Monthly roundup of tax laws you need to know.

June 2026 monthly roundup

This month’s tax roundup highlights new tax rules, policy shifts, and other key tax and compliance updates covered in our blog in June 2026. Each could affect your business.

Key takeaways

  • State tax obligations require constant monitoring. Midyear rate changes, shifting rules for digital advertising and SaaS, and temporary relief programs like gas tax holidays or tax amnesties can significantly alter your compliance.
  • Comprehensive compliance extends beyond sales tax. Navigating adjustments to federal 1099 reporting thresholds, managing vendor documentation, and understanding the nuances of property tax assessments are critical for minimizing business risk.
  • Global compliance mandates are accelerating. Whether it’s the EU removing its €150 customs duty exemption for low-value imports or Spain’s strict real-time Suministro Inmediato de Información (SII) reporting requirements, cross-border sellers must adapt their systems to meet tightening international regulations.
  • Integrated technology and AI are simplifying complex tax workflows. A new Chrome extension for Avi and other Avalara Agentic Tax and Compliance™ product updates can help your business scale efficiently.

State tax updates

July 2026 tax rate changes. Stay ahead of new rates, exemptions, and rules with our overview of tax rate changes taking effect in July 2026. Reviewing these updates early can help ensure your business stays compliant.

Illinois digital ad, social media, and cryptocurrency taxes. Learn about the latest laws in Illinois impacting digital advertising, social media, cryptocurrency, prediction markets, and fantasy contests.

California sales tax on software and SaaS. SaaS and prewritten software are subject to California sales and use and tax starting January 1, 2027, under a bill signed by the governor.

Tax rule changes for delivery networks. Tax requirements for delivery network companies doing business in Ohio have been added to our state-by-state guide to sales tax on shipping.

Gas tax holidays. Find out which states are offering relief at the pump this year. We’ve compiled a list of 2026 gas tax holidays and what they mean for fuel retailers and consumers.

2026 tax amnesty programs. Discover how your business can catch up on past-due taxes without facing harsh penalties. We discuss state tax amnesty programs available in 2026 and how to take advantage of them.

Sales tax on clothing. Apparel taxability varies wildly across the U.S., with some states offering exemptions and others taxing clothes fully. Check out our state-by-state guide to clothing tax to sell confidently.

Sales tax permits. Before you can collect sales tax, you need to be registered. Our comprehensive guide walks you through the sales tax permit requirements for every state.

Global tax compliance

Incoterms explained. Understand how international shipping terms dictate your tax liabilities. Incoterms affect VAT, customs duties, and your overall indirect tax obligations.

Demystify value-added tax. Selling internationally? Get a solid foundation on value-added tax (VAT) and how this consumption tax differs from U.S. sales tax.

EU ends the €150 customs duty exemption. Starting in July 2026, the EU is replacing the €150 customs duty exemption for low-value imports with a €3 per-item fee for low-value imports. Learn what cross-border sellers must do to prepare their pricing, customs data, and shipping operations for this significant shift.

How to comply with SII in Spain. Spain’s SII imposes strict deadlines for reporting VAT ledgers, making manual processes risky. Clarify your Spanish VAT reporting obligations by understanding which businesses fall under the scope of SII. Automated, real-time validation and submission can help high-volume finance teams avoid costly penalties.

Real-time invoicing architecture for Spain. Doing business in Spain requires a cohesive system architecture to simultaneously manage SII reporting and VeriFactu invoice integrity. Explore how compliance middleware integrates with ERP systems to streamline your data flows and ensure scalable compliance.

Property tax compliance

Property tax vs. tax assessment. Clear up the confusion between what your property is worth and what you owe. This post breaks down the distinction between a tax assessment and the actual property tax bill.

Calculating property tax. Understand how local property tax rates are applied to your property’s assessed value to determine your final bill.

Tangible personal property tax compliance. Business assets like furniture and equipment are often subject to property tax. Read our guide to tangible personal property tax for better compliance.

Vendor reporting and 1099s

1099 reporting thresholds. Stay informed on the latest federal adjustments to vendor reporting with this overview of 1099 thresholds and what they mean for your accounts payable processes.

What’s a W-9 form? Ensure you’re collecting the right vendor information at the right time. This primer covers everything you need to know about W-9 forms and their role in tax reporting.

Avalara products and AI updates

Avi Chrome extension. Meet Avi, your AI assistant for tax compliance support. The Avi Chrome extension brings Avalara expert guidance directly to your web browser for ongoing assistance.

Automated Shopify marketplace sales. Simplify your ecommerce compliance with Avalara automated reporting for Shopify marketplace sales. This integration helps merchants easily track and report their tax obligations across multiple channels.

Tax intelligence for Sidekick. Gain deeper visibility into your tax compliance right in your workflow. The Avalara extension in Sidekick gives quick, actionable tax insights for Shopify merchants.

Product enhancements. Catch up on the newest features and enhancements released in the Avalara Product Pulse for May. Read about the Avi Chrome extension for BigCommerce and expanded location-based rate guidance for DAVO.

FAQ

What are the most significant state tax changes taking effect in July 2026?

July 2026 brings numerous state and local sales tax rate changes, alongside new tax obligations such as the Illinois digital ad and social media tax. Businesses must review their nexus footprint and update their point-of-sale and billing systems to ensure they continue to collect the correct rates.

Are SaaS and digital products subject to sales tax?

The taxability of Software as a Service (SaaS) and digital products varies widely by state. For example, some states have different rules depending on whether software is delivered electronically or if physical media is involved. Businesses must check the specific tax laws in every state where they have established nexus to ensure compliance.

How can businesses benefit from 2026 state tax amnesty programs?

State tax amnesty programs provide a limited-time opportunity for qualifying noncompliant businesses to pay off past-due, unreported taxes without facing the severe penalties or high interest rates normally applied by the state. Participating in these programs allows companies to catch up on their tax obligations and reduce their financial and legal risk.

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