Economic nexus thresholds are crucial for Shopify sellers to understand, as they determine whether you need to collect and remit sales tax in a particular state. Each state has its own economic nexus laws, which are typically based on your sales revenue, the number of transactions, or both. Here, we’ll break down the economic nexus thresholds by state to help you stay compliant and avoid unexpected tax liabilities.
What Is Economic Nexus?
Economic nexus refers to the requirement for remote sellers—like Shopify sellers—to collect and remit sales tax in a state if they meet certain economic activity thresholds. These thresholds are usually defined by the total revenue generated from sales into the state or the number of transactions with customers in that state.
State-by-State Economic Nexus Thresholds
Below is an overview of the economic nexus thresholds for each state. Keep in mind that laws can change, so it’s important to regularly check the requirements for the states where you do business.
Alabama
Threshold: $250,000 in gross sales
Measurement Period: Current or previous calendar year
Alaska (No State Sales Tax)
Threshold: $100,000 in gross sales
Note: Effective January 1, 2025, Alaska removed the 200 transactions threshold, focusing solely on the sales threshold.
Arizona
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
Arkansas
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
California
Threshold: $500,000 in gross sales
Measurement Period: Previous or current calendar year
Colorado
Threshold: $100,000 in gross sales
Measurement Period: Previous calendar year
Connecticut
Threshold: $100,000 in gross sales and 200 transactions
Measurement Period: 12-month period ending September 30
Note: Both criteria must be met to establish economic nexus.
Delaware (No State Sales Tax)
Note: Delaware does not impose state sales tax, but other tax obligations may apply.
Florida
Threshold: $100,000 in gross sales
Measurement Period: Previous calendar year
Georgia
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Hawaii
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
Idaho
Threshold: $100,000 in gross sales
Measurement Period: Previous or current calendar year
Illinois
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current 12-month period
Indiana
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous calendar year
Iowa
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
Kansas
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
Kentucky
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
Louisiana
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Maine
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
Maryland
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous calendar year
Massachusetts
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
Michigan
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
Minnesota
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Mississippi
Threshold: $250,000 in gross sales
Measurement Period: Previous or current calendar year
Missouri
Threshold: $100,000 in gross sales
Measurement Period: Previous 12-month period
Montana (No State Sales Tax)
Note: Montana does not impose state sales tax, but other tax obligations may apply.
Nebraska
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Nevada
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
New Hampshire (No State Sales Tax)
Note: New Hampshire does not impose state sales tax, but other tax obligations may apply.
New Jersey
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
New Mexico
Threshold: $100,000 in gross sales
Measurement Period: Previous calendar year
New York
Threshold: $500,000 in gross sales and 100 transactions
Measurement Period: Previous or current calendar year
North Carolina
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
North Dakota
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
Ohio
Threshold: $100,000 in gross sales
Measurement Period: Previous or current calendar year
Oklahoma
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
Oregon (No State Sales Tax)
Note: Oregon does not impose state sales tax, but other tax obligations may apply.
Pennsylvania
Threshold: $100,000 in gross sales
Measurement Period: Previous calendar year
Rhode Island
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
South Carolina
Threshold: $100,000 in gross sales
Measurement Period: Current or previous calendar year
South Dakota
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Tennessee
Threshold: $100,000 in gross sales
Measurement Period: Previous or current calendar year
Texas
Threshold: $500,000 in gross sales
Measurement Period: Previous 12-month period
Utah
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
Vermont
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Virginia
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Washington
Threshold: $100,000 in gross sales
Measurement Period: Previous or current calendar year
West Virginia
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Previous or current calendar year
Wisconsin
Threshold: $100,000 in gross sales or 200 transactions
Measurement Period: Current or previous calendar year
Wyoming
Threshold: $100,000 in gross sales
Measurement Period: Previous or current calendar year
Note: Effective July 1, 2024, Wyoming eliminated the 200 transactions threshold, focusing solely on the sales threshold.
Stay Compliant with Economic Nexus Laws
As a Shopify seller, understanding economic nexus thresholds is essential for maintaining compliance and avoiding penalties. Regularly review your sales data and state requirements to ensure you’re meeting your obligations.
If you have any questions or need personalized help, don’t hesitate to reach out. Schedule a call with Jacob by going to https://www.jacobcurtiscpa.com/7-shopify-mistakes-calendar. We're here to help you piece together financial freedom.
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