Register for a sales tax permit
Register on the state's Department of Revenue website before collecting a single dollar. The SST program lets you register in 24 states simultaneously.
⚖️Policy Verified for 2026
Economic Nexus Guide 2026 — State Thresholds After Wayfair
The authoritative roadmap for ecommerce sellers and remote businesses navigating the complex world of multi-state sales tax obligations in 2026.
✓ Post-Wayfair✓ All 50 States✓ 2026 Thresholds
What is Economic Nexus?
Before 2018, a business had to have a physical presence in a state for that state to require sales tax collection. The Supreme Court's South Dakota v. Wayfair ruling (June 2018) changed that — states can now require you to collect sales tax based purely on how much you sell to their residents.
The standard threshold
$100,000 in sales OR 200 transactions
Exceed either in a state within 12 months and you must register and collect sales tax there. Use the Multi-State Calculator to model your tax exposure.
How to Know If You Have Economic Nexus
- Track sales by destination state — most ecommerce platforms have built-in ship-to state reporting.
- Compare against each state's threshold — see the table below.
- Register before collecting — collecting without a permit is illegal in most states.
- Configure destination-based rates — use the buyer's ship-to address, not your location.
- File and remit on schedule — states assign monthly, quarterly, or annual frequencies.
State-by-State Thresholds (2026)
| State | Sales Threshold | Transaction Threshold | Notes |
|---|---|---|---|
| Alabama | $250,000 | None | SSUT program available |
| Arizona | $100,000 | None | TPT applies |
| Arkansas | $100,000 | 200 | Either threshold |
| California | $500,000 | None | Higher threshold |
| Colorado | $100,000 | None | Home Rule cities vary |
| Connecticut | $100,000 | 200 | Either threshold |
| Florida | $100,000 | None | Effective July 2021 |
| Georgia | $100,000 | 200 | Either threshold |
| Illinois | $100,000 | 200 | Either threshold |
| New York | $500,000 | 100 | Both must be met |
| Texas | $500,000 | None | Higher threshold |
| Washington | $100,000 | None | Facilitator rules apply |
| All other states | $100,000 | 200 (most) | Verify with state DOR |
What to Do Once You Have Nexus
Reconcile collections monthly
Use the Sales Tax Reconciliation Calculator to separate tax collected from revenue. Tax collected is a liability — it belongs to the state until remitted.
Marketplace facilitator rules
If you sell through Amazon, Etsy, or eBay, those platforms collect and remit tax on your behalf in nearly every state. Marketplace sales generally don't count toward your nexus threshold — but your own-website sales do.
The 2026 Policy Shift: Removing Transaction Counts
A major trend for 2026 is the removal of the "200-transaction" threshold in states like Illinois and Iowa. Previously, high-volume but low-dollar sellers could be pulled into nexus. Now, many states are moving toward a Revenue-Only threshold (typically $100,000), simplifying compliance for small-ticket retailers while maintaining capture of high-revenue players.
Retroactive Audit Risks
Exceeding a threshold without registering creates a permanent unrecorded liability. States are increasingly using 1099-K data to identify non-compliant remote sellers. A voluntary disclosure agreement (VDA) is often the best path for businesses that have unknowingly established nexus in previous fiscal years to limit penalties and interest.
· Rates verified quarterly from the Tax Foundation and state Departments of Revenue.
Frequently asked questions
Quick answers to the most common questions users ask.
What is economic nexus?
Economic nexus is the obligation to collect sales tax in a state based on your sales volume there — regardless of physical presence. Established by South Dakota v. Wayfair (2018).
What is the standard economic nexus threshold?
Most states use $100,000 in annual sales OR 200 transactions. Some states (California, Texas, New York) use $500,000. A few use only a dollar threshold.
Do marketplace sales count toward nexus thresholds?
In most states, sales through marketplace facilitators (Amazon, Etsy, eBay) do NOT count because the marketplace collects and remits tax on your behalf.
What happens if I exceed the threshold and don't register?
You remain liable for uncollected tax. The state can audit and demand payment plus penalties and interest. Register voluntarily as soon as you exceed a threshold.
What is a marketplace facilitator?
A platform (Amazon, Etsy, eBay) that collects and remits sales tax on behalf of third-party sellers. Most states require facilitators to handle tax collection.
What is the Streamlined Sales Tax (SST) program?
An agreement among 24 states to simplify sales tax rules. Sellers who register through SST get free tax software and reduced compliance burden across all member states.
All rates, thresholds, and regulatory guidance cited on this page are sourced from official government publications and non-partisan research institutions.
Federal & National Sources
🏛️
IRS Sales Tax Calculator
The official Internal Revenue Service tool for determining deductible state and local sales tax for federal income tax purposes.
irs.gov📊
U.S. Census Bureau
Official government repository for quarterly state and local tax revenue statistics and government finance data.
census.gov⚖️
Supreme Court — Wayfair Decision
The official government opinion for South Dakota v. Wayfair, Inc., establishing modern economic nexus standards for remote sellers.
supremecourt.gov💼
SBA Business Tax Guide
Official Small Business Administration guidance on understanding federal and state tax obligations for small business owners.
sba.gov🤝
Streamlined Sales Tax Board
The official inter-governmental organization facilitating the simplification of sales tax administration across 24 member states.
streamlinedsalestax.orgState Departments of Revenue
🌴
California CDTFA
Official CA tax rates portal, address-specific lookup tools, and district tax publications.
cdtfa.ca.gov🤠
Texas Comptroller
The official Texas sales tax rate locator, local jurisdiction database, and nexus guidance.
comptroller.texas.gov🍎
New York Tax & Finance
Official NY jurisdiction lookup for combined state, local, and MTA rates, and clothing exemptions.
tax.ny.gov☀️
Florida Dept. of Revenue
Official FL resource for state sales tax rates, county surtaxes, and annual tax holidays.
floridarevenue.com🏙️
MyTax Illinois
Official Illinois Department of Revenue portal for address-based tax rate lookups and filings.
tax.illinois.gov🔔
Pennsylvania Revenue
Official PA portal for sales, use, and hotel occupancy tax rates and regulatory guidance.
revenue.pa.gov🔍
Ohio 'The Finder'
Official Ohio Department of Taxation tool for looking up rates by address, ZIP, or GPS coordinates.
tax.ohio.gov🍑
Georgia Dept. of Revenue
Official Georgia sales and use tax rate charts and local jurisdiction tax distribution data.
dor.georgia.gov⛰️
North Carolina DOR
Official NCDOR portal for state, local, and transit tax rates by county and jurisdiction.
ncdor.gov🚗
Michigan Treasury
Official Michigan Department of Treasury resources for the statewide 6% sales and use tax.
michigan.govProfessional & Industry Organizations
TaxesLedger is an independent educational tool. We are not affiliated with any government agency. Rates are verified quarterly; always confirm with your jurisdiction's official Department of Revenue before filing. Last verification: May 15, 2026.