Sales Tax by State: Economic Nexus Guide by State
Navigating the complexities of sales tax can be a daunting task, especially when dealing with economic nexus. In this blog post, we’ll provide you with a state-by-state breakdown of sales tax regulations and economic nexus requirements. Whether you’re a business owner or a tax professional, this guide will equip you with the knowledge you need to ensure compliance and avoid any potential pitfalls.
Our guide will also shed light on the implications of economic nexus on your business operations. Understanding the impact of economic nexus is crucial for determining your sales tax obligations and avoiding unexpected liabilities. We’ll discuss the potential consequences of non-compliance and provide practical tips for managing your sales tax responsibilities effectively.
If you operate an online business, you’re probably acquainted with the concept of “Economic Nexus.” If not, there’s no need to fret. In simple terms, “economic nexus” refers to the requirement for a business to establish a presence in a particular state in order to be obligated to collect sales tax there.
Economic Nexus State Guide
Alabama:
Threshold: $250,000 + specific activities
Measurement Period: Previous calendar year
Includable Sales: All retail sales, excluding Marketplace sales
Registration Deadline: By January 1st of the year following reaching the threshold
Alaska:
Threshold: $100,000 or 200 transactions
Measurement Period: Previous calendar year
Includable Sales: Gross sales, excluding Marketplace sales
Registration Deadline: The first day of the month after 30 days of adoption by a city or borough
Arizona:
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, excluding Marketplace sales
When To Register: Obtain a TPT license once you meet the threshold
Arkansas:
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Taxable sales, excluding Marketplace sales
When To Register: Register with your next transaction, as soon as possible
California:
Threshold: $500,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales of tangible personal property, including Marketplace sales
When To Register: Register on the same day you exceed the threshold
Colorado:
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Retail sales, excluding Marketplace sales
When To Register: Register within 90 days
Connecticut:
Threshold: $100,000 and 200 transactions
Measured From: 12-month period until September 30th
Includable Sales: Retail sales, including Marketplace sales
When To Register: Register by October 1st of the year you surpass the threshold
Delaware:
No sales tax threshold.
Measured from: Not applicable.
Includable sales: Not applicable.
When to register: Not applicable.
District of Columbia:
Threshold: $100,000 or 200 transactions.
Measured from: Previous or current calendar year.
Includable sales: Retail sales, including Marketplace sales.
When to register: Next transaction.
Florida:
Threshold: $100,000.
Measured from: Previous calendar year.
Includable sales: Taxable sales, excluding Marketplace sales.
When to register: Next transaction.
Georgia:
Threshold: $100,000 or 200 transactions.
Measured from: Previous or current calendar year.
Includable sales: Retail sales, excluding Marketplace sales.
When to register: Next transaction.
Hawaii:
Threshold: $100,000 or 200 transactions.
Measured from: Current calendar year.
Includable sales: Gross sales, including Marketplace sales.
When to register: The month following when you meet the threshold.
Idaho:
Threshold: $100,000.
Measured from: Previous or current calendar year.
Includable sales: Gross sales, including Marketplace sales.
When to register: Next transaction.
Illinois:
Threshold: $100,000 or 200 transactions.
Measured from: 12-month preceding period.
Includable sales: Retail sales, excluding Marketplace sales.
When to register: When you believe you meet the criteria for the past 12 months.
Indiana:
Threshold: $100,000 or 200 transactions.
Measured from: Previous or current calendar year.
Includable sales: Gross sales, excluding Marketplace sales.
When to register: As soon as possible.
