Sales Tax Nexus Rules in All 50 States: The Complete Reference Guide for 2026

After South Dakota v. Wayfair (2018), every state with a sales tax moved quickly to enact economic nexus laws. Today, a business selling products or taxable services online can have sales tax obligations in dozens of states — regardless of whether it has a single employee, warehouse, or office outside its home state.

This guide covers all 50 states. For each state you will find: whether a sales tax exists, the economic nexus threshold, what triggers physical nexus, the general filing frequency, and the most important quirks that catch sellers off guard.

A note on accuracy: Sales tax law changes frequently. Thresholds, rates, and rules are current as of mid-2026 but should be verified against each state's department of revenue before making compliance decisions. This guide is informational — not legal or tax advice for your specific situation.

Before the state-by-state breakdown, the five states with no statewide sales tax deserve a quick note:

• Alaska — No state sales tax, but over 100 local jurisdictions impose their own sales taxes. The Alaska Remote Seller Sales Tax Commission administers a unified system for remote sellers. Threshold: $100,000 or 200 transactions into participating jurisdictions.
• Delaware — No sales tax at any level. No nexus concerns for sales tax purposes.
• Montana — No sales tax. No nexus concerns for sales tax purposes.
• New Hampshire — No sales tax. No nexus concerns for sales tax purposes.
• Oregon — No sales tax. No nexus concerns for sales tax purposes.

Sales tax: Yes — statewide rate 4%, plus local rates up to 7% (combined rates can reach 11%+)

Economic nexus threshold: $250,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance exceeding two days.

Filing frequency: Monthly (over $1,000/month tax due), quarterly, or annual depending on volume.

Key quirks: Alabama has a Simplified Sellers Use Tax (SSUT) program that allows remote sellers to collect a flat 8% rate statewide instead of calculating local rates. This is a significant simplification for sellers who qualify. Alabama also taxes digital goods and SaaS. Local jurisdictions are administered separately from the state — some require separate registration.

Sales tax: No statewide sales tax. Local jurisdictions only.

Economic nexus threshold: $100,000 in sales or 200 transactions into participating jurisdictions (administered by the Alaska Remote Seller Sales Tax Commission).

Physical nexus triggers: Varies by jurisdiction.

Filing frequency: Varies by jurisdiction.

Key quirks: Alaska is the most complex of the no-sales-tax states because local taxes do exist. Sellers with significant Alaska volume should register with the ARSSTC for a single point of compliance rather than registering with each municipality separately.

Sales tax: Yes — Arizona calls it the Transaction Privilege Tax (TPT), not a sales tax. This is a meaningful distinction: TPT is a tax on the seller's privilege of doing business, not on the buyer's purchase. The legal incidence is different, though the practical effect is similar.

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or any business activity in the state.

Filing frequency: Monthly (over $2,000/month tax due), quarterly, or annual.

Key quirks: Arizona uses origin sourcing for in-state sellers — you charge the rate of your business location, not the buyer's location. Remote sellers use destination sourcing. Arizona's TPT system requires registration through the Arizona Department of Revenue's AZTaxes portal, which also covers county and city taxes for most jurisdictions. Some cities (Tucson, Phoenix, Scottsdale, and others) are administered separately and may require separate registration. Food for home consumption is generally exempt; prepared food is taxable.

Sales tax: Yes — statewide rate 6.5%, plus local rates.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or delivery vehicles.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Arkansas taxes digital goods and electronically delivered software. Groceries are taxed at a reduced rate of 0.125% (essentially exempt for practical purposes). Arkansas participates in the Streamlined Sales Tax (SST) agreement, which simplifies registration and compliance for sellers who use certified service providers.

Sales tax: Yes — statewide rate 7.25% (the highest base rate in the country), plus local rates up to 3.25% (combined rates commonly reach 10.25%).

Economic nexus threshold: $500,000 in annual sales. No transaction count threshold. California has the highest threshold in the country.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory (including FBA), trade show attendance, or any agent acting on the seller's behalf.

Filing frequency: Monthly (over $17,000/quarter tax due), quarterly, or annual.

