NSNexus by State

Texas vs New Jersey Sales Tax Nexus — Comparison 2026

Updated

Compare economic nexus thresholds, state and local rates, and filing rules in Texas and New Jersey.

MetricTexasNew Jersey
Economic nexus threshold$500,000$100,000
Transaction thresholdNone200
State rate6.25%6.63%
Avg. local rate1.94%n/a
Combined state + local8.19%6.63%
Marketplace facilitatorYesYes
Effective since2019-10-012018-11-01

Which state is easier for sellers?

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

On rate: New Jersey is friendlier for customers with a combined state + local rate of 6.63% vs 8.19%.

New Jersey also adds a 200-transaction trigger that Texas doesn't have.

Texas — nexus note

Texas sales tax nexus and SaaS taxability: economic nexus applies to remote sellers with $500,000 or more in total Texas revenue during the preceding twelve calendar months. After crossing that safe harbor, Texas requires a permit and sales/use tax collection no later than the first day of the fourth month after the threshold-crossing month. Texas treats data processing as a taxable service and the Comptroller says data processing providers include software-as-a-service sellers and application service providers; 20% of a data-processing charge is exempt, so SaaS treated as data processing is generally taxed on 80% of the invoice amount. Marketplace-only sellers whose marketplace provider certifies Texas collection generally do not need a Texas tax permit, but sellers must keep marketplace-sales records for at least four years.

New Jersey — nexus note

New Jersey sales tax nexus and economic nexus threshold: since November 1, 2018, remote sellers must register, collect, and remit New Jersey Sales Tax when current- or prior-calendar-year gross revenue from sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey exceeds $100,000 OR those sales reach 200 or more separate transactions. New Jersey includes nontaxable retail sales of tangible personal property and specified digital products in the $100,000 gross-revenue test, but remote sellers making only resale sales or only nontaxable retail sales are not required to register on that basis. Marketplace facilitators collect New Jersey Sales Tax on marketplace transactions regardless of whether the marketplace seller is above or below the threshold; an over-threshold marketplace-only seller may register and request non-reporting status. New Jersey Division of Taxation source data last retrieved 2026-06-08.

What to do next

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

Texas overview →New Jersey overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Texas or New Jersey?
New Jersey has the lower economic nexus threshold at $100,000, versus $500,000 in Texas. A seller's New Jersey sales would reach the published New Jersey threshold first. These are the thresholds published by each state's tax authority as of 2026-06-08; confirm against the official source before registering.
Do both Texas and New Jersey have marketplace facilitator laws?
Yes. Both Texas and New Jersey have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-06-08.
Which has the lower sales tax rate, Texas or New Jersey?
New Jersey has the lower combined state and local sales tax rate at 6.63%, compared with 8.19% in Texas. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-08.
Do I need to register for sales tax in both Texas and New Jersey?
It depends on where you cross each state's economic nexus threshold (or have physical presence there). Texas's published threshold is $500,000, and New Jersey's is $100,000 or 200 transactions. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-06-08.
When did economic nexus take effect in Texas and New Jersey?
Texas's economic nexus rule took effect on 2019-10-01, and New Jersey's took effect on 2018-11-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Sources

date_retrieved: Texas 2026-05-25 · New Jersey 2026-06-08