As an ecommerce seller, you're probably thinking about accurately collecting and remitting sales tax. The first step in that process is determining if you have a nexus in one or more states based on physical or economic nexus.
Of the 50 states, 45 states and Washington D.C. ask you to register and pay sales tax in the United States. That's right—Delaware, Alaska, Montana, New Hampshire, and Oregon don't require you to pay sales tax if you're selling to those states.
In this article, we'll give you a breakdown of the rules of each state to help you understand if you have nexus or not.
Once you meet the nexus requirements, you'll need to complete the following:
- Register for a resale certificate (also known as a sales tax permit) in the Nexus state
- Confirm the sales platform (like Shopify) is collecting tax correctly
- Files sales tax reports (remit tax when necessary)
Now that you have a brief idea about nexus and sales tax, let's dive into the thresholds for each state.
Alabama
Included transactions: Total retail sales of tangible personal property delivered into the state. Sales made through a registered marketplace facilitator are not included, but sales made through a non-collecting marketplace are included.
Treatment of exempt transactions: Exempt sales (except wholesale sales) are included in the threshold. Exempt services are not included.
Trigger: Sales only
Sales/transactions threshold: $250,000
Alaska
Included transactions: Statewide gross sales of goods, property, or products delivered into the state or services rendered in the state, including sales through a marketplace
Treatment of exempt transactions: Exempt sales and exempt services are included in the threshold
Trigger: Sales or transactions
Sales/transactions threshold: $100,000 or 200 transactions
Want to learn more? Read Alaska's comprehensive sales tax guide.
Arizona
Included transactions: Gross proceeds of sales of tangible personal property or services, or gross income derived from business in the state. Services are included in the threshold. Sales made through a marketplace are not included.
Treatment of exempt transactions: Exempt sales and exempt services are included in the threshold
Trigger: Sales only
Sales/transactions threshold:
$200,000 (2019)
$150,000 (2020)
$100,000 (2021 forward)
Want to get more info? Read Arizona's comprehensive sales tax guide.
Arkansas
Included transactions:
Aggregated sales of taxable tangible personal property, taxable services, digital codes, or specified digital products subject to Arkansas sales or use tax delivered into the state. Sales made through a registered marketplace are not included.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
California
Included transactions:
Total combined sales of tangible personal property delivered into the state by the retailer and all persons related to the retailer. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales (i.e., nontaxable sales such as sales for resale) are included; exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$500,000
Want to learn more? Read California's comprehensive sales tax guide.
Colorado
Included transactions:
Retail sales of tangible personal property, commodities, or services delivered into the state are included in the threshold
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except wholesales
Trigger: As of April 1, 2019 -Sales only
Sales/transactions threshold: As of April 1, 2019: $100,000 (The transactions threshold is eliminated)
Connecticut
Included transactions:
- Prior to July 1, 2019: Gross receipts from tangible personal property sold into the state, except sales for resale, provided the retailer regularly or systematically solicits the sales in the state. Services are not included.
- As of July 1, 2019: Gross receipts from tangible personal property or services; the regular or systematic solicitation component is eliminated.
Treatment of exempt transactions:
- Prior to July 1, 2019: Exempt sales are included in the sales threshold; sales for resale are excluded from the transaction test; exempt services are excluded from the sales and transaction test
- As of July 1, 2019: Exempt sales and exempt services are included in the sales threshold, as are sales through an online marketplace; exempt sales and exempt services (except sales for resale) are excluded from the transaction threshold
Trigger:
Sales and transaction volume
Sales/transactions threshold:
- Prior to July 1, 2019: Gross receipts of $250,000 and 200 retail transactions
- As of July 1, 2019: Gross receipts of $100,000 and 200 retail transactions
Florida
Included transactions:
Taxable sales of tangible personal property delivered physically into the state. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales volume only
Sales/transactions threshold:
- $100,000
Read all about Florida's sales tax laws.
Georgia
Included transactions:
Gross revenue from retail sales of tangible personal property delivered electronically or physically to a location in the state for consumption, use, or storage in the state. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales, except resales, are included but exempt services are not included in the threshold
Trigger:
Sales or transaction volume.
Sales/transactions threshold:
- Prior to January 1, 2020: $250,000 or 200 transactions.
- As of January 1, 2020: $100,000 or 200 transactions.
Read more about Georgia's sales tax laws.
