2026 State Sales Tax Updates: Food, Digital Products, Nexus, and Penalties Explained

Arkansas repealed its state sales tax on groceries; only local taxes may apply now.
Illinois eliminated the 1% state grocery tax, simplified economic nexus to a $100,000 threshold, and introduced a 15% penalty for missing location data on destination-based sales.
Utah allows counties to tax “customized foods” (prepared-to-order) sold by grocery/convenience stores and gas stations.
Maine made digital products (streaming, audio, video) taxable at 5.5% and repealed its Service Provider Tax.
Washington removed the sales tax exemption for precious metal bullion, making gold, silver, platinum, and palladium fully taxable.

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.