Sales Tax Nexus Thresholds by State (2026 Guide)
Once you cross a state's economic nexus threshold you may need to register and collect sales tax there. Below are key 2026 limits.
2026 cost breakdown
| Item | 2026 value | Note |
|---|---|---|
| Most common threshold | $100,000 | Many US states |
| California threshold | $500,000 | Higher than most |
| Alabama threshold | $250,000 | Economic nexus |
Frequently asked questions
What is economic nexus?
It is the connection established once your sales into a state cross that state's threshold, requiring you to register and collect sales tax.
Are thresholds the same everywhere?
No. Most states use $100,000, but some are lower or higher, and a few also count the number of transactions.
What should online sellers do?
Track sales by state and register once you approach a threshold, using a reliable sales-tax tool to stay compliant.
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