Key quirks: California is the most aggressive sales tax enforcement state in the country. The California Department of Tax and Fee Administration (CDTFA) has sophisticated data-matching programs and actively pursues non-compliant sellers. California uses destination sourcing. Groceries and prescription drugs are exempt; prepared food is taxable. California taxes digital goods inconsistently — downloaded software is taxable; SaaS is generally not (though this is contested). The Franchise Tax Board and CDTFA share data, so income tax non-compliance and sales tax non-compliance often surface together.

Sales tax: Yes — statewide rate 2.9%, but Colorado has the most complex local tax structure in the country. Over 700 local jurisdictions impose their own sales taxes, and many are home rule cities that administer their own tax systems independently of the state.

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or delivery vehicles.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Colorado's home rule cities (Denver, Boulder, Aurora, Fort Collins, and dozens of others) require separate registration and filing with each city — the state system does not cover them. This makes Colorado one of the most administratively burdensome states for multi-jurisdiction compliance. Colorado also imposes a retail delivery fee of $0.29 per retail delivery made by motor vehicle to a Colorado address. Groceries are exempt; prepared food is taxable.

Sales tax: Yes — statewide rate 6.35%, with a higher rate of 7.75% on luxury goods (clothing over $1,000, jewelry over $5,000, motor vehicles over $50,000).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $4,000/month tax due), quarterly, or annual.

Key quirks: Connecticut taxes digital goods and SaaS. Clothing under $50 per item is exempt. Connecticut has a meals tax of 7.35% on prepared food and beverages. Connecticut participates in SST.

Sales tax: None. No nexus concerns for sales tax purposes.

Sales tax: Yes — statewide rate 6%, plus local rates (combined rates typically 7–8%).

Economic nexus threshold: $100,000 in annual sales. Florida eliminated its transaction count threshold in 2021.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or any business activity in the state.

Filing frequency: Monthly (over $1,000/month tax due), quarterly, semi-annual, or annual.

Key quirks: Florida was one of the last states to enact economic nexus legislation (effective July 2021). Florida does not tax most services — it is primarily a goods-based sales tax state. Groceries and prescription drugs are exempt. Florida taxes digital goods inconsistently — downloaded software is taxable; streaming services and SaaS are generally not. Florida has a back-to-school sales tax holiday and a disaster preparedness holiday each year that temporarily exempt certain items.

Sales tax: Yes — statewide rate 4%, plus local rates (combined rates typically 7–8%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Georgia taxes digital goods. Groceries are exempt from the state tax but subject to local taxes. Georgia participates in SST. Georgia has a manufacturing exemption for machinery and equipment used directly in manufacturing.

Sales tax: Hawaii has a General Excise Tax (GET), not a traditional sales tax. Like Arizona's TPT, the GET is a tax on the seller's gross receipts from business activity — not a tax on the buyer's purchase. The GET applies to virtually all business activity in Hawaii, including services, which most states do not tax.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Any business activity in Hawaii, including remote sales.

Filing frequency: Monthly, quarterly, or semi-annual based on volume.

Key quirks: Hawaii's GET is the broadest consumption tax in the country — it applies to services, rentals, and virtually all business activity. The standard GET rate is 4% (4.5% in Honolulu County). Sellers are permitted to pass the GET on to buyers, but it is technically the seller's tax. Hawaii taxes digital goods and SaaS. There is no exemption for groceries or prescription drugs at the GET level (though there is a food stamp exemption).

Sales tax: Yes — statewide rate 6%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Idaho has no local sales taxes, which makes compliance simpler than most states — one rate applies statewide. Groceries are taxable at the full 6% rate (Idaho is one of the few states that fully taxes groceries, though there is a grocery tax credit on the income tax return). Idaho participates in SST.

Sales tax: Yes — statewide rate 6.25%, plus local rates (combined rates in Chicago reach 10.25%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Illinois uses origin sourcing for in-state sellers — one of the few states that does. Remote sellers use destination sourcing. This creates a two-tier system that is confusing for businesses with both in-state and out-of-state sales. Illinois taxes digital goods. Groceries are taxed at a reduced rate of 1%. Illinois has a Retailers' Occupation Tax structure (similar to Arizona's TPT) rather than a pure sales tax. Chicago and Cook County have their own tax layers that significantly increase the combined rate.

