State-by-state guide to economic nexus laws
Guide sections
On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. This ruling allows the state to begin taxing remote sales via their economic nexus laws. Since the ruling, more than 40 states enacted economic nexus laws of their own.
Economic nexus laws by state
Last updated November 29, 2021

Prior to this ruling, states could only enforce a tax collection obligation on businesses that had a physical presence in the state, such as a brick-and-mortar location or remote employees. While the physical presence standard still exists, nexus laws were expanded to include a sales tax obligation based on a certain level of economic activity within the state, including sales revenue, transaction volume, or a combination of both. Like many sales tax laws, economic nexus criteria vary by state and by the type of tax.
Below we’ll explore which states currently enforce economic nexus laws and some of the variations in each state’s law. For more information or assistance in determining your sales tax registration, collection, and remittance requirements, contact Avalara Professional Services.
Although we hope you’ll find the information helpful, this guide does not offer a substitute for professional legal or tax advice. If you have questions about your tax liability or concerns about compliance, please consult your qualified legal, tax, or accounting professional. This information was compiled in May 2019. Because states constantly update and amend their sales and use tax laws, see each state’s tax authority website for the most up-to-date and comprehensive information.
See where your sales might trigger nexus
Need to know where and when you owe sales tax? Stay on top of sales tax obligations with economic nexus tracking from Avalara. Get a free Sales Tax Risk Assessment for your nexus analysis today.
See where your sales might trigger nexus
Need to know where and when you owe sales tax? Stay on top of sales tax obligations with economic nexus tracking from Avalara. Get a free Sales Tax Risk Assessment for your nexus analysis today.
Alabama
Enforcement date:
October 1, 2018
Included transactions:
Total retail sales of tangible personal property delivered into the state. Sales made through a registered marketplace facilitator are not included, but sales made thorugh a non-collecting marketplace are included.
Treatment of exempt transactions:
Exempt sales (except wholesale sales) are included in the threshold. Exempt services are not included.
Trigger:
Sales only
Sales/transactions threshold:
$250,000
Evaluation period:
Threshold applies to sales from the previous calendar year
Additional information:
- Registration requirements: Alabama hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold.
- Remote sellers with economic nexus that opt to participate in the state's Simplified Sellers Use Tax (SSUT) progam are required to collect and remit taxes on sales into Alabama beginning October 1, 2019. See Simplified sellers use tax FAQs for more information.
- Alabama sales and use tax guidance
- Registration requirements for marketplace sellers
Alaska
Enforcement date:
varies by district
Included transactions:
Statewide gross sales of goods, property, or products delivered into the state or services rendered in the state, including sales through a marketplace
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to sales from the previous calendar year
Additional information:
- Though Alaska has no statewide sales tax, many local governments levy local sales and use taxes. Some now enforce economic nexus. The economic nexus threshold is based on a remote seller's statewide sales, not its sales into a particular jurisdiction.
- Registration requirements: A remote business must register with the Alaska Remote Seller Sales Tax Commission 30 days after the later of: the adoption of the remote seller sales tax code by a municipality; or passing the economic nexus threshold.
- Sellers that exceed the economic nexus threshold but don't sell into districts with economic nexus are not required to register.
- Alaska Remote Seller Sales Tax Commission
Arizona
Enforcement date:
October 1, 2019
Included transactions:
Gross proceeds of sales of tangible personal property or services, or gross income derived from business in the state. Services are included in the threshold. Sales made through a marketplace are not included.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$200,000 (2019)
$150,000 (2020)
$100,000 (2021 forward)
Evaluation period:
Threshold applies to sales from the previous or current calendar year
Additional information:
- Registration requirements: A remote business must register in Arizona when it crosses economic nexus threshold.
- TPT law for remote sellers and marketplace facilitators
HB 2757 - Registration requirements for marketplace sellers
Arkansas
Enforcement date:
July 1, 2019
Included transactions:
Aggregated sales of taxable tangible personal property, taxable services, digital codes, or specified digital products subject to Arkansas sales or use tax delivered into the state. Sales made through a registered marketplace are not included.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to sales from the current or previous calendar year
Additional Information:
- Registration requirements: Arkansas hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.
