Many states have enacted economic nexus laws that require remote sellers to collect and remit sales tax if they exceed certain thresholds. If you have a physical presence in a state, you are not a Remote Seller and are required to register in that state regardless of the amount of sales.
Are you a Remote Seller? A Remote Seller is generally a seller that does not have a physical presence in a state but who sells products or services for delivery into that state.
If you are a remote seller and your sales of products for delivery into a state meet or exceed the threshold for a state, you are required to register to collect and remit sales tax for that state.
Economic nexus laws apply to any business that makes sales into states in which they have no physical presence but meet the state’s sales and/or transactions thresholds.
Items to note when reviewing the requirements:
If you know that you will be making sales into a state, you may choose to register to collect and remit that state’s sales tax at any time.
IMPORTANT NOTE: This is general guidance and is not legal advice. Nothing in this chart overrides an individual state’s laws. For specific state guidance, contact that state.
This chart provides you a summary of the Remote Seller thresholds and compliance dates as of September 17, 2019.
|Revenue Department Website||Remote Seller Compliance Date||Remote Seller Threshold||State Guidance for Remote Sellers||Notes||Streamlined Member State Information|
Sales of TPP of more than $250,000 in prior calendar year; No transaction threshold
Seller must also engage in or conduct certain other activities in Alabama in addition to having more than $250,000 in sales.
Press Release (7/3/2018)
|Arizona||10/1/2019||Annual gross retail sales or income from online sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021 and thereafter.||Remote Seller||Marketplace Facilitator|
|Arkansas||7/1/2019||Sales exceed $100,000 or 200 transactions during the current or preceding year.||Remote Seller||Marketplace Facilitator||AR|
|California||4/1/2019||The total combined sales exceed $500,000 during the preceding or current calendar year||Remote Seller||Marketplace Facilitator|
|Colorado||12/1/2018||Taxable sales of more than $100,000 in past calendar year||Remote Seller||Marketplace Facilitator|
7/1/2019 Threshold change: $100,000 or more in gross receipts and 200 or more retail transactions
12/1/2018 Threshold: $250,000 or more in gross receipts and 200 or more retail transactions
|District of Columbia||1/1/2019||Had in the previous calendar year or will have in the current calendar year, more than $100,000 of gross receipts from retail sales or more than 200 separate retail sales||Remote Seller|
Gross Revenue exceeding $250,000 from retail sales or
200 or more separate retail sale transactions in the previous or current calendar year
|Hawaii||7/1/2018||$100,000 or more in gross income or 200 or more transactions||Remote Seller|
|Idaho||6/1/2019||Sales that exceed $100,000 in the current or previous year.||Remote Seller||Marketplace Facilitator|
|Illinois||10/1/2018||Either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions||Remote Seller|
|Indiana||10/1/2018||Gross revenue exceeding $100,000 or 200 or more separate transactions in the previous calendar year or current calendar year||Remote Seller||Marketplace Facilitator||IN|
|Iowa||1/1/2019||Gross revenue from sales of $100,000 in previous or current calendar year||Remote Seller||
Additional Remote Seller Information
|Kansas||10/1/2019||Remote sellers with no physical presence in Kansas are required to collect and remit the applicable sales or use tax on sales delivered into Kansas, as provided under the constitution and laws of the United States.||Remote Seller||
Gross receipts of $100,000 or more or 200 or more sales based on previous or current calendar year sales
KRS 139.340 (g)
|Louisiana||Deliver more than $100,000 of goods or services into the state or engage in 200 or more separate transactions for the delivery of good or services in the state||Remote Seller||Remote Seller varying ratings|
|Maine||7/1/2018||Gross revenues from Maine sales of tangible personal property, products transferred electronically, or taxable services exceeded $100,000 or at least 200 separate transactions during the current or previous calendar year||Remote Seller|
|Maryland||10/1/2018||Gross revenue exceeds $100,000 or 200 or more separate transactions during the previous or current calendar year||Remote Seller|
|Massachusetts||10/1/2019||Massachusetts sales exceeding $100,000 during current or previous calendar year||Remote Seller||Marketplace Facilitator|
|Michigan||10/1/2018||Taxable and non-taxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year||Remote Seller||MI RAB 2018-6||MI|
Retail sales of more than $100,000 in 10 or more transactions or 100 or more separate retail transactions in any 12 consecutive months.
