US sales tax nexus check
Illustrative economic-nexus check (a sufficient connection to the state): many states use about $100k; your state may differ.
Taxable turnover for the year. Basis (net or gross) is shown in the label.
Below the illustrative nexus threshold (a sufficient connection to the state): collection may still be optional in many states.
Below illustrative nexusRates and thresholds for the 2026 tax year. This tool is a helper, not tax advice.
Check US sales tax nexus: example $100,000 economic threshold
Enter expected annual sales (gross). The panel uses an example $100,000 economic-nexus threshold (a sufficient connection to the state) common in many states after Wayfair. Your state may use a different dollar amount, a transaction-count test (often around 200 transactions), or both; thresholds and lookback periods vary by state. Confirm with your state Department of Revenue (DOR).
Example: $120,000 of remote sales into a state that uses the $100k / 200-transaction pattern likely creates economic nexus there even without a warehouse. Helper only, not tax advice. Once you must collect, estimate tax with the US sales tax calculator.
US sales tax nexus: FAQ
What is sales tax nexus?
Nexus means a sufficient connection to a US state that can require you to collect that state’s sales tax. It can come from physical presence (office, inventory, staff) or from economic activity (sales dollars and/or transaction counts after Wayfair). The US has no federal Value Added Tax (VAT); each state sets its own nexus rules. Confirm with the state Department of Revenue (DOR).
Why does this nexus check use a $100,000 sales threshold?
Many states adopted roughly $100,000 of sales (and/or about 200 transactions) as an economic-nexus trigger after Wayfair. It is not universal: some states set higher or lower dollar amounts, drop the transaction test, or use different lookback windows. Treat $100,000 as an example planning line only.
Is US sales tax nexus the same as VAT registration abroad?
No. The US has no federal Value Added Tax (VAT). Nexus decides whether you must collect sales tax in a particular state. Crossing one state’s threshold does not automatically create collection duties everywhere; you evaluate each destination state separately.
What is the difference between physical and economic nexus?
Physical presence (office, inventory, staff, trade-show activity in some states) can create nexus even below a sales threshold. Economic nexus is usually a sales-dollar and/or transaction-count test for remote sellers. This tool only sketches an economic-sales filter.
How do state-by-state dollar and transaction tests change the result?
A state may trigger nexus at $100k sales, $500k sales, 200 transactions, sales only, or a combination; and the clock (calendar year vs trailing 12 months) differs. Verify each state’s current rules or ask a multi-state advisor, then price with the US sales tax calculator once you register to collect.
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