Please note: This blog was originally published in 2017. It’s since been updated for accuracy and comprehensiveness.
Most online sellers are by now familiar with the term “sales tax nexus” as defined in the Quill v. North Dakota Supreme Court case. Long story short: retailers must have some kind of presence in a state before that state can require that retailer to collect sales tax from buyers in that state.
However, with the Supreme Court ruling in the South Dakota v. Wayfair case, the precedent set by Quill has been overturned. Now, not only does physical presence (such as a location, employee or inventory), but “economic” presence in a state creates sales tax nexus.
In other words, due to the Wayfair ruling, even if you do not have a physical presence in a state, if you pass a state’s economic threshold for total revenue or number of transactions in that state, you’re legally obligated to collect and remit sales tax to that state.
This post will explain the state of “economic nexus,” discuss what online sellers need to know, and detail each current economic nexus law on the books.
If you don’t want to go through each economic nexus law line-by-line and compare it to your sales, TaxJar’s Economic Nexus Insights will instantly check for you and tell you where you have and are approaching economic nexus. Just connect your online store(s) to get started.
What are economic nexus laws?
To combat what they see as an unfair precedent set by Quill, some states prematurely passed laws that read something like, “If an online seller, even though they don’t have a presence in our state, makes more than $X in sales in our state, or conducts more than X number of transactions in our state, then they are required to collect sales tax from buyers in our state.”
These laws were knowingly contrary to Supreme Court precedent. But after the Supreme Court ruling in South Dakota v. Wayfair, states are now free to enforce these laws on businesses.
State laws on economic nexus vary. The sales thresholds vary from $10,000 to $500,000 in sales, and some states don’t have a transaction threshold at all.
How did we get here?
Ohio was the first state to float the idea of economic nexus. Back in 2005, they passed a “Commercial Activity Tax” (CAT) law. This law stated that any retailer who makes more than $500,000 in sales in Ohio is subject to Ohio’s sales tax collection laws. And that was it – there was no need for that retailer to have an employee, location, inventory, etc. in the state. All they had to do to be subject to the law was make over $500,000 in sales to Ohio buyers.
From there, other states began to follow suit and pass similar laws. It’s probably no surprise that many of these laws were aimed at e-commerce giants like Amazon, which until last year was not collecting sales tax in all US states. Amazon finally buckled and began collecting sales tax from buyers in every US state, but states are still hungry for tax revenue and continue to attempt to enforce these laws on other retailers.
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Online sellers who did not have the means or the will to fight in court have capitulated and started collecting sales tax from buyers in states with sales tax nexus laws. Other online sellers, banking that these laws wouldn’t stand up in court against the Quill precedent, took a wait-and-see approach and will make a decision regarding sales tax collection after South Dakota v. Wayfair. Now that decision has been made.
Since the Quill physical presence requirement is overturned, states are free to pursue sales tax from online retailers who exceed the thresholds as stated in their economic nexus laws. However, there’s also a chance that Congress could step in and pass a law regulating sales tax. Right now, we live in a sales tax Wild West, and we’ll be closely following all these decisions as they unfold.
If you meet economic nexus thresholds in some states, we recommend speaking with a vetted sales tax expert to determine your best course of action.
How are economic nexus laws different from notice and report laws?
“Notice and report” laws are state laws that require online sellers with no physical presence in a state to either collect sales tax or provide a significant amount of reporting to states and their buyers if they meet a certain revenue or transaction threshold. While these sound similar to economic nexus laws, they are slightly different.
The biggest difference between economic nexus laws and notice and report laws are that notice and report laws have been legally in effect starting July 1, 2017, starting with the state of Colorado’s notice and report law. Economic nexus laws were not declared Constitutional until June 21, 2018 when SCOTUS handed down their decision in South Dakota v. Wayfair.
As a seller, this could make a big difference to you if have not been sales tax compliant. For example, as of right now, no states have attempted to apply economic nexus sales tax laws to online sellers retroactively. So if you are just now learning about economic nexus, you do have time to become compliant. But if you have not been compliant in states with notice and report laws, you may want to consult a sales tax expert on how to mitigate any damage since these laws have been in effect for several months at this point.