Starting October 1, 2019, retail sales of more than $100,000 or 200 or more separate retail transactions in any 12 consecutive months.
Do not include sales where the purchaser is buying for resale.
Starting October 1, 2019, Marketplaces without a place of business in Minnesota are subject to the remote seller thresholds.
|Mississippi||9/1/2018||Sales exceed $250,000 for the prior 12 months||Remote Seller|
More than $100,000 in sales or 200 or more separate transactions for delivery into NE in the prior or current calendar year
||Remote Seller||Marketplace Facilitator||NE|
Gross revenue from retail sales greater than $100,000 or 200 or more retail sales in the prior or current year
Press Release 9/27/2018
|New Jersey||11/1/2018||Gross revenue exceeds $100,000 or 200 or more separate transactions in prior or current calendar year||Remote Seller||Marketplace Sales||NJ|
|New York||Gross receipts exceed $300,000 and made more than 100 sales during preceding four sales tax quarters||Remote Seller|
Gross sales in excess of $100,000 or 200 or more separate transactions in previous or current calendar year
|North Dakota||10/1/2018||Taxable sales of $100,000 or more or 200 or more separate transactions in previous or current calendar year||Remote Seller||ND|
|Ohio||8/1/2019||Gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year.||Remote Seller||OH|
$10,000 or more in sales subject to sales or use tax during previous 12 months
Effective November 1, 2019: $100,000 or more in sales subject to sales or use tax during the previous or current calendar year
|Remote Seller||Marketplace Facilitators||OK|
|Pennsylvania||7/1/2019||More than $100,000 in gross sales in the previous twelve months.||Remote Seller|
|Rhode Island||7/1/2019||Gross revenues of $100,000 or more or 200 or more separate transactions in the previous calendar year||Remote Seller||RI|
|South Carolina||11/1/2018||Gross Revenue from sales exceeds $100,000 in South Carolina in the previous or current calendar year||Remote Seller||Marketplace Facilitator|
|South Dakota||11/1/2018||Gross revenue from sales exceeding $100,000 or 200 or more separate transactions in previous or current calendar year||Remote Seller||Marketplace Facilitator||SD|
Retail sales exceeding $500,000 during the previous 12-months
|Remote Seller||Notices 17-01, 17-12, 18-11, 19-04, and 19-05||TN|
|Texas||10/1/2019||Total Texas revenue of $500,000 or more in the preceding twelve calendar months||Remote Seller|
|Utah||1/1/2019||Gross revenue of more than $100,000 or more than 200 separate transactions during previous or current calendar year||Remote Seller||UT|
|Vermont||7/1/2018||Sales of at least $100,000 or 200 individual transactions during any preceding 12 month period||Remote Seller||VT|
|Virginia||7/1/2019||In the previous or current calendar year, either receives greater than $100,000 in gross revenue from retail sales, or engages in 200 or more separate retail sales transactions, or any software provider acting on behalf of such dealer.||Remote Seller||Marketplace Facilitators|
Gross retail sales exceeding $100,000 in preceding or current year
Effective March 14, 2019, sellers that have 200 or more transactions but do not exceed the $100,000 retail sales are not required to collect and report sales tax to Washington.
Remote sellers with less than 200 transactions and annual retail sales between $10,000 and $100,000 are required to make an election to collect sales tax or do use tax notice and reporting starting January 1, 2018.
Remote Seller Help: (800) 426-1776
|West Virginia||1/1/2019||Delivers more than $100,000 of goods or services into West Virginia or engages in 200 or more separate transactions for the delivery of goods and services into West Virginia, during calendar year 2018||Remote Seller||Marketplace Facilitator||WV|
Gross sales exceed $100,000 or 200 or more separate transactions in the previous or current year
||Remote Seller||Marketplace Providers||WI|
|Wyoming||2/1/2019||Gross revenue from sales of TPP, admissions or services of more than $100,000 or 200 or more separate transactions in prior or current year||Remote Seller||WY|