Hawaii
Enforcement date:
July 1, 2018
Included transactions:
Gross income or gross proceeds of tangible personal property, intangible property, or services delivered or consumed in the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Idaho
Enforcement date:
June 1, 2019
Included transactions:
Cumulative gross receipts from sales including taxable products and taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Illinois
Enforcement date:
October 1, 2018 (for state use tax)
January 1, 2021 (for local use tax)
Included transactions:
Cumulative gross receipts from sales of tangible personal property and property sold incident to a service into the state, excluding occasional sales; taxable services are not included
- As of January 1, 2020, sales made through a marketplace facilitator are excluded from the threshold
Treatment of exempt transactions:
Exempt sales, including exempt sales of property sold incident to a service, are included; sales for resale are not included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Read more about Illinois' sales tax system.
Indiana
Effective date:
October 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Iowa
Included transactions:
Gross revenue from sales of tangible personal property, specified electronically delivered products, and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Prior to July 1, 2019: Sales or transaction volume
As of July 1, 2019: Sales only
Sales/transactions threshold:
Prior to July 1, 2019: $100,000 or 200 transactions
As of July 1, 2019: The transactions threshold is eliminated
Kansas
Enforcement date:
July 1, 2021
Included transactions:
Cumulative gross receipt from sales by the retailer to customers in Kansas.
Treatment of exempt transactions:
Awaiting further clarification on the treatment of exempt sales and services
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to sales from the current or immediately preceding calendar year
Kentucky
Enforcement date:
October 1, 2018
Included transactions:
Gross receipts from sales of tangible personal property or digital property delivered or transferred electronically into the commonwealth. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales are included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Louisiana
Enforcement date:
July 1, 2020
Included transactions:
Gross revenue from sales of products, electronically transferred products, or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Maine
Enforcement date:
July 1, 2018
Included transactions:
Gross sales of tangible personal property* and taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are not included in the threshold
Trigger:
Sales or transaction volume through 2021; sales only effective January 1, 2022
Sales/transactions threshold:
$100,000 or 200 transactions through December 31, 2021
$100,000 only effective January 1, 2022
Maryland
Included transactions:
Gross revenue from sales of tangible personal property or taxable services delivered into the state, including sales of software and digital goods
Treatment of exempt transactions:
Exempt sales of tangible personal property, software, and digital goods are included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Massachusetts
Enforcement date:
October 1, 2019
Included transactions:
Sales of tangible personal property and services
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the prior or current taxable year
Michigan
Enforcement date:
After September 30, 2018
Included transactions:
Sales of tangible personal property or taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous calendar year
Minnesota
Enforcement date:
October 1, 2018, amended as of October 1, 2019
Included transactions:
Applies to retail sales made into the state from outside the state. Taxable services (except resales) are included in the threshold.
Treatment of exempt transactions:
Exempt sales and sales to tax-exempt entities are included in the threshold, but sales for resale are not. Exempt services are not included in the threshold.
Trigger:
Sales or transaction volume
Sales/transactions threshold:
Prior to October 1, 2019: 10 or more sales totaling $100,000 or 100 retail sales
As of October 1, 2019: $100,000 or 200 or more retail sales
Mississippi
Enforcement date:
September 1, 2018
Included transactions:
Total sales made into the state by remote sellers that purposefully or systematically exploit the market in the state. Services are included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$250,000
Evaluation period:
Threshold applies to all transactions for the prior 12 months
Missouri
Enforcement date:
January 1, 2023
Included transactions:
Gross receipts from taxable sales of tangible personal property delivered into Missouri
Treatment of exempt transactions:
Exempt sales are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Nebraska
Included transactions:
Total retail sales made to customers in Nebraska.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except resales, sublease, or sub-rent
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Nevada
Enforcement date:
October 1, 2018
Included transactions:
Gross revenue from retail sales of tangible personal property into the state, excluding sales for resale. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales (except sales for resale) are included in the threshold; exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
New Jersey
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue of tangible personal property, specified digital products, or taxable services (enumerated services under N.J.S.A. 54:32B-3(b)) delivered into the state
Treatment of exempt transactions:
Nontaxable retail sales of tangible personal property and specified digital products are included in the threshold. Any and all receipts from services enumerated and taxable under N.J.S.A. 54:32B-3(b) and delivered into New Jersey should be included in the threshold calculation even if a service is exempt under the specific circumstances of the transaction. Exempt services are not included.
