When did the Wayfair decision happen?

The US Supreme Court decided South Dakota v. Wayfair, Inc. on June 21, 2018, overturning the 1992 Quill decision that had required physical presence for sales tax collection.

Does Wayfair apply to international sellers?

Yes, if you sell to US customers. Non-US sellers shipping to the US are subject to the same economic nexus thresholds as domestic sellers. Most state DORs will register foreign entities.

Has every state adopted an economic nexus law?

All 45 US states that levy a general sales tax, plus DC, have economic nexus statutes as of 2026. The 5 no-sales-tax states (Delaware, Montana, New Hampshire, Oregon, Alaska) obviously do not.

Are thresholds going to change?

Trends point toward simpler rules. Several states have removed transaction-count thresholds (Washington 2020, North Carolina 2024, Illinois 2026). A few may raise dollar thresholds. Nexus thresholds rarely drop.

Wayfair Decision & Its Impact on Sales Tax

Updated 2026-04-23

How the 2018 Supreme Court ruling in South Dakota v. Wayfair changed US sales tax forever, and what it means for modern remote sellers.

The case in one paragraph

In South Dakota v. Wayfair, Inc. (June 21, 2018), the US Supreme Court overturned the 1992 Quill Corp. v. North Dakota precedent that required physical presence for states to tax remote sellers. The new rule: states can require out-of-state sellers to collect sales tax if the seller's economic activity in the state is substantial enough — the specific threshold is set by each state.

Why it mattered

Before Wayfair, e-commerce sellers could ship nationwide and collect tax only in states where they had offices, warehouses, or employees. States were losing billions in tax revenue. Wayfair flipped the default: every state that levies sales tax now has an economic nexus statute, and every remote seller above the threshold must collect.

The post-Wayfair landscape

45 states plus DC have economic nexus. Most set the threshold at $100,000 in sales; some use $250,000 (Alabama, Mississippi) or $500,000 (California, Texas, New York). Many states have removed transaction-count thresholds over time (Washington in 2020, North Carolina in 2024, Illinois in 2026) because transaction-count rules penalize low-price sellers.

Marketplace facilitator laws

As a follow-on to Wayfair, all 45 sales-tax states enacted marketplace facilitator laws that shift collection duty from third-party sellers to marketplaces like Amazon, Etsy, eBay, and Walmart. These laws significantly reduce compliance burden for small sellers who sell exclusively through marketplaces.

Frequently asked questions

When did the Wayfair decision happen?: The US Supreme Court decided South Dakota v. Wayfair, Inc. on June 21, 2018, overturning the 1992 Quill decision that had required physical presence for sales tax collection.
Does Wayfair apply to international sellers?: Yes, if you sell to US customers. Non-US sellers shipping to the US are subject to the same economic nexus thresholds as domestic sellers. Most state DORs will register foreign entities.
Has every state adopted an economic nexus law?: All 45 US states that levy a general sales tax, plus DC, have economic nexus statutes as of 2026. The 5 no-sales-tax states (Delaware, Montana, New Hampshire, Oregon, Alaska) obviously do not.
Are thresholds going to change?: Trends point toward simpler rules. Several states have removed transaction-count thresholds (Washington 2020, North Carolina 2024, Illinois 2026). A few may raise dollar thresholds. Nexus thresholds rarely drop.