US Sales Tax Nexus

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.