---
title: "Understanding Nexus Threshold Calculations"
description: "TaxCloud monitors your economic nexus status across US states by automatically calculating your sales against each state's thresholds on a daily basis. View your Thresholds page here."
canonical_url: "https://support.taxcloud.com/articles/understanding-nexus-threshold-calculations-EIJdnJcfOc"
md_url: "https://support.taxcloud.com/articles/understanding-nexus-threshold-calculations-EIJdnJcfOc.md"
---
# Understanding Nexus Threshold Calculations

TaxCloud monitors your economic nexus status across US states by automatically calculating your sales against each state's thresholds on a daily basis. View your Thresholds page [here](https://app.taxcloud.com/go/thresholds).


 ![](https://support.taxcloud.com/api/attachments.redirect?id=c815fac9-3cce-416c-9981-ecd6f9f81585 " =808x578")


## **When are economic nexus thresholds calculated?**

Nexus thresholds are recalculated once per day at 1 AM CST. Each calculation uses your live transactions, historical orders, and marketplace orders — applying the rules specific to each state.


## How are **economic nexus thresholds calculated?**

The following factors determine whether you have economic nexus in a given state:

**Time frame:** Previous or current calendar year, previous calendar year, previous four quarters, or trailing twelve months depending on the state.

**Sales volumes:** Sales amount, order volume, or both — varies by state.

**Marketplace orders:** Included only in states where required by law.


## **Does tax collection automatically turn on?**

Tax collection does not turn on automatically when you surpass an economic nexus threshold. You must take action to enable it.


1. **SST states:** Submit a request through support@taxcloud.com to turn on tax calculation.
2. **Non-SST states:** Apply a state license and select a collection start date on the Threshold State Detail page to enable tax calculation.

> Tax collection will turn on automatically due to physical nexus only if you have a physical location applied on your Locations page.


## Threshold alert emails

TaxCloud sends two email notifications as you approach and reach a state's nexus threshold:

### 80% threshold reached

Sent when your sales reach 80% of a state's threshold. This email advises you to review your nexus status and consider beginning the registration process in that state.

### 100% threshold reached

Sent when you've surpassed the full threshold. This email advises you to turn on tax collection in that state if you haven't already done so.