Texas vs New York Sales Tax Nexus — Comparison 2026
Compare economic nexus thresholds, state and local rates, and filing rules in Texas and New York.
| Metric | Texas | New York |
|---|---|---|
| Economic nexus threshold | $500,000 | $500,000 |
| Transaction threshold | None | 100 |
| State rate | 6.25% | 4.00% |
| Avg. local rate | 1.94% | 4.54% |
| Combined state + local | 8.19% | 8.54% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2019-10-01 | 2019-06-24 |
Which state is easier for sellers?
For low-revenue sellers: nexus triggers first in both states because of its threshold. If you cross that first, you register there first.
On rate: Texas is friendlier for customers with a combined state + local rate of 8.19% vs 8.54%.
New York also adds a 100-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 York — nexus note
New York sales tax nexus and economic nexus threshold: a business with no New York physical presence is presumed to be a vendor when, in the immediately preceding four sales tax quarters, its gross receipts from tangible personal property delivered into New York exceed $500,000 AND it made more than 100 such sales into New York. Unlike most states, New York uses AND logic -- both thresholds must be met. Gross receipts include taxable and exempt tangible-personal-property sales without expense deductions, and sales transactions include invoices, sales slips, contracts, or other sale memoranda, including sales for resale. New York says marketplace sales should be included in the threshold calculation; after crossing, a remote seller files for registration within 30 days and begins collection 20 days later. Marketplace providers collect New York State and local sales tax on facilitated taxable tangible-personal-property sales delivered to New York, and marketplace sellers remain responsible for non-facilitated sales and taxable transactions outside the marketplace-provider rule. New York Tax Department source data last retrieved 2026-06-08.
What to do next
Use the nexus calculator to check exactly which of Texas and New York you've already triggered. Then read each state's full guide:
Frequently asked questions
- Which state has the lower sales tax nexus threshold, Texas or New York?
- Both Texas and New York publish the same economic nexus dollar threshold of $500,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. 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 York have marketplace facilitator laws?
- Yes. Both Texas and New York 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 York?
- Texas has the lower combined state and local sales tax rate at 8.19%, compared with 8.54% in New York. 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 York?
- 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 York's is $500,000 or 100 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 York?
- Texas's economic nexus rule took effect on 2019-10-01, and New York's took effect on 2019-06-24. 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 York 2026-06-08
- Texas: https://comptroller.texas.gov/
- Texas: https://comptroller.texas.gov/taxes/sales/remote-sellers.php
- Texas: https://comptroller.texas.gov/taxes/publications/96-259.php
- Texas: https://comptroller.texas.gov/taxes/sales/
- Texas: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Texas: https://taxfoundation.org/data/all/state/sales-tax-rates/
- New York: https://www.tax.ny.gov/
- New York: https://www.tax.ny.gov/pubs_and_bulls/publications/sales/nexus.htm
- New York: https://www.tax.ny.gov/pubs_and_bulls/publications/sales/marketplace.htm
- New York: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- New York: https://taxfoundation.org/data/all/state/sales-tax-rates/