# US Sales Tax Nexus

> US sales tax nexus is the connection between a business and a state that requires the business to collect and remit sales tax in that state.

- **URL**: https://dodopayments.com/glossary/us-sales-tax-nexus

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## What is US Sales Tax Nexus?

US sales tax nexus is the connection between a business and a state that requires the business to collect and remit sales tax in that state. This connection can be physical, such as having an office, or economic, based on reaching a certain level of sales in the state.

### Why It Matters

- It determines which states a business must register with for tax purposes.

- It ensures that states receive the tax revenue they are legally owed from online sales.

- It requires businesses to track their sales volume and location accurately.

- It helps prevent unfair competition between local stores and out of state online retailers.

## Learn More

- [US sales tax basics for SaaS](https://dodopayments.com/blogs/us-sales-tax-saas)
- [Sales tax for global digital businesses](https://dodopayments.com/blogs/sales-tax-digital-businesses-global-growth)
- [How to avoid global tax mistakes](https://dodopayments.com/blogs/how-to-avoid-global-tax-mistakes-solopreneur)