August 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 August 2026. Each could affect your business.

Maryland’s digital ad tax was struck down. In another much-anticipated ruling, the Maryland Tax Court decided the state’s digital advertising tax is unconstitutional and runs afoul of the Internet Tax Freedom Act. The state must issue refunds to the three companies that sued to block the tax. Learn what the Maryland decision means for digital taxes in other states.

Remote sellers were given a little breathing room in North Carolina. As of July 2, 2026, remote sellers exceeding North Carolina’s $100,000 sales threshold have at least 60 days to register and begin collecting sales tax. Previously, they needed to register immediately after establishing economic nexus. Discover how North Carolina’s new registration timeline impacts remote sellers.

Pennsylvania is changing local sales tax sourcing rules. Starting October 1, 2026, Pennsylvania will enforce destination sourcing for local sales taxes in Philadelphia (2%) and Allegheny County (1%). This will affect both intrastate and interstate sellers. See how Pennsylvania’s local sourcing change affects your transactions.

State efforts to ban swipe fees on taxes and fees are facing pushback. Illinois has delayed, again, the effective date of a law prohibiting payment card interchange fees on sales tax and tips. Learn more about swipe fee restrictions how they could impact payment and point-of-sale compliance.

Another economic transaction threshold bit the dust. As of August 1, 2026, 17 states have eliminated the 200-transaction threshold for economic nexus. Which state do you think will be next?

Hidden communications tax exposure can create audit risks. A growing number of products and services, like messaging APIs, streaming content, and VoIP, are subject to communications taxes. Unfortunately, it’s often difficult to ascertain which communications taxes and fees apply. Assess your communications tax audit risk and compliance requirements.

Property tax relief can lead to unexpected consequences. Several states expanded business personal property tax relief in 2026, but complex filing rules, strict appeal windows, and valuation discrepancies can create new operational challenges for enterprise businesses. Read about how to manage property tax compliance and maximize relief opportunities.

Unneighborly disputes are underway in North America. The U.S. set 50% tariffs on a range of Canadian products effective August 22, 2026, and Canada will impose retaliatory tariffs on U.S. imports starting September 8, 2026. The situation could worsen before it improves. Get the latest details on U.S.-Canada trade and duty requirements.

Avalara Select simplifies sales tax for small businesses. Avalara Select combines real-time calculation (Avalara AvaTax) and managed filing (Avalara Managed Returns) into a predictable, transparent state-based pricing bundle built for growing businesses with up to $50 million in annual revenue. Learn more about Avalara Select plans and pricing.

AI agent deployment is outrunning finance governance. A global survey of 1,500+ CFOs and senior finance leaders reveals that while 92% of respondents feel pressure to deploy AI agents quickly, 76% lack the specialized in-house expertise needed to understand how their AI agents work. Get more insights from the survey report on AI agents and finance governance.

Product Pulse highlights new platform capabilities. Recent updates include destination country-based transaction routing for Shopify, Avi AI guidance for Salesforce Sales Cloud, French e-invoicing readiness, and a unified in-app notification center (AvaApp). Check out the complete list of recent platform enhancements.