Resources Blog Nexus
by Sarah Craig August 6, 2025
Since we are more than five years removed from the South Dakota v. Wayfair decision, e-commerce sellers are more familiar with economic nexus laws. Now, instead of only requiring retailers to collect sales tax in states where they are physically located, states can require remote sellers that exceed sales or transaction thresholds to collect and file sales tax.
These thresholds are the key to determining where a company has sales tax obligations. Keeping up with transactions seems simple enough, and you are probably already keeping these records for sales tax compliance purposes. But you may be wondering if all types of sales factor into economic nexus thresholds . For example, should you consider non-taxable/exempt sales when determining if you’ve reached a threshold? What about wholesale or marketplace sales?
Like most things sales tax related, it depends on the state. We’ve outlined what types of sales are included in each state’s threshold calculations below:
Alabama: The threshold calculations include sales of exempt tangible personal property, but exclude:
Alaska: The threshold calculations includes:
Arizona: The threshold calculations include:
The threshold calculations exclude sales made on a marketplace platform where the facilitator is collecting tax on behalf of sellers.
Arkansas : The threshold calculations include taxable sales. The threshold calculation excludes:
California: The threshold calculations includes:
The threshold calculations excludes:
Colorado: The threshold calculations include:
The threshold calculation excludes:
Connecticut: Sellers in Connecticut must meet both the transaction and revenue threshold to have economic nexus in the state. The threshold calculations include:
District of Columbia: The threshold calculations include:
The threshold calculations exclude:
Florida: The threshold calculation includes taxable sales of tangible personal property. The threshold calculations exclude:
Georgia : The threshold calculations include sales of exempt tangible personal property. The threshold calculation excludes:
Hawaii: The threshold calculations include:
Idaho: The threshold calculations include:
Illinois: The threshold calculations include sales of exempt tangible personal property. The threshold calculations exclude:
Indiana: The threshold calculations include gross sales, except marketplace sales. Marketplace sales are excluded from the threshold.
Iowa: The threshold calculation includes:
Kansas: The threshold calculations include:
The threshold calculations exclude nontaxable sales of services.
Kentucky: The threshold calculations include:
Louisiana: The threshold calculations includes gross sales and excludes marketplace sales.
Maine: The threshold calculations include:
Maryland: The threshold calculations include:
The threshold calculations exclude exempt services.
Massachusetts: The threshold calculation includes gross sales, except marketplace sales. Marketplace sales are excluded from the threshold.
Michigan: The thresholds includes:
Minnesota: The threshold calculations include:
Mississippi: The threshold calculations include:
Missouri : The threshold calculations include taxable sales of tangible personal property. The threshold calculation excludes:
Nebraska: The thresholds calculations include:
The threshold calculations exclude wholesale sales or sales for resale.
Nevada: The threshold calculations include:
The threshold calculations exclude wholesale sales and sales of service.
New Jersey: The threshold calculations include:
The threshold calculations exclude sales of non-taxable services.
New Mexico: The threshold calculations includes:
The threshold calculations exclude wholesales sales or sales for resale.
New York: The threshold calculations includes gross receipts exceeding $500,000 and made more than 100 sales during preceding four sales tax quarters.
North Carolina: The threshold calculations include:
North Dakota: The threshold calculations include sales of taxable services. The threshold calculation excludes:
Ohio: The threshold calculations includes:
Oklahoma : The threshold calculations exclude:
Pennsylvania: The threshold calculations include gross sales.
Puerto Rico: The threshold calculations include:
Rhode Island: The threshold calculations include:
South Carolina: The threshold calculations include:
South Dakota: The threshold calculations include:
Tennessee: The threshold calculations include retail sales, whether taxable or nontaxable, but exclude:
Texas: The threshold calculations includes total Texas revenue of $500,000 or more in the preceding twelve calendar months.
Utah: The threshold calculations include:
The threshold calculations exclude sales made on marketplace platforms, including when facilitators collect tax on behalf of sellers.
Vermont: The threshold calculations include:
Virginia: The threshold calculations include retail sales. The threshold calculations exclude:
Washington: The threshold applies to all Washington income, including retailing, wholesaling, service and other activities, and other related activities. This means threshold calculations include:
West Virginia: The threshold calculations include:
Wisconsin: The threshold calculations include:
Wyoming: The threshold calculations includes:
Keeping up with economic nexus thresholds is a full-time job. Between maintaining transaction and sales counts for your business, as well as staying up to date on the different state threshold amounts and rules, it’s no wonder many businesses choose to automate nexus management for their business with companies like TaxJar.
TaxJar’s Nexus Insights Dashboard makes it easy to see which states require you to collect sales tax based on your economic activity without having to rely on manual workflows. Our dashboard looks at all eligible sales to determine if your sales met any of these thresholds. Sales not included in a state’s threshold count are subtracted, so you know your economic nexus monitoring is accurate.
TaxJar simplifies the process with an easy-to-use dashboard and notification system that helps you monitor your nexus exposure as you transact more sales online and across more states. Our dashboard warns you when you may need to register in a new state. Ready to get started? Start your free 30-day TaxJar trial today , or reach out to our sales team if you have any questions.
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