Sales tax: Yes — statewide rate 7%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Indiana has no local sales taxes — one rate applies statewide. Groceries and prescription drugs are exempt. Indiana taxes digital goods. Indiana participates in SST. Indiana has a use tax that applies to purchases made outside Indiana for use inside Indiana — businesses are expected to self-assess and remit use tax on untaxed purchases.

Sales tax: Yes — statewide rate 6%, plus local option taxes of 1% in most jurisdictions (combined rate typically 7%).

Economic nexus threshold: $100,000 in annual sales. Iowa eliminated its transaction count threshold in 2023.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, semi-monthly, or annual based on volume.

Key quirks: Iowa taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Iowa participates in SST. Iowa has a manufacturing exemption for machinery and equipment.

Sales tax: Yes — statewide rate 6.5%, plus local rates (combined rates vary significantly).

Economic nexus threshold: No threshold — Kansas imposes economic nexus on all remote sellers regardless of sales volume. This is the most aggressive economic nexus standard in the country and has been controversial.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or any business activity.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Kansas's no-threshold economic nexus rule means that even a single sale into Kansas can technically create a filing obligation. In practice, the state has focused enforcement on larger sellers, but the legal exposure exists for all sellers. Groceries were taxed at the full rate until 2023; the grocery tax is being phased out and will reach 0% by 2025. Kansas participates in SST.

Sales tax: Yes — statewide rate 6%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Kentucky has no local sales taxes — one rate applies statewide. Kentucky significantly expanded its sales tax base in 2018 to include many services that were previously exempt, including landscaping, janitorial, photography, and fitness services. Groceries are exempt; prepared food is taxable. Kentucky taxes digital goods. Kentucky participates in SST.

Sales tax: Yes — statewide rate 5%, plus local rates (combined rates commonly reach 9–10%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Louisiana has one of the most complex local tax structures in the country. Louisiana's local jurisdictions are called parishes, and each parish administers its own sales tax independently. The Louisiana Sales and Use Tax Commission for Remote Sellers provides a centralized registration and filing system for remote sellers, but local compliance remains complex. Groceries are exempt from the state tax but subject to local taxes. Louisiana taxes digital goods.

Sales tax: Yes — statewide rate 5.5%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Maine has no local sales taxes. Groceries and prescription drugs are exempt. Maine taxes prepared food at a higher rate of 8%. Maine taxes digital goods. Maine participates in SST.

Sales tax: Yes — statewide rate 6%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Maryland has no local sales taxes. Groceries and prescription drugs are exempt. Maryland taxes digital goods and digital advertising services — Maryland was the first state to enact a digital advertising tax (though it has faced legal challenges). Maryland taxes SaaS. Maryland participates in SST.

Sales tax: Yes — statewide rate 6.25%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales. Massachusetts eliminated its transaction count threshold in 2019.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $1,200/month tax due), quarterly, or annual.

Key quirks: Massachusetts has no local sales taxes. Groceries and prescription drugs are exempt. Clothing under $175 per item is exempt. Massachusetts taxes digital goods. Massachusetts is known for aggressive enforcement of sales tax obligations, particularly for sellers with Massachusetts-based employees or contractors. Massachusetts participates in SST.

Sales tax: Yes — statewide rate 6%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Michigan has no local sales taxes. Groceries and prescription drugs are exempt. Michigan taxes digital goods. Michigan participates in SST. Michigan has a use tax that mirrors the sales tax — businesses must self-assess use tax on untaxed purchases used in Michigan.

Sales tax: Yes — statewide rate 6.875%, plus local rates (combined rates vary).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Minnesota taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Clothing is generally exempt — a significant exception compared to most states. Minnesota participates in SST. Minnesota has a marketplace facilitator law that requires platforms like Amazon and Etsy to collect and remit sales tax on behalf of third-party sellers.

