Economic nexus threshold
Updated
Definition
The dollar amount or transaction count at which a remote seller must register and collect sales tax in a state. Thresholds vary: most states use $100,000; California, Texas, and New York use $500,000; Alabama and Mississippi use $250,000.
Related terms
- Economic nexus— A form of sales tax nexus created by crossing a revenue or transaction-count threshold on …
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.