Economic Nexus Calculator

About This Calculator

This free economic nexus analysis tool shows you where your business may have a requirement to collect and remit sales tax.

This report does not constitute tax advice. There is additional information that your company may need to consider when determining how sales tax should be collected (e.g., physical nexus, PPLT). To learn more about state-by-state sales tax nexus rules and collection requirements, visit our Wayfair v. South Dakota resource page. For information on conducting a comprehensive economic nexus analysis, visit here.

The Importance of Understanding Your Nexus Exposure

In 2018, the U.S. Supreme Court overturned the “physical presence” standard that previously determined when businesses had sales tax obligations. The decision held that the correct standard for determining the constitutionality of sales tax in a state is whether the tax applies to an activity with “substantial nexus” within the taxing state. Simply put, when you conduct business in a state, you might create “nexus.”

As a result, states are now allowed to include remote sales as criteria for creating substantial nexus, even if a business has no form of physical presence in a state. By merely having sales into a state, economic nexus can now be created. 

Every state has different thresholds and requirements for collecting sales tax. If you make sales into multiple states where you have nexus but don’t collect, you could be considered non-compliant and face hefty penalties and fines.

Assess My Economic Nexus Exposure

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    How to use the calculator

    It’s easy! Consider the states where you generate revenue from customers. The assessment will have you provide the following information:

    1. States where you had sales transactions in the previous year
    2. Prior year’s sales revenue and transaction counts

    What You’ll Receive

    1. A private landing page with your economic nexus analysis results. The page will feature a list of the low, medium, and high-risk states where you likely have nexus, as well as information about each state’s economic nexus thresholds.
    2. A free, 30-minute consultation to review your possible risks and strategies to improve your compliance processes in the future.
    Let's Get Started!
    Questions? Contact Us

      By entering your email address, you agree to receive more information from PMBA in accordance with our privacy policy