Economic nexus laws, by state
Important to note: This area of law is changing rapidly. While we strive to keep this post up to date, please use it as a guideline only and consult with a sales tax expert should you have specific questions as to how economic nexus applies to your business.
Important note: For simplicity, we refer to this tax as “sales tax” throughout this article. In some if not all cases, however, out-of-state sellers are technically required to collect “use tax.” Use tax is generally (but not always) collected at the same rate as sales tax, and is the term used to refer to sales tax collected by a retailer based out-of-state.
Alabama
Threshold: $250,000/year based on the previous calendar year’s sales
Summary: According to state law, sellers who exceed the $250,000 sales threshold are required to register for an Alabama sales tax permit, collect sales tax on sales that ship to Alabama, and remit that sales tax to the state.
You can read the text of Alabama’s economic nexus law here.
You can read guidance on economic nexus for sellers from the Alabama Department of Revenue here.
Effective date: January 1, 2016
Alaska
Threshold: $100,000 or more in sales to the state, or 200 or more sales transactions into the state in the current or previous calendar year
Summary: The Code requires remote sellers and marketplace facilitators to register with the commission and collect and remit the tax on their sales into member Alaska localities if the sellers or facilitators have $100,000 or more in annual gross receipts from sales, or 200 or more sales annually into the state.
Full text: Read Alaska’s remote seller sales tax code here
Effective date: Alaska’s economic nexus law is a little different than other economic nexus laws. The Alaska Remote Seller Sales Tax Code was passed on January 6, 2020. However, from there local jurisdictions decide whether to adopt the code. And once a local jurisdiction has adopted the code, businesses have 30 days to begin collecting sales tax from Alaska buyers located in that jurisdiction.
Arizona
Threshold: In 2020 the threshold will be $150,000, and then $100,000 in 2021 and thereafter.
Summary: According to state law, sellers who exceed the gross sales are required to register for an Arizona sales tax permit to collect transaction privilege tax (TPT) on sales that ship to Arizona and remit the sales tax to the state. Arizona is the first state to use a graduated approach for their economic nexus threshold. Read more about TPT here.
Effective date: October 1, 2019
Arkansas
Threshold: 200 transactions or $100,000 within the previous or current year
Summary: According to state law, sellers who exceed the gross sales OR transaction number are required to register for an Arkansas sales tax permit, collect sales tax on sales that ship to Arkansas, and remit the sales tax to the state.
Effective date: July 1, 2019
California
Threshold: $500,000/year in gross revenue on the previous or current calendar year’s sales
Summary: According to state law, remote sellers in California who exceed the $500K gross sales are required to register for a California sales tax permit with the CDTFA, collect sales tax on sales that ship to California, and remit the sales tax to the state.
You can read more on the California guidance for remote sellers here.
Effective date: April 26, 2019
Colorado
Threshold: $100,000/year in gross revenue on the previous or current calendar year’s sales
Summary: According to state law, sellers who exceed the gross sales are required to register for a Colorado sales tax permit, collect sales tax on sales that ship to Colorado, and remit the sales tax to the state.
You can read more on the Colorado guidance for remote sellers here.
Effective date: December 1, 2018
Connecticut
Threshold: $100,000 in gross receipts during the 12-month period;/year in gross revenue AND 200 or more separate transactions on the previous calendar year’s sales
Summary: According to state law, sellers who exceed the gross sales AND transaction number are required to register for a Connecticut sales tax permit, collect sales tax on sales that ship to Connecticut, and remit the sales tax to the state.
Effective date: December 1, 2018
Florida
Threshold: $100,000 in revenue from buyers in the state in the previous calendar year (excluding marketplace sales for individual sellers)
Summary: According to the state, sellers that meet both the state’s sales threshold are required to register for a Florida sales tax permit, collect sales tax on sales that ship into Florida, and remit sales tax to the state.
