Wayfair Economic Nexus Calculator 2026 — All 50 States

Prior to June 21, 2018, states could only require businesses to collect sales tax if they had a physical presence (employees, offices, warehouses) in that state. The Supreme Court's decision in South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018) eliminated the physical presence requirement and allowed states to impose "economic nexus" based solely on sales volume. Most states quickly enacted economic nexus laws, typically with a $100,000 annual sales threshold or 200 transactions. If you exceed either threshold in a state, you are required to register for a sales tax permit and collect and remit sales tax on taxable sales to customers in that state.

Most states that use a transaction count threshold count each separate sales order as one transaction, regardless of order size. A state with $100K OR 200 transactions triggers nexus if you make 200 sales of any amount to customers in that state OR if those sales total $100,000 — whichever comes first. This means a business selling many small-ticket items (say, $10 ebooks) can trigger nexus after 200 sales totaling just $2,000, far below the $100K revenue threshold. Some states have eliminated the 200-transaction threshold (California, Texas, Florida, and others) and rely solely on a revenue threshold, which better targets businesses with material presence.

Since 2018, virtually all states with sales taxes have enacted marketplace facilitator laws requiring platforms like Amazon, eBay, and Etsy to collect and remit sales tax on behalf of third-party sellers. For most small sellers on these platforms, marketplace sales do NOT count toward your economic nexus threshold — the facilitator has nexus, not you. However, if you also make direct-to-consumer sales through your own website, those direct sales count toward your threshold. Some states count marketplace sales toward the threshold even if the marketplace collects the tax — always verify your specific state's marketplace facilitator rules with that state's DOR.

If you exceeded a state's economic nexus threshold and did not register and collect sales tax, you are potentially liable for: (1) uncollected sales tax on all taxable sales to customers in that state since your threshold crossing date, (2) interest on unpaid amounts (typically prime rate + 2-5%), (3) penalties for failure to register (up to $10,000 in some states) and failure to collect (up to 25% of uncollected tax). Many states have offered limited voluntary disclosure programs allowing businesses to come into compliance with reduced or eliminated penalties, typically covering only the prior 3-4 years. The Streamlined Sales Tax Project's Voluntary Disclosure Program provides a structured path to compliance.

Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon (NOMAD states). These states have no economic nexus rules because there is no sales tax to collect. However, Alaska allows local municipalities to impose local sales taxes, and some Alaskan localities have adopted economic nexus rules for their local taxes. Delaware has an alternative gross receipts tax on business revenue. Note that even if a state has no state sales tax, you may still have economic nexus obligations for local jurisdiction taxes. Always verify city and county tax requirements separately from state obligations.