About the Sales Tax Economic Nexus Checker
This sales tax economic nexus checker compares your sales into each US state with that state’s remote seller threshold. Since the Supreme Court’s 2018 South Dakota v. Wayfair decision, a business with no physical presence in a state can still be required to register, collect and remit sales tax once its sales there pass an economic threshold — usually $100,000, but $250,000 in Alabama and Mississippi and $500,000 in California, New York and Texas, with some states also counting the number of transactions.
Paste one line per state with your sales and, optionally, your number of separate transactions. The tool flags every state where you have crossed the threshold, warns where you are within 80% of it, and lists each state’s test, measurement period and what kind of sales count. It is built for e-commerce sellers, SaaS and digital product companies, wholesalers and their bookkeepers and accountants doing a nexus review.
Thresholds reflect state revenue department guidance and the Streamlined Sales Tax Governing Board chart as reviewed in 2026, including recent repeals of the 200-transaction test (for example Illinois from January 1, 2026 and Utah from July 1, 2025). States measure different things — gross, retail or taxable sales — and over different periods, and many count marketplace sales toward the threshold even when the marketplace collects the tax. Physical presence (inventory, employees, offices) creates nexus regardless of sales. Treat a result as a prompt to confirm with the state or a tax adviser.
With the default inputs, the states where a threshold is met is 4. Change any value above to recalculate instantly.
How to use the sales tax economic nexus checker
- 1Pull your sales by ship-to state for the measurement period (usually the previous and current calendar year).
- 2Enter one line per state: state code or name, sales, and number of transactions.
- 3Include marketplace sales unless you know the state excludes them.
- 4Review the states flagged as Nexus or Approaching.
- 5Turn on “Show every state” to see each threshold, period and sales basis.
- 6Confirm with the state revenue department before registering or deciding not to.
Formula and method
For each state you enter, the checker compares your sales with the state’s dollar threshold using the state’s own wording: “exceeds” or “more than” is a strict comparison, while “or more” or “at least” includes the threshold itself. Where a state still has a transaction test (for example 200 separate transactions), meeting either test creates nexus — except Connecticut and New York, which require both a dollar amount and a minimum number of sales.
The approaching warning compares your sales (or transactions, whichever is closer) with the threshold as a percentage. Repeated lines for the same state are added together. States with no statewide sales tax (Delaware, Montana, New Hampshire, Oregon) are reported as not applicable; Alaska has no state sales tax, but its Remote Seller Sales Tax Commission applies a $100,000 threshold for participating local jurisdictions.
- Sales
- Your sales delivered into the state over that state’s measurement period
- Transactions
- Number of separate sales delivered into the state in the same period
- Threshold
- The state’s economic nexus dollar amount and, where applicable, transaction count
Worked examples
Multi-state online retailer
California sales of $620,000 exceed $500,000 and Florida’s $130,000 exceeds $100,000. Georgia sales are only $60,000, but 240 transactions meet its 200-transaction test, and Connecticut’s $150,000 and 220 transactions pass both of its tests. New York needs more than $500,000 AND more than 100 sales — 95 sales falls short, so it is flagged to monitor, as are Texas ($410,000 of $500,000) and Washington ($85,000 of $100,000). Oregon has no sales tax.
Exactly at the threshold
Texas ($500,000 or more) and Iowa ($100,000 or more) count sales equal to the threshold, so both are met. California and South Dakota require sales that exceed the threshold, so exactly $500,000 and $100,000 are not enough yet — they are flagged as approaching.
Transaction-only states
New Jersey’s 200-or-more transaction test is met with 250 sales, and the District of Columbia’s test of 200 or more separate retail sales is met with exactly 200. New York needs both more than $500,000 and more than 100 sales, so 900 orders worth $90,000 are not enough (18% of the dollar test). Illinois dropped its transaction test on January 1, 2026, so 900 orders do not matter there; $90,000 is 90% of its $100,000 threshold.
Frequently asked questions
What is economic nexus for sales tax?+
Economic nexus is a connection to a state created by sales volume rather than physical presence. After South Dakota v. Wayfair (2018), every state with a sales tax adopted a threshold — typically $100,000 of sales — above which a remote seller must register and collect that state’s sales tax.
Which states still have a 200-transaction threshold?+
As of 2026 a transaction test still applies in states including Arkansas, Georgia, Hawaii, Kentucky, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Jersey, Ohio, Rhode Island, Vermont, Virginia, West Virginia and DC. Connecticut and New York require both a dollar and a transaction test. Many states, most recently Illinois and Utah, have repealed theirs.
Do marketplace sales count toward economic nexus?+
Often yes. Many states count all sales into the state, including sales made through Amazon, eBay or Etsy where the marketplace facilitator collects the tax, when deciding whether you meet the threshold — though you may not need to collect on those marketplace sales yourself. Rules vary, so check each state.
What happens after I cross a state’s threshold?+
You generally must register for a sales tax permit and start collecting tax on taxable sales by a date set by the state — immediately, the next month, or a set number of days later (Texas allows until the first day of the fourth month). Late registration can mean paying uncollected tax yourself.
Does exempt or wholesale revenue count toward the threshold?+
It depends on the state. Some count gross sales including exempt and resale transactions (for example Texas and Washington), others count only retail or taxable sales (such as Florida, Missouri, North Dakota and Oklahoma). The basis column shows what each state measures.
Do Delaware, Montana, New Hampshire and Oregon have economic nexus?+
These states have no statewide sales tax, so there is no sales tax registration threshold. Alaska also has no state sales tax, but many Alaskan towns participate in the Alaska Remote Seller Sales Tax Commission, which uses a $100,000 threshold for remote sellers.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.
Sources
- Streamlined Sales Tax Governing Board — Remote Seller State Guidance
- California CDTFA — Wayfair and remote sellers
- Texas Comptroller — Remote sellers
- New York Tax Department — Registration requirements for remote sellers
- Illinois Department of Revenue — Bulletin FY 2026-12 (remote retailer threshold change)
- Maine Revised Statutes, Title 36 §1754-B (registration threshold)
- Indiana DOR — Remote seller information
- D.C. Code § 47-2001 (remote seller vendor definition)
- Iowa Code § 423.14A (remote seller threshold)
- Washington DOR — Remote sellers