Do I owe a gross receipts tax?
Last reviewed June 2026
A gross receipts tax (sometimes called a corporate activity tax) is a tax on the total money your business takes in — not on its profit. Whether you owe one comes down to two questions: which states you do business in, and how much revenue you have there.
Only seven U.S. states levy a gross receipts tax at the state level. If you don’t have meaningful sales sourced to one of them, you almost certainly don’t owe this kind of tax. If you do, each state has its own filing threshold below which no return is required.
Step 1: Are you doing business in one of the seven states?
The states with a state-level gross receipts tax are Oregon, Ohio, Nevada, Texas, Washington, Delaware and Tennessee. Nexus can be triggered by physical presence or, in most of these states, by exceeding an economic threshold of in-state sales — you do not need an office there.
Step 2: Are you over that state’s threshold?
Each state exempts smaller businesses. Here’s the point at which a return is generally required:
| State & tax | You generally file above |
|---|---|
| Oregon CAT | $1,000,000Oregon commercial activity (register above $750,000) |
| Ohio CAT | $6,000,000Ohio taxable gross receipts (2025 onward) |
| Nevada Commerce Tax | $4,000,000Nevada gross revenue (fiscal year) |
| Texas Margin Tax | $2,470,000Total revenue (2025); $2,650,000 for 2026 — below it, file a PIR only |
| Washington B&O | ~$100,000Washington receipts (economic nexus); tax applies from the first dollar |
| Delaware GRT | Any licenseAny Delaware business; a per-period exclusion (~$1.2M/yr) reduces the tax |
| Tennessee Business Tax | $100,000Gross sales per jurisdiction (license at $3,000) |
Step 3: Estimate what you owe
Over the threshold in a state? Use that state’s free calculator to estimate the tax and download a pre-filled filing worksheet.
Open the calculatorsQuick takeaways
- Gross receipts taxes apply to revenue, not profit — you can owe one even in a year with no profit.
- Most of the seven states exempt businesses below a revenue threshold, so many small businesses owe nothing and need not file.
- Washington and Delaware are the broadest — Washington taxes from the first dollar (with a small-business credit), and Delaware applies to any licensed business after a per-period exclusion.
- This is general information, not tax advice — confirm your specific situation with a CPA. See our disclaimer.