State

Income Tax Nexus Threshold

Alabama

$54,000 of property;

$54,000 of payroll;

$538,000 of sales; or

25% of total property, total payroll, or total sales.

California

$63,726 of property;

$63,726 of compensation paid;

$637,252 of sales, including sales by agents or independent contractors; or

25% of total property, total compensation paid, or total sales.

Colorado

$50,000 of property;

$50,000 of payroll;

$500,000 of sales; or

25% of total property, total payroll, or total sales.

Connecticut

$500,000 (“bright-line” test) of receipt

Hawaii

$100,000 of gross revenue attributable to Hawaii;

200 or more separate transactions during the previous or current calendar year;

Maine

$250,000 of property;

$250,000 of payroll;

$500,000 of sales; or

25% of total property, total payroll, or total sales.

Massachusetts

$500,000 of in-state sales.

Michigan

Income tax nexus is established if the taxpayer actively solicits sales within the state and gross receipts from state sources is at least $350,000.

New York

$1,138,000 of receipts from activity in the state; or if it:

·         Has issued credit cards 1,000 or more in-state customers;

·         Has merchant customer contracts covering at least 1,000 locations in state; or

·         The sum of the number of customers plus the number of locations covered by its contracts equals 1,000 or more.

Ohio

$50,000 of property;

$50,000 of payroll;

$500,000 of gross receipts; or

25% of total property, total payroll, or gross receipts during the calendar year.

Pennsylvania

$500,000 of direct or indirect gross receipts sourced to the state

Tennessee

$50,000 of property;

$50,000 of payroll;

$500,000 of receipts; or

25% of total property, total payroll, or total receipts.

Texas

Texas revenue of $500,000 or more in the preceding 12 calendar months.