Understand Your Sales Tax Nexus Obligations
Clear, accurate guides to state sales tax nexus requirements. Know when you need to collect sales tax, how to register, and stay compliant.
Economic Nexus Thresholds at a Glance
Most states require sales tax collection when you exceed these thresholds. Click any state for the complete guide.
| State | Revenue Threshold | Transaction Threshold | State Rate |
|---|---|---|---|
| Florida | $100,000 | — | 6% |
| Georgia | $100,000 | 200 transactions | 4% |
| Arizona | $100,000 | — | 5.6% |
| North Carolina | $100,000 | — | 4.75% |
| Pennsylvania | $100,000 | — | 6% |
State Sales Tax Nexus Guides
Comprehensive guides for each state covering thresholds, registration, filing deadlines, and penalties.
What is Sales Tax Nexus?
Sales tax nexus is a connection between your business and a state that creates an obligation to collect and remit sales tax. Before 2018, this connection required physical presence. Today, most states also have economic nexus laws.
Types of Nexus
- Physical Presence Nexus: Having an office, employees, inventory, or property in a state. This is the traditional form of nexus.
- Economic Nexus: Exceeding a state's sales threshold (typically $100,000 in revenue or 200 transactions) even without physical presence.
The Wayfair Decision
In 2018, the Supreme Court ruled in South Dakota v. Wayfair that states can require remote sellers to collect sales tax based on economic activity alone. This transformed sales tax compliance for e-commerce businesses nationwide.
Why This Matters
If you sell online, you likely have nexus in multiple states. Failing to collect and remit sales tax when required can result in significant penalties, back taxes, and interest. Understanding your obligations is essential for compliance.
Not Sure Where You Have Nexus?
Each state guide includes a checklist to help you determine if your business has sales tax obligations. Start with the states where you have the most sales.
Compare State Thresholds