In the wake of the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc., states gained the authority to impose sales tax obligations on remote sellers based on economic activity rather than physical presence. This ruling has led to the establishment of economic nexus laws across all states with a sales tax, each setting its own thresholds for sales revenue and/or transaction volume that trigger the requirement to collect and remit sales tax. :contentReference[oaicite:2]{index=2}
As of 2025, understanding these thresholds is crucial for businesses engaged in interstate commerce to ensure compliance and avoid potential penalties. Below is a detailed overview of the economic nexus thresholds by state, highlighting the variations in sales and transaction requirements.:contentReference[oaicite:5]{index=5}
State-by-State Economic Nexus Thresholds
The following table summarizes the economic nexus thresholds for each state as of 2025::contentReference[oaicite:8]{index=8}
| State | Sales Threshold | Transaction Threshold | Effective Date |
|---|---|---|---|
| Alabama | $250,000 | Not Applicable | January 1, 2025 |
| Alaska | $100,000 | 200 transactions | January 1, 2025 |
| Arizona | $100,000 | Not Applicable | January 1, 2025 |
| Arkansas | $100,000 | 200 transactions | January 1, 2025 |
| California | $500,000 | Not Applicable | January 1, 2025 |
| Colorado | $100,000 | Not Applicable | January 1, 2025 |
| Connecticut | $100,000 | 200 transactions | January 1, 2025 |
| Florida | $100,000 | Not Applicable | January 1, 2025 |
| Georgia | $100,000 | 200 transactions | January 1, 2025 |
| Hawaii | $100,000 | 200 transactions | January 1, 2025 |
| Idaho | $100,000 | Not Applicable | January 1, 2025 |
| Illinois | $100,000 | 200 transactions | January 1, 2025 |
| Indiana | $100,000 | Not Applicable | January 1, 2025 |
| Iowa | $100,000 | Not Applicable | January 1, 2025 |
| Kansas | $100,000 | Not Applicable | January 1, 2025 |
| Kentucky | $100,000 | 200 transactions | January 1, 2025 |
| Louisiana | $100,000 | Not Applicable | January 1, 2025 |
| Maine | $100,000 | Not Applicable | January 1, 2025 |
| Maryland | $100,000 | 200 transactions | January 1, 2025 |
| Massachusetts | $100,000 | Not Applicable | January 1, 2025 |
| Michigan | $100,000 | 200 transactions | January 1, 2025 |
| Minnesota | $100,000 | 200 transactions | January 1, 2025 |
| Mississippi | $250,000 | Not Applicable | January 1, 2025 |
| Missouri | $100,000 | Not Applicable | January 1, 2025 |
| Nebraska | $100,000 | 200 transactions | January 1, 2025 |
| Nevada | $100,000 | 200 transactions | January 1, 2025 |
| New Jersey | $100,000 | 200 transactions | January 1, 2025 |
| New Mexico | $100,000 | Not Applicable | January 1, 2025 |
| New York | $500,000 | 100 transactions | January 1, 2025 |
| North Carolina | $100,000 | 200 transactions | January 1, 2025 |
| North Dakota | $100,000 | Not Applicable | January 1, 2025 |
| Ohio | $100,000 | 200 transactions | January 1, 2025 |
| Oklahoma | $100,000 | Not Applicable | January 1, 2025 |
| Pennsylvania | $100,000 | Not Applicable | January 1, 2025 |
| Rhode Island | $100,000 | 200 transactions | January 1, 2025 |
| South Carolina | $100,000 | Not Applicable | January 1, 2025 |
| South Dakota | $100,000 | Not Applicable | January 1, 2025 |
| Tennessee | $100,000 | Not Applicable | January 1, 2025 |
| Texas | $500,000 | Not Applicable | January 1, 2025 |
| Utah | $100,000 | 200 transactions | January 1, 2025 |