Sales tax: Yes — statewide rate 7% (one of the highest in the country), plus local rates.

Economic nexus threshold: $250,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Mississippi uses origin sourcing — you charge the rate of your business location, not the buyer's location. Groceries are taxed at a reduced rate of 7% (the full rate — Mississippi does not exempt groceries). Mississippi taxes digital goods. Mississippi does not participate in SST.

Sales tax: Yes — statewide rate 4.225%, plus local rates (combined rates vary significantly).

Economic nexus threshold: $100,000 in annual sales. Missouri enacted economic nexus effective January 2023 — one of the last states to do so.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Missouri uses origin sourcing for in-state sellers. Missouri has a complex local tax structure with hundreds of jurisdictions. Groceries are taxed at a reduced rate of 1.225%. Missouri participates in SST. Missouri was notably one of the last states to enact economic nexus legislation.

Sales tax: None. No nexus concerns for sales tax purposes.

Sales tax: Yes — statewide rate 5.5%, plus local rates (combined rates typically 6.5–7.5%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Nebraska taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Nebraska participates in SST.

Sales tax: Yes — statewide rate 6.85%, plus local rates (combined rates in Clark County/Las Vegas reach 8.375%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Nevada taxes digital goods. Groceries are exempt; prepared food is taxable. Nevada does not participate in SST. Nevada has a modified business tax on payroll that is separate from the sales tax system.

Sales tax: None. No nexus concerns for sales tax purposes.

Sales tax: Yes — statewide rate 6.625%, with a reduced rate of 3.3125% in Urban Enterprise Zones.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $30,000/year tax due), quarterly, or annual.

Key quirks: New Jersey taxes digital goods. Groceries and prescription drugs are exempt. Clothing is generally exempt — one of the few states with a broad clothing exemption. New Jersey participates in SST. New Jersey has a use tax that applies to untaxed purchases used in New Jersey.

Sales tax: New Mexico has a Gross Receipts Tax (GRT), not a traditional sales tax. Like Arizona's TPT and Hawaii's GET, the GRT is a tax on the seller's gross receipts from business activity. The GRT applies to services as well as goods.

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or any business activity.

Filing frequency: Monthly, quarterly, or semi-annual based on volume.

Key quirks: New Mexico's GRT applies to services, which most states do not tax. The GRT rate varies by location — the combined state and local rate typically ranges from 5% to 9.5%. New Mexico uses origin sourcing for in-state sellers. Groceries are exempt from the GRT. New Mexico does not participate in SST.

Sales tax: Yes — statewide rate 4%, plus local rates (combined rates in New York City reach 8.875%).

Economic nexus threshold: $500,000 in annual sales and 100 transactions. Both thresholds must be met — this is one of the few states that requires both conditions to be satisfied.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, trade show attendance, or affiliates/referral partners in the state.

Filing frequency: Monthly (over $300,000/year tax due), quarterly, or annual.

Key quirks: New York City imposes its own sales tax on top of the state and county taxes, making the combined rate one of the highest in the country. New York taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Clothing and footwear under $110 per item are exempt from the state tax (but not from New York City tax). New York has a click-through nexus rule — having affiliates or referral partners in New York who drive sales to your website creates nexus even without economic nexus. New York participates in SST.

Sales tax: Yes — statewide rate 4.75%, plus local rates (combined rates typically 6.75–7.5%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or semi-annual based on volume.

Key quirks: North Carolina taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. North Carolina participates in SST. North Carolina has a privilege license tax for certain business activities that is separate from the sales tax.

Sales tax: Yes — statewide rate 5%, plus local rates (combined rates typically 6–8%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: North Dakota taxes digital goods. Groceries are exempt; prepared food is taxable. North Dakota participates in SST. North Dakota was the state involved in the original Quill Corp. v. North Dakota (1992) case that established the physical presence standard — later overturned by Wayfair.

Sales tax: Yes — statewide rate 5.75%, plus local rates (combined rates typically 6.5–8%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $1,200/month tax due), quarterly, or annual.

