What Is Click-Through Nexus and Why It Matters for Your Business

When it comes to sales tax compliance, understanding nexus is essential. And while many business owners are familiar with physical or economic nexus, there’s another type that often flies under the radar: click-through nexus.

If your business partners with affiliates, influencers, bloggers, or advertisers, this article is for you. Click-through nexus could be quietly creating sales tax obligations in states where you thought you had no ties.

Let’s break it down — and explain how you can stay compliant.

Understanding Click-Through Nexus

Click-through nexus is established when a business gains customers through a referral link from an affiliate located in a specific state. These affiliates could be bloggers, content creators, or influencers who promote your products or services through tracked links on their websites or platforms.

If those referrals generate a certain amount of revenue, your business may be considered to have a taxable presence (nexus) in that state — even if you don’t have a physical location there.

🔍 Example:If a New York-based affiliate promotes your business and their referrals lead to more than $10,000 in sales annually, your business may be required to collect and remit sales tax on sales made to New York customers.

States with Click-Through Nexus Laws

Not all states enforce click-through nexus, but many do — including high-population states like:

• New York

• California

• Illinois

• Texas

• North Carolina

• Connecticut

Each state has its own rules, thresholds, and enforcement strategies. These laws are often triggered when your business reaches a set amount of sales or transactions through affiliates in that state.

Why It Matters to All Types of Businesses

Click-through nexus doesn’t just apply to online retailers. Businesses in the tech, SaaS, digital services, and even B2B sectors can be affected if they use:

• Affiliate marketing programs

• Influencer partnerships

• Revenue-sharing advertising

• Performance-based referral systems

If your marketing efforts are driving traffic through partners in other states, you may unknowingly create a sales tax nexus — and with it, filing obligations and potential penalties for non-compliance.

How to Know If You’re Affected

Here are a few questions to assess your exposure:

✅ Do you have affiliate partners or referrers in other states?

✅ Are you using a commission-based marketing program?

✅ Have those relationships generated over $10,000 in sales to a particular state in the past 12 months?

If you answered yes to any of the above, it’s time to evaluate your nexus exposure and prepare your tax strategy accordingly.

Stay Ahead of the Curve with Manage My Sales Tax

Click-through nexus can be complicated—but you don’t have to handle it on your own.

At Manage My Sales Tax, we help businesses of all sizes and industries identify, track, and comply with sales tax obligations triggered by affiliate activities and beyond.

Here’s how we support you:

• Nexus Risk Assessment:

  We analyze your marketing and affiliate channels to determine if click-through nexus laws apply to your business.

• Registration Support:

  If required, we help you register in the relevant states and avoid costly errors.

• Tax Collection Setup:

  We ensure your e-commerce or invoicing platforms are properly configured to collect the right sales tax.

• Timely Filing and Reporting:

  We handle ongoing tax filings, payments, and documentation so you can focus on growth, not compliance.

Let’s Take the Complexity Out of Click-Through Nexus

Confused by affiliate marketing tax rules? Let us help you make sense of it.

🌐 Manage My Sales Tax is your trusted partner in multistate sales tax compliance.

Let’s clarify your obligations, reduce your risk, and keep your business running smoothly—state by state.