- Sales and use tax for remote sellers
SB576 - Registration requirements for marketplace sellers
California
Enforcement date:
April 1, 2019
Included transactions:
Total combined sales of tangible personal property delivered into the state by the retailer and all persons related to the retailer. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales (i.e., nontaxable sales such as sales for resale) are included; exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$500,000
Evaluation period:
Threshold applies to sales in the preceding or current calendar year
Additional information:
- California businesses meeting the economic nexus threshold in the state are required to collect all district (local) taxes starting April 25, 2019.
- Registration requirements: California requires remote businesses to register and begin collecting sales tax on the day they cross the economic nexus threshold. See CDTFA FAQs for more details.
- Use tax collection requirements
- CDTFA Wayfair FAQ
- AB147
Colorado
Enforcement date:
December 1, 2018
Included transactions:
Retail sales of tangible personal property, commodities, or services delivered into the state are included in the threshold
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except wholesales
Trigger:
Prior to April 1, 2019: Sales or transaction volume
As of April 1, 2019: Sales only
Sales/transactions threshold:
Prior to April 1, 2019: $100,000 or 200 transactions
As of April 1, 2019: $100,000 (The transactions threshold is eliminated)
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Out-of-state sellers required to collect also need to collect and remit applicable local and special district sales taxes that are state-collected. Sellers that make sales in home rule cities where the state doesn’t collect sales tax should contact the cities directly to learn about their requirements.
- In-state sellers that don't meet the economic nexus threshold in the state should source sales based on their location. Colorado businesses that do meet the economic threshold are required to use destination sourcing for all sales within 90 days of meeting the threshold.
- Registration requirements: Colorado requires a remote business to register and collect Colorado sales tax by the first day of the first month commencing at least 90 days after crossing the threshold. See the Sales Tax Guide for more details (page 11).
- HB19-1240
- Colorado Department of Revenue
Connecticut
Enforcement date:
December 1, 2018; amended as of July 1, 2019
Included transactions:
- Prior to July 1, 2019: Gross receipts from tangible personal property sold into the state, except sales for resale, provided the retailer regularly or systematically solicits the sales in the state. Services are not included.
- As of July 1, 2019: Gross receipts from tangible personal property or services; the regular or systematic solicitation component is eliminated.
Treatment of exempt transactions:
- Prior to July 1, 2019: Exempt sales are included in the sales threshold; sales for resale are excluded from the transaction test; exempt services are excluded from the sales and transaction test
- As of July 1, 2019: Exempt sales and exempt services are included in the sales threshold, as are sales through an online marketplace; exempt sales and exempt services (except sales for resale) are excluded from the transaction threshold
Trigger:
Sales and transaction volume
Sales/transactions threshold:
- Prior to July 1, 2019: Gross receipts of $250,000 and 200 retail transactions
- As of July 1, 2019: Gross receipts of $100,000 and 200 retail transactions
Evaluation period:
Threshold applies to all transactions within the 12-month period ending on September 30th immediately preceding the monthly or quarterly period during which liability is established
Additional information:
Florida
Enforcement date:
July 1, 2021
Included transactions:
Taxable sales of tangible personal property delivered physically into the state. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales volume only
Sales/transactions threshold:
- $100,000
Evaluation period:
Threshold applies to the previous calendar year
Additional information:
- Registration requirements: Florida hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.
- Florida SB 50
- Florida adopts economic nexus and marketplace facilitator law
Georgia
Enforcement date:
January 1, 2019
Included transactions:
Gross revenue from retail sales of tangible personal property delivered electronically or physically to a location in the state for consumption, use, or storage in the state. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales, except resales, are included but exempt services are not included in the threshold
Trigger:
Sales or transaction volume.
Sales/transactions threshold:
- Prior to January 1, 2020: $250,000 or 200 transactions.
- As of January 1, 2020: $100,000 or 200 transactions.
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- As of April 28, 2019, remote sellers that meet the economic nexus threshold in Georgia must collect and remit sales tax.They can no longer opt out by complying with non-collecting seller use tax reporting requirements.
- Registration requirements: Georgia hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.
- Remote Sellers - Sales and Use Tax Obligations
- GA HB61
- Georgia lowers remote seller sales threshold
Hawaii
Enforcement date:
July 1, 2018
Included transactions:
Gross income or gross proceeds of tangible personal property, intangible property, or services delivered or consumed in the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or immediately preceding calendar year. Applies to taxable years beginning on January 1, 2018.