You can read the text of the Florida economic nexus law here.
Effective date: July 1, 2021
Georgia
Threshold: $100,000/year in gross revenue, or makes sales into Georgia in more than 200 separate transactions in the previous or current calendar year
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Georgia sales tax permit, collect sales tax on sales that ship into Georgia, and remit sales tax to the state.
You can read the text of Georgia’s economic nexus law here.
Effective date: January 1, 2019
Hawaii
Threshold: $100,000/year in gross revenue, or makes sales into Hawaii in more than 200 separate transactions in the previous or current calendar year
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Hawaii sales tax permit, collect sales tax on sales that ship into Hawaii, and remit sales tax to the state.
You can read the text of Hawaii’s economic nexus law here.
Effective date: July 1, 2018
Idaho
Threshold: $100,000 of sales made into Idaho in the previous or current calendar year.
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for an Idaho sales tax permit, collect sales tax on sales that ship into Idaho, and remit sales tax to the state.
You can read the text of Idaho’s economic nexus law here.
Effective date: June 1, 2019
Illinois
Threshold: $100,000/year in gross revenue, or makes sales into Illinois in more than 200 separate transactions in the previous twelve months
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for an Illinois sales tax permit, collect sales tax on sales that ship into Illinois, and remit sales tax to the state.
You can read the text of Illinois economic nexus law here.
Effective date: October 1, 2018
Indiana
Threshold: $100,000 in gross revenue in the previous calendar year
Summary: According to state law, sellers who exceed the gross sales threshold are required to register for an Indiana sales tax permit, collect sales tax on sales that ship to Indiana, and remit that sales tax to the state.
You can read the text of Indiana’s economic nexus law here, and a summary on p. 13 here. Indiana removed the 200 transaction threshold effective March 29, 2024.
Effective date: October 1, 2018
Iowa
Threshold: $100,000/year in gross revenue in the previous or current calendar year
Summary: According to the state, sellers that meet the sales thresholds are required to register for an Iowa sales tax permit, collect sales tax on sales that ship into Iowa, and remit sales tax to the state. For those under the threshold, it is voluntary, but you can register for an Iowa Retailer’s Use Tax (RUT) permit, although not required. If you’ve already registered for the RUT and go over the economic threshold, you’ll need to cancel your RUT and register for an Iowa sales tax permit.
You can read the text of Iowa economic nexus law here.
You can read guidance on economic nexus from the Iowa Department of Revenue here.
Effective date: January 1, 2019
Kansas
Threshold: Beginning July 1, 2021, remote e-commerce sellers who fit the following criteria are considered to have Kansas economic nexus:
- More than $100,000 of cumulative gross receipts from sales to customers in the state for the period of January 1, 2021, through June 30, 2021 or
- More than $100,000 of cumulative gross receipts from sales to customers in the state during the current or immediately preceding calendar year
Summary:Kansas requires that e-commerce sellers, or marketplaces, who meet their new criteria register for a Kansas sales tax permit and begin collecting sales tax when making sales to buyers in the state of Kansas.
You can read guidance on the text of Kansas economic nexus law here.
Effective date: July 1, 2021
Kentucky
Threshold: $100,000/year in gross revenue, or makes sales into Kentucky in more than 200 separate transactions in the previous or current calendar year
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Kentucky sales tax permit, collect sales tax on sales that ship into Kentucky, and remit sales tax to the state.
You can read the text of Kentucky economic nexus law here.
Effective date: July 1, 2018
Louisiana
Threshold: $100,000/year in gross revenue, or makes sales into Louisiana in more than 200 separate transactions in the previous or current calendar year
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Louisiana sales tax permit, collect sales tax on sales that ship into Louisiana, and remit sales tax to the state.
You can read the text of Louisiana economic nexus law here.
Effective date: July 1, 2020
Maine
Threshold: $100,000 in gross revenue in the previous calendar year or current calendar year. Maine dropped their transaction threshold, effective January 1, 2022.
