Economic Nexus Calculator

What is economic nexus?

Economic nexus is the legal standard that lets a state require a remote (out-of-state) seller to register, collect, and remit sales tax based solely on the seller's sales activity into that state — with no need for a store, warehouse, or employee physically located there. Before 2018, states could only tax sellers with a physical presence ("physical nexus"). That changed with the US Supreme Court's decision in South Dakota v. Wayfair, Inc., which upheld South Dakota's law requiring remote sellers exceeding $100,000 in sales or 200 transactions to collect the state's sales tax.

Every state that levies a sales tax has since adopted its own version of an economic nexus law. The $100,000 revenue threshold became the de facto national standard, though several states set a higher bar ($250,000 or $500,000), and a shrinking number still pair the revenue test with a 200-transaction count. Once you cross a state's threshold, the general expectation is: register for a sales tax permit within that state's grace period, then begin collecting and remitting tax on subsequent taxable sales delivered there. Ignoring a crossed threshold does not make the liability disappear — most states can look back further, plus penalties and interest, once you eventually do file.

For a deeper walkthrough of registration mechanics, marketplace facilitator rules, and a state-by-state compliance roadmap, see our Economic Nexus Guide and the 2026 Economic Nexus Blueprint. If you sell into multiple states and want to model the actual tax collected once you're registered, use the Multi-State Sales Tax Calculator, and check current combined rates on our Sales Tax by State page.

Economic nexus thresholds by state (2026 reference table)

The table below lists every US jurisdiction's revenue threshold, transaction test (where one still applies), measurement period, and any notes worth knowing before you register. Revenue thresholds are the confident, stable figures this calculator relies on; treat any transaction-count column as advisory, since many states are repealing it on a rolling basis through 2026.

The 2025–2026 trend: states are dropping the transaction-count test

When states first wrote their economic nexus laws after Wayfair, most copied South Dakota's original "$100,000 OR 200 transactions" formula. Lawmakers have since recognized that a 200-transaction rule can rope in a hobbyist seller doing hundreds of $2 sales — a compliance burden wildly disproportionate to the revenue involved. Starting around 2019 and accelerating through 2023–2026, a growing list of states —including Indiana, Iowa, Louisiana, Maine, North Carolina, North Dakota, South Dakota itself, Wisconsin, and Wyoming — have repealed their transaction-count test entirely, moving to a revenue-only standard. Illinois, Minnesota, and Utah are in various stages of phasing theirs out.

Because this list keeps shifting and sources sometimes disagree on the exact current status in a handful of states, this calculator treats every transaction-count result as advisory, not a hard determination. If a state result is only triggered by the transaction test (not revenue), verify directly with that state's Department of Revenue before you register — don't rely on the transaction column alone.

Sources

• Avalara — State-by-state economic nexus guide
• Sales Tax Institute — Economic nexus state chart
• South Dakota v. Wayfair (Supreme Court opinion)

Frequently asked questions

Quick answers to the most common questions users ask.