Additional information:
- Registration requirements: Hawaii requires a remote business to file its first periodic return by the deadline for the periodic return following the period in which it crossed the economic nexus threshold. See the Department of Taxation Announcement 18-10 for more details.
- Department of taxation announcement
- HI SB2514
Idaho
Enforcement date:
June 1, 2019
Included transactions:
Cumulative gross receipts from sales including taxable products and taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the current or preceding calendar year
Additional information:
- Remote sellers with economic nexus are not responsible for collecting or remitting local sales tax in Idaho.
- Registration requirements: Idaho requires remote businesses to track their sales and register before reaching the threshold, so they’ll have their seller’s permit in time to begin collecting sales tax as soon as they cross the economic nexus threshold.
- HB 259
Illinois
Enforcement date:
October 1, 2018 (for state use tax)
January 1, 2021 (for local use tax)
Included transactions:
Cumulative gross receipts from sales of tangible personal property and property sold incident to a service into the state, excluding occasional sales; taxable services are not included
- As of January 1, 2020, sales made through a marketplace facilitator are excluded from the threshold
Treatment of exempt transactions:
Exempt sales, including exempt sales of property sold incident to a service, are included; sales for resale are not included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Although the threshold applies to the preceding 12 months, it must be determined on a quarterly basis. Additional exclusions exist for property that must be registered with the state.
Additional information:
- Registration requirements: A remote business must determine, on a quarterly basis, whether it crossed the economic nexus threshold in Illinois during the immediately preceding 12-month period. If it has, it must register and start collecting sales and use tax by the first day of the next quarter. See FY 2019-05 for more details.
- Use tax guidance for remote sellers
- FAQs for marketplace facilitatators, marketplace sellers, and remote sellers
- Public Act 100-587
- Illinois requires remote retailers to collect local tax
Indiana
Effective date:
October 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to transactions in the previous or current calendar year
Additional information:
- Registration requirements: Indiana requires remote businesses to register to collect and remit sales tax “immediately upon reaching the threshold.” See Remote Seller Information for more details.
- Remote sellers information
- House Bill 1129
Iowa
Enforcement date:
January 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property, specified electronically delivered products, and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Prior to July 1, 2019: Sales or transaction volume
As of July 1, 2019: Sales only
Sales/transactions threshold:
Prior to July 1, 2019: $100,000 or 200 transactions
As of July 1, 2019: The transactions threshold is eliminated
Evaluation period:
Threshold applies to transactions for an immediately preceding or current calendar year
Additional information:
- Registration requirements: Iowa requires remote businesses to register to collect and remit sales tax “on the first day of the next calendar month that starts at least 30 days from the day the remote seller first exceeded” the threshold. See Remote Sellers for more details.
- Remote sellers information
- SF2417
Kansas
Enforcement date:
July 1, 2021
Included transactions:
Cumulative gross receipt from sales by the retailer to customers in Kansas.
Treatment of exempt transactions:
Awaiting further clarification on the treatment of exempt sales and services
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to sales from the current or immediately preceding calendar year
Additional information:
- Registration requirements: According to the Kansas Department of Revenue, a remote seller must register and begin collecting sales tax on the first sale/date after reaching the economic nexus threshold.
- Prior to the enactment of SB 50 in May 2021, Kansas Department of Revenue Notice 19-04 required any remote business making sales into the state to register to collect and remit sales tax; there was no safe harbor for small sellers. SB 50 specifies that a remote seller meeting the economic nexus threshold “shall not be required to collect and remit any taxes from sales occurring prior to July 1, 2021.”
- Kansas lawmakers override veto to enact economic nexus threshold
Kentucky
Enforcement date:
October 1, 2018
Included transactions:
Gross receipts from sales of tangible personal property or digital property delivered or transferred electronically into the commonwealth. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales are included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to sales in the previous or current calendar year
Additional information:
- Registration requirements: Kentucky requires a remote business to register to collect and remit sales tax on the first day of the calendar month that begins no later than 60 days after crossing the economic nexus threshold. See Ky. Rev. Stat. Ann. §139.340(2)(g)(2) for more details.
- Kentucky sales and use tax collections by remote retailers
- HB487
Louisiana
Enforcement date:
July 1, 2020
Included transactions:
Gross revenue from sales of products, electronically transferred products, or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Louisiana requires a remote business to register to collect and remit sales and use tax within 30 days of surpassing the economic nexus threshold. See Information Bulletin No 20-002 for more details.
