Internet Sales Tax by State 2024

Internet sales tax is a tax on Internet-based services. For many years, states argued that they were losing money by not collecting sales tax on Internet sales. On June 21, 2018, the U.S. Supreme Court changed the rules for collecting sales tax by Internet-based retailers stating that individual states can require online sellers to collect state sales tax. Any individual who sells products online should be aware of the different laws in different states. The provisions set by the states are called “Remote Seller Nexus” and vary between states. There are four different types of Nexus according to the Sales Tax Institute: Click-Through Nexus, Affiliate Nexus, Marketplace Nexus, and Economic Nexus.

Types of Internet Sales Tax

• Click-Through Nexus requires that if a seller contracts with an individual or company in-state who refers potential customers to the retailer for a commission, the retailer is considered to have a place of business in that state.
• Affiliate Nexus states an affiliated person of the retailer with a physical presence, or employees or agents in-state, has sufficient nexus in the state to require the retailer to collect and remit sales and use taxable retail sales of tangible personal property or services.

• Marketplace Nexus requires the marketplace facilitator to register and collect tax as a retailer if the online marketplace operates in a state and provides e-commerce infrastructure, including customer service, payment processing services, and marketing.
• Economic Nexus requires an out-of-state retailer to collect sales tax once the retailer meets a certain level of sales transactions or gross receipts activity within the state. The retailer does not need to have a physical presence in that state.

Additionally, Notice and Reporting Requirements require retailers to notify buyers that they must pay and report state use tax on purchases.

Internet Sales Tax Provisions by State

Forty-five states and the District of Columbia have internet sales tax. The following states do not have an Internet sales tax: Alaska, Delaware, New Hampshire, Montana, and Oregon. Below are each state’s enacted Internet sales tax provisions. The proposed legislation is not included.

Alabama

• Affiliate Nexus
• Reporting Requirements

• Economic Nexus (threshold of $250,000 or more)
• Marketplace Nexus

Alaska

• No current state sales tax.

Arizona

• Economic Nexus (current threshold of $200,000; $150,000 in 2020; and $100,000 in 2021 forward)
• Marketplace Nexus

Arkansas

• Click-Through Nexus (repealed effective 6/30/2019)

• Affiliate Nexus (repealed effective 6/30/2019)
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

California

• Click-Through Nexus (repealed effective 4/1/2019)
• Affiliate Nexus (repealed effective 4/1/2019)
• Economic Nexus (threshold of $500,000)

• Marketplace Nexus

Colorado

• Click-Through Nexus (repealed effective 6/1/2019)
• Affiliate Nexus (repealed effective 4/1/2019)

• Economic Nexus (threshold of $100,000)
• Marketplace Nexus

Connecticut

• Click-Through Nexus

• Affiliate Nexus
• Reporting Requirements
• Economic Nexus (threshold of $250,000 or at least 200 separate transactions)

• Marketplace Nexus

Delaware

• No current state sales tax.

District of Columbia

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

• Marketplace Nexus

Florida

• No provisions. The law in Florida predates the Wayfair case. Section 212.06 of Florida’s sales tax law requires “any person… who maintains or has within [Florida], directly or by a subsidiary, an office, distributing house, salesroom, or house, warehouse, or other place of business” to pay sales tax.

Georgia

• Click-Through Nexus

• Affiliate Nexus
• Reporting Requirements (repealed effective 4/28/2019)
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

Hawaii

• Reporting Requirements
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Idaho

• Click-Through Nexus
• Affiliate Nexus
• Economic Nexus (threshold of $100,000)

• Marketplace Nexus

Illinois

• Click-Through Nexus (repealed effective 6/28/2019)
• Affiliate Nexus (repealed effective 6/28/2019)

• Economic Nexus threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Indiana

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

• Marketplace Nexus

Iowa

• Click-Through Nexus
• Affiliate Nexus

• Reporting Requirements
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Kansas

• Click-Through Nexus
• Affiliate Nexus
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

Kentucky

• Reporting Requirements (repealed effective 7/1/2019)
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Louisiana

• Click-Through Nexus
• Affiliate Nexus
• Reporting Requirements

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

Maine

• Click-Through Nexus
• Affiliate Nexus

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Maryland

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

• Marketplace Nexus

Massachusetts

• Economic Nexus (threshold of $100,000 and at least 100 separate transactions)
• Marketplace Nexus

Michigan

• Click-Through Nexus
• Affiliate Nexus
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

Minnesota

• Click-Through Nexus
• Affiliate Nexus
• Economic Nexus ($100,000 and at least ten sales or 100 separate transactions; $100,000 or at least 200 sales effective 10/1/2019)

• Marketplace Nexus

Mississippi

• Economic Nexus (threshold of $250,000)

Missouri

• Click-Through Nexus (threshold of $100,000)

Montana

• No current state sales tax.

Nebraska

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

• Marketplace Nexus

Nevada

• Click-Through Nexus
• Affiliate Nexus

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

New Hampshire

• No current state sales tax.

New Jersey

• Click-Through Nexus
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

New Mexico

• Economic Nexus (threshold of $100,000)
• Marketplace Nexus

New York

• Click-Through Nexus

• Affiliate Nexus
• Economic Nexus (threshold of $300,000 and at least 100 separate transactions)
• Marketplace Nexus

North Carolina

• Click-Through Nexus
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

North Dakota

• Economic Nexus (threshold of $100,000)

• Marketplace Nexus

Ohio

• Click-Through Nexus (repealed effective 8/1/2019)
• Affiliate Nexus (repealed effective 8/1/2019)

• Economic Nexus (threshold of $500,000)
• Marketplace Nexus

Oklahoma

• Affiliate Nexus

• Reporting Requirements
• Economic Nexus (effective 11/1/2019; threshold of $100,000 in aggregate sales)
• Marketplace Nexus

Oregon

• No current state sales tax.

Pennsylvania

• Click-Through Nexus
• Affiliate Nexus

• Reporting Requirements
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Rhode Island

• Click-Through Nexus
• Affiliate Nexus
• Reporting Requirement

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

South Carolina

• Economic Nexus (threshold of $100,000)

• Marketplace Nexus

South Dakota

• Affiliate Nexus
• Reporting Requirements

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Tennessee

• Click-Through Nexus

• Affiliate Nexus
• Reporting Requirements
• Economic Nexus (threshold of $500,000)

• Marketplace Nexus

Texas

• Affiliate Nexus
• Economic Nexus (threshold of $500,000)

• Marketplace Nexus

Utah

• Affiliate Nexus
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)

• Marketplace Nexus

Vermont

• Click-Through Nexus
• Reporting Requirements

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Virginia

• Affiliate Nexus

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Washington

• Click-Through Nexus (repealed effective 3/14/2019)

• Reporting Requirements
• Economic Nexus (threshold of $100,000)
• Marketplace Nexus

West Virginia

• Affiliate Nexus
• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Wisconsin

• Economic Nexus (threshold of $100,000 or at least 200 separate transactions)
• Marketplace Nexus

Wyoming

• Economic Nexus (threshold of $100,000 or at least 200 separate)

• Marketplace Nexus