US States With $250K+ Economic Nexus Thresholds

States where the economic nexus dollar threshold is $250,000 or higher. The friendliest states for small-to-mid sellers scaling into new markets.

A higher threshold gives you more runway before registration. These states have the highest nexus bars in the country — $250,000 or $500,000 in sales — letting sellers scale before compliance kicks in.

• California$500,000 · 7.25%
  • $500,000 annual threshold (no transaction count).
• New York$500,000 · 4.00%
  • $500,000 annual threshold + 100 transactions required (AND logic).
• Texas$500,000 · 6.25%
  • $500,000 annual threshold (no transaction count).
• Alabama$250,000 · 4.00%
  • $250,000 annual threshold (no transaction count).
• Mississippi$250,000 · 7.00%
  • $250,000 annual threshold (no transaction count).

Physical presence trumps the threshold — if you have employees, inventory, or a 3PL in one of these states, you have nexus regardless of revenue.