Nexus Thresholds

Nexus Thresholds refer to specific criteria used to determine when a business or individual has a significant connection to a state for tax purposes. Essentially, they set the minimum level of activity—such as sales volume, transaction count, or other economic presence—that triggers a state's requirement to collect and remit sales taxes. If a business crosses these thresholds, it must comply with the state's tax laws, even if it's not physically present there. These thresholds help states manage tax collection fairly, ensuring that businesses with substantial activity in their state contribute appropriately.