State-by-State Guide to US Sales Tax Nexus Laws

This information was last reviewed in August 2026. States update and change their sales and use tax laws all the time, so check each state's tax authority website for the latest and most complete information.

On June 21, 2018, the US Supreme Court ruled in favor of the state of South Dakota against Wayfair, Inc. The ruling allows the state to collect sales tax on remote sales by redefining what “nexus” means. Since then, more than 40 states have passed their own economic nexus laws.

This map of the USA shows which states (for example Vermont, New Jersey or Virginia) have now passed sales tax nexus laws:

Before the ruling, states could only require a business to collect sales tax if it had a physical presence in the state, such as a brick-and-mortar location or remote employees. The physical presence standard still exists, but nexus laws have been expanded so that sales tax collection can also be triggered by economic activity in the state, measured by sales revenue, transaction volume or a combination of both.

So to have nexus in a state that triggers a sales tax obligation, it is now enough to have customers there: a physical presence is no longer required. As with many sales tax laws, the criteria for economic nexus vary by state and type of tax.

1Sales tax nexus laws for marketplace sellers

Marketplace sellers also have to comply with each state's sales tax nexus laws. Whether a marketplace seller must register in a state usually depends on several criteria. Here too, it is not just about physical presence or a local warehouse, but also about economic activity and customers in that state. As soon as a state has both marketplace facilitator and economic nexus laws, sellers face the question of registration.

We have a dedicated page on each state's rules for marketplace sellers. Find all registration requirements and a table of sales tax triggers here.

2Overview of US states with sales tax nexus laws

Below, we take a closer look at which US states currently enforce economic nexus laws, and at some of the differences between each state's rules.

3Mount Bonnell Advisors: your partner for everything US sales tax

If you sell goods in the USA, whether as a US company or as a non-resident entity, you will inevitably have to deal with sales tax.

The good news: because of the thresholds above, you will not need to register for sales tax in many states. Most clients make the bulk of their sales on the East and West Coasts, and perhaps in Texas. In most other states they sell so little that registration is not necessary.

We help you with every aspect of US sales tax, from registration to ongoing bookkeeping and filing your sales tax returns. Our page on sales tax in the USA explains the basics, and our Taxes hub gives you an overview of all tax topics. If you sell from abroad through a US LLC without a US permanent establishment, our sister site zerotax.llc is the right place to go.