If you sell online, the question is not whether you owe sales tax, but where. Every state with a sales tax, plus Washington, DC and the local taxing communities of Alaska, requires remote sellers to collect once they cross a sales threshold. This guide lists the economic nexus thresholds by state for 2026, verified against each state revenue department, and highlights the states that have recently changed their rules.
Key takeaways
- Most states use a $100,000 sales threshold. Alabama and Mississippi use $250,000; California, New York and Texas use $500,000.
- The 200-transaction test is disappearing: Illinois dropped it on January 1, 2026, Utah on July 1, 2025 and Alaska on January 1, 2025.
- Connecticut and New York require you to meet both a dollar test and a transaction test.
- States measure differently: previous calendar year, current year, or a rolling 12 months, and some count marketplace or exempt sales.
What Is Economic Nexus?
Economic nexus is an obligation to collect a state’s sales tax based on your sales into the state, even without an office, employees or inventory there. States adopted these rules after the 2018 Supreme Court decision in South Dakota v. Wayfair. For the full background, read our guide to sales tax nexus.
Recent Changes to Watch in 2026
| State | Change | Effective |
|---|---|---|
| Illinois | 200-transaction test removed; $100,000 in gross receipts only | January 1, 2026 |
| Utah | 200-transaction test repealed | July 1, 2025 |
| Alaska (ARSSTC) | Transaction thresholds repealed | January 1, 2025 |
| North Carolina | Transaction threshold repealed | July 1, 2024 |
| Wyoming | 200-transaction test repealed | July 1, 2024 |
| Indiana | 200-transaction test removed | January 1, 2024 |
If you registered in one of these states only because of transaction volume, check whether you can now close the account. North Carolina, for example, let such sellers cancel their registration.
Economic Nexus Thresholds by State (2026)
Thresholds below apply to remote sellers without a physical presence. “Or” means meeting either test creates nexus; “both required” means you must meet both.
| State | Sales threshold | Transactions | How it is measured |
|---|---|---|---|
| Alabama | $250,000 | — | Retail sales in the previous calendar year; collected through the Simplified Sellers Use Tax program |
| Alaska | $100,000 | — | Local sales taxes only, through the Alaska Remote Seller Sales Tax Commission; the transaction test was repealed January 1, 2025 |
| Arizona | $100,000 | — | Gross sales in the previous or current calendar year |
| Arkansas | $100,000 | 200 | Previous or current calendar year |
| California | $500,000 | — | Sales of tangible personal property, current or preceding calendar year |
| Colorado | $100,000 | — | Retail sales in the previous or current calendar year |
| Connecticut | $100,000 | 200 (both required) | 12 months ending September 30; you must meet both tests |
| District of Columbia | $100,000 | 200 | Previous or current calendar year |
| Florida | $100,000 | — | Taxable remote sales in the previous calendar year |
| Georgia | $100,000 | 200 | Previous or current calendar year (Policy Bulletin SUT-2019-02 and later amendments) |
| Hawaii | $100,000 | 200 | General excise tax; current or preceding calendar year |
| Idaho | $100,000 | — | Previous or current calendar year |
| Illinois | $100,000 | — | Transaction test removed January 1, 2026 |
| Indiana | $100,000 | — | Transaction test removed January 1, 2024 |
| Iowa | $100,000 | — | Gross revenue, including exempt and marketplace sales |
| Kansas | $100,000 | — | Current or preceding calendar year |
| Kentucky | $100,000 | 200 | Previous or current calendar year |
| Louisiana | $100,000 | — | Gross sales in the previous or current calendar year; transaction test removed August 1, 2023 |
| Maine | $100,000 | — | Transaction test repealed in 2021 |
| Maryland | $100,000 | 200 | Previous or current calendar year; non-taxable sales count |
| Massachusetts | $100,000 | — | Calendar-year sales |
| Michigan | $100,000 | 200 | Previous calendar year |
| Minnesota | $100,000 | 200 | Prior 12-month period, all sales channels combined |
| Mississippi | $250,000 | — | Any consecutive 12-month period |
| Missouri | $100,000 | — | Taxable sales; checked at the end of each calendar quarter |
| Nebraska | $100,000 | 200 | Prior or current calendar year |
| Nevada | $100,000 | 200 | Previous or current calendar year |
