Economic Nexus Rules: A Guide for E-commerce Sellers
An essential overview of state-by-state economic nexus thresholds and compliance rules for remote sellers in the US.
What is Economic Nexus?
Following the landmark South Dakota v. Wayfair decision, states gained the authority to enforce sales tax collection on out-of-state businesses that exceed certain economic activity thresholds within their jurisdiction, even without physical presence.
Key Threshold Limits
Most states have established thresholds based on annual gross sales or transaction count. Standard limits include:
| State | Sales Threshold | Transaction Threshold |
|---|---|---|
| Texas | $500,000 | None |
| California | $500,000 | None |
| New York | $500,000 | 100 Transactions |
How to Monitor Your Sales Volume
It is vital to monitor your trailing 12-month sales volume in each state. Once you cross a threshold, you must register to collect tax before making your next sale.
Frequently Asked Questions
In most states, yes, gross wholesale transactions are counted towards your economic nexus thresholds. However, some states exclude exempt sales.
Official Verification Sources
We verify all rate changes and nexus rules from government authorities.
- Texas Comptroller Remote Seller Nexus Guidelines ↗ Accessed: Jul 17, 2026
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Economic Nexus Checker
Compare your state-specific sales activity against current nexus thresholds using existing site data.
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Should I Collect Sales Tax?
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