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Sales & use tax post-Wayfair decision — economic nexus
Economic nexus
This chart indicates whether a state has economic nexus provisions. In general, economic nexus means that if a remote seller passes a state’s economic threshold for total revenue or number of transactions in that state, they are legally obligated to collect and remit sales and use tax in that state. No physical presence is required.
Note that state nexus statutes are subject to federal constitutional restrictions. However, in South Dakota v. Wayfair, Inc. (Dkt. No. 17-494, June 21, 2018), the U.S. Supreme Court overruled Quill Corp. v. North Dakota (504 U.S. 298 (1992)) and held that physical presence is no longer required to establish sales and use tax nexus.
STATE | COMMENT | CITATION |
Alabama ECONOMIC NEXUS: Yes |
Out-of-state sellers who lack an Alabama physical presence but are making retail sales of tangible personal property into the state have a substantial economic presence in Alabama for sales and use tax purposes and are required to register for a license and to collect and remit tax, when: (a) the seller's retail sales of tangible personal property sold into the state exceed $250,000 per year based on the previous calendar year's sales; and (b) the seller conducts one or more of the activities described in Section 40-23-68, Code of Alabama. We recommend you reference cited authority for more information. CCH Explanation: Alabama 60-025 |
Ala. Code §40-2-11(7)(b) Ala. Code §40-23-68 Ala. Code §40-23-190 Ala. Admin. Code r. 810-6-2-.90.03 |
Arizona ECONOMIC NEXUS: Yes |
A remote seller, not facilitated by a marketplace facilitator, will be required to pay TPT on retail sales of property if their gross proceeds or gross income with Arizona customers is more than:
A marketplace facilitator will be required to pay TPT on retail sales of property if their gross proceeds or gross income with Arizona customers is more than $100,000. |
Ariz. Rev. Stat. §42-5043 |
Arkansas ECONOMIC NEXUS: Yes |
Remote sellers and marketplace facilitators are required to collect sales tax if, in the previous or current calendar year, it had aggregate sales within the state, or deliveries to locations within the state, exceeding: $100,000; or 200 transactions. |
Ark. Code. Ann. §26-52-103 Ark. Code. Ann. §26-53-124 Ark. Reg. GR-5 |
California ECONOMIC NEXUS: Yes |
Applicable April 1, 2019, retailers located outside California (remote sellers) are required to register with the CDTFA and collect California use tax if, in the preceding or current calendar year, the total combined sales of tangible personal property for delivery in California by the retailer and all persons related to the retailer exceed $500,000. We recommend you reference cited authority for more information. CCH Explanation: California 60-025 |
Cal. Rev. & Tax. Code §6203 |
Colorado ECONOMIC NEXUS: Yes |
Remote retailers are required to collect Colorado sales tax if they have $100,000 or more in annual sales into Colorado. Retailers must also collect state-collected local sales tax and special district tax. Retailers should contact home rule cities for guidance. We recommend you reference cited authority for more information. CCH Explanation: Colorado 60-025 |
Colo. Rev. Stat. §39-26-102 |
Connecticut ECONOMIC NEXUS: Yes |
Effective July 1, 2019, out-of-state retailers that make retail sales of tangible personal property or services from outside Connecticut to a destination within Connecticut must collect and remit sales or use tax if:
We recommend you reference cited authority for more information. |
Conn. Gen. Stat. §12-407(a)(12) and (a)(15) Special Notice 2018(5.1) |
District of Columbia ECONOMIC NEXUS: Yes |
Remote sellers must collect and remit District sales tax if they had, in the previous calendar year, or will have in the current calendar year:
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D.C. Code Ann. §47-2202 D.C. Code Ann. §47-3931 |
Florida ECONOMIC NEXUS: Yes effective July 1, 2021 |
Effective July 1, 2021, out-of-state retailers and marketplace providers with no physical presence in Florida are required to collect Florida’s sales and use tax on sales of taxable items delivered to purchasers in Florida if the out-of-state retailer or marketplace provider makes a substantial number of remote sales into Florida. A “substantial number of remote sales” is defined as any number of taxable remote sales in the previous calendar year in which the sum of the sales prices exceeded $100,000. We recommend you reference cited authority for more information. CCH Explanation: Florida 60-025 |
