A sales tax obligation created by selling into a state above a dollar or transaction threshold, without any physical presence there. Every state with a sales tax has adopted it since the 2018 Wayfair decision.
Illinois dropped its 200-transaction test effective January 1, 2026, so nexus there rests on $100,000 of cumulative gross receipts over a 12-month lookback. Other states keep both tests, and thresholds vary.
In many states yes, even though the marketplace collects the tax on those sales. Direct sales through your own site still require you to collect once you cross the line.
Source: South Dakota v. Wayfair (2018); Illinois P.A. 104-0006; Illinois DOR Bulletin FY 2026-12
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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