Economic Nexus Requirements by State
Economic nexus is created when a business reaches a certain threshold of economic activity in a given state. In most states, nexus is calculated using the number of sales, the amount of revenue generated, or a combination of both. Once a business reaches the threshold, it must comply with the various sales tax collection, registration, and reporting requirements in that state.
Many businesses sell products, services, and software both online and into many states. State requirements and the business’s own sales activity are dynamic, making assessing nexus a complex and ongoing exercise.
This table below provides the specific thresholds in each state. Organizations should review their sales activities in each state with their legal and tax professionals, and then register proactively once it becomes required.
Overview By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
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