What is trailing nexus?

Most states make you keep filing for a while after you drop below their threshold. California runs through the next full calendar year. Texas uses a rolling twelve months. We track each state's rule so you cancel on the right date, not too early.

Will I get in trouble for canceling a permit?

Not if you do it in the right order. We file every outstanding and final return first, then guide the cancellation. The real risk is canceling early or skipping a final return, which is exactly what we prevent.

Which platforms do you support?

Amazon, Shopify and WooCommerce, with BigCommerce, Etsy, Walmart and eBay supported through manual entry. You can also enter your states by hand on any platform.

Do you file my returns?

Yes. During the wind-down we file the zero-dollar returns so nothing lapses, and once you're deregistered in a state there's nothing left to file.

How is this different from Avalara or TaxJar?

They help you register and file more. We help you deregister and file less. We only charge for the states you keep.

No. TrailingZero is software that flags deregistration opportunities and handles filings. For complex situations we tell you when to bring in your accountant.

Is TrailingZero live?

Yes. Free audits are live now — run yours in minutes. Connect a store read-only or enter your registered states by hand to see which you can cancel and what it saves.

No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

Trailing nexus

Trailing nexus in Texas

"Trailing nexus" is the duty to keep filing in Texas for a while after you drop below the threshold. Getting this window wrong is the single most common deregistration mistake — here's Texas's rule.

By John DoeReviewed by Jane Doe, CPAUpdated June 2026How we verify

Has trailing nexus?: Yes
Approx. duration: 12 months
Can deregister below threshold?: Yes, after the window
Tax authority: Texas Comptroller of Public Accounts

Source: State rule

Texas trailing nexus

Texas has trailing nexus of roughly 12 months. For economic nexus: a remote seller must have 12 consecutive months in which total Texas revenue (preceding 12 calendar months) was less than $500,000 before filing to terminate use tax responsibilities.

What trailing nexus means

When you drop below Texas's threshold, the obligation doesn't end instantly. Most states make you keep the registration active and keep filing — even $0 returns — for a defined window. That window is "trailing" (or "sticky") nexus.

Texas's trailing-nexus rule

For economic nexus: a remote seller must have 12 consecutive months in which total Texas revenue (preceding 12 calendar months) was less than $500,000 before filing to terminate use tax responsibilities. For physical nexus: Texas eliminated its 12-month trailing nexus rule effective June 3, 2015 (retroactively) — physical nexus ends immediately upon properly terminating presence.

Remote sellers must use the Texas Comptroller's 'Remote Seller's Intent to Terminate Use Tax Responsibilities' web form (comptroller.texas.gov/web-forms/remote-seller/) to formally end economic nexus obligations. If the seller later exceeds $500,000 in Texas revenue again, collection obligations resume on the first day of the second month following those 12 calendar months.

Why it matters for canceling

Canceling the day you drop below the threshold — or skipping a required final return — is exactly what triggers penalties. Clear Texas's window first, file every return due during it, then close the account.

Where TrailingZero fits

TrailingZero connects to your store read-only, maps where you actually have nexus state by state, and computes Texas's exact trailing-nexus end date so you cancel on the right day, not too early. During any wind-down it can file the zero-dollar returns so nothing lapses — and you only pay for the states you genuinely keep. Run a free audit anytime; this page is free education either way.

Texas Trailing nexus FAQ

How long is trailing nexus in Texas?: Roughly 12 months. For economic nexus: a remote seller must have 12 consecutive months in which total Texas revenue (preceding 12 calendar months) was less than $500,000 before filing to terminate use tax responsibilities. For physical nexus: Texas eliminated its 12-month trailing nexus rule effective June 3, 2015 (retroactively) — physical nexus ends immediately upon properly terminating presence.
Can I stop filing in Texas right after I drop below the threshold?: Not immediately — you must keep filing through Texas's trailing window. Remote sellers must use the Texas Comptroller's 'Remote Seller's Intent to Terminate Use Tax Responsibilities' web form (comptroller.texas.gov/web-forms/remote-seller/) to formally end economic nexus obligations. If the seller later exceeds $500,000 in Texas revenue again, collection obligations resume on the first day of the second month following those 12 calendar months.
Is this tax advice?: No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.

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Other states

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Sources

Primary sources reviewed for this page. Data current as of June 2026.

TrailingZerois software, not a CPA or law firm, and this page is general education — not tax or legal advice. State rules and thresholds change frequently; confirm your situation with the state's tax authority or your accountant before you register or deregister. See how we research and review this data in our editorial & accuracy policy.