New Jersey started enforcing economic nexus laws for remote sales tax on November 1, 2018. Like other states with an economic nexus law, which is every state with a sales tax, New Jersey provides an exception for remote sellers whose New Jersey sales are below a certain threshold.
Under current law, a remote seller establishes economic nexus with New Jersey if, in the current or prior calendar year, it:
- Has more than $100,000 in gross revenue from sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey; or
- Made 200 or more separate transactions of tangible personal property, specified digital products, or taxable services delivered into New Jersey.
S711 and A3419, both introduced in January 2026, seek to remove the 200-transactions threshold in 2026. New Jersey would then only use the $100,000 in sales threshold to determine economic nexus for sales tax.
The bills would also eliminate the 200-transactions threshold for New Jersey corporation business tax (CBT). Under current law, a corporation is subject to CBT if it has more than $100,000 in receipts from sources within New Jersey or 200 separate transactions delivered to customers in the state during the calendar year or the corporation’s fiscal year.
New Jersey isn’t the only state to use a transaction threshold for something other than sales and use tax. For example, Hawaii uses the same economic nexus threshold for general excise tax (GET) and net income tax; Texas uses the same economic nexus threshold for franchise tax and sales tax; and Washington uses the same economic nexus threshold for sales tax and business and occupation (B&O) tax.
Bloomberg Tax highlights problems associated with using different nexus standards for different taxes and encourages states to align their nexus laws.
It’s not certain that New Jersey will eliminate the 200-transactions threshold for economic nexus in 2026; a similar bill introduced in 2024 was approved by the Senate but never made it out of the Assembly State and Local Government Committee. However, 16 other states have gotten rid of their remote sales tax transaction thresholds. New Jersey will probably get there eventually.
Sales tax experts generally support getting rid of the remote seller transactions threshold, which can create a sales tax obligation for businesses with a high volume of low-value sales. For some such businesses, the costs of collecting and remitting remote sales tax may exceed the benefit of doing business in the state.
