Enough sales into a state, or a physical presence there, creates sales-tax nexus, and the obligation to register, collect, and remit. See where you're exposed, mapped across all 50 states.
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Exposure tracking is knowing, state by state, where your business has (or is about to have) a sales-tax obligation. The US has no national sales tax: each state sets its own rules, and you pick up an obligation either by selling enough into a state (economic nexus) or by having people, inventory, or property there (physical nexus).
For a growing company that exposure shifts constantly: a new warehouse, a remote hire, or a single large order can cross a threshold. Commenda tracks all 50 states in real time so a new obligation never catches you off guard.
Sales-tax nexus comes in two forms, and either one on its own creates an obligation:
Use the toggle on the map above to switch between the two views. The sections below go deeper on economic nexus and how each state measures it.
Economic nexus is the link between your business and a state that obligates you to register, collect sales tax, and file returns there. Unlike physical nexus (established by an office, warehouse, employee, or inventory), economic nexus is triggered purely by crossing a revenue or transaction threshold.
Every state with a statewide sales tax has enacted an economic nexus law. The specific threshold, what counts toward it, and how often it is evaluated differs by state.
Before the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc., a state could only require a business to collect sales tax if it had a physical presence in the state. The Wayfair ruling allowed states to base nexus on economic activity alone, opening the door for every state to require remote sellers - including e-commerce, SaaS, and digital goods businesses - to collect tax once they cross a threshold.
The financial stakes are significant. Failing to register after crossing a threshold can result in back taxes, interest, and penalties stretching back years. A growing business can easily trigger nexus in 20 or more states in a single year without realizing it.
Thresholds fall into four categories, and each state uses one of them:
The measurement period also varies. Some states evaluate the prior calendar year, some look at the current or previous calendar year, and a handful use a rolling 12-month window measured quarterly.
This is where the rules diverge most sharply between states. Common variations:
The detail expanders in the state list below show exactly what each state counts.
Physical nexus is the older, pre-Wayfair standard: a tangible connection to a state. Unlike economic nexus, there is no dollar threshold; a single qualifying presence is enough to require you to register, collect, and remit. Essentially every state with a sales tax asserts it, so the question is rarely whether a presence counts, but which of your activities create one. The most common triggers:
Because physical presence sticks, some states also apply trailing nexus, an obligation that continues for a period after the presence ends. Once any of these applies, the registration and filing requirements are the same as for economic nexus.
The following states do not impose a statewide sales tax, so there is no economic nexus to track at the state level:
Alaska has no state-level sales tax, but local jurisdictions in the Alaska Remote Seller Sales Tax Commission enforce a $100,000 economic nexus threshold - so Alaska is included in the state list below.
Click any state for both kinds of nexus: the economic threshold (what counts, effective date, measurement period) and the physical-presence establishments that create nexus there.
This guide is provided for informational purposes only and does not constitute legal or tax advice. State rules change frequently; verify the current threshold with the relevant state department of revenue or speak with a Commenda specialist before relying on this information for compliance decisions.
Economic nexus is the legal connection between a business and a state that requires the business to register, collect, and remit sales tax - even without a physical presence. It is triggered when a remote seller exceeds a state's revenue or transaction threshold within a defined measurement period.
In 2018, the U.S. Supreme Court ruled in South Dakota v. Wayfair, Inc. that states can require out-of-state sellers to collect and remit sales tax based on economic activity alone. The decision overturned the prior physical-presence standard and led every state with a sales tax to enact economic nexus rules.
The most common threshold is $100,000 in sales or 200 transactions in the current or previous calendar year. Some states use only a sales threshold, some require both sales AND transactions, and a handful use higher dollar amounts: California, New York, and Texas at $500,000; Alabama and Mississippi at $250,000.
It depends on the state. Many states include exempt sales (such as wholesale or sales to tax-exempt buyers) in the threshold calculation, while others exclude them. Check the per-state details above for what is included and excluded.
In most states, sales made through a registered marketplace facilitator (such as Amazon or Etsy) are excluded from your direct seller threshold because the marketplace is responsible for collecting and remitting the tax. A few states still include those sales in the threshold calculation.
Five states (the NOMAD states) have no statewide sales tax: New Hampshire, Oregon, Montana, Alaska, and Delaware. Alaska is unique because it allows local jurisdictions to impose their own sales tax, and those jurisdictions enforce economic nexus through the Alaska Remote Seller Sales Tax Commission.
Once you cross the threshold you are generally required to register for a sales tax permit in that state, begin collecting tax on taxable sales going forward, and file returns on the state's required schedule. Some states require registration within 30 days of crossing the threshold.
States can assess back taxes, interest, and penalties on uncollected sales tax - often for several years of non-compliance. Penalties commonly range from 10% to 30% of the uncollected tax, and most states can audit returns going back 3 to 6 years.
You should monitor your nexus exposure continuously. Thresholds are evaluated on a rolling or annual basis depending on the state, and a single large customer can push you over a threshold in a single month. Commenda automates this monitoring across all 50 states.
Yes. Commenda monitors your economic nexus exposure in real time, files registrations in every state where you have obligations, calculates the correct rate on each transaction, and submits returns on the required schedule. Book a demo to see it in action.
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