Sales Tax Nexus Threshold Check
Check whether your out-of-state sales cross a state’s economic nexus threshold, creating an obligation to register and collect sales tax there.
How it works
Economic nexus = (sales ≥ sales threshold) OR (transactions ≥ transaction threshold), per state rules since South Dakota v. Wayfair
After the 2018 South Dakota v. Wayfair decision, states can require out-of-state sellers to collect sales tax once they cross an economic nexus threshold — commonly $100,000 in sales OR 200 transactions in a state during the year. Thresholds vary: many states have dropped the transaction count and some use a $500,000 figure, and the measurement period differs. Crossing either applicable threshold generally means you must register, collect and remit that state’s sales tax.
Worked example
A seller ships $90,000 across 120 transactions into a state with a $100,000 / 200-transaction threshold. Neither is crossed, so there is no economic nexus yet — but they are $10,000 short of the sales threshold and should watch it as the year continues.
Frequently asked questions
Is the threshold the same in every state?
No. $100,000 in sales is the most common trigger, but some states use $500,000, and many have removed the 200-transaction test entirely. Always check the specific state’s current rule.
Do the thresholds count exempt or marketplace sales?
It varies. Some states include all gross sales, others exclude marketplace-facilitated sales or exempt goods. Because marketplaces like Amazon often collect on your behalf, your direct sales may be what matters.
What happens once I have nexus?
You generally must register for a sales tax permit in that state, collect tax on taxable sales, and file returns on the state’s schedule — even though you have no physical presence there.
Related calculators
Educational estimate using simplified US federal rules — ignores state tax, credits and your full situation. Not tax advice; confirm with a CPA or IRS guidance.