Sales Tax Nexus Calculator
Sell into another state and wondering whether you owe sales tax there? This free sales tax nexus calculator checks your revenue and transaction counts against a state's economic nexus thresholds — plus physical-presence factors like employees, offices, and inventory — and tells you instantly whether nexus is likely triggered and why.
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Results update as you type. Thresholds are examples — verify current state law.
Your results
Enter your numbers and the nexus verdict will appear here.
How to use this calculator
Pick the state you want to check, then enter your annual revenue and number of transactions in that state for the relevant period (states usually measure the current or previous calendar year). Then check any physical-presence factors — employees, an office, a warehouse, or inventory stored there. The verdict updates instantly as you type, showing whether nexus is triggered, which rule triggered it, and how close you are to each threshold.
The state thresholds in the dropdown are examples only — states change these rules regularly, and the details matter (how revenue is counted, which year applies, whether the revenue and transaction tests use AND or OR logic). Always verify the current law on the state's department of revenue website before making a filing or registration decision.
How it works
Before 2018, states could generally only tax sellers with a physical presence. The 2018 Supreme Court decision in South Dakota v. Wayfair let states require sales-tax collection based purely on economic nexus — selling enough into a state even without any physical presence there. Every state with a sales tax now has some version of an economic nexus law.
The most common economic nexus thresholds are $100,000 in sales into the state and/or 100–200 separate transactions in a year. A few states set higher revenue tests — for example, California, Texas, and New York use $500,000 — and some states, like New York, require you to meet both the revenue and transaction tests, while most states trigger on either. This calculator shows the AND/OR logic for each example state.
Physical presence is the older, stricter rule: if you have employees, an office, a warehouse, or inventory in a state, that alone usually creates nexus regardless of how little you sell there. Marketplace sellers should note that inventory stored in a third-party warehouse (for example, in an Amazon fulfillment center) counts as physical presence in many states.
This is an educational estimate, not legal or tax advice. Nexus laws change frequently, and real determinations depend on exactly how a state counts sales, which period it measures, and which goods or services you sell. Confirm with the state's tax authority or a tax professional before registering or filing.
Frequently asked questions
What is sales tax nexus?
Nexus is a legal term for a strong enough connection between your business and a state that the state can require you to register for a sales tax permit, collect sales tax from customers there, and file returns. You can create nexus through physical presence (people, offices, inventory) or, since 2018, purely through economic activity — selling enough into a state to cross its economic nexus threshold.
What is the difference between economic nexus and physical presence?
Physical presence means you have something tangible in the state — an employee, an office, a warehouse, or inventory stored there — which almost always creates nexus on its own. Economic nexus means you cross a state's sales-based threshold (for example $100,000 in revenue, or 200 transactions) even with no physical presence at all. Either type can trigger a sales tax obligation.
What are the most common economic nexus thresholds?
The most common economic nexus thresholds are $100,000 in sales into the state, or 100 to 200 separate transactions, measured over the current or previous calendar year. Some large states use higher revenue tests, such as $500,000 in California, Texas, and New York, and a few states require you to meet both the revenue and transaction tests at the same time. Thresholds change, so always verify current state law.
I triggered nexus in a state — what should I do next?
First, confirm the state's current thresholds and how it counts sales, since rules differ. Then register for a sales tax permit in that state, start collecting the correct sales tax on new sales, and set up a process for filing returns on the state's schedule. Many sellers use a sales tax automation service to handle registration and filings across multiple states.
Is this calculator legal or tax advice?
No. This calculator is an educational estimate that compares your inputs against example state thresholds. State nexus laws change frequently and have important details — how revenue is counted, which year is measured, and whether thresholds are AND or OR tests. Confirm anything before acting, ideally with a tax professional.