| New Jersey | $100,000 | 200 | Current or prior calendar year |
| New Mexico | $100,000 | — | Taxable gross receipts in the previous calendar year |
| New York | $500,000 | 100 (both required) | Preceding four sales tax quarters; you must meet both tests |
| North Carolina | $100,000 | — | Transaction test repealed July 1, 2024 |
| North Dakota | $100,000 | — | Taxable sales; transaction test repealed in 2019 |
| Ohio | $100,000 | 200 | Current or previous calendar year |
| Oklahoma | $100,000 | — | Taxable sales, preceding or current calendar year |
| Pennsylvania | $100,000 | — | Calendar-year gross sales; no transaction count |
| Rhode Island | $100,000 | 200 | Previous calendar year |
| South Carolina | $100,000 | — | Previous or current calendar year |
| South Dakota | $100,000 | — | Transaction test removed July 1, 2023 |
| Tennessee | $100,000 | — | Previous 12 months; marketplace sales collected by a registered facilitator do not count |
| Texas | $500,000 | — | Total Texas revenue in the preceding 12 months |
| Utah | $100,000 | — | Transaction test repealed July 1, 2025 |
| Vermont | $100,000 | 200 | Preceding 12-month period |
| Virginia | $100,000 | 200 | Previous or current calendar year |
| Washington | $100,000 | — | Calendar-year gross receipts; transaction test removed January 1, 2020 |
| West Virginia | $100,000 | 200 | Previous or current calendar year |
| Wisconsin | $100,000 | — | Transaction test removed February 20, 2021 |
| Wyoming | $100,000 | — | Transaction test repealed July 1, 2024 |
Delaware, Montana, New Hampshire and Oregon have no general sales tax, so they have no remote seller threshold. See states with no sales tax.
How to Measure Your Sales Correctly
- Which sales count: some states count only taxable sales (Florida, Missouri, New Mexico, North Dakota, Oklahoma); others count gross sales including exempt and wholesale sales (Iowa, Maryland, South Carolina).
- Marketplace sales: some states include sales made through Amazon or Etsy in your threshold, while others, such as Arizona and Tennessee, exclude sales where a registered marketplace collects the tax. See marketplace vs direct sales tax liability.
- Measurement period: previous calendar year, current year to date, the last 12 months, or the last four quarters (New York).
- Start date: once you cross a threshold, most states give you until the first day of a following month to register; Kansas expects collection on the next transaction.
Example: one seller, three states
An online shop sells $120,000 to Texas, $90,000 in 260 orders to Ohio and $150,000 to Illinois in 2026.
Texas: under $500,000 → no nexus
Ohio: under $100,000 but 200+ transactions → nexus
Illinois: over $100,000 → nexus
Once you have nexus, use the Sales Tax Calculator to check the combined rate for each customer address, and follow our guide on how to get a sales tax permit.
Conclusion
Economic nexus thresholds by state in 2026 are simpler than they were, because more states rely on a single dollar test. Review your sales by state every quarter, register before you start collecting, and confirm details on the state’s website, since thresholds and counting rules can change. Then use the Reverse Sales Tax Calculator, the Add/Remove Sales Tax Calculator and our state rate pages to get every order right, or start from the Tax Rate Center homepage.
Frequently Asked Questions
What is the most common economic nexus threshold?
$100,000 in sales into the state. Most states use it, and many no longer have a transaction count.
Which states have the highest economic nexus thresholds?
California, New York and Texas use $500,000; Alabama and Mississippi use $250,000. New York also requires more than 100 sales.
Which states still use a 200-transaction threshold?
Arkansas, DC, Georgia, Hawaii, Kentucky, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Jersey, Ohio, Rhode Island, Vermont, Virginia and West Virginia use it as an alternative, and Connecticut requires both $100,000 and 200 transactions.
Do marketplace sales count toward economic nexus?
It depends on the state. Some count all sales channels, while others exclude sales on which a registered marketplace facilitator already collects the tax.
What happens after I cross a threshold?
Register with the state, start collecting by the state’s deadline, and file returns on the schedule assigned. Most states do not require tax on sales made before you crossed the threshold.