Understanding economic nexus with each state is paramount for businesses, given the varying rules based on sales revenue, transaction volume, or a combination of both. Here's a detailed breakdown for better clarity:

Alabama

• Sales of TPP over $250,000 in the prior calendar year.
• Exempt sales (excluding wholesale) are included in the threshold; exempt services are not.

Alaska

• Statewide gross remote sales ≥ $100,000 in the current or previous calendar year.
• Exempt sales and services are included in the threshold.

Arizona

• Annual gross retail sales/income from online sales into Arizona > $200,000 (2019), $150,000 (2020), $100,000 (2021 onwards).
• Exempt sales and services are included.

Arkansas

• Sales exceed $100,000 or 200 transactions in the current or preceding year.
• Exempt sales and services are not included.

California

• Total combined sales exceed $500,000 during the preceding or current calendar year.
• Exempt sales (e.g., resale) are included; exempt services are not.

Colorado

• Taxable sales > $100,000 in the past calendar year.
• Exempt sales and services (except wholesale) are included.

Connecticut

• Before 12/1/2018: $250,000 gross receipts and 200 or more retail transactions; After 7/1/2019: $100,000 gross receipts and 200 or more retail transactions.
• Exempt sales and services (except resale) are included in the threshold.

District of Columbia

• $100,000 gross receipts or > 200 separate retail sales in the previous or current calendar year.
• Exempt sales and services are included.

Florida

• Taxable sales of tangible personal property > $100,000 in the previous calendar year.
• Exempt sales and services are not included.

Georgia

• Effective 1/1/2020: Gross revenue exceeding $100,000 or 200 or more separate retail sales.
• Exempt sales (except resale) are included; exempt services are not.

Hawaii

• $100,000 or more in gross income or 200 or more transactions.
• Exempt sales and services are included.

Idaho

• Sales that exceed $100,000 in the current or previous year.
• Exempt sales and services are included.

Illinois

• Cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions.
• Exempt sales (including property sold incident to a service) are included; sales for resale are not.

Indiana

• Gross revenue exceeding $100,000 in the previous or current year.
• Exempt sales and services are included.

Iowa

• Gross revenue from sales of $100,000 in the previous or current calendar year.
• Exempt sales and services are included.

Kansas

• Cumulative gross receipts in excess of $100,000 in the current or preceding calendar year.
• Exempt sales and services are included.

Kentucky

• Gross receipts of $100,000 or more or 200 or more sales based on the previous or current calendar year.
• Exempt sales are included; exempt services are not.

Louisiana

• Deliver more than $100,000 of goods or services into the state.
• Exempt sales and services are included.

Maine

• Gross revenues from Maine sales of tangible personal property, electronically transferred products, or taxable services exceed $100,000 during the current or previous calendar year.
• Exempt sales are included; exempt services are not.

Maryland

• Gross revenue exceeds $100,000 or 200 or more separate transactions during the previous or current calendar year.
• Exempt sales (e.g., tangible personal property) are included; exempt services are not.

Massachusetts

• Massachusetts sales exceeding $100,000 during the current or previous calendar year.
• Exempt sales and services are included.

Michigan

• Taxable and non-taxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year.
• Exempt sales and services are included.

Minnesota

• Retail sales of more than $100,000 or 200 or more separate retail transactions in any 12 consecutive months.
• Exempt sales and sales to tax-exempt entities are included; sales for resale are not. Exempt services are not included.

Mississippi

• Sales exceed $250,000 for the prior 12 months.
• Exempt sales and services are included.

Missouri

• Gross receipts from taxable sales in the previous or current calendar year exceeding $100,000.
• Exempt sales are not included.

Nebraska

• Exceeds $100,000 in Nebraska retail sales or 200 or more separate transactions in the prior or current calendar year.
• Exempt sales and services are included, except resales, sublease, or sub-rent.

Nevada

• Gross revenue from retail sales greater than $100,000 or 200 or more retail sales in the prior or current year.
• Exempt sales (except resale) are included; exempt services are not.

New Jersey

• Gross revenue exceeds $100,000 or 200 or more separate transactions in the prior or current calendar year.
• Nontaxable retail sales and specified digital products are included; exempt services are not.

New Mexico

• Gross revenue from retail sales greater than $100,000.
• Exempt sales and services are not included.

New York

• Gross receipts exceed $500,000 and more than 100 sales in the preceding four sales tax quarters.
• Exempt sales are included; exempt services are excluded.

North Carolina

• Gross sales in excess of $100,000 in the previous or current calendar year.
• Exempt sales and services are included.

North Dakota

• Taxable sales of $100,000 in the previous or current calendar year.
• Exempt sales and services are not included.

Ohio

• Gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year.
• Only retail sales are included in the economic nexus threshold calculation.

Oklahoma

• $100,000 or more in taxable sales of products during the previous or current calendar year.
• Exempt sales and services are not included.

Pennsylvania

• More than $100,000 in gross sales in the previous twelve months.
• Exempt sales and services are included.

Puerto Rico

• Gross receipts greater than $100,000 or 200 or more transactions.
• Exempt sales are included.

Rhode Island

• Gross revenues of $100,000 or more or 200 or more separate transactions in the previous calendar year.
• Exempt sales are included; exempt services are not included.

South Carolina

• Gross revenue from sales exceeds $100,000 in South Carolina in the previous or current calendar year.
• Exempt sales and services are included.

South Dakota

• Effective 7/1/2023: Gross revenue from sales exceeding $100,000 in the previous or current calendar year; Effective 11/1/2018: Gross revenue from sales exceeding $100,000 or 200 or more separate transactions in previous or current calendar year.
• Exempt sales and services are included.

Tennessee

• Retail sales threshold is $100,000 during the previous 12 months.
• Exempt sales and services are included; sales for resale are excluded; sales made through an online marketplace are excluded effective October 1, 2020.

Texas

• Total Texas revenue of $500,000 or more in the preceding twelve calendar months.
• Exempt sales and services are included.

Utah

• Gross revenue of more than $100,000 or more than 200 separate transactions during the previous or current calendar year.

Vermont

• Sales of at least $100,000 or 200 individual transactions during any preceding 12-month period.
• Exempt sales and services are included.

Virginia

• In the previous or current calendar year, either receives greater than $100,000 in gross revenue from retail sales or engages in 200 or more separate retail sales transactions.
• Exempt sales (except resales) are included; exempt services are excluded.

Washington

• Effective January 1, 2020: Gross income exceeding $100,000 in preceding or current year.
• Exempt sales and services are included; resales are included.

Washington, D.C.

• Sales of at least $100,000 or 200 individual transactions.
• Exempt sales (except resale and exempt services) are included.

West Virginia

• Sales equal to or exceeding $100,000 or 200 or more separate transactions for an immediately preceding calendar year or a current calendar year.
• Exempt sales and services are included.

Wisconsin

• Gross sales exceed $100,000 in the previous or current calendar year.
• Exempt sales and services are included.

Wyoming

• Gross revenue from sales of TPP, admissions, or services > $100,000 in prior or current year.
• Exempt sales and services are included in the threshold count.

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This comprehensive guide provides a detailed overview of economic nexus thresholds for each state. For further assistance and guidance, reach out to our expert team. Stay compliant, stay informed!

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