$100K Revenue Threshold: Which U.S. States Trigger Economic Nexus at That Exact Amount

Why $100K Became the Standard

South Dakota's economic nexus law — the one the Supreme Court upheld in Wayfair — used a $100,000 OR 200 transactions threshold. Because the Court specifically cited these figures as evidence that the law targeted sellers with a "substantial" connection to the state, most legislatures adopted the same numbers as a safe harbor. The $100K floor was never a federal mandate, but it became the de facto standard because it had judicial blessing.

Over time, however, states have modified the original South Dakota model. Several dropped the 200-transaction prong after discovering it swept in low-revenue, high-volume sellers (think $5 Etsy stickers). Others raised their dollar threshold well above $100K to reduce the compliance burden on small businesses. The result is a patchwork where "$100K" means different things depending on which state you're selling into.

States That Use $100K Only (No Transaction Count)

A growing number of states have eliminated the 200-transaction prong, leaving a clean $100,000 revenue-only test. If your total sales into these states stay below $100K, you have no economic nexus obligation — regardless of how many individual orders you ship.

States that have moved to a $100K revenue-only threshold include:

This list continues to grow. States like Mississippi, Hawaii, and Kentucky have also shifted to revenue-only thresholds. For the complete and current list, see our full threshold chart by state.

For sellers, the revenue-only model is simpler to track — you only need to monitor dollar amounts, not transaction counts. If you primarily sell into Florida or Arizona, this is the rule you follow.

States Using $100K AND 200 Transactions

A few states retained both prongs with an AND connector. This is the most seller-friendly configuration: you must exceed both $100,000 in revenue and 200 separate transactions before nexus is triggered. If you do $150,000 across 50 orders, you are below the transaction threshold and have no nexus.

States currently using the AND model are relatively few. This structure benefits businesses with high average order values and lower transaction volumes. If you sell expensive goods or services in small quantities, the AND connector can keep you below the nexus threshold even at significant revenue levels.

States Using $100K OR 200 Transactions

The original South Dakota model uses an OR connector: you have economic nexus if you exceed $100,000 in sales or 200 separate transactions — whichever comes first. This is the most common structure and the one that catches the widest range of sellers.

States still using the $100K OR 200 transactions model include Georgia, North Carolina, Indiana, Michigan, Nebraska, North Dakota, South Dakota, Utah, Wisconsin, and many others. For example, Georgia's economic nexus triggers at $100,000 OR 200 transactions into the state in the previous or current calendar year.

North Carolina follows the same pattern, requiring collection once a remote seller hits $100,000 in sales or 200 transactions in the previous or current calendar year. For sellers approaching either line, it pays to monitor both metrics monthly.

States That Never Adopted a Transaction Prong

Some of the largest states never included a transaction count in their economic nexus laws — and they set their dollar threshold above $100K:

• California: $500,000 in sales, no transaction count. California's threshold is the highest in the nation, reflecting the state's preference to target only large-scale remote sellers.
• Texas: $500,000 in sales, no transaction count. Texas uses a 12-month measurement period and bases its threshold on total revenue delivered into the state.
• New York: $500,000 AND 100 transactions. New York's higher dollar floor combined with a lower transaction count (100 instead of 200) makes it a hybrid that effectively exempts smaller sellers.

If your total sales are between $100K and $500K, these states represent a significant compliance relief. You can sell up to half a million dollars into California or Texas without triggering economic nexus — a stark contrast to the majority of states where $100K is the line.

How the Threshold Is Measured

The $100K threshold number is only half the equation — the measurement period determines when you start counting and when the clock resets. States use three main approaches:

Prior Calendar Year

States like Georgia and North Carolina look at your sales during the previous calendar year (January 1 – December 31). If you exceeded $100K in 2025, you have nexus for all of 2026 — even if your 2026 sales are zero. This is the simplest model to track because you know your status before the year starts.

Current or Prior Calendar Year

Many states — including South Dakota, Indiana, and Wisconsin — trigger nexus if you exceed the threshold in either the current or prior calendar year. This means nexus can kick in mid-year. If you cross $100K in August 2026, you have nexus for the remainder of 2026 and all of 2027.

Rolling 12-Month Period

States like Texas and Washington use a rolling 12-month window instead of calendar years. At any point, they look back at the trailing 12 months of sales. This is the hardest to track manually because the measurement period shifts every day. Automated sales tax software is practically required for sellers with rolling-period obligations in multiple states.

You Just Crossed $100K Mid-Year: Now What?

If you recently hit $100,000 in sales to a new state, here is your compliance checklist:

1. Confirm the threshold structure. Is it $100K only, $100K AND transactions, or $100K OR transactions? Check our threshold chart for the exact rule.
2. Check the measurement period. Did you cross $100K in a calendar-year state, a rolling 12-month state, or a current-or-prior-year state? This determines exactly when your obligation begins.
3. Register for a sales tax permit. Most states require registration within 30–60 days of exceeding the threshold. Do not begin collecting tax before you have an active permit number.
4. Configure tax collection. Set up your shopping cart or sales tax software to collect the correct state and local rates for the new jurisdiction. Rates vary by county and city in many states.
5. Determine your filing frequency. States assign monthly, quarterly, or annual filing based on your expected tax liability. Your registration confirmation will typically specify your schedule.
6. Start collecting on the effective date. Collection generally begins on the first transaction after your registration is active — you do not need to retroactively charge tax on pre-threshold sales.
7. Set a calendar reminder for the following year. Even if your sales drop below $100K, most states require continued collection for at least one additional year.