Prepare for 2026: A practical guide to sales tax changes and trends
by November 14, 2025
Navigating the ever-changing landscape of sales tax laws and regulations creates a compliance challenge for sellers. For example, in the first half of 2025, states made over 400 sales tax rate changes — nearly 25% more than the first half of 2024. When these changes happen, businesses must adapt quickly to ensure proper compliance.
Changing sales tax rates is only one trend to keep an eye on–as you finalize preparations for your e-commerce store in the new year, it is crucial to stay informed about additional emerging tax trends and legislation that could influence your strategic planning. To help, we’ve outlined the major sales tax trends for 2026 in this blog post.
If you’re looking for a comprehensive guide to sales tax compliance, our free 2026 sales tax trends and changes guide dives deeper into these trends and outlines the six steps to compliance for 2026.
Taxability policy changes
In 2025, several states updated how they tax essential items to ease the economic burden on consumers, often in states where inflation is high. For example, Kansas, and Mississippi eliminated or decreased the sales tax on grocery items. Additionally, Louisiana now generally taxes shipping as part of the sales price, and Maryland began taxing many IT services at a reduced rate as of July 1, 2025. Washington expanded their list of taxable digital services, though legal challenges are expected.
These frequent and sudden changes demand that businesses stay vigilant and update their checkout processes accordingly. TaxJar simplifies this task by automatically adjusting rates to provide a more accurate sales tax collection.
Sales tax policy changes
On top of changing rates, many states are changing sales tax policies like nexus requirements. For example, in 2025, Utah and Illinois dropped their transaction count thresholds for economic nexus, leaving only revenue thresholds in place. This is a welcome change for small sellers with many low‑value transactions. Only 18 states still use transaction thresholds, and more are expected to remove them in 2026. Additionally, many states reduced or eliminated timely‑filing discounts that were once rewarded on‑time returns.
There were over 400 sales tax rate changes in 2025, mostly local taxing jurisdictions. However, on January 1, 2025, Louisiana raised its state sales tax rate from 4.45% to 5%.
TaxJar monitors nexus thresholds and rate changes, so businesses don’t have to worry about changing threshold requirements. We implement sales tax nexus and rate changes immediately, so businesses know they are compliant without having to manually track thresholds or rates.
Increase in special district taxes
Indirect taxes in the US are becoming increasingly localized and specialized. A growing trend shows cities and other local jurisdictions implementing new, unique taxes that transcend traditional boundaries. Often, these are created to generate revenue for a specific project or initiative. A single ZIP code can now contain multiple, overlapping tax rates, creating an enormous compliance headache and making manual sales tax management nearly impossible.
TaxJar manages this complexity seamlessly: Our API and calculation engine apply rooftop-accurate rates based on your customer’s state, county, city, and even district.
Prepare for the year ahead
Sales tax moves quickly, so trying to keep up with the changing laws and trends can be daunting. To learn more about these trends and see a comprehensive guide to the six steps to compliance, download our free 2026 sales tax trends and changes guide today.
TaxJar simplifies compliance by handling various crucial aspects, such as tracking where you have nexus, managing sales tax permit registration, and automating the filing and remittance of sales tax. To explore how TaxJar can automate your sales tax compliance, start a free, 30-day trial today.
Want to talk to our sales team about how you can streamline compliance in 2026? Reach out to our team today.
