NexusWatch

Sales Tax Nexus Threshold Calculator

Either test triggers nexus on its own - which is how high-volume low-price sellers get caught.

Revenue into this state ($)

State revenue threshold ($)

Transactions into this state

State transaction threshold

States where you already have nexus

Registration cost per state ($)

Filings per state per year

Hours per filing

Hourly rate ($)

Sales-tax software per year ($)

Nexus in this state?

Yes

Either test triggers nexus on its own, which catches low-price high-volume sellers who cross on transaction count while sitting far below the revenue threshold. Thresholds differ by state and change — confirm each against that state's current rules with a tax adviser.

Triggered by: transactions
First-year compliance cost: $19,440
Recurring each year: $17,040

What you entered

Revenue into this state ($): 78000State revenue threshold ($): 100000Transactions into this state: 240State transaction threshold: 200States where you already have nexus: 8Registration cost per state ($): 300Filings per state per year: 12Hours per filing: 1.5Hourly rate ($): 85Sales-tax software per year ($): 4800

1
Revenue test
$78,000.00 vs $100,000.00= Not met, $22,000.00 to go
2
Transaction test
240 vs 200= Triggered
3
Nexus in this state (either test is enough)
revenue OR transactions= Yes
4
Filing effort across 8 states
8 × 12 filings × 1.5 hr= 144 hr = $12,240.00
5
First-year and recurring cost
$2,400.00 registrations + $17,040.00 annual= $19,440.00 then $17,040.00/yr

Result

Nexus in this state?: Yes

This state has nexus via the transaction test — note that revenue is still $22,000 below its threshold, so crossing one test is enough. Across your 8 nexus states, compliance runs $19,440 in year one and $17,040 thereafter, about $2,430 per state.

Economic nexus against $100,000 and 200-transaction thresholds

Most states apply two independent tests and crossing either one alone creates nexus. Each row checks revenue and transaction count in a single state against those thresholds.

State revenue	Transactions	Revenue test	Transaction test	Nexus triggered
$50,000	120	No	No	No
$95,000	199	No	No	No
$78,000	240	No	Yes	Yes
$120,000	150	Yes	No	Yes
$150,000	400	Yes	Yes	Yes
$250,000	800	Yes	Yes	Yes

Row three is the case that catches sellers out: $78,000 of revenue is $22,000 short of the threshold, but 240 transactions exceeds 200 and either test alone is enough. Any business selling low-priced items in volume can trigger nexus while watching only the revenue figure. Row two shows how narrow the margin can be at $95,000 and 199 transactions. Compliance cost is separate from the trigger and depends on how many states you have nexus in rather than how much you sell: at 12 states, $300 to register, 12 filings a year at 2 hours and $90 an hour, plus $1,200 of software, the calculator returns $30,720 in the first year and $27,120 recurring - about $2,560 per state per year. Thresholds, measurement periods and whether a transaction test applies at all vary by state and are revised regularly, and marketplace-facilitator rules may shift the duty to a platform. Not tax advice.

A sales tax nexus calculator checks whether your activity in a state creates an obligation to collect and remit sales tax, and prices what compliance costs across every state where that obligation already exists. Since economic nexus replaced the old physical-presence rule, selling into a state from anywhere can create a filing duty once you pass its thresholds, and those thresholds are set state by state rather than nationally.

The critical mechanic is that most states apply two independent tests, and crossing either one is enough. A revenue threshold captures large sellers, and a transaction-count threshold captures high-volume ones. The calculator evaluates both and reports which triggered, along with how much headroom remains on the test you have not crossed. That second test is where sellers are caught off guard: a business selling low-priced digital goods or accessories can sit far below a revenue threshold while sailing past a transaction count, and discover the obligation only when a state makes contact.

The second half prices the consequence. Compliance is not a one-time registration but a recurring operational load: registering in each state, then filing returns on that state's schedule, often monthly. The calculator multiplies states with nexus by filings per year and hours per filing, costs that at your rate, adds sales-tax software, and separates the first-year figure from the recurring one. Seeing the per-state cost usually reframes the decision about which marginal states are worth selling into at all, and whether automation pays for itself.

Three cautions. Thresholds, measurement periods and whether transactions count at all vary by state and are revised regularly, with several states having dropped their transaction test entirely. Marketplace-facilitator rules may shift the obligation to a platform for sales made through it, changing your own totals. And nexus can also arise from physical presence such as inventory, employees or events, which this calculator does not model. Use it to see where you stand and to budget, then confirm registration and filing duties with a qualified tax adviser.

Two tests, and either one is enough

Most states set both a revenue threshold and a transaction-count threshold, and crossing either creates nexus. A seller of low-priced items can pass a 200-transaction test while sitting far below a $100,000 revenue threshold, which is the most common way an obligation is missed until a state gets in touch.

Compliance is recurring, not a registration

Registering is the small part. Filing returns on each state's schedule, often monthly, is the ongoing load, and it scales with every state you add. Pricing filings per state per year against the revenue those states generate is what tells you whether a marginal state is worth selling into.

Frequently asked questions

$78,000 of revenue and 240 transactions against $100k and 200 thresholds - is there nexus?

Yes, via the transaction test. Revenue is $22,000 short of its threshold, but 240 transactions exceeds 200, and either test alone is enough. This is exactly the case that surprises low-price high-volume sellers who watch only the revenue figure.

What is economic nexus?

An obligation to collect and remit a state's sales tax based on your economic activity there - revenue or transaction volume - rather than physical presence. It means selling into a state from anywhere can create a filing duty once you pass that state's thresholds.

Do all states use the same thresholds?

No. Thresholds, measurement periods, and whether a transaction count applies at all vary by state and are revised regularly, with several states having removed their transaction test. Check each state against its current rules rather than assuming a common standard.

Does selling through a marketplace count toward my thresholds?

Often not, because marketplace-facilitator rules can shift the collection duty to the platform for sales made through it. That can change your own totals substantially, so confirm how each state treats marketplace sales before assuming your direct and platform sales combine.