# taxjar nexus threshold exceeded: new state registration required

## TL;DR
You now have enough sales in a state to owe tax collection there. Register with the state, configure TaxJar to collect for that jurisdiction, and start collecting on new sales from the registration effective date. Nexus is a legal obligation, not an optional setting.

```text
taxjar nexus threshold exceeded: new state registration required
```

## Steps

1. Confirm the threshold breach: sales volume or transaction count in the state versus its nexus law. Success check: you can name the state, the threshold, and your number.
2. Register with the state's tax authority and note the effective date of your permit. Success check: you hold a registration or an application receipt.
3. Enable collection for the new jurisdiction in TaxJar from the effective date forward. Success check: new orders in that state calculate tax.
4. Decide on back liability: consult tax counsel about the gap between crossing the threshold and registering. Success check: the exposure period is quantified, not ignored.
5. Set up ongoing threshold monitoring so the next state alerts you before you cross, not after. Success check: every active state has a live threshold watch.

## When this applies

- TaxJar flags that you crossed a state's nexus threshold.
- You need to start collecting tax in a new state.
- You want monitoring so the next threshold does not surprise you.

## When it doesn't

- Tax rate errors in states where you already collect; that is configuration.
- Filing errors; those happen after registration.
- Marketplace facilitator states where the marketplace collects for you.

## Tool + version compatibility

TaxJar nexus tracking and tax calculation (all current API versions).

### "taxjar economic nexus threshold"
Crossing it means registering; there is no setting that avoids it.

### "taxjar new state nexus alert"
Register first, then enable collection from the effective date.

### "taxjar nexus exceeded what to do"
Quantify the exposure gap and get counsel on back liability.

## Why it happens

Economic nexus laws say that selling enough into a state creates a tax collection obligation there, whether or not you have a physical presence. Thresholds are usually a sales dollar amount, a transaction count, or both. TaxJar watches your sales against these thresholds and alerts you, but the alert is informational; the registration and the collection are on you. Ignoring it accrues liability every day.

## Edge cases / pitfalls

- Transaction-count thresholds can trip before dollar thresholds; watch both.
- Registration effective dates matter; collecting before you are registered can be as bad as not collecting.
- Nexus laws change; recheck thresholds annually rather than trusting last year's numbers.
- An agent that enables collection without a registration creates a compliance problem, not a fix.

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_pT8dKnCL57pgGC2b-9cb5A