- Remote sellers bulletin
- HB547
- Louisiana Sales and Use Tax on Remote Sales FAQ
Maine
Enforcement date:
July 1, 2018
Included transactions:
Gross sales of tangible personal property* and taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are not included in the threshold
Trigger:
Sales or transaction volume through 2021; sales only effective January 1, 2022
Sales/transactions threshold:
$100,000 or 200 transactions through December 31, 2021
$100,000 only effective January 1, 2022
Evaluation period:
Threshold applies to sales during the current or previous calendar year
Additional information:
- Registration requirements: Maine may require a remote business to register to collect and remit sales and use tax as soon as it crosses the economic nexus threshold.
- Maine guidance for remote sellers
- LD1405 SP483
- *Tangible personal property includes electronically transferred property
- Maine eliminates transaction threshold
Maryland
Enforcement date:
October 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property or taxable services delivered into the state, including sales of software and digital goods
Treatment of exempt transactions:
Exempt sales of tangible personal property, software, and digital goods are included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to sales during the current or previous calendar year
Additional information:
- Registration requirements: Maryland hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold.
- Regulation on out of state vendors
- HB1301
Massachusetts
Enforcement date:
October 1, 2019
Included transactions:
Sales of tangible personal property and services
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the prior or current taxable year
Additional information:
- The Department of Revenue repealed the cookie nexus rule
- Registration requirements: Massachusetts requires a remote vendor to register to collect and remit sales tax by the first day of the first month beginning two months after the month in which the threshold was crossed. Different rules may apply to businesses who crossed the threshold in 2019. See 830 CMR 64H.1.9 for more details.
- Remote vendors FAQs
- Bill H.4000
Michigan
Enforcement date:
After September 30, 2018
Included transactions:
Sales of tangible personal property or taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous calendar year
Additional information:
- Registration requirements: Michigan requires a remote business to register to collect and remit sales tax by the start of the calendar year after the threshold was crossed.
- Information for remote sellers
- RAB 2018-16
Minnesota
Enforcement date:
October 1, 2018, amended as of October 1, 2019
Included transactions:
Applies to retail sales made into the state from outside the state. Taxable services (except resales) are included in the threshold.
Treatment of exempt transactions:
Exempt sales and sales to tax-exempt entities are included in the threshold, but sales for resale are not. Exempt services are not included in the threshold.
Trigger:
Sales or transaction volume
Sales/transactions threshold:
Prior to October 1, 2019: 10 or more sales totaling $100,000 or 100 retail sales
As of October 1, 2019: $100,000 or 200 or more retail sales
Evaluation period:
Threshold applies to the prior 12-month period
Additional information:
- Registration requirements: Minnesota requires a remote business to register to collect and remit Minnesota sales tax on the first taxable retail sale into Minnesota occurring no later than 60 days after the threshold has been crossed. See Remote Seller FAQs for more details.
- HF5
Mississippi
Enforcement date:
September 1, 2018
Included transactions:
Total sales made into the state by remote sellers that purposefully or systematically exploit the market in the state. Services are included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$250,000
Evaluation period:
Threshold applies to all transactions for the prior 12 months
Additional infomation:
- Registration requirements: Mississippi hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.
- Guidance for remote sellers
Missouri
Enforcement date:
January 1, 2023
Included transactions:
Gross receipts from taxable sales of tangible personal property delivered into Missouri
Treatment of exempt transactions:
Exempt sales are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Current or previous calendar year, determined quarterly
Additional information:
- Registration requirements: Not more than 3 months following the close of the preceding calendar quarter [Sec. 144.605(2)(e)]
- Missouri requires out-of-state sellers to collect sales tax
- SB 153
Nebraska
Enforcement date:
April 1, 2019 (pushed back from January 1, 2019 by GIL-1-19-2)
Included transactions:
Total retail sales made to customers in Nebraska.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except resales, sublease, or subrent
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous or current calendar year.
Additional information:
- Registration requirements: Nebraska requires a remote business to register to collect and remit Nebraska sales tax on or before the first day of the second calendar month after the threshold is exceeded. See FAQs for remote sellers for more details.
- Remote sellers FAQ
- LB284
Nevada
Enforcement date:
October 1, 2018
Included transactions:
Gross revenue from retail sales of tangible personal property into the state, excluding sales for resale. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales (except sales for resale) are included in the threshold; exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the preceding or current calendar year
Additional information:
- Registration requirements: Nevada requires a remote business to register to collect and remit Nevada sales tax starting on the first day of the first calendar month that begins at least 30 calendar days after it crosses the economic nexus threshold. See LCB File No. R014-201 for more details.
