Sales tax laws by state

A remote sellers' guide to nexus

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 physical presence isn’t the only way to establish sales tax nexus.

According to the United States Supreme Court ruling in South Dakota v. Wayfair, Inc. (June 21, 2018), it’s possible to establish sales tax nexus as a result of economic activity alone — even in states where your business has no physical presence.

Economic nexus

The map depicts the many ways states go about sales and use tax collection. If any of these apply to your business, you could have an obligation to collect and remit sales/use tax in the state(s).

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

The map depicts the many ways states go about sales and use tax collection. If any of these apply to your business, you could have an obligation to collect and remit sales/use tax in the state(s).

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

Physical presence

The map depicts the many ways states go about sales and use tax collection. If any of these apply to your business, you could have an obligation to collect and remit sales/use tax in the state(s).

Physical presence: Includes but is not limited to employees, inventory, kiosks, offices, stores, trade show attendance, and warehouses.

Marketplace Facilitator Laws

The map depicts the many ways states go about sales and use tax collection. If any of these apply to your business, you could have an obligation to collect and remit sales/use tax in the state(s).

Marketplace laws: When marketplace facilitators/providers are required to collect and remit sales tax on behalf of their marketplace sellers.  

Non-collecting seller use tax reporting

The map depicts the many ways states go about sales and use tax collection. If any of these apply to your business, you could have an obligation to collect and remit sales/use tax in the state(s).

Non-collecting seller use tax reporting: Notice and reporting requirements for certain non-collecting sellers. 


Sales tax laws by state

State 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
State 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 - -  
State 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 - - - -  
Michigan - -  
Minnesota -  
Mississippi - - - -  
Missouri - - -  
Montana - - - - - - No general sales tax
State 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 - - -  
Oklahoma - -  
Oregon - - - - - - No general sales tax 
Pennsylvania  
Puerto Rico      
State 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 - -  
State 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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