Economic nexus thresholds by state
Data version 2026-Q3 · reviewed 2026-07-14
Since South Dakota v. Wayfair (2018), states can require remote sellers to collect sales tax once sales cross an economic nexus threshold. Thresholds and how they combine vary by state. Pick a state for the detail, or check all states at once.
Of the 51 US jurisdictions, 47 levy a statewide sales tax with an economic nexus threshold and 4 have no statewide sales tax. The most common threshold is $100,000 (42 jurisdictions), and 18 also count the number of transactions. State base sales-tax rates run as high as 7.25% (California) and average about 5.7%, before any local add-ons.
| State | Revenue | Transactions | Rule | State rate |
|---|---|---|---|---|
| Alabama | $250,000 | — | Revenue only | 4% |
| Alaska | $100,000 | — | Revenue only | Local |
| Arizona | $100,000 | — | Revenue only | 5.6% |
| Arkansas | $100,000 | 200 | Revenue OR transactions | 6.5% |
| California | $500,000 | — | Revenue only | 7.25% |
| Colorado | $100,000 | — | Revenue only | 2.9% |
| Connecticut | $100,000 | 200 | Revenue AND transactions | 6.35% |
| Delaware | — | — | No state sales tax | — |
| District of Columbia | $100,000 | 200 | Revenue OR transactions | 6.5% |
| Florida | $100,000 | — | Revenue only | 6% |
| Georgia | $100,000 | 200 | Revenue OR transactions | 4% |
| Hawaii | $100,000 | 200 | Revenue OR transactions | 4% |
| Idaho | $100,000 | — | Revenue only | 6% |
| Illinois | $100,000 | — | Revenue only | 6.25% |
| Indiana | $100,000 | — | Revenue only | 7% |
| Iowa | $100,000 | — | Revenue only | 6% |
| Kansas | $100,000 | — | Revenue only | 6.5% |
| Kentucky | $100,000 | 200 | Revenue OR transactions | 6% |
| Louisiana | $100,000 | — | Revenue only | 5% |
| Maine | $100,000 | — | Revenue only | 5.5% |
| Maryland | $100,000 | 200 | Revenue OR transactions | 6% |
| Massachusetts | $100,000 | — | Revenue only | 6.25% |
| Michigan | $100,000 | 200 | Revenue OR transactions | 6% |
| Minnesota | $100,000 | 200 | Revenue OR transactions | 6.875% |
| Mississippi | $250,000 | — | Revenue only | 7% |
| Missouri | $100,000 | — | Revenue only | 4.225% |
| Montana | — | — | No state sales tax | — |
| Nebraska | $100,000 | 200 | Revenue OR transactions | 5.5% |
| Nevada | $100,000 | 200 | Revenue OR transactions | 6.85% |
| New Hampshire | — | — | No state sales tax | — |
| New Jersey | $100,000 | 200 | Revenue OR transactions | 6.625% |
| New Mexico | $100,000 | — | Revenue only | 4.875% |
| New York | $500,000 | 100 | Revenue AND transactions | 4% |
| North Carolina | $100,000 | — | Revenue only | 4.75% |
| North Dakota | $100,000 | — | Revenue only | 5% |
| Ohio | $100,000 | 200 | Revenue OR transactions | 5.75% |
| Oklahoma | $100,000 | — | Revenue only | 4.5% |
| Oregon | — | — | No state sales tax | — |
| Pennsylvania | $100,000 | — | Revenue only | 6% |
| Rhode Island | $100,000 | 200 | Revenue OR transactions | 7% |
| South Carolina | $100,000 | — | Revenue only | 6% |
| South Dakota | $100,000 | — | Revenue only | 4.2% |
| Tennessee | $100,000 | — | Revenue only | 7% |
| Texas | $500,000 | — | Revenue only | 6.25% |
| Utah | $100,000 | — | Revenue only | 6.1% |
| Vermont | $100,000 | 200 | Revenue OR transactions | 6% |
| Virginia | $100,000 | 200 | Revenue OR transactions | 5.3% |
| Washington | $100,000 | — | Revenue only | 6.5% |
| West Virginia | $100,000 | 200 | Revenue OR transactions | 6% |
| Wisconsin | $100,000 | — | Revenue only | 5% |
| Wyoming | $100,000 | — | Revenue only | 4% |
Economic nexus FAQ
What is economic nexus for sales tax?
Economic nexus is a sales-tax obligation triggered when a remote seller’s sales into a state exceed a threshold — a dollar amount of revenue, a number of transactions, or both. It stems from the 2018 South Dakota v. Wayfair Supreme Court decision, after which every state with a sales tax enacted its own economic nexus rules.
What is the most common economic nexus threshold?
$100,000 in annual gross sales is the most common threshold, used by 42 of the 51 US jurisdictions. About 18 states also count the number of separate transactions, usually set at 200 orders.
Which states have no economic nexus threshold?
4 US jurisdictions — Delaware, Montana, New Hampshire, and Oregon — impose no general statewide sales tax and therefore have no economic nexus threshold for remote sellers. The other 47 jurisdictions each set a threshold that remote sellers must track.
How often do economic nexus thresholds change?
States update their rules periodically. In recent years, several have dropped the transaction-count test, keeping only a revenue threshold. Nexus Snapshot reviews threshold data quarterly; the current data version is shown at the top of each state page.
Which state has the highest sales tax rate?
California has the highest state-level sales-tax rate at 7.25%. State base rates average about 5.7%, and local taxes can push the combined rate higher. Delaware, Montana, New Hampshire, and Oregon levy no statewide sales tax at all.
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Informational only — not legal or tax advice.