Iowa:
– Threshold: $100,000
– Measured From: Previous or current calendar year
– Includable Sales: Gross sales, including Marketplace sales
– Registration Deadline: Within 30 days
Kansas:
– Threshold: $100,000
– Measured From: Previous or current calendar year
– Includable Sales: Gross sales, including Marketplace sales (latter is gross sales)
– Registration Deadline: Next transaction
Kentucky:
– Threshold: $100,000 or 200 transactions
– Measured From: Previous or current calendar year
– Includable Sales: Gross sales, including Marketplace sales
– Registration Deadline: Within 60 days
Louisiana:
– Threshold: $100,000 or 200 transactions
– Measured From: Previous or current calendar year
– Includable Sales: Gross sales, not including Marketplace sales
– Registration Deadline: Within 30 days
Maine:
– Threshold: $100,000
– Measured From: Previous or current calendar year
– Includable Sales: Gross sales, not including Marketplace sales
– Registration Deadline: Next transaction
Maryland:
– Threshold: $100,000 or 200 transactions
– Measured From: Previous or current calendar year
– Includable Sales: Gross sales, including Marketplace sales
– Registration Deadline: First day of next month
Massachusetts:
– Threshold: $100,000
– Measured From: Previous calendar year
– Includable Sales: Gross sales, not including Marketplace sales
– Registration Deadline: By January 1st of the following year, with an additional 2-month grace period if exceeded between November and December
Minnesota:
– Threshold: $100,000 or 200 transactions
– Measured From: 12-month period ending on the last day of the previous quarter
– Includable Sales: Retail sales, including Marketplace sales
– Registration Deadline: Within 60 days
Mississippi
Threshold: $250,000
Measured From: Previous 12 month period
Includable Sales: Gross sales, not including Marketplace sales
When To Register: As soon as possible
Missouri
*Note, this won’t come into effect until Jan 1, 2023
Threshold: $100,000
Measured From: Previous 12 month period
Includable Sales: Taxable sales
When To Register: Within 90 days of the preceding quarter ending
Montana
Threshold: No sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
Nebraska
Threshold: $100,000 or 200 transactions
Measured From: previous or current calendar year
Includable Sales: Retail sales, including Marketplace sales
When To Register: By the end of the calendar month
Nevada
Threshold: $100,000 or 200 transactions
Measured From: previous or current calendar year
Includable Sales: Retail sales, including Marketplace sales
When To Register: within 30 days
New Hampshire
Threshold: no sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
New Jersey
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: As soon as possible
New Mexico
Threshold: $100,000
Measured From: Previous calendar year
Includable Sales: Taxable sales, not including Marketplace sales
When To Register: By 1 January of following year
New York
Threshold: $500,000 of tangible personal goods and 100 transactions
Measured From: 12 months previous
Includable Sales: Gross sales, including Marketplace sales
When To Register: Register within 30 days, start collecting tax within 20 days thereafter
North Carolina
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 60 days
North Dakota
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Taxable sales, not including Marketplace sales
When To Register: Within 60 days or the end of the calendar year
Ohio
Threshold: $500,000
Measured From: Previous or current calendar year
Includable Sales: Retail sales, including Marketplace sales
When To Register: As soon as possible
Oklahoma
Threshold: $100,000 in aggregate sales of TPP
Measured From: Previous or current calendar year
Includable Sales: Taxable sales, not including Marketplace sales
When To Register: By the first of the following month
Oregon
Threshold: no sales tax
Measured From: n/a
Includable Sales: n/a
When To Register: n/a
Pennsylvania
Threshold: $100,000
Measured From: Previous financial year
Includable Sales: Gross sales, including Marketplace sales
When To Register: By April 1 of following year
Rhode Island
Threshold: $100,000 or 200 transactions
Measured From: Previous calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: By January 1 of following year
South Carolina
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 30 days
South Dakota
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: As soon as possible
Tennessee
Threshold: $100,000
Measured From: Previous 12 month period
Includable Sales: Retail sales, not including Marketplace sales
When To Register: Within 90 days
Texas
Threshold: $500,000
Measured From: Previous 12 month period
Includable Sales: Gross revenue, including Marketplace sales
When To Register: Within 120 days
Utah
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Gross sales, not including Marketplace sales
When To Register: As soon as possible
Vermont
Threshold: $100,000 or 200 transactions
Measured From: Previous 12 month period
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 30 days of the end of the quarter you exceed the threshold
Virginia
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Retail sales, not including Marketplace sales
When To Register: As soon as possible
Washington
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: Within 30 days
West Virginia
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales
When To Register: As soon as possible
Wisconsin
Threshold: $100,000
Measured From: Previous or current calendar year
Includable Sales: Gross sales, including Marketplace sales (not for individual sellers)
When To Register: As soon as possible
Wyoming
Threshold: $100,000 or 200 transactions
Measured From: Previous or current calendar year
Includable Sales: Gross sales, not including Marketplace sales for individual sellers
When To Register: As soon as possible”
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