- Remote sellers FAQs
- R189-18
New Jersey
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue of tangible personal property, specified digital products, or taxable services (enumerated services under N.J.S.A. 54:32B-3(b)) delivered into the state
Treatment of exempt transactions:
Nontaxable retail sales of tangible personal property and specified digital products are included in the threshold. Any and all receipts from services enumerated and taxable under N.J.S.A. 54:32B-3(b) and delivered into New Jersey should be included in the threshold calculation even if a service is exempt under the specific circumstances of the transaction. Exempt services are not included.
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or prior calendar year
Additional information:
- Registration requirements: New Jersey requires a remote business to register to collect and remit New Jersey sales tax within 30 calendar days after crossing the economic nexus threshold. See Remote Sellers FAQs for more details.
- Remote sellers that only make nontaxable retail sales are required to register with New Jersey upon reaching the economic threshold, but may then request to be placed on a non-reporting basis by completing Form C-6205-ST. See Remote sellers FAQs.
- Information for remote sellers
- NJ A4496
New Mexico
Enforcement date:
July 1, 2019
Included transactions:
Total taxable gross receipts from sales, leases, and licenses of tangible personal property, as well as sales of licenses and services of licenses for use of real property sourced to the state
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the previous calendar year
Additional information:
- Businesses meeting the economic nexus threshold are required to collect city and county GRT starting July 1, 2021, when destination sourcing takes effect.
- Registration requirements: New Mexico requires a remote business to register for New Mexico gross receipts tax by January 1 of the year following the year it crossed the economic nexus threshold.
- Changes to New Mexico tax law
- HB6
New York
Enforcement date:
Effective “immediately after the Wayfair ruling, June 21, 2018”; however, no clearly stated effective date is currently provided
Included transactions:
Cumulative total gross receipts from sales of tangible personal property delivered into the state (SaaS is considered TPP); services are not included in the threshold
Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are excluded
Trigger:
Sales and transaction volume
Sales/transactions threshold:
$500,000 and 100 transactions
Evaluation period:
Threshold applies to the previous four sales tax quarters as defined by the state
Additional information:
- Registration requirements: New York requires a remote business to register to collect and remit New York sales tax within 30 days after crossing the economic nexus threshold and begin to collect tax 20 days thereafter. See Nexus FAQs for more details.
- Remote seller requirements
North Carolina
Enforcement date:
November 1, 2018
Included transactions:
Gross sales sourced to North Carolina (the sum total sales price of tangible personal property, digital property, and services sourced to the state, unless the context requires otherwise).
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: North Carolina requires a remote business to register to collect and remit North Carolina sales tax within 60 days of crossing the economic nexus threshold. See Remote Sales for more details.
- Information for remote sellers
- SB56
North Dakota
Enforcement date:
October 1, 2018
Included transactions:
Gross taxable sales of tangible personal property and other items into the state, including taxable services; sales made through a marketplace are not included in the threshold
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Prior to July 1, 2019: Sales or transactions
As of July 1, 2019: Sales only
Sales/transactions threshold:
Prior to January 1, 2019: $100,000 or 200 transactions
As of January 1, 2019: $100,000 only
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: North Dakota requires remote businesses to register to collect and remit North Dakota sales tax the earlier of the following calendar year or 60 days after crossing the economic nexus threshold.
- Remote sellers FAQ
- SB 2191
- SB 2298
Ohio
Enforcement date:
August 1, 2019
Included transactions:
Gross receipts, excluding resales, from the sale of tangible personal property for storage, use, or consumption in the state or from providing enumerated services the benefit of which is realized in the state
Treatment of exempt transactions:
Exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or preceding calendar year
Additional information:
- The new law repeals the previous cookie nexus law that applied only to software or network providers.
- Registration requirements: Ohio requires remote businesses to register and begin collecting Ohio sales tax the day after crossing the economic nexus threshold. See Out-of-state Sellers for more details.
- HB166
Oklahoma
Enforcement date:
November 1, 2019
Included transactions:
Aggregate sales of taxable tangible personal property delivered to locations within the state. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Oklahoma requires a remote business to register and collect and remit sales tax by the first calendar month succeeding the month it crosses the economic nexus threshold. See SB 513 for more details.
