- Numerous state sales tax updates take effect on July 1, 2025.
- Maryland is taxing many business services starting July 1, 2025.
- Mississippi is lowering its food tax rate on July 1, 2025.
- Utah is eliminating its 200-transactions economic nexus threshold effective July 1, 2025.
- Tax rate changes are taking effect on July 1, 2025, in more than 20 states.
- Maryland taxes IT services at a reduced rate of 3% starting July 1, 2025.
- Maryland’s 3% tax applies to certain NAICS sectors and subsectors.
- Businesses must compare their services to NAICS activity descriptions to determine tax applicability.
- Maryland law requires applying the higher tax rate if different rates can be applied to a sale.
- Maryland’s sales and use tax exemption for customized software or SaaS is repealed as of July 1.
- Mississippi is lowering the sales tax rate for groceries from 7% to 5% starting July 1, 2025.
- The reduced sales tax rate in Mississippi does not apply to prepared food.
Source: avalara.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.