Fla. Stat. §212.0596 Fla. Stat. §212.05965 |
Georgia ECONOMIC NEXUS: Yes |
A remote seller is a “dealer“ with nexus if they have in the previous or current calendar year from retail sales of tangible personal property for electronic or physical delivery within Georgia, or for use, consumption, distribution, or storage in Georgia:
We recommend you reference cited authority for more information. |
Ga. Code. Ann. §48-8-2(8)(M.1)-(M.2), (8)(P), Ga. Code. Ann. §48-8-30(c.1)(1) |
Hawaii ECONOMIC NEXUS: Yes |
Effective July 1, 2018, and applicable to taxable years beginning after 2017, a business is subject to general excise tax if, in the current or immediately preceding calendar year, it makes:
We recommend you reference cited authority for more information. |
Haw. Rev. Stat. §237-2.5 |
Idaho ECONOMIC NEXUS: Yes |
Remote sellers must collect and remit state-level Idaho sales and use tax if they (1) lack physical presence in Idaho; and (2) have over $100,000 in Idaho sales in the previous or current calendar year. We recommend you reference cited authority for more information. CCH Explanation: Idaho 60-025 |
Idaho Code §63-3611 Idaho Code §63-3620E |
Illinois ECONOMIC NEXUS: Yes |
Remote retailers are required to collect tax use and service use tax if either threshold is met for a 12-month period: (1) their sales of property to customers in Illinois are $100,000 or more; or (2) they enter into 200 or more sales transactions in Illinois. Effective July 1, 2020, the economic nexus thresholds trigger a retailers' occupation tax collection requirement for remote retailers in place of the use tax collection requirement. We recommend you reference cited authority for more information. CCH Explanation: Illinois 60-025 |
35 ILCS 105/2 35 ILCS 110/2 35 ILCS 120/2 |
Indiana ECONOMIC NEXUS: Yes |
Sellers are liable for collecting Indiana sales tax if one of two sales thresholds are met for 12 months. Sellers meet the threshold for a given period if:
Effective July 1, 2019, marketplace facilitators are retail merchants when they engage in certain activities for sellers on their marketplace. The marketplace may be physical or on the internet. A marketplace facilitator must collect sales tax if:
We recommend you reference cited authority for more information. |
Ind. Code §6-2.5-3-1, Ind. Code §6-2.5-2-1 |
Iowa ECONOMIC NEXUS: Yes |
Effective January 1, 2019, retailers are required to collect Iowa sales tax if they have gross revenue from Iowa sales of $100,000 or more, or make 200 or more separate Iowa sales transactions, in the previous or current calendar year. Note that effective July 1, 2019, the 200 separate sale threshold for remote sellers is eliminated. Therefore, remote sellers will only be subject to the $100,000 annual taxable sales threshold. |
Iowa Code §423.14A |
Kansas ECONOMIC NEXUS: Yes |
An out-of-state seller who (1) for the period of January 1, 2021 through June 30, 2021, had in excess of $100,000 of cumulative gross receipts from sales to customers in the state; or (2) during the current or immediately preceding year, had in excess of $100,000 of cumulative gross receipts from sales to in-state customers, must collect tax. CCH Explanation: Kansas 60-025 |
Kan. Stat. Ann. §79-3702(h), Kan. Stat. Ann. §79-3705c |
Kentucky ECONOMIC NEXUS: |
Effective July 1, 2018, remote sellers must collect Kentucky sales and use tax if, in the previous or current calendar year:
Effective July 1, 2019, the economic nexus thresholds also apply to (1) remote retailers who sell through marketplaces, and (2) marketplace providers (through their own sales or from sales made in their marketplaces). |
Ky. Rev. Stat. Ann. §139.340 Ky. Rev. Stat. Ann. §139.450 |
Louisiana ECONOMIC NEXUS: Yes |
Applies to remote dealers with sales into the state in excess of $100,000 or 200 or more separate transactions. CCH Explanation: Louisiana 60-025 |
La. Rev. Stat. Ann. §47:301 La. Rev. Stat. Ann. §47:304 |
Maine ECONOMIC NEXUS: Yes |
Remote sellers with sales exceeding $100,000 in the state must collect tax. CCH Explanation: Maine 60-025 |
Me. Rev. Stat. Ann. tit. 36, §1951-B |
Maryland ECONOMIC NEXUS: Yes |
A remote seller has economic nexus if during the current or prior year:
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Reg. Sec. 03.06.01.33 |
Massachusetts ECONOMIC NEXUS: Yes |
Sellers with over $500,000 in sales and more than 100 transactions into the state in the preceding calendar year, must register, collect and remit. Effective October 1, 2019, remote retailers must register and collect Massachusetts sales or use tax if, in the previous or current year, their annual gross sales into Massachusetts exceed $100,000. We recommend you reference cited authority for more information. CCH Explanation: Massachusetts 60-025 |
