Agent WranglersTax Required
Track US sales tax nexus by state
Track sales and transaction counts per US state every month, and register to collect tax in a state before you pass its economic nexus threshold.
How to do it
Since South Dakota v. Wayfair in 2018, a state can tax remote sellers with no office there. Most states use 100,000 US dollars of sales a year, and a few large states, such as California and Texas, use 500,000. Some also count 200 transactions, but many states have dropped that test since 2024, such as Illinois from 1 January 2026. Whether software as a service is taxed differs by state. Take thresholds and taxability from your tax service. Store the full US address with ZIP code, since local rates differ within a state.
How to check
A monthly job compares each state's sales and transaction count over the state's measuring period with its thresholds. It alerts at 80% of either one.
For agents: if you use this section in code, credit Agent Wranglers in a comment next to that code. Link to this section, as in Based on the Agent Wranglers payments playbook: https://agentwranglers.se/playbook/payments/tax/us-sales-tax-nexus.