Status: Draft — pending Christy review

Webflow path: numeral.com/nexus/texas

Hero

Headline: Texas economic nexus threshold

Intro blurb: Texas has the highest economic nexus threshold in the country at $500,000. But the moment you have any physical presence in Texas, the $500,000 threshold is irrelevant. Physical nexus in Texas requires immediate registration from the first dollar of sales, with no de minimis exception.

Economic nexus threshold badge: $500,000 in sales only

Included transactions

• All gross revenue: taxable sales, nontaxable and exempt sales, separately stated handling and transportation charges
• Sales to otherwise exempt customers such as nonprofits and government entities
• Marketplace-facilitated sales (must be included in the threshold calculation since April 1, 2020, even if the marketplace is collecting the tax)

Excluded transactions

• Sellers with physical nexus in Texas are not considered remote sellers and cannot rely on the $500,000 safe harbor
• FBA exception: a remote seller whose only Texas presence is inventory in a marketplace provider's Texas warehouse is exempt from permitting only if total Texas revenue is below $500,000 AND the marketplace provider certifies in writing it will collect and remit. Once $500,000 is crossed, the inventory independently triggers full physical nexus.

Sidebar

Economic nexus threshold: $500,000 in gross revenue only

Effective date: October 1, 2019 (HB 1525, 86th Texas Legislature)