Mass Regs. Code tit. 830, §64H.1.7 |
Michigan ECONOMIC NEXUS: Yes |
After September 30, 2018, remote sellers with over $100,000 in sales to Michigan or 200 or more transactions in the prior calendar year, have nexus. We recommend you reference cited authority for more information. CCH Explanation: Michigan 60-025 |
Revenue Administrative Bulletin No. 2018-16 |
Minnesota ECONOMIC NEXUS: Yes |
Remote retailers must collect and remit tax if, over the prior 12-month period, they make either: (1) 200 or more retail sales shipped to Minnesota; or (2) $100,000 or more in retail sales shipped to Minnesota. We recommend you reference cited authority for more information. CCH Explanation: Minnesota 60-025 |
Minn. Stat. §297A.66 |
Mississippi ECONOMIC NEXUS: Yes |
A "person doing business in this state," who is consequently required to collect and remit sales or use tax, includes any marketplace facilitator, marketplace seller, or remote seller with sales that exceed $250,000 in any consecutive 12-month period. We recommend you reference cited authority for more information. CCH Explanation: Mississippi 60-025 |
Miss. Code. Ann. §27-67-3, Miss. Code. Ann. §27-67-4(2), Miss. Rule 35.IV.3.09 |
Missouri ECONOMIC NEXUS: Yes (effective January 1, 2023) |
Effective January 1, 2023, an economic nexus standard of $100,000 is adopted. Specifically, the definition of “engaging in business activities within this state” is modified to include vendors selling tangible personal property for delivery into Missouri, provided the seller’s gross receipts from taxable sales from delivery of tangible personal property into Missouri in the previous calendar year or current calendar year exceeds $100,000. We recommend you reference cited authority for more information. CCH Explanation: Missouri 60-025 |
Mo. Rev. Stat. §144.605 |
Nebraska ECONOMIC NEXUS: Yes |
Remote sellers with over $100,000 in sales or 200 or more transactions in the state annually, must collect tax. We recommend you reference cited authority for more information. CCH Explanation: Nebraska 60-025 |
Collection of Sales Tax by Remote Sellers |
Nevada ECONOMIC NEXUS: Yes |
A remote seller has economic nexus if during the current or prior calendar year:
We recommend you reference cited authority for more information. |
Nev. Rev. Stat. §372.105, Nev. Rev. Stat. §374.110, Nev. Rev. Stat. §377.040, Reg. No. R189-18 |
New Jersey ECONOMIC NEXUS: Yes |
Sales tax collection is required in New Jersey if, during the current or prior calendar year, a remote seller exceeds:
We recommend you reference cited authority for more information. |
New Jersey Division of Taxation, N.J. Stat. Ann. §54:32B-3.5, TB-83 |
New Mexico ECONOMIC NEXUS: Yes |
A person or marketplace provider is doing business in New Mexico if they have gross receipts from sales in New Mexico of $100,000 or more. As part of the economic nexus rules, gross receipts subject to the tax includes receipts collected by a marketplace provider from sales, leases and licenses of tangible personal property; and sales of licenses and sales of services or licenses for use of real property that are sourced to New Mexico. CCH Explanation: New Mexico 60-025 |
N.M. Stat. Ann. §7-9-4
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New York ECONOMIC NEXUS: |
A business that has no physical presence in New York, but meets the following requirements in the immediately preceding four sales tax quarters, is required to register and collect/remit sales tax:
We recommend you reference cited authority for more information. |
N.Y. Tax Law, §1101(b)(8)(i)(E) N.Y. Tax Law, §1101(b)(8)(iv) Important Notice N-19-1 |
North Carolina ECONOMIC NEXUS: Yes |
A remote seller is required to register, and collect and remit North Carolina sales and use tax if, in the previous or current calendar year, the retailer had one or more of the following: (1) the remote seller has gross sales in excess of $100,000 sourced to North Carolina; or (2) the remote seller has 200 or more separate transactions sourced to North Carolina (“threshold”). We recommend you reference cited authority for more information. CCH Explanation: North Carolina 60-025 |
N.C. Gen. Stat. §105-164.8, Directive SD-18-6 |
North Dakota ECONOMIC NEXUS: Yes |
Out-of-state sellers with no physical presence in North Dakota are subject to sales and use tax if, in the previous calendar year or the current calendar year the seller's gross sales from the sale of tangible personal property and other taxable items delivered in North Dakota exceed $100,000.