Summary: According to state law, sellers who either exceed the gross sales threshold are required to register for a Maine sales tax permit, collect sales tax on sales shipped to Maine, and remit that sales tax to the state.
You can read all about Maine’s Revenue Service resources for remote sellers here.
Effective date: July 1, 2018
Maryland
Threshold: $100,000/year in gross revenue, or makes sales into Maryland in more than 200 separate transactions in the previous or current calendar year.
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Maryland sales tax permit, collect sales tax on sales that ship into Maryland, and remit sales tax to the state.
You can read more details of Maryland economic nexus law here.
Effective date: October 1, 2018
Massachusetts
Threshold: $100,000 in sales over the preceding calendar year. The existing cookie nexus is $500,000 and 100 transactions in the previous or current calendar year.
Summary: According to state law, sellers who exceed the gross sales threshold are required to register for a Massachusetts sales tax permit, collect sales tax on sales that ship to Massachusetts, and remit that sales tax to the state.
You can read Massachusetts’ economic nexus law here.
Effective date: October 1, 2019
Michigan
Threshold: $100,000 in gross revenue in the last calendar year or makes sales into Michigan in more than 200 separate transactions in the previous calendar year.
Summary: According to state law, sellers who exceed the $100,000 threshold or the transaction number threshold are required to register for a Michigan sales tax permit, collect sales tax on sales that ship to Michigan, and remit sales tax to the state.
You can read Michigan economic nexus law here.
Effective date: October 1, 2018
Minnesota
Threshold: $100,000 in gross revenue in the last 12 months or makes sales into Minnesota in more than 200 separate transactions in the previous 12 months.
Summary: According to state law, sellers who exceed either the $100,000 threshold or the transaction number threshold are required to register for a Minnesota sales tax permit, collect sales tax on sales that ship to Minnesota, and remit sales tax to the state.
You can read the Minnesota economic nexus law here.
Effective date: October 1, 2019
Mississippi
Threshold: Sales into Mississippi that exceed $250,000 in the prior twelve months
Summary: According to state law, sellers who exceed the $250,000 threshold are required to register for a Mississippi sales tax permit, collect sales tax on sales that ship to Mississippi, and remit sales tax to the state.
You can read Mississippi’s economic nexus laws here.
Effective date: December 1, 2017
Missouri
Threshold: Sales into Missouri that hit at least $100,00 in value in the previous 12-month period
Summary: Under Missouri’s economic nexus law, retailers who make at least $100,000 of retail sales to buyers in the state in the previous 12-month period must register and collect sales tax from Missouri buyers.
You can read Missouri’s economic nexus laws here.
Effective date: January 1, 2023
Nebraska
Threshold: Sales into Nebraska exceeding $100,000 or sales were made in 200 or more separate transactions in the current or last calendar year.
Summary: According to the state, sellers who exceed the sales threshold or transaction number are required to register for a Nebraska sales tax permit, collect sales tax on sales that ship into Nebraska, and remit sales tax to the state.
You can read about Nebraska’s economic nexus law here.
Effective date: January 1, 2019
Nevada
Threshold: $100,000/year in gross revenue the previous calendar year OR 200 or more separate transactions in the previous or current calendar year.
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Nevada sales tax permit, collect sales tax on sales that ship into Nevada, and remit sales tax to the state.
You can read guidance on Nevada remote seller information here.
Effective date: October 1, 2018
New Jersey
Threshold: Sales of $100,000 in New Jersey, or more than 200 transactions in the state in the current or last calendar year.
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a New Jersey sales tax permit, collect sales tax on sales that ship into New Jersey, and remit sales tax to the state.
You can read guidance on the text of New Jersey economic nexus law here.
Effective date: November 1, 2018 (Delayed from the previous date of October 1, 2018).
New Mexico
Threshold: $100,000 in annual gross revenue from sales in New Mexico in the last calendar year.
Summary: According to the state, remote sellers and marketplace facilitators are required to register for a New Mexico gross receipts tax permit, collect and remit gross receipts tax to the state if they meet the sales thresholds
Full text: You can read guidance on the text of New Mexico economic nexus law here.
