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Online Tax Laws By State - Supreme Court Ruling
October 01, 2024Updated Jan 15, 2025
On June 21, 2018, the United States Supreme Court issued a new ruling for the collection of online sales taxes in the case of South Dakota vs. Wayfair. This decision requires out-of-state sellers to pay sales tax if a seller reaches certain revenue thresholds. You can find updated information for your exact state below.
Information will be updated as it becomes available however it is the Seller's responsibility to be compliant. States that do not have sales tax do not levy this one, and those include Alaska, Delaware, Montana, New Hampshire, and Oregon.
Generally this should not affect your method for collecting sales tax unless you have 200 or more transactions or $100,000+ in online sales in an external state.
General Questions & Answers
- Does this reset every year or would a Seller qualify once and pay sales tax from then on?
- Most states listed below look only at the current or previous year, check your state listing for specifics.
- Does that affect sales from June 2018 onward or does it apply to past sales?
- Sellers will not have to pay backdated tax, it's just to determine if they qualify for the current or previous year.
- If a Seller qualifies, would they pay state, county, and city taxes? Or just state tax rates?
- Tax would be charged as if the transaction happened at the company location, so all applicable taxes for register transactions at the store would be used..
- Would Sellers have to send taxes to different states or would it go through their state?
- The tax would need to be charged in transactions and the store would remit taxes to the states where they have threshold..
- Does Rain POS track any of this or handle the taxes?
- There is a tax service by Avalara that integrates with the Rain POS Point of Sale that will track threshold and manage these taxes according to state laws for you, and is recommended for high-volume, multi-state online sales organizations.
Alabama
Threshold: $250,000 in sales per year, based on the previous year
Effective date: October 1, 2018
Alaska
Whether online retailers are required to collect sales tax in Alaska is dependent upon where their customers are located within the state and the local sales tax laws of those municipalities.
Arizona
Threshold: $100,000 in the previous or current calendar year
Effective Date: October 1, 2019
Arkansas
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: July 1, 2019
California
Threshold: $500,000 in sales of physical personal property in the previous or current calendar year
Effective date: October 25, 2024
Colorado
Threshold: $100,000 in annual sales previous or current calendar year
Effective Date: December 1, 2018 (Grace Period: May 31, 2019)
Connecticut
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: December 1, 2018
Delaware
No new changes currently implemented.
Florida
Threshold: $100,000 in the previous or current calendar year
Effective Date: July 1, 2021
Georgia
Threshold: more than $100,000 in annual sales or more than 200 transactions in the previous or current calendar year
Effective Date: January 1, 2020
Hawaii
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: July 1, 2018
Idaho
Threshold: $100,000 or more in the previous calendar year
Effective date: June 1, 2019
Illinois
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: October 1, 2018
Indiana
Threshold: $100,000 in annual sales
Effective date: January 1, 2024
Iowa
Threshold: $100,000 in annual sales
Effective Date: January 1, 2019
Kansas
Threshold: $100,000 in the previous or current calendar year
Effective Date: July 2, 2021
Kentucky
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: July 1, 2018
Louisiana
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: January 1, 2019
Maine
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: October 1, 2019
Maryland
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective date: November 25, 2019
Massachusetts
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: September 25, 2024
Michigan
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective date: September 30, 2018
Minnesota
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: October 1, 2019
Mississippi
Threshold: $250,000 in annual sales in the previous or current calendar year
Effective Date: September 1, 2018
Missouri
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: January 1, 2023
Montana
As of January 14, 2025, no changes have currently been implemented.
Nebraska
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: April 1, 2019
Nevada
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: October 1, 2018
New Hampshire
As of January 14, 2025, no changes have currently been implemented.
New Jersey
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: November 1, 2018
New Mexico
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: July 1, 2021
New York
Threshold: $500,000 in annual sales or 100 transactions in the previous or current calendar year
Effective Date: June 1, 2019
North Carolina
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: February 1, 2020
North Dakota
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: October 1, 2018, or 60 days after taxpayer meets the threshold, whichever is later
Ohio
Threshold: $100,000 in annual sales or 200 transactions the previous or current calendar year
Effective Date: August 1, 2019
Oklahoma
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: January 1, 2023
Oregon
As of January 12, 2025, no changes have currently been implemented.
Pennsylvania
Threshold: $100,000 in annual sales the previous or current calendar year
Effective Date: July 1, 2019
Rhode Island
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: July 1, 2019
South Carolina
Threshold: Gross revenue exceeding $100,000 in the previous or the current calendar year
Effective Date: November 1, 2018
South Dakota
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: November 1, 2018
Tennessee
Threshold: $100,000 in the previous calendar year
Effective Date: October 1, 2020
Texas
Threshold: more than $500,000 in the previous calendar year
Effective Date: October 1, 2019
Utah
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: January 1, 2019
Vermont
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: July 1, 2018
Virginia
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: July 1, 2019
Washington
Threshold: $100,000 in combined gross receipts in the previous or current calendar year
Effective Date: January 1, 2020
West Virginia
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: January 1, 2019
Wisconsin
Threshold: $100,000 in annual sales or 200 transactions in the previous or current calendar year
Effective Date: October 1, 2018
Wyoming
Threshold: more than $100,000 in annual sales the previous or current calendar year
Effective Date: February 1, 2019