NOTE: Previously, North Dakota had a 200 or more separate transactions threshold, too. It was eliminated retroactively to tax years beginning on or after January 1, 2019. |
N.D. Cent. Code §57-39.2-02.2 N.D. Cent. Code §57-40.2-02.3 N.D. Cent. Code §57-39.2-02.3 N.D. Cent. Code §57-40.2-02.4 |
Ohio ECONOMIC NEXUS: Yes |
A seller or marketplace facilitator has substantial nexus if, in the current or preceding calendar year, it (i) has gross receipts exceeding $100,000 from sales into Ohio, or (ii) engages in 200 or more separate sales transactions in Ohio. We recommend you reference cited authority for more information. CCH Explanation: Ohio 60-025 |
Ohio Rev. Code Ann. §5741.01 |
Oklahoma ECONOMIC NEXUS: Yes |
Remote sellers: By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller” who had at least $10,000 ($100,000 effective November 1, 2019) in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to:
Marketplace facilitators and referrers: By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller,” “marketplace facilitator,” or “referrer” who had at least $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to:
CCH Explanation: Oklahoma 60-025
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Okla. Stat. tit. 68, §1392 |
Pennsylvania ECONOMIC NEXUS: Yes |
Beginning July 1, 2019, persons making more than $100,000 in Pennsylvania sales in the previous 12 months must:
Effective through June 30, 2019: By March 1, 2018, and by June 1 of each subsequent calendar year, remote sellers, marketplace facilitators, and referrers with aggregate sales of tangible personal property subject to Pennsylvania sales and use tax of $10,000 or more in the previous 12-calendar-month period must file an election with the Department of Revenue to either:
We recommend you reference cited authority for more information.
