A remote seller must register and start collecting a state’s sales tax once its sales or transaction count in that state crosses the state’s published economic nexus threshold.
How it works
Your in-state sales are compared against the state’s sales-dollar threshold, and your transaction count against its transaction-count threshold (if the state still has one) — crossing either one triggers nexus.
What this does not include
This does not include physical-presence nexus (having employees, inventory, or a warehouse in a state, which creates nexus regardless of sales volume), marketplace facilitator rules, or product-specific exemptions.
How to use this calculator
- Enter your in-state sales, transaction count, and that state’s published thresholds.
Frequently asked questions
Do all states still use a 200-transaction threshold?
No — several states, including Alaska, Utah, and Illinois, have repealed their transaction-count test in recent years, leaving only a dollar-sales threshold.
What happens once nexus is triggered?
The seller generally must register with that state’s tax authority and begin collecting and remitting sales tax on future sales into the state.
Do thresholds reset each year?
Yes — nexus is typically assessed on a rolling or calendar-year basis, so a seller who crosses a threshold one year must re-evaluate the following year.
