Since the 2018 South Dakota v. Wayfair decision, every state with a sales tax has set an economic nexus threshold for remote sellers. Cross it and you're required to register, collect, and remit. This guide breaks down the current threshold, included sales, effective date, and measurement period for every U.S. state with a statewide sales tax, plus Washington D.C. and Puerto Rico.
Commenda monitors your sales in real time, alerts you before you cross a threshold, and handles registration and filing once you do.
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Economic nexus is the link between your business and a state that obligates you to register, collect sales tax, and file returns there. Unlike physical nexus — established by an office, warehouse, employee, or inventory — economic nexus is triggered purely by crossing a revenue or transaction threshold.
Every state with a statewide sales tax has enacted an economic nexus law. The specific threshold, what counts toward it, and how often it is evaluated differs by state.
Before the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc., a state could only require a business to collect sales tax if it had a physical presence in the state. The Wayfair ruling allowed states to base nexus on economic activity alone, opening the door for every state to require remote sellers - including e-commerce, SaaS, and digital goods businesses - to collect tax once they cross a threshold.
The financial stakes are significant. Failing to register after crossing a threshold can result in back taxes, interest, and penalties stretching back years. A growing business can easily trigger nexus in 20 or more states in a single year without realizing it.
Thresholds fall into four categories, and each state uses one of them:
The measurement period also varies. Some states evaluate the prior calendar year, some look at the current or previous calendar year, and a handful use a rolling 12-month window measured quarterly.
This is where the rules diverge most sharply between states. Common variations:
The detail expanders in the state list below show exactly what each state counts.
The following states do not impose a statewide sales tax, so there is no economic nexus to track at the state level:
Alaska has no state-level sales tax, but local jurisdictions in the Alaska Remote Seller Sales Tax Commission enforce a $100,000 economic nexus threshold - so Alaska is included in the state list below.
Click any state to expand the full detail: threshold, what counts, effective date, the measurement period, and historical notes where the rule has changed.
This guide is provided for informational purposes only and does not constitute legal or tax advice. State rules change frequently; verify the current threshold with the relevant state department of revenue or speak with a Commenda specialist before relying on this information for compliance decisions.
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