What it is

Click-through nexus is a connection to a state that is created when out-of-state sellers receive customer referrals from people or businesses located inside that state. If an in-state blogger, website, or social account places a link to your store and earns a commission on the sales that link generates, the state can treat that arrangement as in-state solicitation — enough to require you to register and collect its sales tax. <!– src: https://www.taxjar.com/blog/2018-04-click-thru-nexus –>

New York enacted the first click-through nexus statute in 2008 under Tax Law § 1101(b)(8), which is why these provisions are often nicknamed “Amazon laws.” New York’s rule creates a rebuttable presumption that you are soliciting business in the state once your gross receipts from sales to New York customers referred by in-state affiliates exceed $10,000 during the preceding four quarterly periods. The presumption can be rebutted with proof that the affiliates did nothing more than host a passive link. <!– src: https://codes.findlaw.com/ny/tax-law/tax-sect-1101/ –>

Because South Dakota v. Wayfair (2018) opened the door to economic nexus — which reaches remote sellers based on sales volume alone — click-through nexus is largely superseded today. Most sellers who would trip an affiliate rule already have economic nexus. But the click-through statutes remain on the books in many states, so they still matter for completeness.

Why it matters to a multi-state seller

If you run an affiliate or referral program, your marketing partners can create sales tax nexus for you in states where you have no office, employees, or inventory. The threshold is low — typically $10,000 in referred sales over a year — so even a modest affiliate footprint can cross it.

The practical risk is twofold. First, click-through nexus thresholds are far lower than economic nexus thresholds (which usually start at $100,000), so an affiliate rule can be the first thing that creates an obligation in a state. Second, the rules are inconsistent and many use a rebuttable presumption, meaning the burden can fall on you to document that your affiliates are passive. Knowing which states still enforce these provisions — and which have repealed them — keeps you from either over-registering or missing an obligation.

Worked example

Say your e-commerce brand pays commissions to bloggers and content sites that link to your products. Over the past four quarters you recorded the following referred sales:

• New York: $14,000 in sales referred by New York-based affiliates → above the $10,000 threshold → click-through nexus presumed. You must register and collect unless you can rebut the presumption.
• Connecticut: $1,500 in sales referred by Connecticut affiliates → Connecticut’s threshold is $2,000 over four quarters → under the line → no click-through nexus. <!– src: https://www.salestaxinstitute.com/resources/connecticut-enacts-click-through-nexus-legislation –>
• California: $12,000 in affiliate-referred sales, but only $400,000 in total California sales → California requires both $10,000 in referrals and over $1,000,000 in total in-state sales → not met → no click-through nexus. <!– src: https://www.taxjar.com/blog/2018-04-click-thru-nexus –>

Same affiliate program, three different outcomes — entirely because each state writes its own test.

State-level nuance

Thresholds and lookback periods vary by state, and several states pair the dollar test with extra conditions:

Note also that some states have repealed click-through nexus now that economic nexus does the heavier lifting — Kansas repealed its provision effective after June 30, 2021, for example. <!– src: https://www.taxjar.com/blog/2018-04-click-thru-nexus –> Because these statutes change and several are dormant in practice, always confirm a state’s current rule before relying on it.

How this connects to staying compliant

Click-through nexus is one of several triggers that can obligate you to collect — alongside physical nexus, economic nexus, and marketplace nexus. In a post-Wayfair world, the workflow is usually: check economic nexus first (it catches most sellers), then confirm whether any lower-threshold affiliate rule creates an earlier obligation. Once a trigger is met you typically need to (1) register for a sales tax permit, (2) collect the correct rate, and (3) file returns on schedule.

The practical defense is a clear map of where your affiliates sit and how much they refer, checked against each state’s current threshold.

Sources: TaxJar — What is click-through nexus?: https://www.taxjar.com/blog/2018-04-click-thru-nexus New York Consolidated Laws, Tax Law § 1101 (FindLaw): https://codes.findlaw.com/ny/tax-law/tax-sect-1101/ Avalara — State-by-state click-through nexus guide: https://www.avalara.com/us/en/learn/guides/state-by-state-click-through-nexus-guide.html Sales Tax Institute — Connecticut click-through nexus: https://www.salestaxinstitute.com/resources/connecticut-enacts-click-through-nexus-legislation