Key quirks: Ohio taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Ohio participates in SST. Ohio has a Commercial Activity Tax (CAT) on gross receipts that applies to businesses with Ohio activity — this is separate from the sales tax and applies to B2B transactions that the sales tax does not reach.

Sales tax: Yes — statewide rate 4.5%, plus local rates (combined rates commonly reach 8–11%).

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Oklahoma has a complex local tax structure. Groceries are taxed at the full rate (Oklahoma does not exempt groceries). Oklahoma taxes digital goods. Oklahoma participates in SST.

Sales tax: None. No nexus concerns for sales tax purposes.

Sales tax: Yes — statewide rate 6%, plus a 2% local rate in Philadelphia and 1% in Allegheny County (Pittsburgh area).

Economic nexus threshold: $100,000 in annual sales. Pennsylvania eliminated its transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $600/month tax due), quarterly, or semi-annual.

Key quirks: Pennsylvania taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Clothing is generally exempt. Pennsylvania participates in SST. Pennsylvania uses origin sourcing for in-state sellers.

Sales tax: Yes — statewide rate 7%, no local sales taxes.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Rhode Island has no local sales taxes. Groceries and prescription drugs are exempt. Rhode Island taxes digital goods. Rhode Island participates in SST. Rhode Island enacted one of the earliest marketplace facilitator laws in the country.

Sales tax: Yes — statewide rate 6%, plus local rates (combined rates typically 7–9%).

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: South Carolina taxes digital goods. Groceries are exempt; prepared food is taxable. South Carolina participates in SST. South Carolina has a maximum tax of $500 on the sale of certain items (motor vehicles, boats, aircraft) — a significant exception to the standard rate.

Sales tax: Yes — statewide rate 4.2% (reduced from 4.5% in 2023), plus local rates (combined rates typically 6–6.5%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions. South Dakota was the state whose law was upheld in Wayfair — the case that established economic nexus nationwide.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: South Dakota taxes digital goods and SaaS. Groceries are taxable at the full rate (South Dakota does not exempt groceries). South Dakota participates in SST. South Dakota has no income tax, which makes it a popular state for business formation and residency planning.

Sales tax: Yes — statewide rate 7% (one of the highest in the country), plus local rates (combined rates commonly reach 9–10%).

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $400/month tax due), quarterly, or annual.

Key quirks: Tennessee uses origin sourcing for in-state sellers. Groceries are taxed at a reduced rate of 4%. Tennessee taxes digital goods. Tennessee does not participate in SST. Tennessee has no income tax on wages (it had a tax on investment income called the Hall Tax, which was repealed in 2021).

Sales tax: Yes — statewide rate 6.25%, plus local rates up to 2% (combined rates commonly reach 8.25%).

Economic nexus threshold: $500,000 in annual sales. No transaction count threshold. Texas has one of the highest thresholds in the country.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, trade show attendance, or any agent acting on the seller's behalf.

Filing frequency: Monthly (over $1,500/month tax due), quarterly, or annual.

Key quirks: Texas taxes digital goods and SaaS. Groceries are exempt; prepared food is taxable. Texas uses destination sourcing. Texas has a broad manufacturing exemption for machinery and equipment. Texas does not participate in SST. Texas has no income tax, which makes it a popular state for business relocation.

Sales tax: Yes — statewide rate 6.1%, plus local rates (combined rates typically 6.75–8.35%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Utah uses origin sourcing for in-state sellers. Groceries are taxed at a reduced rate of 3%. Utah taxes digital goods. Utah participates in SST.

Sales tax: Yes — statewide rate 6%, plus a 1% local option tax in some jurisdictions.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Vermont taxes digital goods. Groceries are exempt; prepared food is taxable. Clothing under $110 per item is exempt. Vermont participates in SST. Vermont was one of the first states to enact a marketplace facilitator law.

Sales tax: Yes — statewide rate 5.3% (4.3% state + 1% local), with higher rates in Northern Virginia (6.3%) and Hampton Roads (6.3%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $1,000/month tax due), quarterly, or annual.