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
New Mexico
Enforcement date:
July 1, 2019
Included transactions:
Total taxable gross receipts from sales, leases, and licenses of tangible personal property, as well as sales of licenses and services of licenses for use of real property sourced to the state
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
New York
Included transactions:
Cumulative total gross receipts from sales of tangible personal property delivered into the state (SaaS is considered TPP); services are not included in the threshold
Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are excluded
Trigger:
Sales and transaction volume
Sales/transactions threshold:
$500,000 and 100 transactions
Want to learn more? Read New York's comprehensive sales tax guide.
North Carolina
Enforcement date:
November 1, 2018
Included transactions:
Gross sales sourced to North Carolina (the sum total sales price of tangible personal property, digital property, and services sourced to the state, unless the context requires otherwise).
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
North Dakota
Included transactions:
Gross taxable sales of tangible personal property and other items into the state, including taxable services; sales made through a marketplace are not included in the threshold
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Prior to July 1, 2019: Sales or transactions
As of July 1, 2019: Sales only
Sales/transactions threshold:
Prior to January 1, 2019: $100,000 or 200 transactions
As of January 1, 2019: $100,000 only
Ohio
Enforcement date:
August 1, 2019
Included transactions:
Gross receipts, excluding resales, from the sale of tangible personal property for storage, use, or consumption in the state or from providing enumerated services the benefit of which is realized in the state
Treatment of exempt transactions:
Exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or preceding calendar year
Oklahoma
Enforcement date:
November 1, 2019
Included transactions:
Aggregate sales of taxable tangible personal property delivered to locations within the state. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Pennsylvania
Enforcement date:
July 1, 2019
Included transactions:
Gross sales of products and services in the commonwealth, including sales by agents, representatives, or subsidiaries
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Puerto Rico
Enforcement date:
January 1, 2021
Included transactions:
Total gross sales delivered into the state
Treatment of exempt transactions:
Exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Rhode Island
Enforcement date:
July 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales are included but exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
South Carolina
Included transactions:
Gross revenue from sales of tangible personal property, electronically transferred products, or services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
South Dakota
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Tennessee
Included transactions:
Sales to customers in Tennessee (except for resales)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold calculation; sales for resale are excluded; sales made through an online marketplace are excluded effective October 1, 2020
Trigger:
Sales only
Sales/transactions threshold:
Prior to October 1, 2020: $500,000
As of October 1, 2020: 100,000
Texas
Included transactions:
Gross revenue from sales of tangible personal property and services into the state (i.e., total Texas revenue)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$500,000
Learn more about Texas' sales tax rules and regulations.
Utah
Included transactions:
Gross revenue from the sales of tangible personal property, any product transferred electronically, or services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Vermont
Included transactions:
Sales of tangible personal property, products transferred electronically, or services in the state, provided the retailer regularly or systematically solicits sales from in-state customers
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold. However, businesses that only sell tax-exempt items into Vermont aren’t required to register for a sales tax account.
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Virginia
Included transactions:
Gross revenue from retail sales and taxable services into the commonwealth, including sales made by members of same controlled group of corporations; excludes sales for resale
Treatment of exempt transactions:
Exempt sales (except resales) are included in the threshold; exempt services are excluded
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Read more about Virginia's sales tax laws.
Washington
Included transactions:
- Cumulative gross receipts from retail sales and taxable services into the state through December 31, 2019.
- Cumulative gross annual income in Washington from January 1, 2020, forward.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; resales are included effective January 1, 2020
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Read more about Washington's sales tax rules, laws and regulations.
Washington, D.C.
Included transactions:
Gross receipts from all retail sales delivered into the District
Treatment of exempt transactions:
With the exception of sales for resale and exempt services, exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
West Virginia
Included transactions:
Gross sales of tangible personal property or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Wisconsin
Included transactions:
Annual gross sales of tangible personal property and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; businesses that only make nontaxable sales in Wisconsin are not required to register for a sales tax account
Trigger:
Sales only (200 transactions threshold eliminated effective February 20, 2021)
Sales/transactions threshold:
$100,000 (200 transactions threshold eliminated effective February 20, 2021)
Wyoming
Included transactions:
Gross revenue from sales of tangible personal property, admissions, or services delivered into the state (includes taxable, exempt, and wholesale sales)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold count
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
That's about it. If you have questions re: sales tax or need someone to handle it for you like we did for Amberjack, feel free to schedule a demo.
Now that you have a brief idea about nexus and sales tax, let's dive into the thresholds for each state.
