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States Expand Sales Tax to Digital Goods and Services in 2025 Amid Legal Challenges

  • In 2025, states are expanding sales taxes to cover digital goods and services, including SaaS, digital advertising, and data processing.
  • States like Illinois (Chicago), Louisiana, Maryland, Texas, and Washington have introduced or updated tax rules targeting digital products and services.
  • These changes aim to modernize tax codes, increase revenue, and address the shift to a service-based digital economy.
  • New digital tax laws have faced legal challenges and pushback, especially in states like Maryland and Washington.
  • States are also enacting broader regulations, such as Texas’s AI governance act, alongside digital tax expansions.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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