- Remote sellers FAQs
- SB513
- HB1019
Pennsylvania
Enforcement date:
July 1, 2019
Included transactions:
Gross sales of products and services in the commonwealth, including sales by agents, representatives, or subsidiaries
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to sales in the prior 12 calendar months
Additional information:
- The threshold did not include exempt sales or services through June 30, 2019, under a different remote seller sales tax requirement.
- Registration requirements: If total Pennsylvania sales for 2019 exceed the threshold, a remote seller must collect and remit PA sales tax for taxable starting April 1, 2020. The first quarter of each year is set aside for businesses to tabulate their total Pennsylvania sales from the previous calendar year in order to determine their sales tax exposure. See Answers to Economic Nexus for more details.
- Sales and use tax bulletin
Puerto Rico
Enforcement date:
January 1, 2021
Included transactions:
Total gross sales delivered into the state
Treatment of exempt transactions:
Exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the seller's accounting year
Additional information:
- Registration requirements: TBD.
- Regulation No. 9237
- Puerto Rico adopts economic nexus
Rhode Island
Enforcement date:
July 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales are included but exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the preceding calendar year
Additional information:
- Registration requirements: Rhode Island requires a remote business to register and collect and remit sales tax on January 1 of the year following the calendar year they crossed the economic nexus threshold. Different requirements apply if the threshold was passed in 2018. See ADV_2019_11 for more details.
- Remote sellers information
- SB 251A and HB5278A
South Carolina
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically transferred products, or services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Remote businesses that cross the economic nexus threshold on or after October 1, 2018, are responsible for remitting the sales and use tax for all taxable sales made into South Carolina beginning the first day of the second calendar month after economic nexus is established. See SC Revenue Ruling #18-14 for more details.
- Sales and use tax for remote sellers
- Remote sellers FAQs
South Dakota
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: South Dakota requires remote businesses to register and collect and remit South Dakota sales tax from the moment they cross the economic nexus threshold forward. See Remote Seller Bulletin for more details.
- Remote sellers information
Tennessee
Enforcement date:
July 1, 2019
Included transactions:
Sales to customers in Tennessee (except for resales)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold calculation; sales for resale are excluded; sales made through an online marketplace are excluded effective October 1, 2020
Trigger:
Sales only
Sales/transactions threshold:
Prior to October 1, 2020: $500,000
As of October 1, 2020: 100,000
Evaluation period:
Threshold applies to the previous 12-month period
Additional information:
- Registration requirements: Tennessee requires remote businesses to register and begin collecting and remitting Tennessee sales and use tax by the first day of the third calendar month following the month they cross the economic nexus threshold. See 1320-05-01-.129(2)(b) for more details.
- Guidance for out-of-state dealers
- HB0667
- SB 2932
- Notice #20-24
Texas
Enforcement date:
October 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property and services into the state (i.e., total Texas revenue)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$500,000
Evaluation period:
Threshold applies to the previous 12 months, with the initial 12 calendar months beginning July 1, 2018 through June 30, 2019
Additional information:
- Registration requirements: A remote business must register with the Texas Comptroller no later than the first day of the fourth month after the month it crossed the economic nexus threshold. More details. See 34 Texas Administrative Code §3.286 for more details.
- Resources for sellers after Wayfair
- HB 2153
Utah
Enforcement date:
January 1, 2019
Included transactions:
Gross revenue from the sales of tangible personal property, any product transferred electronically, or services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Utah hasn’t specified how soon a remote business must register once it crosses the economic nexus threshold. It could be as early as the next transaction.
- Remote sellers information
- SB 2001
Vermont
Enforcement date:
July 1, 2018
Included transactions:
Sales of tangible personal property, products transferred electronically, or services in the state, provided the retailer regularly or systematically solicits sales from in-state customers
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold. However, businesses that only sell tax-exempt items into Vermont aren’t required to register for a sales tax account.
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the preceding 12-month period and should be reevaluated quarterly
Additional information:
- Registration requirements: Sellers must determine whether the threshold has been met in Vermont at the end of each quarter. A remote business must register to collect and remit Vermont sales tax within 30 days after the end of the quarter in which the threshold was crossed. For example, you would start collecting on May 1 if you exceeded the threshold during the first quarter ending March 31, and on August 1 if you crossed the threshold during the second quarter. See Wayfair FAQs for more details.
