Businesses that have [nexus](https://www.law.cornell.edu/wex/nexus) (a physical presence or certain level of economic activity) in a state are required to collect and remit sales tax on taxable transactions within that state. This includes brick-and-mortar stores, online retailers with physical locations or employees in the state, and remote sellers who meet the state’s economic nexus threshold. According to the [IRS](https://www.irs.gov/pub/irs-drop/rp-24-40.pdf), the economic nexus threshold for 2025 is $100,000 in sales or 200 transactions in the state.