- States are modernizing sales tax in 2026 due to fiscal pressures, with more changes expected after a high number of rate changes and new taxing jurisdictions in 2025.
- Instead of raising state-level rates, states are expanding what’s taxable, empowering local jurisdictions, and focusing on digital and service-based taxation.
- The complexity for businesses is increasing, with more local rates and jurisdictions, making compliance more challenging.
- Economic uncertainty is pushing states to rely more on sales taxes while cutting income taxes, increasing the compliance burden even if average rates remain stable.
- Some states keep low sales tax rates for political reasons, but this doesn’t always mean a simpler or lower overall tax burden.
Source: salestaxsolutions.us
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.
