What is economic nexus?

It is the obligation to collect a state's sales tax after exceeding an activity threshold in that state, even without a physical presence. It stems from the 2018 South Dakota v. Wayfair decision.

Is nexus based on my total US sales?

No. It is measured state by state, on your sales into each state. That is why this checker asks for your sales and transactions into one state at a time.

What is the most common nexus threshold?

Most states use $100,000 in sales, sometimes with 200 transactions. California, Texas, and New York use $500,000; Alabama and Mississippi use $250,000. Connecticut and New York require both sales and transactions.

Does physical nexus still matter?

Yes. Inventory (including in an FBA warehouse), employees, an office, or assets in a state create physical nexus, regardless of the economic thresholds.

Is this tool tax advice?

No. It is educational guidance based on published 2026 thresholds. Thresholds change and special rules exist. Confirm with the state department of revenue or a tax professional.

Free tool · 2026 thresholds

US Economic Nexus Checker

Nexus triggers state by state, on your sales into each state, not your total US sales. Pick a state, enter your numbers, and see whether you have crossed its 2026 threshold, the point where you must start collecting.

Per state, never combinedEach threshold is measured on what you sold into that one state, not your nationwide total.
2026 thresholds built inEvery state's current dollar and transaction limit, kept current as rules change.
No email, everRun as many scenarios as you want. Nothing leaves your browser.

Book a free Odoo tax audit See how Odoo handles it

State

Sales into this state (USD, 12 mo.) Gross revenue to customers in this state

Transactions into this state Separate orders over 12 months

CaliforniaNo nexus yet$500,000 (sales only)

Sales test ($500,000)Not met

ResultBelow threshold

Educational guidance, not tax advice. Physical nexus (inventory, employees, offices) also creates obligations regardless of these thresholds. Thresholds change; verify with the state department of revenue.

Manage Nexus in Odoo →

See all state thresholds (2026)

State	Sales threshold	Transactions	Logic
Alabama	$250,000	–	sales only
Alaska	$100,000	–	sales only
Arizona	$100,000	–	sales only
Arkansas	$100,000	200	sales OR transactions
California	$500,000	–	sales only
Colorado	$100,000	–	sales only
Connecticut	$100,000	200	sales AND transactions
District of Columbia	$100,000	200	sales OR transactions
Florida	$100,000	–	sales only
Georgia	$100,000	200	sales OR transactions
Hawaii	$100,000	200	sales OR transactions
Idaho	$100,000	–	sales only
Illinois	$100,000	–	sales only
Indiana	$100,000	–	sales only
Iowa	$100,000	–	sales only
Kansas	$100,000	–	sales only
Kentucky	$100,000	200	sales OR transactions
Louisiana	$100,000	–	sales only
Maine	$100,000	–	sales only
Maryland	$100,000	200	sales OR transactions
Massachusetts	$100,000	–	sales only
Michigan	$100,000	200	sales OR transactions
Minnesota	$100,000	200	sales OR transactions
Mississippi	$250,000	–	sales only
Missouri	$100,000	–	sales only
Nebraska	$100,000	200	sales OR transactions
Nevada	$100,000	200	sales OR transactions
New Jersey	$100,000	200	sales OR transactions
New Mexico	$100,000	–	sales only
New York	$500,000	100	sales AND transactions
North Carolina	$100,000	–	sales only
North Dakota	$100,000	–	sales only
Ohio	$100,000	200	sales OR transactions
Oklahoma	$100,000	–	sales only
Pennsylvania	$100,000	–	sales only
Rhode Island	$100,000	200	sales OR transactions
South Carolina	$100,000	–	sales only
South Dakota	$100,000	–	sales only
Tennessee	$100,000	–	sales only
Texas	$500,000	–	sales only
Utah	$100,000	–	sales only
Vermont	$100,000	200	sales OR transactions
Virginia	$100,000	200	sales OR transactions
Washington	$100,000	–	sales only
West Virginia	$100,000	200	sales OR transactions
Wisconsin	$100,000	–	sales only
Wyoming	$100,000	–	sales only

What Economic Nexus Is

In 2018, the Supreme Court's South Dakota v. Wayfair decision let states require a remote seller to collect sales tax even without a physical presence, once it crosses an economic-activity threshold in the state. That is economic nexus. Each state sets its own threshold, and it is measured on your sales into that state, not your total US sales.

How to Read Your Result

Most states use a $100,000 sales threshold, sometimes combined with a transaction count (often 200). California, Texas, and New York set the sales threshold at $500,000; Alabama and Mississippi at $250,000. Most states trigger nexus if you meet the sales OR the transaction threshold, but Connecticut and New York require both. Many states have dropped the transaction test in recent years.

Once nexus is established, the next question is the rate to charge at each address, which combines the state rate with local taxes.

Calculate sales tax by state →

Managing Nexus in Odoo

Tracking nexus by hand across dozens of states does not scale. Wired to an engine like Avalara, Odoo monitors your sales per state, alerts you as you approach a threshold, applies the correct combined rate, and helps file returns. Octura sets up and validates that integration.

Read: Odoo accounting workflows with Avalara →

Backed by real migrations

Numbers like yours, validated on real migrations

Three engagements where the projection turned into operational reality on Odoo. Read the full case studies on the migration service page.

ManufacturingV12 → V17
Industrial Manufacturer, Texas
12custom modules ported, zero data lost
DistributionV14 → V18
Wholesale Distributor, Quebec
30%faster page loads after the upgrade
Professional ServicesCE → Enterprise
Consulting Firm, Brussels
0hproduction downtime during cutover

Frequently Asked Questions

01What is economic nexus?
It is the obligation to collect a state's sales tax after exceeding an activity threshold in that state, even without a physical presence. It stems from the 2018 South Dakota v. Wayfair decision.
02Is nexus based on my total US sales?
No. It is measured state by state, on your sales into each state. That is why this checker asks for your sales and transactions into one state at a time.
03What is the most common nexus threshold?
Most states use $100,000 in sales, sometimes with 200 transactions. California, Texas, and New York use $500,000; Alabama and Mississippi use $250,000. Connecticut and New York require both sales and transactions.
04Does physical nexus still matter?
Yes. Inventory (including in an FBA warehouse), employees, an office, or assets in a state create physical nexus, regardless of the economic thresholds.
05Is this tool tax advice?
No. It is educational guidance based on published 2026 thresholds. Thresholds change and special rules exist. Confirm with the state department of revenue or a tax professional.