By Ian McCue(opens in new tab), senior content manager
E-commerce sales tax is quite complex -- look no further than our article on how businesses can comply(opens in new tab) with this legislation for proof. Our goal is to make the aftermath of the Supreme Court’s landmark ruling(opens in new tab) last year a little bit less complicated for you as states continue to pass e-commerce sales tax laws or alter existing ones every week.
So we created this handy graphic and table that break down e-commerce sales tax laws in the growing number of states -- now up to 42 (plus Washington, D.C.) -- that have them. Right now, only three states with standard sales tax laws are not also collecting revenue from online sales: Florida, Missouri and Kansas.
These resources show how much sales revenue and/or the number of transactions your company must generate in a given state to be responsible for collecting and filing sales tax there. A lot of states adopted the South Dakota standard of $100,000 or 200 transactions, but as you’ll see below, there is quite a bit of variation. It’s also worth noting that a number of states have already changed their thresholds since implementing economic nexus laws(opens in new tab), eliminating the transaction threshold or increasing the revenue one. This will likely continue.
The below map shows which states have online sales tax laws and whether they adhere to South Dakota's threshold or a separate one of their own.
The below table notes whether states have a marketplace nexus law that requires marketplace facilitators like Amazon, eBay and Etsy to collect sales tax on behalf of third-party vendors. While only a handful of states had marketplace nexus laws at the end of 2018, many have added them in the last few months because they can generate so much revenue.
Note: We will update this list as states adopt e-commerce sales tax laws or modify existing ones. (last updated Sept. 3, 2019)
|
State |
Sales thresholds |
Effective date |
Marketplace nexus law |
|
Alabama |
$250,000 |
10/1/18 |
Y |
| Arizona | $200,000 | 10/1/19 | Y |
| Arkansas | $100,000 OR 200 transactions | 7/1/19 | Y |
| California | $500,000 | 4/1/19 | Y |
|
Colorado |
$100,000 |
12/1/18 (grace period until 6/1/19) |
Y |
|
Connecticut |
$100,000 AND 200 transactions |
12/1/18 |
Y |
|
District of Columbia |
$100,000 OR 200 transactions |
1/1/19 |
Y |
|
Georgia |
$250,000 OR 200 transactions |
1/1/19 |
N |
|
Hawaii |
$100,000 OR 200 transactions |
7/1/18 |
Y |
| Idaho | $100,000 | 6/1/19 | Y |
|
Illinois |
$100,000 OR 200 transactions |
10/1/18 |
N |
|
Indiana |
$100,000 OR 200 transactions |
10/1/18 |
Y |
|
Iowa |
$100,000 OR 200 transactions |
1/1/19 |
Y |
| Kansas | No thresholds | 10/1/19 | N |
|
Kentucky |
$100,000 OR 200 transactions |
10/1/18 |
Y |
|
Louisiana |
$100,000 OR 200 transactions |
TBD date in 2019 |
N |
|
Maine |
$100,000 OR 200 transactions |
7/1/18 |
Y |
|
Maryland |
$100,000 OR 200 transactions |
10/1/18 |
Y |
|
Massachusetts |
$100,000 |
10/1/17 |
Y |
|
Michigan |
$100,000 OR 200 transactions |
10/1/18 |
N |
|
Minnesota |
10+ transactions worth $100,000 OR 100 transactions |
10/1/18 |
Y |
|
Mississippi |
$250,000 |
9/1/18 |
N |
|
Nebraska |
$100,000 OR 200 transactions |
1/1/19 |
Y |
|
Nevada |
$100,000 OR 200 transactions |
10/1/18 |
Y |
|
New Jersey |
$100,000 OR 200 transactions |
11/1/18 |
Y |
| New Mexico | $100,000 | 7/1/19 | Y |
|
New York |
$500,000 AND 100 transactions |
1/15/19 |
Y |
|
North Carolina |
$100,000 OR 200 transactions |
11/1/18 |
N |
|
North Dakota |
$100,000 |
10/1/18 |
Y |
|
Ohio |
$100,000 or 200 transactions |
1/1/18 |
Y |
|
Oklahoma |
$100,000 |
11/1/19 |
Y |
|
Pennsylvania |
$100,000 |
7/1/19 |
Y |
|
Rhode Island |
$100,000 OR 200 transactions |
8/17/17 |
Y |
|
South Carolina |
$100,000 |
11/1/18 |
Y |
|
South Dakota |
$100,000 OR 200 transactions |
11/1/18 |
Y |
| Tennessee | $500,000 | 7/1/19 | N |
|
Texas |
$500,000 |
10/1/19 |
Y |
|
Utah |
$100,000 OR 200 transactions |
1/1/19 |
Y |
|
Vermont |
$100,000 OR 200 transactions |
7/1/18 |
N |
| Virginia | $100,000 OR 200 transactions | 7/1/19 | Y |
|
Washington |
$100,000 |
10/1/18 |
Y |
|
West Virginia |
$100,000 OR 200 transactions |
1/1/19 |
Y |
|
Wisconsin |
$100,000 OR 200 transactions |
10/1/18 |
Y |
|
Wyoming |
$100,000 OR 200 transactions |
2/1/19 |
Y |