- South Dakota v. Wayfair
- H.873
Virginia
Enforcement date:
July 1, 2019
Included transactions:
Gross revenue from retail sales and taxable services into the commonwealth, including sales made by members of same controlled group of corporations; excludes sales for resale
Treatment of exempt transactions:
Exempt sales (except resales) are included in the threshold; exempt services are excluded
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or previous calendar year
Additional information:
- Registration requirements: A remote business must register to collect and remit Virginia sales tax no later than 30 days after crossing the economic nexus threshold. See Guidelines for Remote Sellers and Marketplace Facilitators for more details.
- Information for remote sellers
- SB1083
Washington
Enforcement date:
October 1, 2018
Included transactions:
- Cumulative gross receipts from retail sales and taxable services into the state through December 31, 2019.
- Cumulative gross annual income in Washington from January 1, 2020, forward.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; resales are included effective January 1, 2020
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the previous or current calendar year
Additional information:
- Until July 1, 2019, remote sellers with between $10,000 and $100,000 in sales in the state and fewer than 200 transaction have a choice: Collect and remit sales tax or comply with use tax reporting requirements for non-collecting sellers. Effective July 1, 2019, the non-collecting seller use tax reporting option is eliminated.
- Washington also enforces economic nexus for its business and occupation (B&O) tax on gross receipts.
- Registration requirements: A remote business must register to collect and remit Washington sales tax on the first day of the month that starts at least 30 days after crossing the threshold. See Registration requirements for out-of-state businesses for more details.
- Remote sellers
- Registration thresholds
Washington, D.C.
Enforcement date:
January 1, 2019
Included transactions:
Gross receipts from all retail sales delivered into the District
Treatment of exempt transactions:
With the exception of sales for resale and exempt services, exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to sales in the previous or current calendar year
Additional information:
- Registration requirements: A remote business must register and start collecting sales tax in the District of Columbia “as soon as its sales into the District exceed” the economic nexus threshold. See the OTR FAQs (#4) for more details.
- OTR Notice 2019-02
- B22-1070
West Virginia
Enforcement date:
January 1, 2019
Included transactions:
Gross sales of tangible personal property or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the preceding or current calendar year
Additional information:
- Registration requirements: A remote business must register and begin collecting West Virginia sales and use taxes on sales made after the date the economic nexus threshold was crossed. See Remote Sellers and West Virginia for more details.
- Remote sellers information
- Tax department notice
Wisconsin
Enforcement date:
October 1, 2018
Included transactions:
Annual gross sales of tangible personal property and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; businesses that only make nontaxable sales in Wisconsin are not required to register for a sales tax account
Trigger:
Sales only (200 transactions threshold eliminated effective February 20, 2021)
Sales/transactions threshold:
$100,000 (200 transactions threshold eliminated effective February 20, 2021)
Evaluation period:
Previous or current calendar year (based on remote seller's taxable year for federal income tax purposes); prior to February 20, 2021, based on remote seller's taxable year for federal income tax purposes.
Additional information:
- Registration requirements: A remote business is required to register and begin collecting Wisconsin sales tax upon crossing the economic nexus threshold. See Registration and Collection Dates for Remote Sellers for more details.
- Remote sellers information
- Wisconsin ACT 368
- Assembly Bill 2
- Wisconsin eliminates economic nexus transaction threshold
Wyoming
Enforcement date:
February 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property, admissions, or services delivered into the state (includes taxable, exempt, and wholesale sales)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold count
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or immediately preceding calendar year
Additional information:
- Registration requirements: A remote business could be required to register and begin collecting Wyoming sales tax as soon as it crosses the economic nexus threshold.
- Remote sellers information
- HB 19
Stay ahead of changing sales tax legislation
As you can see, economic nexus laws can vary quite a bit from state to state, so it’s important for businesses to understand the laws in full and review sales activity frequently to determine when and where they have a new obligation. As your business grows, ensure you have a partner like Avalara in place to help you scale.
Economic nexus is one of the many ways your business can establish nexus: an obligation to register, collect, and remit sales tax in a jurisdiction. To see other sales tax laws and nexus rules by state, view our sales tax laws by state resource.
If you’ve determined you have a new sales tax obligation due to economic nexus laws, the typical next step is to register your business with the jurisdiction. Avalara Licensing can help with that.