Sales tax laws by state

A seller's guide to nexus laws and sales tax collection requirements

Where are you required to collect sales tax?

Having a physical presence in a state that imposes sales tax gives your business sales tax nexus — an obligation to collect and remit sales/use tax in that state. But, as a result of the United States Supreme Court ruling in South Dakota v. Wayfair, Inc. (June 21, 2018), physical presence is no longer the only way to establish sales tax nexus.


Click on the types of nexus below to see the different laws affecting remote sellers in each state.

Affiliate nexus

 

Affiliate nexus: Having ties to businesses or affiliates in the state

 

Economic nexus

 

Economic nexus: Having a certain amount of sales and/or transactions in the state

Economic nexus+: Having a certain amount of sales and/or transactions plus software or “cookies” in the state

Click-through nexus

 

Click-through nexus: Having referrals from in-state businesses (e.g., through links on a website)

Physical presence nexus

 

Physical presence: Establishing and/or maintaining employees, inventory, kiosks, offices, stores, trade show attendance, warehouses, or other forms of presence in the state

Marketplace facilitator laws

 

Marketplace facilitator laws: Collecting and remitting sales tax on behalf of marketplace sellers is a requirement for marketplace facilitators 

Non-collecting seller use tax reporting

 

Non-collecting seller use tax reporting: Sending consumer purchase information to state tax authorities and notifying consumers of use tax liability


Sales tax laws by state

Click on the links and check marks below for more detailed information.

  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Alabama - Allows local sales tax (home rule)
Alaska - - - - - - No general sales tax; allows local sales tax (home rule)
Arizona - -  
Arkansas - ✓   
California -  
Colorado Allows local sales tax (home rule)
Connecticut  
Delaware - - - - - - No general sales tax
  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus  Click-through nexus Physical presence Notes
Florida - - - -  
Georgia -
 
Hawaii -  
Idaho - Allows local sales tax (home rule)
Illinois -  
Indiana - - -  
Iowa -  
Kansas - - -  
Kentucky -
 
  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Louisiana - Allows local sales tax (home rule)
Maine -  
Maryland - - -  
Massachusetts - - - - Economic nexus applies only to internet vendors
Michigan - -  
Minnesota -  
Mississippi - - - -  
Missouri - - -  
Montana - - - - - - No general sales tax
  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Nebraska - -  
Nevada -  
New Hampshire - - - - - - No general sales tax 
New Jersey -  
New Mexico - - -  
New York -  
North Carolina - - -  
North Dakota - - -  
Ohio - - Economic nexus applies only to internet vendors
Oklahoma -  
Oregon - - - - - - No general sales tax 
Pennsylvania  
Puerto Rico - - -  
  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Rhode Island  
South Carolina - -  
South Dakota -  
Tennessee - - -  
Texas - -  
Utah - -  
Vermont  
Virginia - -  
  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Washington   -  
Washington, D.C. - - -  
West Virginia - - Allows local sales tax (home rule)
Wisconsin - -  
Wyoming - -  

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