Understanding Sales Tax Nexus: State-by-State Guide for Out-of-State Sellers

• Forty-six states and Washington D.C. have a sales tax, but laws vary by state.
• Sales tax nexus requires businesses to register for a sales tax permit, charge sales tax, and file returns in the state.
• Home state nexus is common, but the focus is on out-of-state sellers.
• Nexus is often defined as “doing business” or “engaged in business.”
• Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, and Hawaii have specific laws and guidance on sales tax nexus.
• Economic nexus laws apply in many states following the South Dakota v. Wayfair ruling.
• Hawaii has a general excise tax instead of a sales tax.

Source: taxjar.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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