May 2025 sales tax holidays and rate changes

Sales tax rates don’t change as frequently in May as they do in January or July, but updates still happen — and they can impact your business. Read on to discover May 2025 sales tax changes by state, new requirements for remote sellers, and May sales tax holidays

The Indiana gasoline use tax rate for May 2025 is $0.178 per gallon (up from $0.159 per gallon in April). 

The gasoline use tax is considered the equivalent of the 7% sales tax that would be collected by a retail merchant, according to the Indiana Department of Revenue. It replaces the retail merchant’s obligation to collect the sales tax on the sale of gasoline.

South Carolina

There are sales tax rate changes in several South Carolina counties. 

• Rate increases: Georgetown, Horry, Jasper, and Sumter 
• Rate decreases: Williamsburg 

See the South Carolina Department of Revenue for full details.

Elim, Alaska, joins ARSSTC

Effective May 1, 2025, the city of Elim is becoming a member of the Alaska Remote Seller Sales Tax Commission (ARSSTC).

Remote sellers that have nexus with Alaska are responsible for collecting Elim’s 3% sales tax starting May 1. The ARSSTC administers sales tax for Elim and other member jurisdictions.

Out-of-state retailers that aren’t currently collecting sales tax in Alaska should verify their nexus. Avalara offers a free sales tax nexus risk assessment to help businesses determine where they may have an obligation to register then collect and remit sales tax.

There are two Texas sales tax holidays in May 2025.

• Texas Energy Star sales tax holiday, May 24–26, 2025
• Texas water-efficient products sales tax holiday, May 24–26, 2025

These are just a few of the sales tax changes taking effect in 2025. Read about more tax policy changes in our annual report, Avalara Tax Changes 2025.