Economic nexus
Updated
Definition
A form of sales tax nexus created by crossing a revenue or transaction-count threshold on sales into a state. Every US sales-tax state adopted economic nexus after the 2018 South Dakota v. Wayfair Supreme Court decision.
Related terms
- Sales tax nexus— The legal connection between a seller and a US state that obligates the seller to register…
- Wayfair decision— The 2018 US Supreme Court case South Dakota v. Wayfair, Inc., which overturned the 1992 Qu…
- Economic nexus threshold— The dollar amount or transaction count at which a remote seller must register and collect …
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.