Economic Nexus

Key Takeaways By 2026, 45 states plus Washington, D.C. enforce sales tax economic nexus rules; only a few states have no general sales tax. Most economic nexus thresholds are $100,000 in sales, 200 transactions, or $100,000 “sales-only,” measured by current or prior calendar year. Once you cross a threshold, you must register with the state

Key Takeaways Economic nexus can require sales tax collection even without a physical presence, based on sales revenue and/or transaction counts in a state. Drop shipping often creates “nexus traps” when you sell into a state, use a marketplace, or rely on resale/exemption certificates. Most states set thresholds similar to $100,000 in sales, but rules

Key Takeaways Economic nexus can require Shopify sellers to register for sales tax in a state even without a physical presence. Most states set nexus thresholds at $100,000 in sales, 200 transactions, or (in some states) $500,000 in sales during the prior or current calendar year. Once you cross a state’s threshold, you generally must

Physical Nexus vs Economic Nexus: What Small Business Owners Need to Know Key Takeaways Physical nexus is triggered by in-state people, property, inventory, or regular in-person activity; economic nexus is triggered by sales volume into a state. Most states use an economic nexus threshold of $100,000 in sales and/or 200 transactions (many are moving away

Who This Guide Is For: Online sellers, marketplace sellers, and multistate ecommerce businesses that need to know when sales tax “economic nexus” applies in 2026, how thresholds work by state, and what to do next to register and collect correctly. Key Takeaways Economic nexus is triggered by crossing a state’s sales and/or transaction threshold, typically