significantly — one number, one calendar year.
High-volume, low-value sellers benefit most
A seller making 300 transactions at $200 each into Illinois ($60,000 revenue) no longer triggers nexus post-2026. Previously, 200+ transactions alone created an obligation regardless of total revenue.
States can change rules mid-year
Most threshold changes take effect January 1 or July 1, but states are not required to give advance notice. Monitoring is not optional — a change that takes effect next quarter affects Q4 planning now.
Growing businesses should review quarterly
Revenue grows through the year. A seller at $80,000 in state sales in Q3 needs to know they may cross $100,000 in Q4 — before it happens, not after. The registration window is typically 30–60 days post-threshold.
Historical Context
Eight years from Wayfair to simplification. The pace of legislative change has not slowed.
South Dakota v. Wayfair decided by U.S. Supreme Court
The physical presence rule is overturned. States can now require remote sellers to collect sales tax based on economic activity alone.
30+ states adopt economic nexus
Most states enacted laws or emergency rules within months of Wayfair. The majority chose $100,000 revenue OR 200 transactions as the trigger.
43 states enforce; marketplace facilitator rules expand
Nearly every state with a sales tax has nexus rules in place. States begin requiring marketplace facilitators (Amazon, eBay) to collect tax on behalf of sellers.
First transaction threshold removals
Colorado, Wisconsin, and North Dakota remove their 200-transaction thresholds. Revenue-only simplification begins.
Missouri enacts economic nexus — last state to do so
Missouri (effective January 1, 2023) becomes the final state with a sales tax to enact economic nexus. All 45 taxing states now have rules in effect.
Transaction threshold removal accelerates
Iowa and Utah follow earlier states in dropping their 200-transaction thresholds. At least 7 states have now moved to revenue-only rules.
Illinois drops transaction threshold; simplification continues
Illinois eliminates its 200-transaction threshold effective January 1, 2026. The $100,000 revenue threshold alone now controls nexus for Illinois sellers.
Common questions about nexus threshold changes
Questions from sellers tracking state sales tax law in 2026.
How often do states change nexus thresholds?
Most states have not changed their revenue dollar thresholds since initial adoption (2018–2023). However, the transaction count component of dual-threshold rules is actively being removed — at least 7 states dropped their transaction thresholds between 2019 and 2026. Sellers should review their nexus exposure at least quarterly, since states can enact changes effective as soon as the next calendar quarter.
Will more states drop transaction thresholds?
The trend strongly suggests yes. States including Connecticut (200 transactions), Arkansas (200 transactions), Georgia (200 transactions), and others still maintain dual OR thresholds. Industry groups have lobbied for revenue-only thresholds because transaction counting adds compliance burden without meaningful policy benefit. Watch for legislative sessions in 2026–2027 for further simplification.
Are any states increasing their revenue thresholds?
No state has raised its revenue threshold since initial adoption. The three high-threshold states — California ($500,000), Texas ($500,000), and New York ($500,000 AND 100 transactions) — have maintained those levels since 2019. Louisiana and South Dakota v. Wayfair-era states adopted $100,000 as the standard and have not adjusted for inflation.
How do I stay updated on threshold changes?
NexusFlag publishes a quarterly threshold change report (this page) and sends in-app alerts when a state in which you have active sales changes its rules. You can also subscribe to state department of revenue mailing lists directly. The NexusFlag Research Team monitors all 50 state DOR publications and legislative calendars.
Get automatic alerts when thresholds change
NexusFlag monitors every state's DOR publications and notifies you when a rule changes in a state where you have active sales exposure. No quarterly manual review required.
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Know where you owe before the state finds out.
NexusFlag watches your sales in real time and sends an alert the moment you approach a state's threshold — so you can register on your schedule, not the state's.
Check your nexus exposure for freeNexusFlag provides research and monitoring tools — not legal or tax advice. Threshold information is compiled from state department of revenue publications and verified quarterly. Always confirm with a qualified tax professional or your state's department of revenue before making compliance decisions.