Sales tax for online sellers in every state: rates and economic nexus thresholds

When does an online seller have to collect in each state?

The threshold applies to sales delivered into the state; some states count all sales, others only taxable retail sales, and most count marketplace sales towards the total even though the marketplace collects the tax. Rates are the state rate; local taxes come on top in most states, charged at the rate for the delivery address.

Every state in the table links to its own guide. How nexus works in general is in economic nexus explained and physical vs economic nexus; the five states without a sales tax are covered in states with no sales tax.

Which states set a higher economic nexus threshold?

The $100,000 figure comes from the South Dakota law the Supreme Court upheld in Wayfair, and most states copied it. California, New York and Texas chose $500,000, which keeps small sellers out of their systems, and Alabama and Mississippi use $250,000. The measurement period matters as much as the number: a state that looks at the current year can catch you mid-year, from the next transaction after you cross the line, while a state that looks only at the previous year gives you until January.

Which states still count transactions?

South Dakota's original test was $100,000 or 200 transactions, and 200 small orders can mean very little revenue, so states have been dropping the transaction test one by one: Wisconsin in 2021, Maine in 2022, South Dakota in 2023, Indiana, North Carolina and Wyoming in 2024, Utah in 2025, Illinois in January 2026 and Kentucky in August 2026. 16 states and DC still have one: Arkansas, Connecticut, Georgia, Hawaii, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New York, Ohio, Rhode Island, Vermont, Virginia, Washington DC and West Virginia. In Connecticut and New York the two tests work together, so a seller needs both the dollar amount and the number of sales before it has nexus.

What about sales on Amazon, eBay or Etsy?

Every state with a sales tax now requires marketplace facilitators to collect and remit on the sales they facilitate, so you do not collect on those orders. Two things still matter: most states count marketplace sales when they measure your threshold, and once you cross it, sales through your own website or other direct channels are yours to collect. See marketplace facilitator laws and Amazon FBA sales tax nexus, which covers the physical presence that inventory in a warehouse creates.

What do you do once you cross a threshold?

1. Confirm the date

   Nexus starts on the day you cross the line in current-year states and on January 1 in previous-year states.

2. Register before you collect

   With the state's tax agency, usually online and usually free. See how to get a sales tax permit.

3. Set up collection in your store

   By delivery address and product, because rates and exemptions vary within a state. See Shopify sales tax setup.

4. File on the schedule the state assigns

   Monthly, quarterly or annually, including zero returns. See how to file a sales tax return.

If you crossed a threshold some time ago and never registered, the tax you should have collected has become your own debt, and a voluntary disclosure agreement can limit the look-back. See voluntary disclosure agreements.

This guide is general information. It is not tax or legal advice for your situation.