Effective date: July 1, 2019
New York
Threshold: $500,000 per year in gross revenue AND sales made into New York in more than 100 separate transactions in the last four quarters.
Summary: According to the state, sellers that meet both the sales and transaction number thresholds are required to register for a New York sales tax permit, collect sales tax on sales that ship into New York, and remit sales tax to the state. The increase from the prior threshold of $300,000 for businesses that have no physical presence in New York is effective retroactively to June 21, 2018. The increase for marketplace providers is effective retroactively to June 1, 2019.
You can read guidance on the text of New York economic nexus law here.
Effective date: July 21, 2018
North Carolina
Threshold: $100,000/year in gross revenue in the current or last calendar year. As of July 1, 2024, North Carolina removed the 200 transaction nexus requirement.
Summary: According to the state, sellers that meet either the sales thresholds are required to register for a North Carolina sales tax permit, collect sales tax on sales that ship into North Carolina, and remit sales tax to the state.
You can read about North Carolina’s economic nexus law here.
Effective date: November 1, 2018
North Dakota
Threshold: Sales into North Dakota exceeding $100,000 in the current or last calendar year.
Summary: According to the state, sellers who exceed the sales threshold are required to register for a North Dakota sales tax permit, collect sales tax on sales that ship into North Dakota, and remit sales tax to the state.
Small Seller Exception
North Dakota law includes an exception for small sellers which will require sales tax collection by remote sellers ONLY IF their taxable sales into the state exceed $100,000 in the current or previous calendar year.
NOTE: Prior to July 1, 2019, North Dakota’s small seller exception also included a sales threshold of 200 or more separate transactions in the prior or current year. The transactions threshold was repealed, effective July 1, 2019. Remote sellers who only met the transactions threshold in 2018 or 2019 must continue to collect North Dakota sales tax through June 30, 2019. After June 30, 2019, those remote sellers may cancel their North Dakota sales and use tax permit and discontinue collecting North Dakota sales tax.
You can read about North Dakota’s economic nexus law here.
You can find guidance on economic nexus from the North Dakota State Tax Commissioner here.
Effective date: October 1, 2018.
Ohio
Threshold: Sales of $100,000 or more annually or 200 or more separate transactions into the state in the current or last calendar year.
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for an Ohio sales tax permit, collect sales tax on sales that ship into Ohio, and remit sales tax to the state.
You can read more about Ohio’s economic nexus law here.
Effective date: August 1, 2019
Oklahoma
Important note: This is a “notice & report law” which was not affected by the South Dakota v. Wayfair case. That means that this law has been in effect and was being legally enforced before the June 21, 2018 date the Wayfair ruling was handed down. You can read more about notice & report laws here.
Threshold: Sales in Oklahoma of at least $100,000 in the previous 12 months
Sellers who meet the threshold are required to elect to do one of the following on or before June 1 of each calendar year:
- Register for an Oklahoma sales tax permit and collect sales tax on Oklahoma sales
- Comply with Oklahoma’s notice and reporting requirements
You can read Oklahoma’s full economic nexus law here.
Effective date: November 1, 2019
Pennsylvania
Important note: Prior to January 2019, Pennsylvania’s law was a “notice & report law” which was not affected by the South Dakota v. Wayfair case. That means that this law has been in effect and was being legally enforced before the June 21, 2018, date the Wayfair ruling was handed down. You can read more about notice & report laws here. For those who meet the new thresholds below, there are additional guidances in effect.
Threshold: Sales into Pennsylvania that exceeded $100,000 in the previous 12-month period are considered to have economic nexus. The notice and report is still in effect for those with taxable sales greater than $10,000 but less than $100,000 in a calendar year.
Summary: According to Pennsylvania, sellers who meet the nexus threshold are required to register for a Pennsylvania sales tax permit, collect sales tax on sales that ship into Pennsylvania, and remit sales tax to the state.