Alabama
Included transactions: Total retail sales of tangible personal property delivered into the state. Sales made through a registered marketplace facilitator are not included, but sales made through a non-collecting marketplace are included.
Treatment of exempt transactions: Exempt sales (except wholesale sales) are included in the threshold. Exempt services are not included.
Trigger: Sales only
Sales/transactions threshold: $250,000
Alaska
Included transactions: Statewide gross sales of goods, property, or products delivered into the state or services rendered in the state, including sales through a marketplace
Treatment of exempt transactions: Exempt sales and exempt services are included in the threshold
Trigger: Sales or transactions
Sales/transactions threshold: $100,000 or 200 transactions
Want to learn more? Read Alaska's comprehensive sales tax guide.
Arizona
Included transactions: Gross proceeds of sales of tangible personal property or services, or gross income derived from business in the state. Services are included in the threshold. Sales made through a marketplace are not included.
Treatment of exempt transactions: Exempt sales and exempt services are included in the threshold
Trigger: Sales only
Sales/transactions threshold:
$200,000 (2019)
$150,000 (2020)
$100,000 (2021 forward)
Want to get more info? Read Arizona's comprehensive sales tax guide.
Arkansas
Included transactions:
Aggregated sales of taxable tangible personal property, taxable services, digital codes, or specified digital products subject to Arkansas sales or use tax delivered into the state. Sales made through a registered marketplace are not included.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
California
Included transactions:
Total combined sales of tangible personal property delivered into the state by the retailer and all persons related to the retailer. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales (i.e., nontaxable sales such as sales for resale) are included; exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$500,000
Want to learn more? Read California's comprehensive sales tax guide.
Colorado
Included transactions:
Retail sales of tangible personal property, commodities, or services delivered into the state are included in the threshold
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except wholesales
Trigger: As of April 1, 2019 -Sales only
Sales/transactions threshold: As of April 1, 2019: $100,000 (The transactions threshold is eliminated)
Connecticut
Included transactions:
- Prior to July 1, 2019: Gross receipts from tangible personal property sold into the state, except sales for resale, provided the retailer regularly or systematically solicits the sales in the state. Services are not included.
- As of July 1, 2019: Gross receipts from tangible personal property or services; the regular or systematic solicitation component is eliminated.
Treatment of exempt transactions:
- Prior to July 1, 2019: Exempt sales are included in the sales threshold; sales for resale are excluded from the transaction test; exempt services are excluded from the sales and transaction test
- As of July 1, 2019: Exempt sales and exempt services are included in the sales threshold, as are sales through an online marketplace; exempt sales and exempt services (except sales for resale) are excluded from the transaction threshold
Trigger:
Sales and transaction volume
Sales/transactions threshold:
- Prior to July 1, 2019: Gross receipts of $250,000 and 200 retail transactions
- As of July 1, 2019: Gross receipts of $100,000 and 200 retail transactions
Florida
Included transactions:
Taxable sales of tangible personal property delivered physically into the state. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales volume only
Sales/transactions threshold:
- $100,000
Read all about Florida's sales tax laws.
Georgia
Included transactions:
Gross revenue from retail sales of tangible personal property delivered electronically or physically to a location in the state for consumption, use, or storage in the state. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales, except resales, are included but exempt services are not included in the threshold
Trigger:
Sales or transaction volume.
Sales/transactions threshold:
- Prior to January 1, 2020: $250,000 or 200 transactions.
- As of January 1, 2020: $100,000 or 200 transactions.
Read more about Georgia's sales tax laws.
Hawaii
Enforcement date:
July 1, 2018
Included transactions:
Gross income or gross proceeds of tangible personal property, intangible property, or services delivered or consumed in the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Idaho
Enforcement date:
June 1, 2019
Included transactions:
Cumulative gross receipts from sales including taxable products and taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Illinois
Enforcement date:
October 1, 2018 (for state use tax)
January 1, 2021 (for local use tax)
Included transactions:
Cumulative gross receipts from sales of tangible personal property and property sold incident to a service into the state, excluding occasional sales; taxable services are not included
- As of January 1, 2020, sales made through a marketplace facilitator are excluded from the threshold
Treatment of exempt transactions:
Exempt sales, including exempt sales of property sold incident to a service, are included; sales for resale are not included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Read more about Illinois' sales tax system.
