The following information is a basic summary of the economic nexus thresholds for each U.S. state in light of 2018's paradigm-shifting South Dakota v. Wayfair decision.
Read more about the South Dakota v. Wayfair decision here.
If you believe this decision may affect your business, please see our Nexus Activity Questionnaire.
Alabama
Threshold: $250,000 in sales for the previous calendar year
Effective Date: October 1, 2018
Notes: Engaging in certain additional activities within the state may also trigger economic nexus
ALAska
Alaska has not established an economic nexus threshold.
Arizona
Arizona has not established an economic nexus threshold.
Arkansas
Arkansas has not established an economic nexus threshold.
California
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: April 1, 2019
Colorado
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: December 1, 2018
Connecticut
Threshold: $250,000 in sales AND 200 transactions for the previous calendar year
Effective Date: December 1, 2018
Notes: Engaging in certain additional activities within the state may also trigger economic nexus
Delaware
Delaware has not established an economic nexus threshold.
District of Columbia
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: January 1, 2019
Florida
Florida has not established an economic nexus threshold.
Georgia
Threshold: $250,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: January 1, 2019
Notes: Possible alternative additional reporting requirement for certain dealers
Hawaii
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: July 1, 2018
Idaho
Threshold: $100,000 in sales
Effective Date: July 1, 2018
Notes: Idaho is still reviewing the Supreme Court decision; threshold and effective date refer to referral nexus
Illinois
Threshold: $100,000 in sales OR 200 transactions in the previous 12 months
Effective Date: October 1, 2018
Notes: Retailers must determine if these thresholds are met on a quarterly basis
Indiana
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: October 1, 2018
Iowa
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: January 1, 2019
Kansas
Kansas has not established an economic nexus threshold.
Kentucky
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: October 1, 2018
Louisiana
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: January 1, 2019
Maine
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: July 1, 2018
Maryland
Threshold: $100,000 in sales OR 200 transactions for the previous OR current calendar year
Effective Date: October 1, 2018
Massachusetts
Threshold: $500,000 in sales AND 100 transactions for the previous calendar year
Effective Date: October 1, 2018
Notes: State laws quantify certain web based applications as establishing physical presence
Michigan
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: October 1, 2018
Minnesota
Threshold: $100,000 in sales in 10 transactions OR 100 transactions over a 12-month period
Effective Date: October 1, 2018
Notes: Certain sellers may be eligible for exemption based on sales figures
Mississippi
Threshold: $250,000 in sales in the previous 12 months
Effective Date: September 1, 2018
Notes: Engaging in certain solicitation activities may also trigger economic nexus
Missouri
Missouri has not established an economic nexus threshold.
Montana
Montana has not established an economic nexus threshold.
Nebraska
Threshold: $100,000 in sales OR 200 transactions for a calendar year
Effective Date: January 1, 2019
New Hampshire
New Hampshire has not established an economic nexus threshold.
New Jersey
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: November 1, 2018
New Mexico
New Mexico has not established an economic nexus threshold.
NEW York
New York has not established an economic nexus threshold.
NEvada
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: October 1, 2018
North Carolina
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: November 1, 2018
Notes: Effective date begins 60 days after taxpayer meets threshold
North Dakota
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: October 1, 2018
Ohio
Threshold: $500,000 in sales for the previous OR current calendar year
Effective Date: January 1, 2018
Notes: Certain software use or distribution agreements may also trigger economic nexus
Oklahoma
Threshold: $10,000 in sales for the previous OR current calendar year
Effective Date: July 1, 2018
Notes: May alternatively comply with detailed reporting requirements
Oregon
Oregon has not established an economic nexus threshold.
Pennsylvania
Threshold: $10,000 in sales for the previous OR current calendar year
Effective Date: March 1, 2018
Notes: May alternatively comply with detailed reporting requirements
Rhode Island
Threshold: $100,000 in sales OR 200 transactions in the previous calendar year
Effective Date: August 17, 2017
Notes: May alternatively comply with detailed reporting requirements
South CAROLINA
Threshold: $100,000 in sales for the previous OR current calendar year
Effective Date: November 1, 2018
Notes: Certain consignment property must be included gross sales figure
South Dakota
Threshold: $100,000 in sales OR 200 transactions for a calendar year
Effective Date: November 1, 2018
Tennessee
Threshold: $500,000 in sales in the previous 12 months
Effective Date: Pending
Notes: Litigation pending
Texas
Threshold: $500,000 in sales in the previous 12 months
Effective Date: October 1, 2019
Notes: Effective date begins 60 days after taxpayer meets threshold
Utah
Threshold: $100,000 in sales OR 200 transactions for a calendar year
Effective Date: January 1, 2019
Notes: Effective date begins 60 days after taxpayer meets threshold
Vermont
Threshold: $100,000 in sales OR 200 transactions in the previous 12 months
Effective Date: July 1, 2018
Virginia
Virginia has not established an economic nexus threshold.
Notes: Legislation being discussed, possible effective date 7/1/2019
Washington
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: October 1, 2018
Notes: May alternatively comply with detailed reporting requirements
West Virginia
Threshold: $100,000 in sales OR 200 transactions in the previous calendar year
Effective Date: January 1, 2019
Notes: Effective date begins 60 days after taxpayer meets threshold
Wisconsin
Threshold: $100,000 in sales OR 200 transactions for a calendar year
Effective Date: October 1, 2018
Wyoming
Threshold: $100,000 in sales OR 200 transactions in the previous OR current calendar year
Effective Date: February 1, 2019
The data provided above is a basic summary of a complex topic. The contents of this communication are for informational purposes only and do not constitute legal or financial advice. Our well-versed team is ready to review your business’s sales and use tax reporting requirements and any resulting potential change in tax liability. We look forward to having the opportunity to provide an analysis on how this shift has specifically impacted your business.