Sales Tax Nexus Compliance Checker

Sales Tax Nexus Compliance Checker (USA)

Sales tax nexus is the connection your business has with a state that requires you to collect and remit sales tax there. Post the **South Dakota v. Wayfair, Inc.** Supreme Court decision, economic activity alone can create nexus.

This tool helps you identify potential nexus triggers based on common factors. **It does NOT determine if you actually have nexus in any specific state.** State laws and economic nexus thresholds vary significantly and change. You must research each state's rules that may apply to your business and products/services.

Answer the questions below to check for potential triggers.

Physical Presence Economic Activity Other Potential

Physical Presence Nexus

1. Do you have or maintain a physical location (office, retail store, warehouse, etc.) in any state other than your home state?

Yes No

2. Do you have employees, sales representatives, or independent contractors working on your behalf in any state other than your home state?

Yes No

3. Do you store inventory in a warehouse (including Amazon FBA warehouses) in any state other than your home state?

Yes No

4. Do you deliver goods into any state other than your home state using your own company vehicles?

Yes No

5. Do you perform installation, assembly, repair, or other services on tangible goods in any state other than your home state?

Yes No

6. Do you attend trade shows or other events in any state other than your home state?

Physical presence can be triggered after exhibiting for a certain number of days (varies by state).

Yes No

Economic Nexus (Based on Remote Sales)

7. What was your business's total gross revenue from sales made **into all U.S. states** (excluding your home state) in the previous calendar year?

Many states have an economic nexus threshold based on a dollar amount of sales into the state (e.g., $100,000).

8. What was your business's total number of separate transactions from sales made **into all U.S. states** (excluding your home state) in the previous calendar year?

Many states also have an economic nexus threshold based on the number of separate transactions (e.g., 200 transactions).

* Enter your *total* remote sales/transactions across all states for the previous calendar year for a high-level check against common example thresholds ($100k OR 200 transactions). **You must check each state's specific threshold.**

Other Potential Nexus Triggers

9. Do you have agreements with individuals or businesses located in other states who refer customers to you for a commission?

Yes No

10. Do you generate sales through links on websites owned by individuals or businesses located in other states, where those individuals/businesses receive a commission?

Similar to affiliate nexus, but specifically tied to website links.

Yes No

11. Do you install software or place tracking cookies on the devices of customers located in other states?

This can potentially contribute to or trigger nexus in some states, especially when combined with other activities.

Yes No

Sales Tax Nexus Compliance Checklist

Potential sales tax nexus triggers identified based on your responses. State laws vary significantly.

Review these potential triggers and research specific state requirements and economic nexus thresholds that may apply to your business activities and sales.

Potential Nexus Triggers Identified:

Answer the questions and click "Check Potential Nexus Triggers".

Economic Nexus Check based on Your Prior Year's TOTAL Remote Sales (across all U.S. states):

Total Gross Revenue (Remote Sales): $0.00

Total Number of Transactions (Remote Sales): 0

Common example thresholds are $100,000 in sales OR 200 transactions. Your total prior year remote sales common example thresholds.

Crucially, you must check the specific economic nexus thresholds for EACH state where you have customers. They vary and are based on sales/transactions *into that specific state*.

For any business selling products or services across state lines in the USA, understanding sales tax nexus is a non-negotiable aspect of compliance. Nexus signifies the sufficient connection your business has with a particular state that obligates you to collect and remit sales tax on sales made to customers within that state. Our free Sales Tax Nexus Compliance Checker is designed to simplify this complex determination, helping you identify where you have sales tax obligations and ensure you remain compliant with state tax laws.

The landscape of sales tax nexus has evolved dramatically, especially for online businesses, following the US Supreme Court’s 2018 South Dakota v. Wayfair decision. This ruling expanded nexus beyond traditional physical presence to include economic nexus. Our tool helps you evaluate various factors that can create nexus for your business:

Physical Presence Nexus: This is the traditional standard. You establish physical nexus if your business has:
- A physical office, store, or warehouse.
- Employees, contractors, or sales representatives residing or working in the state.
- Inventory stored in the state (even in third-party fulfillment centers).
- Attending trade shows or events to make sales or take orders.
- Making deliveries in your own vehicles.
Economic Nexus: Most US states now have economic nexus laws. These laws require out-of-state businesses to collect and remit sales tax if their economic activity within that state exceeds specific thresholds, typically based on:
- Sales Volume: A dollar amount of sales (e.g., $100,000, $250,000, or $500,000 in gross sales).
- Transaction Count: A number of separate transactions (e.g., 200 transactions). These thresholds are usually measured over the current or preceding calendar year and vary from state to state. Our checker helps you understand if your sales or transaction volume in any given state meets these thresholds.
Other Types of Nexus: The checker also considers less common but important types of nexus, such as:
- Affiliate Nexus: Created when your business has a relationship with an in-state individual or business that refers customers to you for a commission.
- Click-Through Nexus: Similar to affiliate nexus, often triggered by agreements with in-state website owners who link to your site for a commission.
- Marketplace Facilitator Nexus: For businesses selling through platforms like Amazon, eBay, or Etsy, many states have laws requiring the marketplace itself to collect and remit sales tax on behalf of sellers. However, you may still have your own separate nexus obligations.

By inputting details about your business activities and sales data, our Sales Tax Nexus Compliance Checker provides a clear overview of the states where you might have current sales tax obligations. This essential insight enables you to register for sales tax permits in relevant states, set up accurate sales tax collection, and avoid the risk of penalties, back taxes, and audits, ensuring your business remains fully compliant across the diverse tax landscape of the United States.