Sales Tax & Economic Nexus

Do I Have to Collect Sales Tax in Other States?

In case you missed it, you might have to start collecting sales tax in more states (if you have an online store or otherwise sell to multiple states). Thanks to Supreme Court case South Dakota v. Wayfair, states can now collect sales tax from you if you have economic nexus.

Wait a minute. Back Up. What’s Economic Nexus?

Before South Dakota v. Wayfair, you only had to collect sales tax in a state if you had a physical presence in the state – like an employee lived there or you had a warehouse full of inventory there. That was physical nexus.

Now, you might have economic nexus in a state, too. Economic nexus means that you have some sort of economic presence in the state. States that are starting to adopt this usually have some sort of threshold for how much revenue you earn or how many transactions you make into the state before you have to start collecting sales tax.

There are some states that have had “Notice and Reporting” laws on the books, instead of economic nexus thresholds. When you meet that threshold, you’ll either have to start collecting sales tax or provide sales reporting to the state and your customers (so they can pay any use taxes they owe).

What States Currently Have Economic Nexus?

Please note, this tax information is rapidly changing. We’ll update the list as often as possible, but we strongly encourage you to contact a sales tax expert with any questions.

Alabama

You’ll have to collect and remit sales tax if you sold at least $250,000 in the previous calendar year.

Connecticut

You’ll have to register for a Connecticut sales tax permit if you had at least $250,000 in gross revenue and 200 or more transactions into Connecticut in the previous calendar year.

Effective: December 1, 2018

Georgia

Collect and remit sales tax if you had at least $250,000 in gross revenue or more than 200 separate transactions into Georgia in the previous or current calendar year.

Effective: January 1, 2019

Hawaii

You’ll have to register for a Hawaii sales tax permit if you had at least $100,000 in gross revenue or made more than 200 separate transactions into Hawaii in the previous or current calendar year.

Illinois

You’ll have to collect and remit sales tax if you had at least $100,000 in gross revenue or made more than 200 separate transactions into Illinois in the previous 12 months.

Effective: October 1, 2018

Indiana

Register for an Indiana sales tax permit if you had at least $100,000 in gross revenue or made more than 200 separate transactions into Indiana in the previous calendar year.

Iowa

You’ll have to start collecting and remitting sales tax if you had at least $100,000 in gross revenue or made more than 200 separate transactions into Iowa in the previous or current calendar year.

Effective: January 1, 2019

Kentucky

Collect and remit sales tax if you had at least $100,000 in gross revenue or made more than 200 separate transactions into Kentucky in the previous or current calendar year.

Louisiana

Register for a Louisiana sales tax permit if you had at least $100,000 in gross revenue or more than 200 separate transactions into Louisiana in the previous or current calendar year.

Maine

You’ll have to collect and remit sales tax if you had at least $100,000 in gross revenue or made more than 200 separate transactions into Maine in the previous or current calendar year.

Massachusetts

Register for a Massachusetts sales tax permit if you had at least $500,000 in sales and more than 100 separate transactions into Massachusetts in the previous calendar year.

Minnesota

If you make any sales into the state of Minnesota, you’ll have to register for a sales tax permit and start collecting sales tax.

Effective: October 1, 2018

Mississippi

You’ll have to collect and remit sales tax if you had at least $250,000 in sales in the previous 12 months.

North Dakota

Register for a North Dakota sales tax permit if you sold at least $100,000 or made 200 or more separate transactions into North Dakota.

Effective: October 1, 2018

Ohio

Start collecting and remitting sales tax if you had $500,000 in Ohio sales in the current or previous calendar year.

Oklahoma

If you sold $10,000 or more into Oklahoma in the previous 12 months, you must do one of the following by June 1 of each year:

  • register for an Oklahoma sales tax permit and collect sales tax on Oklahoma sales or
  • comply with Oklahoma notice and reporting requirements1.

Pennsylvania

If you sold $10,000 or more into Pennsylvania in the previous 12 months, you must do one of the following by March 1 of each year:

  • register for a Pennsylvania sales tax permit and collect sales tax on Pennsylvania sales or
  • comply with Pennsylvania’s notice and reporting requirements2.

Rhode Island

If you sold $100,000 or more or made more than 200 separate transactions into Rhode Island in a calendar year, you must comply with Rhode Island’s notice and reporting requirements3.

South Dakota

Register for a South Dakota sales tax permit if you sold at least $100,000 or made more than 200 transactions into South Dakota in a calendar year.

Tennessee

Start collecting and remitting sales tax if you sold more than $500,000 into Tennessee in the previous 12 months.

Vermont

You’ll have to collect and remit sales tax if you sold at least $100,000 or made 200 or more transactions into Vermont.

Washington

If you sold $10,000 or more into Washington, you must do one of the following:

  • register for a Washington sales tax permit and collect sales tax on Washington sales or
  • comply with Washington’s notice and reporting requirements4.

Wisconsin

You’ll have to collect and remit sales tax if you sold at least $100,000 or had 200 or more separate transactions into Wisconsin each year.

Effective: October 1, 2018

Wyoming

Register for a Wyoming sales tax permit if you sold at least $100,000 or made 200 or more separate transactions into Wyoming.


1 Oklahoma sales tax law is a “Notice and Report” law. Click here to learn more about Oklahoma’s laws.

2 Pennsylvania sales tax law is a “Notice and Report” law. Click here to learn more about Pennsylvania’s laws.

3 Rhode Island sales tax law is a “Notice and Report” law. Click here to learn more about Rhode Island’s laws.

4 Washington sales tax law is a “Notice and Report” law. Click here to learn more about Washington’s laws.