Nexus by State

California vs Washington Sales Tax Nexus — Comparison 2026

Updated

Compare economic nexus thresholds, state and local rates, and filing rules in California and Washington.

MetricCaliforniaWashington
Economic nexus threshold$500,000$100,000
Transaction thresholdNoneNone
State rate7.25%6.50%
Avg. local rate1.57%2.90%
Combined state + local8.82%9.40%
Marketplace facilitatorYesYes
Effective since2019-04-012020-01-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in Washington because of its $100,000 threshold. If you cross that first, you register there first.

On rate: California is friendlier for customers with a combined state + local rate of 8.82% vs 9.40%.

Neither state has a transaction-count trigger — only the dollar threshold matters.

California — nexus note

Economic nexus triggers at $500,000 in gross sales of tangible personal property delivered into California in the current or prior calendar year. No transaction count threshold. AB 147 expanded the threshold from the original $100K/200 transactions to $500K sales-only.

Washington — nexus note

Economic nexus triggers at $100,000 in cumulative gross receipts from Washington sales in the current or previous calendar year. The transaction-count threshold was removed in 2020. Washington also imposes B&O tax on nexus-triggering activity.

What to do next

Use the nexus calculator to check exactly which of California and Washington you've already triggered. Then read each state's full guide:

California overview →Washington overview →