Key quirks: Virginia uses origin sourcing for in-state sellers. Groceries are taxed at a reduced rate of 2.5% (1% state + 1.5% local). Virginia taxes digital goods. Virginia participates in SST. Virginia has a food and personal hygiene items exemption that reduces the rate on qualifying grocery items.

Sales tax: Yes — statewide rate 6.5%, plus local rates (combined rates in Seattle reach 10.25%).

Economic nexus threshold: $100,000 in annual sales. No transaction count threshold.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $4,800/year tax due), quarterly, or annual.

Key quirks: Washington taxes digital goods and SaaS — one of the most aggressive states for taxing digital products. Groceries are exempt; prepared food is taxable. Washington does not participate in SST. Washington has a Business and Occupation (B&O) Tax on gross receipts that applies to businesses with Washington nexus — this is separate from the sales tax and applies to B2B transactions. Washington has no income tax.

Sales tax: Yes — statewide rate 6%, plus local rates in some jurisdictions.

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: West Virginia taxes digital goods. Groceries are exempt; prepared food is taxable. West Virginia participates in SST. West Virginia was one of the original SST member states.

Sales tax: Yes — statewide rate 5%, plus local rates (combined rates typically 5.5%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly (over $1,200/month tax due), quarterly, or annual.

Key quirks: Wisconsin taxes digital goods. Groceries are exempt; prepared food is taxable. Clothing is generally exempt. Wisconsin participates in SST. Wisconsin has a manufacturing exemption for machinery and equipment.

Sales tax: Yes — statewide rate 4%, plus local rates (combined rates typically 5–6%).

Economic nexus threshold: $100,000 in annual sales or 200 transactions.

Physical nexus triggers: Office, warehouse, employee, contractor, inventory, or trade show attendance.

Filing frequency: Monthly, quarterly, or annual based on volume.

Key quirks: Wyoming taxes digital goods. Groceries are exempt; prepared food is taxable. Wyoming participates in SST. Wyoming has no income tax, which makes it a popular state for business formation and holding company structures.

After reviewing all 50 states, several patterns emerge that are worth keeping in mind:

The standard threshold is $100,000 / 200 transactions. Most states use this as their economic nexus trigger. The exceptions — California, Texas, and New York at $500,000 — are significant because they are also the largest markets.

Kansas is the outlier. It is the only state with no threshold at all — technically, any sale into Kansas creates nexus.

Five states have no sales tax. Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska has local taxes; the others do not.

Six states use origin sourcing. Arizona, Illinois, Mississippi, Missouri, Tennessee, and Utah (for in-state sellers). All other states use destination sourcing for remote sellers.

Four states have gross receipts taxes instead of sales taxes. Arizona (TPT), Hawaii (GET), New Mexico (GRT), and Washington (B&O) — these apply to services and have different legal structures than traditional sales taxes.

Colorado and Louisiana are the most administratively complex. Both have hundreds of local jurisdictions with independent administration.

California, New York, and Massachusetts are the most aggressive enforcers. If you have nexus in these states and are not compliant, the risk of enforcement action is meaningfully higher than in most other states.

This guide is a starting point, not a compliance plan. The practical next steps for any multi-state seller are:

1. Conduct a nexus analysis — determine which states you have nexus in, when you crossed each threshold, and what your back-filing exposure looks like.
2. Prioritize by risk — California, New York, Texas, and Florida represent the largest markets and the highest enforcement risk. Start there.
3. Evaluate VDA options — if you have back-filing exposure, voluntary disclosure is almost always better than waiting to be found.
4. Implement compliance software — Avalara, TaxJar, or Shopify Tax depending on your platform and volume.
5. Register and file going forward — once you are registered in a state, you must file returns even in periods with no sales.

Send us an inquiry — we work with e-commerce sellers and multi-state businesses to conduct nexus analyses, manage back-filing through voluntary disclosure, and build ongoing compliance systems that scale with your business.

Need to scan thresholds and rates at a glance? We built a searchable, filterable table version of this guide — all 50 states, sortable by rate, threshold, SST membership, and more.

Open the Sales Tax Nexus Reference Table →