Sales Tax Nexus Thresholds by State — 2026

As of 2026, 45 US states and the District of Columbia require remote sellers to collect sales tax once they exceed economic nexus thresholds established after South Dakota v. Wayfair (2018).

Last updated: April 2026

Researched by the NexusFlag Research Team

46

States with sales tax

5

No-tax states

$100K

Most common threshold

7

Years since Wayfair

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StateRevenue Threshold
Alabama$250,000
AlaskaNo sales tax
Arizona$100,000
Arkansas$100,000
California$500,000
Colorado$100,000
Connecticut$100,000
DelawareNo sales tax
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
Mississippi$250,000
Missouri$100,000
MontanaNo sales tax
Nebraska$100,000
Nevada$100,000
New HampshireNo sales tax
New Jersey$100,000
New Mexico$100,000
New York$500,000
North Carolina$100,000
North Dakota$100,000
Ohio$100,000
Oklahoma$100,000
OregonNo sales tax
Pennsylvania$100,000
Rhode Island$100,000
South Carolina$100,000
South Dakota$100,000
Tennessee$100,000
Texas$500,000
Utah$100,000
Vermont$100,000
Virginia$100,000
Washington$100,000
West Virginia$100,000
Wisconsin$100,000
Wyoming$100,000

Common questions about economic nexus

Answers to the questions remote sellers ask most often about state sales tax obligations.

What is economic nexus?

Economic nexus is a legal standard that requires remote sellers to collect and remit sales tax in a state once they exceed a revenue or transaction threshold — even without a physical presence in that state. The standard was established by the U.S. Supreme Court in South Dakota v. Wayfair (2018).

Which states have no sales tax?

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Sellers do not need to collect state sales tax on sales into these states, though Alaska allows local municipalities to impose their own sales taxes.

What does AND vs OR threshold logic mean?

Most states use OR logic, meaning nexus triggers when a seller exceeds EITHER the revenue threshold OR the transaction count threshold, whichever comes first. A few states — notably New York — use AND logic, requiring a seller to exceed BOTH thresholds simultaneously before nexus is triggered.

Do marketplace sales count toward nexus thresholds?

It depends on the state. Many states exclude marketplace-facilitated sales (e.g., Amazon FBA) from threshold calculations because the marketplace itself is responsible for collecting and remitting tax. Check each state page for the specific marketplace inclusion rules.

When do I need to register after crossing nexus?

Most states require registration within 30 to 60 days of crossing the threshold. Some states have no grace period. NexusFlag monitors your thresholds in real time and alerts you before you cross, giving you time to register without penalties.

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 free