Intermediate Quick Answer
Which states have thresholds above or below $100K?
⚡ TL;DR
California, Texas, and New York use a $500,000 threshold — five times the standard. Alabama and Mississippi use $250,000. No state uses a threshold below $100,000. New York requires both $500,000 AND 100 transactions simultaneously, making it the most seller-favorable major threshold in the country.
Above $100K: California, Texas ($500K each), New York ($500K AND 100 transactions), Alabama and Mississippi ($250K). No states go below $100K. For most sellers, the $100K standard applies everywhere except these five states.
Key takeaways
- $500,000 threshold: California, Texas, New York, sellers below this level have no economic nexus in these states regardless of transaction count (with NY’s AND caveat)
- New York’s AND condition: NY requires $500,000 in sales AND 100+ transactions, both must be met. A seller with $600K in NY sales but only 80 transactions does not have NY economic nexus
- $250,000 threshold: Alabama and Mississippi — 2.5× the standard; many mid-market sellers clear $100K in these states but not $250K
- No US state uses a threshold below $100,000
- The higher thresholds in large states mean sellers can have significant sales volume in CA, TX, or NY without triggering economic nexus, physical nexus (FBA, employees, warehouse) still applies regardless of threshold
- When planning nexus exposure, treat CA, TX, NY, AL, and MS as separate threshold buckets from the standard $100K states
Frequently asked questions
Which states have economic nexus thresholds above $100,000?
California, Texas, and New York each use $500,000 in sales, five times the standard. Alabama and Mississippi use $250,000. New York also requires meeting a transaction count of 100 simultaneously (AND condition, not OR). No other states currently use thresholds above $100,000.
Are there any states with a threshold below $100,000?
No US state currently uses an economic nexus threshold below $100,000 for remote sellers. The $100,000 threshold (from South Dakota's original law upheld in Wayfair) has become the practical floor. Some states have discussed lower thresholds but none have enacted them.
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