# New Jersey economic nexus threshold

New Jersey's economic nexus threshold is $100,000 in sales.

## Included transactions:
- Retail sales of tangible personal property delivered into New Jersey
- Both taxable and exempt sales count toward the threshold
- Digital products and taxable services sourced to New Jersey

## Excluded transactions:
- Sales for resale made with a valid New Jersey resale certificate
- Sales made through a registered marketplace facilitator — these count toward the seller's threshold, but the marketplace bears the collection and remittance obligation

## Affiliate nexus

New Jersey recognizes affiliate nexus through a [rebuttable presumption](https://law.justia.com/codes/new-jersey/title-54/section-54-32b-2/) of in-state solicitation when a related New Jersey entity performs activities that establish or maintain the remote seller's market in the state. This provision was enacted under [P.L. 2014, c. 13](https://www.nj.gov/treasury/taxation/corp_business_tax.shtml) and applies independently of economic nexus thresholds.

Qualifying activities that trigger the presumption include:
- Performing warranty service, installation, repair, or delivery in New Jersey on behalf of the remote seller
- Operating under a substantially similar name, trademark, or trade name as an entity with a New Jersey place of business
- Conducting any activities that help an out-of-state seller establish or maintain its New Jersey customer market

The presumption is rebuttable — a remote seller can overcome it by demonstrating that the in-state entity's activities did not constitute solicitation on the seller's behalf.

New Jersey also recognizes [click-through nexus](https://www.nj.gov/treasury/taxation/pdf/pubs/tb/tb78r.pdf) under the same statutory framework, enacted by [P.L. 2014, c. 13](https://www.nj.gov/treasury/taxation/corp_business_tax.shtml). A rebuttable presumption of in-state solicitation arises when a seller has an agreement with a New Jersey-based independent contractor or representative to refer customers via website links or other means in exchange for a commission. The seller's New Jersey sales attributable to those referrals exceeded [$10,000 during the prior four quarterly periods](https://www.nj.gov/treasury/taxation/pdf/pubs/tb/tb78r.pdf). This presumption is likewise rebuttable by demonstrating the New Jersey representative did not engage in solicitation.

## Physical nexus

Physical presence in New Jersey creates sales tax nexus independently of any sales volume threshold. Nexus arises from maintaining an [office, warehouse, distribution house, or showroom](https://www.nj.gov/treasury/taxation/pdf/pubs/tb/tb78r.pdf) in the state, as well as from having employees, agents, or independent contractors operating in New Jersey. Delivering goods into New Jersey in the seller's own vehicles also constitutes physical presence.

[Inventory stored in New Jersey triggers nexus](https://www.nj.gov/treasury/taxation/pdf/pubs/tb/tb78r.pdf) regardless of whether the seller directly controls the storage facility, including goods held at Amazon FBA fulfillment centers and similar third-party logistics operations located in the state.

A teleworking employee who works from a New Jersey residence creates physical nexus for the employer. A COVID-19 pandemic nexus waiver that had temporarily suspended this rule permanently expired October 1, 2021, and no subsequent waiver has been issued.

Attendance at New Jersey [trade shows](https://sst.streamlinedsalestax.org/TAP/form/14664) is treated with a meaningful distinction: soliciting or making sales at a New Jersey trade show creates physical presence, while merely attending a trade show without soliciting or selling does not.

## Trailing nexus

Once the $100,000 economic nexus threshold is met in a given calendar year, the collection obligation extends through the remainder of that year and the [entire following calendar year](https://law.justia.com/codes/new-jersey/title-54/section-54-32b-2/). A seller that crosses the threshold in May 2025 remains obligated to collect through December 31, 2026. The [current or prior calendar year](https://law.justia.com/codes/new-jersey/title-54/section-54-32b-2/) evaluation period governs when the threshold is assessed.

**Economic Nexus Threshold:**
- $100,000 in gross sales only

**Effective Date:**
- November 1, 2018

**Evaluation Period:**
- Current or prior calendar year

**Previous Threshold Rules:**
- $100,000 in sales OR 200 transactions prior to the 2024 amendment. P.L. 2024, c. 21 eliminated the 200-transaction prong.