What is Nexus? A Guide to Sales Tax Nexus

What is sales tax nexus?

Sales tax nexus is the connection between a seller and a state that requires the seller to register then collect and remit sales tax in the state. Certain business activities, including having a physical presence or reaching a certain sales threshold, may establish nexus with the state.

Nexus FAQ

Have questions about nexus? Visit our FAQ to get answers to the most common questions we’re asked about sales tax nexus.

Get the Know Your Nexus ebook

Learn which business activities trigger nexus, how to determine sales tax nexus, and what to do when it’s established.

Learn more from our Economic nexus 101 webinar series

Part 1: How out-of-state sales can trigger sales tax obligations

Part 2: Ask the expert live Q&A session

Watch now

More to explore

Small business FAQ

Learn what small business owners and employees need to know about sales tax compliance.

Sales tax laws by state

Sales tax is collected by states and other jurisdictions, and their definitions of remote sales and what establishes nexus can vary.

Economic activity

See each state’s thresholds for what triggers a sales tax obligation for remote sellers, and find out how crossing these thresholds could affect you.

Keep up with your nexus obligations

Sales tax risk assessment

Get an in-depth evaluation and personalized consultation for your economic and physical nexus obligations.

Sales tax registration

Fill out one simple form and Avalara will get you registered for sales tax in the states where you have nexus.

Business licenses

Gain a comprehensive view of federal, state, county, and local license requirements. Then apply on your own or let Avalara prepare applications for you.

Do you know where you have to collect?

Nexus obligations vary from state to state. See how Avalara AvaTax can help you stay compliant by tracking the states where you’re approaching an economic nexus threshold and letting you know where you need to register.

Learn more about Avalara AvaTax