Indiana
Effective date:
October 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Iowa
Included transactions:
Gross revenue from sales of tangible personal property, specified electronically delivered products, and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Prior to July 1, 2019: Sales or transaction volume
As of July 1, 2019: Sales only
Sales/transactions threshold:
Prior to July 1, 2019: $100,000 or 200 transactions
As of July 1, 2019: The transactions threshold is eliminated
Kansas
Enforcement date:
July 1, 2021
Included transactions:
Cumulative gross receipt from sales by the retailer to customers in Kansas.
Treatment of exempt transactions:
Awaiting further clarification on the treatment of exempt sales and services
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to sales from the current or immediately preceding calendar year
Kentucky
Enforcement date:
October 1, 2018
Included transactions:
Gross receipts from sales of tangible personal property or digital property delivered or transferred electronically into the commonwealth. Taxable services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales are included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Louisiana
Enforcement date:
July 1, 2020
Included transactions:
Gross revenue from sales of products, electronically transferred products, or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Maine
Enforcement date:
July 1, 2018
Included transactions:
Gross sales of tangible personal property* and taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are not included in the threshold
Trigger:
Sales or transaction volume through 2021; sales only effective January 1, 2022
Sales/transactions threshold:
$100,000 or 200 transactions through December 31, 2021
$100,000 only effective January 1, 2022
Maryland
Included transactions:
Gross revenue from sales of tangible personal property or taxable services delivered into the state, including sales of software and digital goods
Treatment of exempt transactions:
Exempt sales of tangible personal property, software, and digital goods are included; exempt services are not included in the threshold
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Massachusetts
Enforcement date:
October 1, 2019
Included transactions:
Sales of tangible personal property and services
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Evaluation period:
Threshold applies to the prior or current taxable year
Michigan
Enforcement date:
After September 30, 2018
Included transactions:
Sales of tangible personal property or taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the previous calendar year
Minnesota
Enforcement date:
October 1, 2018, amended as of October 1, 2019
Included transactions:
Applies to retail sales made into the state from outside the state. Taxable services (except resales) are included in the threshold.
Treatment of exempt transactions:
Exempt sales and sales to tax-exempt entities are included in the threshold, but sales for resale are not. Exempt services are not included in the threshold.
Trigger:
Sales or transaction volume
Sales/transactions threshold:
Prior to October 1, 2019: 10 or more sales totaling $100,000 or 100 retail sales
As of October 1, 2019: $100,000 or 200 or more retail sales
Mississippi
Enforcement date:
September 1, 2018
Included transactions:
Total sales made into the state by remote sellers that purposefully or systematically exploit the market in the state. Services are included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$250,000
Evaluation period:
Threshold applies to all transactions for the prior 12 months
Missouri
Enforcement date:
January 1, 2023
Included transactions:
Gross receipts from taxable sales of tangible personal property delivered into Missouri
Treatment of exempt transactions:
Exempt sales are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Nebraska
Included transactions:
Total retail sales made to customers in Nebraska.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold, except resales, sublease, or sub-rent
Trigger:
Sales or transaction volume
Sales/transactions threshold:
$100,000 or 200 transactions
Nevada
Enforcement date:
October 1, 2018
Included transactions:
Gross revenue from retail sales of tangible personal property into the state, excluding sales for resale. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales (except sales for resale) are included in the threshold; exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
New Jersey
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue of tangible personal property, specified digital products, or taxable services (enumerated services under N.J.S.A. 54:32B-3(b)) delivered into the state
Treatment of exempt transactions:
Nontaxable retail sales of tangible personal property and specified digital products are included in the threshold. Any and all receipts from services enumerated and taxable under N.J.S.A. 54:32B-3(b) and delivered into New Jersey should be included in the threshold calculation even if a service is exempt under the specific circumstances of the transaction. Exempt services are not included.
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
New Mexico
Enforcement date:
July 1, 2019
Included transactions:
Total taxable gross receipts from sales, leases, and licenses of tangible personal property, as well as sales of licenses and services of licenses for use of real property sourced to the state
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
New York
Included transactions:
Cumulative total gross receipts from sales of tangible personal property delivered into the state (SaaS is considered TPP); services are not included in the threshold
Treatment of exempt transactions:
Exempt sales are included in the threshold; exempt services are excluded
Trigger:
Sales and transaction volume
Sales/transactions threshold:
$500,000 and 100 transactions
Want to learn more? Read New York's comprehensive sales tax guide.
North Carolina
Enforcement date:
November 1, 2018
Included transactions:
Gross sales sourced to North Carolina (the sum total sales price of tangible personal property, digital property, and services sourced to the state, unless the context requires otherwise).
