Sales tax nexus
Updated
Definition
The legal connection between a seller and a US state that obligates the seller to register, collect, and remit sales tax on transactions shipped into that state. Nexus can be physical (inventory, employees, offices) or economic (revenue or transaction count thresholds).
Related terms
- Physical nexus— A form of sales tax nexus created by having physical presence in a state — offices, employ…
- Economic nexus— A form of sales tax nexus created by crossing a revenue or transaction-count threshold on …
- Wayfair decision— The 2018 US Supreme Court case South Dakota v. Wayfair, Inc., which overturned the 1992 Qu…
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.