US States With the Highest Economic Nexus Thresholds

Top US states ranked by economic nexus dollar threshold. California, Texas, and New York all sit at $500,000+ — the highest thresholds in the country.

Most US states set their economic nexus at $100,000 in annual sales. A few use $250,000 or $500,000 — making them easier for small sellers to avoid until revenue scales.

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

Higher thresholds mean you can sell more into the state before triggering registration — but don't forget physical nexus (FBA inventory, employees, offices) still applies independent of any dollar threshold.