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72 P.S. §7213.1(a) 72 P.S. §7201(b)(3.5) Sales and Use Tax Bulletin 2019-01 Uncodified Sec. 33 Act 13 (H.B. 262), Laws 2019
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Rhode Island ECONOMIC NEXUS: Yes |
Applies to remote dealers with sales into the state in excess of $100,000 or 200 or more separate transactions. CCH Explanation: Rhode Island 60-025 |
R.I. Gen. Laws §44-18.2-1 et seq. |
South Carolina ECONOMIC NEXUS: Yes |
Economic nexus occurs when gross sales into South Carolina are more than $100,000 in this or the last calendar year. CCH Explanation: South Carolina 60-025 |
Revenue Ruling 18-14 |
South Dakota ECONOMIC NEXUS: Yes |
Effective November 1, 2018, remote retailers are required to collect South Dakota sales tax if they have $100,000 or more in annual sales into South Dakota, or make 200 or more separate annual sales transactions into South Dakota. We recommend you reference cited authority for more information. CCH Explanation: South Dakota 60-025 |
S.D. Codified Laws §10-45-2 |
Tennessee ECONOMIC NEXUS: Yes |
A dealer with no physical presence in Tennessee must register with the Tennessee Department of Revenue and collect and remit sales or use tax if the dealer:
We recommend you reference cited authority for more information. |
Tenn. Code. Ann. §67-6-501, Tenn. Comp. R. & Regs. 1320-5-1-.129(2), Important Notice No. 19-04, Important Notice No. 19-05 |
Texas ECONOMIC NEXUS: Yes |
Sales tax collection will be required in Texas if, during the preceeding 12 calendar months, a remote seller exceeds:
The initial 12 calendar months for calculating a remote seller's Texas revenues is July 1, 2018, through June 30, 2019. |
34 Tex. Admin. Code §3.286 |
Utah ECONOMIC NEXUS: Yes |
A sales tax collection obligation is imposed on remote sellers that:
We recommend you reference cited authority for more information. |
Utah Code Ann. §59-12-107, Utah Code Ann. §59-12-102, Utah Code Ann. §59-12-107.6, Publication 37 |
Vermont ECONOMIC NEXUS: Yes |
A "vendor" having nexus with Vermont includes a person making sales of tangible personal property from outside Vermont to a destination within Vermont and not maintaining a place of business or other physical presence in Vermont who:
Effective June 1, 2019, the definition of "vendor" is expanded to include certain marketplace facilitators and marketplace sellers. |
Vt. Stat. Ann. tit. 32, §9701(9)(F) and (14), Vt. Stat. Ann. tit. 32, §9713 |
Virginia ECONOMIC NEXUS: Yes |
Remote sellers are required to register, collect and remit retail sales and use if they have:
We recommend you reference cited authority for more information. |
Va. Code Ann. §58.1-612 |
Washington ECONOMIC NEXUS: Yes |
Remote sellers with more than $100,000 in gross retail sales in Washington in the current or prior calendar year, must register and collect sales tax. We recommend you reference cited authority for more information. CCH Explanation: Washington 60-025 |
Wash. Rev. Code §82.08.053, MarketPlace Fairness Notice, Wash. Rev. Code §82.08.052 |
West Virginia ECONOMIC NEXUS: Yes |
Effective January 1, 2019, any out-of-state vendor who, as of July 1, 2018, is not required to collect and remit state and municipal sales and use taxes, either because they do not have in-state physical presence or they have not voluntarily agreed to collect and remit the tax, who delivers more than $100,000 of goods or services into West Virginia, or engages in 200 or more separate transactions for the delivery of goods and services into West Virginia, during calendar year 2018, will be required to collect and remit taxes on all sales made on and after January 1, 2019 that are delivered into West Virginia. This collection requirement applies to out-of-state vendors that currently do not collect state and municipal sales and use taxes but meet either the $100,000 threshold, or the 200 transactions threshold, during calendar year 2018. Vendor responsibility for collection and remittance of these taxes will be determined annually each year thereafter. In addition, collection requirements apply to sales by marketplace facilitators or referrers made on and after July 1, 2019. We recommend you reference cited authority for more information. CCH Explanation: West Virginia 60-025 |
W. Va. Code §11-15-3(b), W. Va. Code §11-15A-1, W. Va. Code §11-15A-6b, W. Va. Code R. §110-15-2, Administrative Notice 2018-18 |
Wisconsin ECONOMIC NEXUS: Yes |
Beginning October 1, 2018, remote retailers must register and collect Wisconsin sales or use tax if, in the previous or current year, their: annual gross sales into Wisconsin exceed $100,000; or annual number of separate sales transactions into Wisconsin is 200 or more. Beginning February 20, 2021, remote retailers must register and collect Wisconsin sales or use tax if, in the previous or current calendar year, their: annual gross sales into Wisconsin exceed $100,000. We recommend you reference cited authority for more information. CCH Explanation: Wisconsin 60-025 |
Wis. Stat. §77.51(13gm) |
Wyoming ECONOMIC NEXUS: Yes |
Remote sellers with over $100,000 in sales to Wyoming or 200 or more transactions in the current or prior calendar year, have nexus. We recommend you reference cited authority for more information. CCH Explanation: Wyoming 60-025 |
Wyo. Stat. Ann. §39-15-501 |
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