What are the economic nexus thresholds by state?

The standard economic nexus threshold is $100,000 in annual sales to customers in a state. That applies to most of the 45 states with a general sales tax. The confirmed exceptions (California at $500,000, Texas at $500,000) matter significantly for mid-market sellers building out their nexus analysis.

The standard threshold

After the Supreme Court’s 2018 Wayfair ruling, states rushed to enact economic nexus laws. South Dakota’s law (which the Court upheld) used $100,000 in sales or 200 transactions as the trigger. Most states adopted that same structure.

The majority rule: $100,000 in annual sales to customers in the state. In most states, this is measured against the prior calendar year, the current calendar year, or both, if you exceed $100K in either period, you have nexus.

Many states originally paired the $100K threshold with a 200-transaction test (nexus triggered by either sales volume OR transaction count). The trend over the past few years has been to drop the transaction count and use dollar threshold alone. As of 2026, most states have eliminated the 200-transaction test, but some still use it. Always verify the current rule for the specific state.

The confirmed high-threshold exceptions

Two major states set their thresholds significantly above $100,000:

The California and Texas exceptions are the ones most likely to affect mid-market ecommerce sellers, because both are large markets and the gap between $100K and $500K is where many growing brands sit.

States with no sales tax (and therefore no economic nexus)

Five states have no statewide general sales tax and no economic nexus laws:

• Alaska: no statewide sales tax, but some local jurisdictions have enacted their own sales taxes and economic nexus rules (administered through the Alaska Remote Seller Sales Tax Commission). Multi-channel sellers with meaningful Alaska sales should verify current local requirements.
• Delaware: no sales tax
• Montana: no sales tax
• New Hampshire: no sales tax
• Oregon: no sales tax

For sellers, these five states are compliance-free for sales tax purposes (with the Alaska caveat above).

What the $100,000 threshold actually measures

Understanding what counts toward the threshold is as important as knowing the threshold itself.

What counts in most states:

• Your own website, Shopify store, WooCommerce site, or any direct channel
• Amazon FBA sales (even though Amazon collects the tax, most states count these sales toward your threshold)
• Etsy, eBay, Walmart Marketplace, and other marketplace sales (same logic, most states count them)
• Wholesale and B2B sales to in-state customers

What may not count:

• Sales of exempt products in states that exclude specific categories from threshold calculations (rare)
• Marketplace sales in the handful of states that explicitly exclude marketplace-facilitated sales from the threshold (verify individually)

The practical implication: if you sell across Amazon and your own Shopify store, your threshold calculation for any state is the sum of both channels. A seller with $70K in Shopify sales and $60K in Amazon sales into North Carolina has crossed North Carolina’s $100K threshold, even though Amazon collected on the $60K.

Related: Do marketplace sales count toward my economic nexus threshold?

How the measurement window works

Most states use one of two approaches:

Calendar year (most states): Your sales in either the prior calendar year (January 1–December 31) or the current calendar year count. If you exceed $100K in either period, you have nexus. Your counter resets every January 1.

Trailing 12 months: Some states (including Ohio) use a rolling 12-month lookback. There’s no annual reset. You’re always measuring the most recent 12 months. For growing sellers, trailing 12-month states catch threshold crossings faster.

Related: How is the nexus threshold calculated, calendar year or trailing 12 months?

How to verify your specific state’s current threshold

Sales tax thresholds and transaction count rules change. States occasionally update their laws, dropping the transaction count test, adjusting measurement periods, or clarifying what counts toward the threshold. The authoritative source for any state is its Department of Revenue (or equivalent) remote seller or economic nexus guidance page.

For each state where you’re approaching or may have crossed the threshold:

1. Search: “[State name] economic nexus remote seller requirements [year]”
2. Look for: The state’s Department of Revenue or Comptroller’s guidance on remote seller thresholds
3. Confirm: The dollar threshold, whether transaction count still applies, the measurement period (calendar year vs. trailing 12 months), and what sales types count

If you sell in multiple states and want this managed automatically, a sales tax platform that tracks each state’s correct measurement window is more reliable than manual tracking, state rules change and thresholds can shift without widely publicized announcements.

What to do when you’ve crossed a threshold

Crossing a threshold doesn’t immediately create a filing obligation, it creates a registration obligation. Once you’ve crossed:

1. Register for a sales tax permit in that state before your collection obligation begins
2. Configure your ecommerce platform or tax software to collect in that state
3. Begin collecting on future sales to customers there

The collection obligation typically starts on the first day of the month following the crossing, or the first day of the following quarter: the specific rule varies by state. Don’t assume you have a full year.

Related: When do I have to start collecting sales tax in another state?