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US Sales Tax: Economic Nexus Criteria and Tax Rates (English)

by Morgan Hardy on

US Sales Tax Economic Nexus Criteria

There are several tests for determining if you have established sales tax nexus in a US state you operate in. Now almost pervasive across the states that have a sales tax are the economic nexus laws.

Economic nexus will be established if the sales thresholds are exceeded. You do not need any physical connection to the state and applies equally to inter-state commerce as well as non-US businesses selling into the US. Note that the revenue relevant to the test (eg total sales, taxable sales etc) does vary by state.

It pays to track the level of sales by state, keep track of exempt sales and exemption certificates, and ensure you are clear whether your product (or services in some cases) are taxable or not.

Click on the link below for the latest threshold tests: