US Texas Sales Tax economic nexus

Texas has become the latest US state to implement Sales Tax obligations on out-of-state (non-resident) merchants. This follows the 2018 South Dakota vs Wayfair Supreme Court ruling obliging remote sellers without a presence in a state to charge and remit local Sales Tax.

From 1 October 2019, out-of-state merchants with sales of above $500,000 per annum in Texas during the prior year must register with the Texas Controller of Public Accounts, collect and remit Sales Tax.

Texas is the second most populous state in the US. It follows a similar recent announcement from the largest state, California, to introduce remote Sales Tax obligations from April 2019.