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
North Dakota
Included transactions:
Gross taxable sales of tangible personal property and other items into the state, including taxable services; sales made through a marketplace are not included in the threshold
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Prior to July 1, 2019: Sales or transactions
As of July 1, 2019: Sales only
Sales/transactions threshold:
Prior to January 1, 2019: $100,000 or 200 transactions
As of January 1, 2019: $100,000 only
Ohio
Enforcement date:
August 1, 2019
Included transactions:
Gross receipts, excluding resales, from the sale of tangible personal property for storage, use, or consumption in the state or from providing enumerated services the benefit of which is realized in the state
Treatment of exempt transactions:
Exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to the current or preceding calendar year
Oklahoma
Enforcement date:
November 1, 2019
Included transactions:
Aggregate sales of taxable tangible personal property delivered to locations within the state. Services are not included in the threshold.
Treatment of exempt transactions:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Pennsylvania
Enforcement date:
July 1, 2019
Included transactions:
Gross sales of products and services in the commonwealth, including sales by agents, representatives, or subsidiaries
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Puerto Rico
Enforcement date:
January 1, 2021
Included transactions:
Total gross sales delivered into the state
Treatment of exempt transactions:
Exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Rhode Island
Enforcement date:
July 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable services delivered into the state
Treatment of exempt transactions:
Exempt sales are included but exempt services are not included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
South Carolina
Included transactions:
Gross revenue from sales of tangible personal property, electronically transferred products, or services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$100,000
South Dakota
Enforcement date:
November 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products, or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Tennessee
Included transactions:
Sales to customers in Tennessee (except for resales)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold calculation; sales for resale are excluded; sales made through an online marketplace are excluded effective October 1, 2020
Trigger:
Sales only
Sales/transactions threshold:
Prior to October 1, 2020: $500,000
As of October 1, 2020: 100,000
Texas
Included transactions:
Gross revenue from sales of tangible personal property and services into the state (i.e., total Texas revenue)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transactions threshold:
$500,000
Learn more about Texas' sales tax rules and regulations.
Utah
Included transactions:
Gross revenue from the sales of tangible personal property, any product transferred electronically, or services delivered into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Vermont
Included transactions:
Sales of tangible personal property, products transferred electronically, or services in the state, provided the retailer regularly or systematically solicits sales from in-state customers
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold. However, businesses that only sell tax-exempt items into Vermont aren’t required to register for a sales tax account.
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Virginia
Included transactions:
Gross revenue from retail sales and taxable services into the commonwealth, including sales made by members of same controlled group of corporations; excludes sales for resale
Treatment of exempt transactions:
Exempt sales (except resales) are included in the threshold; exempt services are excluded
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Read more about Virginia's sales tax laws.
Washington
Included transactions:
- Cumulative gross receipts from retail sales and taxable services into the state through December 31, 2019.
- Cumulative gross annual income in Washington from January 1, 2020, forward.
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; resales are included effective January 1, 2020
Trigger:
Sales only
Sales/transactions threshold:
$100,000
Read more about Washington's sales tax rules, laws and regulations.
Washington, D.C.
Included transactions:
Gross receipts from all retail sales delivered into the District
Treatment of exempt transactions:
With the exception of sales for resale and exempt services, exempt sales are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
West Virginia
Included transactions:
Gross sales of tangible personal property or services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
Wisconsin
Included transactions:
Annual gross sales of tangible personal property and services into the state
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold; businesses that only make nontaxable sales in Wisconsin are not required to register for a sales tax account
Trigger:
Sales only (200 transactions threshold eliminated effective February 20, 2021)
Sales/transactions threshold:
$100,000 (200 transactions threshold eliminated effective February 20, 2021)
Wyoming
Included transactions:
Gross revenue from sales of tangible personal property, admissions, or services delivered into the state (includes taxable, exempt, and wholesale sales)
Treatment of exempt transactions:
Exempt sales and exempt services are included in the threshold count
Trigger:
Sales or transactions
Sales/transactions threshold:
$100,000 or 200 transactions
That's about it. If you have questions re: sales tax or need someone to handle it for you like we did for Amberjack, feel free to schedule a demo.
About the author
Sam Ross
Prior to Numeral, Sam started numerous e-commerce businesses that have generated over $50M in revenue. However, the headache of filing sales taxes across many states became the basis for starting Numeral. Thousands of filings later, Sam's a pro at ecommerce sales tax.
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