October 2018 sales tax changes

Sales and use tax changes take effect in numerous states on October 1, 2018: new local rates, new exemptions, new taxes on software as a service (SaaS), and more. Yet, perhaps the most notable change of all pertains to remote sellers, those with no physical presence in a state.

New tax requirements for out-of-state sellers

Under economic nexus policies, remote retailers with no physical presence in a state are required to collect and remit sales and use tax because of their economic activity in the state. No physical presence is needed.

On October 1, 2018 — Nexus Monday — economic nexus takes effect in 10 states: Alabama, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Dakota, Washington, and Wisconsin. 

New sales tax exemptions

Tampons in Washington, D.C.

New sales tax rates

• Alabama
• Arizona
• Arkansas
• California
• Georgia
• Missouri
• Ohio
• Oklahoma
• Texas
• Utah
• Washington, D.C.
• Wyoming

New software taxes

• Rhode Island

New surcharge on prearranged rides (e.g., Uber, Lyft)

• New Jersey

Sales tax software can help businesses of all sizes in all states manage sales tax more efficiently. Learn more.