# US State Economic Nexus Sales Thresholds Reference > Source: https://netray.co/tools/us-state-economic-nexus-sales-thresholds-reference > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Look up the sales threshold that triggers economic nexus and sales tax registration in major US states, with notes on transaction-count tests. ## Category compliance-legal ## Region United States ## Audience - Controller - Tax manager - Finance manager ## Tool **Kind:** worksheet **Mode:** reference **Currency:** $ **Columns:** #### State **Key:** state **Type:** text #### Sales threshold (USD, prior or current 12 months) **Key:** threshold **Type:** text #### Transaction count test **Key:** txn **Type:** text #### Note **Key:** note **Type:** text **Rows:** **State:** Alabama **Threshold:** 250,000 **Txn:** None **Note:** Higher than the common 100,000 level **State:** Arizona **Threshold:** 100,000 **Txn:** None **Note:** Transaction privilege tax regime **State:** Arkansas **Threshold:** 100,000 **Txn:** None **State:** California **Threshold:** 500,000 **Txn:** None **Note:** Sales into the state, state level threshold **State:** Colorado **Threshold:** 100,000 **Txn:** None **Note:** Local home rule cities add their own rules **State:** Connecticut **Threshold:** 100,000 **Txn:** 200 transactions **Note:** Both tests must be met **State:** Florida **Threshold:** 100,000 **Txn:** None **State:** Georgia **Threshold:** 100,000 **Txn:** Verify current rule **Note:** Check Department of Revenue guidance **State:** Illinois **Threshold:** 100,000 **Txn:** None **Note:** Retailers' Occupation Tax **State:** Indiana **Threshold:** 100,000 **Txn:** None **State:** Kansas **Threshold:** 100,000 **Txn:** None **State:** Kentucky **Threshold:** 100,000 **Txn:** None **State:** Louisiana **Threshold:** 100,000 **Txn:** None **Note:** Parish level collection adds complexity **State:** Massachusetts **Threshold:** 100,000 **Txn:** None **State:** Michigan **Threshold:** 100,000 **Txn:** None **State:** Minnesota **Threshold:** 100,000 **Txn:** Verify current rule **Note:** Check Department of Revenue guidance **State:** Mississippi **Threshold:** 250,000 **Txn:** None **Note:** Higher than the common 100,000 level **State:** Missouri **Threshold:** 100,000 **Txn:** None **State:** Nevada **Threshold:** 100,000 **Txn:** None **State:** New Jersey **Threshold:** 100,000 **Txn:** 200 transactions **Note:** Either test triggers nexus **State:** New York **Threshold:** 500,000 **Txn:** More than 100 transactions **Note:** Both tests must be met **State:** North Carolina **Threshold:** 100,000 **Txn:** None **State:** Ohio **Threshold:** 100,000 **Txn:** None **State:** Oklahoma **Threshold:** 100,000 **Txn:** None **State:** Pennsylvania **Threshold:** 100,000 **Txn:** None **State:** South Carolina **Threshold:** 100,000 **Txn:** None **State:** Tennessee **Threshold:** 100,000 **Txn:** None **State:** Texas **Threshold:** 500,000 **Txn:** None **Note:** Total revenue from Texas sales in the preceding 12 calendar months **State:** Utah **Threshold:** 100,000 **Txn:** None **State:** Washington **Threshold:** 100,000 **Txn:** None **Note:** Retail sales tax plus B and O tax nexus rules differ **State:** Wisconsin **Threshold:** 100,000 **Txn:** None **State:** Delaware, Montana, New Hampshire, Oregon **Threshold:** No state sales tax **Txn:** Not applicable **Note:** Montana, New Hampshire and Oregon have no general state sales tax; check local and other taxes **Notes:** Thresholds change by legislation and are measured differently by state (gross sales, taxable sales, or retail sales). Treat this as a screening table and confirm against the state revenue department before registering or deregistering. ## Content **Intro:** Since the 2018 South Dakota v. Wayfair decision, a state can require a seller with no physical presence to collect sales tax once sales into the state pass a set threshold. This table lets you screen where your plant or distribution business may have crossed that line. **Sections:** #### How to use the table **Body:** Search by state name, then compare the threshold with your trailing 12 month sales shipped to customers in that state. Pull the figures from your ERP sales ledger by ship-to state, not bill-to state, because nexus follows where goods are delivered. If you are close to a threshold, register early or confirm with the state. Remember that exempt sales, such as sales for resale or manufacturing exemptions, may or may not count toward the threshold depending on the state's wording. #### What the threshold actually measures **Body:** States differ on the base. Some count gross sales, some count taxable retail sales only, and some exclude marketplace facilitator sales. Several states also look at a transaction count. The practical consequence is that two sellers with identical revenue can have nexus in one state and not another. **Bullets:** - Gross sales: all sales delivered into the state - Retail sales: only sales that would be taxable at retail - Marketplace sales: usually excluded when the marketplace collects the tax - Look-back period: prior calendar year, or the trailing 12 months, depending on the state #### Common mistakes **Body:** The most common error is treating physical nexus and economic nexus as alternatives. A plant, a warehouse, a field technician or inventory held at a third party logistics provider creates physical nexus regardless of sales. The second error is registering after the threshold date: most states require collection from the date you cross the threshold or the first day of the following month, so late discovery creates back tax exposure. **Cta:** If your ERP cannot report sales by ship-to state and exemption status, Netray can help build that report so nexus monitoring stops being a quarterly spreadsheet exercise. **Faq:** #### Is the Texas threshold 500,000 dollars? **Answer:** Yes. Texas requires remote sellers to register and collect once total revenue from sales delivered into Texas exceeded 500,000 dollars in the preceding 12 calendar months. Confirm the current rule and the treatment of exempt sales with the Texas Comptroller before relying on it. #### Does economic nexus apply to services? **Answer:** Sales tax nexus generally concerns taxable sales of tangible goods and the services a state taxes. If you sell nontaxable services only, the threshold may never create a collection duty. Check whether your products or digital items are taxable in each state. #### Do I need to collect from the day I cross the threshold? **Answer:** Rules vary. Many states require collection starting with the transaction that crosses the threshold or the first day of the next month. Some give a short grace period. Look at each state's effective date language before setting your ERP tax rule start date. #### Does this replace income tax nexus analysis? **Answer:** No. Sales tax economic nexus is separate from income and franchise tax nexus. Public Law 86-272 protects some sales of tangible goods from state income tax, but not from sales tax collection duties. ## Search terms economic nexus thresholds by state, sales tax nexus threshold table, texas economic nexus 500000, remote seller sales tax threshold, wayfair nexus by state, state sales tax registration threshold, economic nexus chart excel, manufacturer sales tax nexus --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json