Utah Eliminates 200-Transaction Nexus Threshold — What Remote Sellers Should Know

What Changed

Beginning July 1, 2025, Utah will repeal its 200-transaction threshold for remote seller economic nexus. After that date, only the $100,000 gross revenue threshold will remain.

Previously, remote sellers and marketplace facilitators were required to register for Utah sales and use tax if, in the current or previous calendar year, they:

• Had more than $100,000 in gross revenue from Utah sales, or
• Made 200 or more separate transactions into Utah

With the passage of Senate Bill 47, the 200-transaction test will no longer apply.

Remote sellers will only need to track gross sales to determine if they will trigger economic nexus in Utah.

Who This Affects

• Remote sellers: Businesses with no physical presence in Utah but that sell into the state. After July 1, 2025, they will only need to track gross sales — not transaction counts.
• Marketplace facilitators: Platforms handling sales for third-party sellers must follow the same $100,000 sales threshold.
• Utah-based businesses: This change does not apply. If you have a physical presence in Utah, you’ve always been required to collect and remit sales tax on all taxable sales, regardless of sales volume. That obligation remains unchanged.

Why It Matters for Sellers

• Simplified compliance: Remote sellers only need to monitor sales totals, not transaction counts.
• Reduced burden for small sellers: High-volume, low-dollar businesses (like those selling inexpensive products) may no longer need to register in Utah if sales stay under $100,000.
• No change for in-state sellers: Utah businesses with a physical presence continue to collect on all sales.

What This Means for Sellers

If you sell into Utah:

• Remote sellers and marketplaces: Focus on your gross sales volume. If you cross $100,000, you must register and collect. If you’re below $100k in sales, the 200-transaction rule no longer applies after July 1, 2025.
• Utah-based businesses: No impact. You remain responsible for collecting and remitting on all taxable sales.
• For manual filers: If you’ve been registered only because you crossed the 200-transaction mark, you may be able to deregister once the change takes effect. Review your sales history carefully to avoid both under-compliance and unnecessary filings.

For TaxCloud users: Our system automatically updates to reflect Utah’s change, so nexus monitoring is based solely on the $100,000 threshold. That means you don’t need to manually adjust your compliance tracking.

Next Steps for Sellers

• Review your 2024–2025 Utah sales and transaction data.
• If you’re below $100,000 in sales, evaluate whether deregistration makes sense after July 1, 2025.
• Update nexus monitoring tools to remove the 200-transaction trigger.
• Mark July 1, 2025, as a compliance milestone for your business.