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?

There are many ways to establish sales tax nexus — the connection between a business and state that creates a sales tax collection requirement — and no two state sales tax laws are exactly alike.

Determining which laws apply to your business is hard, but it’s a crucial step toward compliance. To help make it more manageable, we list sales tax nexus laws and collection requirements by state on the charts and maps below.

Scroll through the maps to see the laws affecting sellers in each state.

Economic nexus

Economic nexus: Having a certain amount of sales and/or transactions in the state may give you an obligation to collect and remit sales or use tax in these states.

Economic nexus laws by state

Physical presence nexus

Physical presence nexus: Having employees, inventory, kiosks, offices, stores, trade show attendance, warehouses, or other physical ties to the state may give you an obligation to collect and remit sales tax in these states.

Physical presence nexus laws by state

Marketplace facilitator nexus

Marketplace facilitator laws: Marketplace facilitators, such as Amazon, Etsy, or eBay, may be required to collect and remit sales or use tax on behalf of marketplace sellers in these states. 

Marketplace facilitator nexus laws by state

Click-through nexus

Click-through nexus: Getting referrals from in-state entities (e.g., through links on a website) may give you an obligation to collect and remit sales or use tax in these states.

Click-through nexus laws by state

Affiliate nexus

Affiliate nexus: Having ties to affiliates or businesses in the state may give you an obligation to collect and remit sales or use tax in these states.

Affiliate nexus laws by state

Non-collecting seller use tax reporting

Non-collecting seller use tax reporting: Remote sellers that don’t collect sales tax in the above states may be required to send consumer purchase information to consumers and state tax authorities, as well as notify customers of their use tax liability.

Non-collecting seller use tax reporting nexus laws by state

Sales tax laws by state

Click on the chart headings to learn more about each type of law. Or, click on the check marks and links in the chart for state-specific information.

  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Alabama - Home rule state
Alaska - - - - No statewide sales tax but allows home rule for local sales tax; some cities enforce economic nexus for local sales tax
Arizona - - Home rule state
Arkansas - ✓   
California -  
Colorado Home rule state
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 -  
Illinois -  
Indiana - - -  
Iowa -  
Kansas - -  
Kentucky -
 
  Economic nexus Marketplace facilitator
Non-collecting seller use tax Affiliate nexus Click-through nexus Physical presence Notes
Louisiana Home rule state
Maine -  
Maryland - - -  
Massachusetts - - -  
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 -  
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 - -  

Do you know where you have to collect?

Nexus obligations vary from state to state. See how Avalara AvaTax helps you stay compliant by tracking the states in which you’re approaching economic nexus and letting you know where you need to register.

 

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Next steps

Want to know more about nexus? Check out our nexus resource page.
Want to assess your sales tax nexus risk? Chat with us about available options.