Those who do not meet the economic threshold should make an election by March 1 of every year and do one of two things:
- Register for a Pennsylvania sales tax permit, collect sales tax on sales that ship into Pennsylvania, and remit sales tax to the state.
- Comply with the state’s rigorous “notice and reporting requirements.”
You can read more about Pennsylvania’s economic nexus law (and notice and reporting requirements) here.
Puerto Rico
Threshold: $100,000 in gross sales or 200 sales transactions during the previous or current calendar year.
Effective: January 1, 2021
Summary: Sellers that meet either threshold are required to register for a Puerto Rico sales tax permit, collect sales tax on sales that ship into Puerto Rico, and remit sales tax to the state.
Learn more about Puerto Rico sales tax on their website.
Rhode Island
Prior to July 1, 2019, Rhode Island enacted a “notice & report law” for non-collecting sellers which was not affected by the South Dakota v. Wayfair case. That means that this law has been in effect and was being legally enforced before the June 21, 2018, date the Wayfair ruling was handed down. Remote sellers in Rhode Island were required to collect and remit sales tax or comply with non-collecting seller use tax notice and reporting requirements. After July 1, 2019, remote sellers will be obligated to register for a sales tax permit in Rhode Island if they exceed the below thresholds. You can read more about notice & report laws here.
Threshold: Sales in Rhode Island that exceed $100,000 or more, or 200 separate transactions in the state in a calendar year
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a Rhode Island sales tax permit, collect sales tax on sales that ship into Rhode Island, and remit sales tax to the state.
It is worth noting that Rhode Island is not repealing, nor eliminating the use tax notice and reporting requirements for non-collecting sellers. Remote sellers who meed the thresholds no longer have the option to comply with the existing use tax notice and report; however, remote sellers who don’t satisfy the economic nexus threshold have the choice to register to collect sales tax in Rhode Island or comply with the notice and report for non-collecting sellers.
You can read Rhode Island’s economic nexus law (and notice and reporting requirements) here.
You can read guidance for vendors from the Rhode Island Department of Revenue here.
Notice and Report effective date: July 15, 2017
Economic nexus effective date: July 1, 2019
South Carolina
Threshold: Sales of $100,000 in South Carolina in the previous or current calendar year
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a South Carolina sales tax permit, collect sales tax on sales that ship into South Carolina, and remit sales tax to the state.
You can read guidance on South Carolina’s economic nexus law here.
Effective date: November 1, 2018
South Dakota
Threshold: Sales of $100,000 in South Dakota, or more than 200 transactions in the state in a the current or last calendar year. Note: Beginning July 1, 2023, South Dakota will remove the 200 transaction threshold. (Source)
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a South Dakota sales tax permit, collect sales tax on sales that ship into South Dakota, and remit sales tax to the state.
Effective date: November 1, 2018
Tennessee
Threshold: As of October 1, 2020, sales exceeding $100,000 in the state in the previous 12 months
Summary: According to the state, sellers with sales exceeding the threshold are required to register for a Tennessee sales tax permit, collect sales tax on sales that ship into Tennessee, and remit sales tax back to the state.
You can read about Tennessee’s economic nexus law here.
Effective date: October 1, 2019
Starting October 1, 2020 the threshold fell from $500,000 to $100,000 in sales in the state in the previous 12 months
Texas
Threshold: Sales above $500,000 in Texas in the previous calendar year.
Summary: Remote sellers with Texas revenues above $500,000 are required to register for a Texas sales tax permit, collect sales tax on sales that ship to Texas, and remit the sales tax to the state. Remote sellers with Texas revenue below this amount will not have to register and collect tax.
You can read about Texas’s economic nexus law here.
Effective date: October 1, 2019. (The initial timeframe for calculating these revenues was July 1, 2018, through June 30, 2019.)
Utah
Threshold: Sales of $100,000 or more in the state, or at least 200 individual sales transactions into the state in the current or last calendar year.
Summary: According to the state, sellers with sales equal to or exceeding the sales or transaction number thresholds are required to register for a Utah sales tax permit, collect sales tax on sales that ship into Utah, and remit sales tax to the state.
You can read about Utah’s economic nexus law here.
Effective date: January 1, 2019
Vermont
Threshold: Sales of $100,000 or more in the state, or at least 200 individual sales transactions into the state during any preceding twelve-month period.
Summary: According to the state, sellers with sales equal to or exceeding the sales or transaction number thresholds are required to register for a Vermont sales tax permit, collect sales tax on sales that ship into Vermont, and remit sales tax to the state.
You can read guidance on economic nexus from the Vermont Department of Revenue here.
Effective date: July 1, 2018
Virginia
Threshold: Sales of $100,000 or more in Virginia, or at least 200 individual sales transactions into the state if in the previous or current calendar year.
Summary: According to the state, sellers with sales equal to or exceeding the sales or transaction number thresholds are required to register for a Virginia sales tax permit, collect sales tax on sales that ship into Virginia, and remit sales tax to the state. Register online or complete Form R-1.
You can read Virginia’s complete legislation on economic nexus here.
Effective date: July 1, 2019
Washington
Economic Nexus Threshold: Sales of $100,000 or more into the state into Washington in the current or last calendar year.
- According to the state, sellers with sales equal to or exceeding the sales number thresholds are required to register for a Washington sales tax permit, collect sales tax on sales that ship into Washington, and remit sales tax to the state.
Prior to March 14, 2019, remote sellers could also have economic nexus if they had 200 or more transactions in the state. And, effective July 1, 2019, SSB Bill 5581 eliminated both the notice and reporting requirements established in the state’s 2018 Marketplace Fairness law in addition to the 200 transaction trigger. If you previously registered because you met the 200 transaction threshold, assess your sales to see if you exceed the $100,000. If you do, continue to collect and submit retail sales tax.
You can read more about Washington’s economic nexus law (and notice and reporting requirements) here.
Effective date: October 1, 2018
Washington DC
Threshold: Sales of $100,000 in Washington D.C. or more than 200 transactions in the state in the previous calendar year.
Summary: According to state law, remote sellers in Washington D.C. who exceed the $100K gross sales or the 200 transactions number are required to register for a Washington D. C. sales tax permit, collect sales tax on orders that ship to Washington D.C., and remit the sales tax to the state.
You can read guidance on the text of Washington D.C. economic nexus law here.
Effective date: January 1, 2019.
West Virginia
Threshold: Sales of $100,000/year in gross revenue the previous calendar year OR 200 or more separate transactions in the previous or current calendar year.
Summary: According to the state, sellers that meet either the sales or transaction number thresholds are required to register for a West Virginia sales tax permit, collect sales tax on sales that ship into West Virginia, and remit sales tax to the state.
Full text: You can read guidance on West Virginia remote seller information here.
Effective date: January 1, 2019
Wisconsin
Threshold: Sales of $100,000 or more annually in the previous or current calendar year.
Summary: Unlike other states on this list, Wisconsin did not have an economic nexus law in effect before Wayfair v. South Dakota. However, in response to the SCOTUS decision, the Wisconsin Department of Revenue issued a statement about how Wisconsin intends to enforce the Wayfair decision.
Effective date: October 1, 2018; Updated February 2021
Wyoming
Threshold: Sales of $100,000 or more into the state. As of July 1, 2024, Wyoming removed the 200 transaction threshold from their economic nexus requirements. Learn more here.
Summary: According to the state, sellers with sales equal to or exceeding the sales thresholds are required to register for a Wyoming sales tax permit, collect sales tax on sales that ship into Wyoming, and remit sales tax to the state.
You can read Wyoming’s economic nexus law here.
Effective date: February 1, 2019
How to streamline compliance with TaxJar
As you can see, sales tax compliance is challenging. There are so many important details that businesses must be aware of to stay compliant and avoid penalties. TaxJar can make compliance easier, by managing all the different aspects, including keeping you updated on where you have nexus, registering for sales tax permits, and automating sales tax filing and remittance. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
