2026 sales tax changes guide

Customer testimonial

The annual Avalara Tax Changes report is our go-to source for information regarding the ever-changing tax landscape. We look forward to the information it provides … keeping us in compliance and aware of the many changes.

Kurt Toliver, CFO at Asurvio

Here’s a taste of what you’ll find in the
midyear update

New sales tax and tariff trends

Taxing more, exempting less

To enhance sales tax collections, states are looking to tax transactions involving:

Artificial intelligence
Digital goods and services
Digital advertising and social media
Data centers
Personal, professional, and recreational services

Taxing digital ads and social media

Utah will tax digital advertising services starting January 2027, and the nation’s first social media advertising tax took effect in Chicago in January 2026. California, Massachusetts, Minnesota, New York, Pennsylvania, and Rhode Island are also considering digital ad taxes.

Ending de minimis exemptions

The U.S. ended its exemption for low-value goods in 2025, first for China, then for the rest of the world. The EU, Thailand, and the U.K. will change their de minimis policies in or after 2026.

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Insights from tax experts

The next sales tax frontier is digital

Broadening the sales tax base to include more services and digital transactions is one of the clearest trends in state tax policy.

Amanda Denniston, Government Relations Manager at Avalara

Marketplace inventory creates tax obligations

California has taken the position that any inventory in the state — whether controlled by a marketplace or the seller — creates a physical presence in California for all tax types. This has been a sales tax issue for years, creating significant liabilities for businesses.

Diane Yetter, Founder of the Sales Tax Institute;

President and Founder of YETTER Tax

Tariff turmoil complicates compliance

With the administration hinting at new Section 232 and 301 tariffs and other avenues to reinstate the spirit of the IEEPA tariffs, it’s more important than ever to ensure that you have accurate trade information. Avalara has the tools, services, and resources to ensure you can meet any new requirements with confidence.

Craig Reed, GM of Cross-Border at Avalara

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See how new policies affect tax compliance.

Customer testimonial

The annual Avalara Tax Changes report is our go-to source for information regarding the ever-changing tax landscape. We look forward to the information it provides … keeping us in compliance and aware of the many changes.

Here’s a taste of what you’ll find in the
midyear update

Taxing more, exempting less

Taxing digital ads and social media

Ending de minimis exemptions

Insights from tax experts

The next sales tax frontier is digital

Broadening the sales tax base to include more services and digital transactions is one of the clearest trends in state tax policy.

Marketplace inventory creates tax obligations

California has taken the position that any inventory in the state — whether controlled by a marketplace or the seller — creates a physical presence in California for all tax types. This has been a sales tax issue for years, creating significant liabilities for businesses.

Tariff turmoil complicates compliance

Hungry for more?

See how new policies affect tax compliance.

Customer testimonial

The annual Avalara Tax Changes report is our go-to source for information regarding the ever-changing tax landscape. We look forward to the information it provides … keeping us in compliance and aware of the many changes.

Here’s a taste of what you’ll find in themidyear update

Taxing more, exempting less

Taxing digital ads and social media

Ending de minimis exemptions

Insights from tax experts

The next sales tax frontier is digital

Broadening the sales tax base to include more services and digital transactions is one of the clearest trends in state tax policy.

Marketplace inventory creates tax obligations

California has taken the position that any inventory in the state — whether controlled by a marketplace or the seller — creates a physical presence in California for all tax types. This has been a sales tax issue for years, creating significant liabilities for businesses.

Tariff turmoil complicates compliance

Hungry for more?

Here’s a taste of what you’ll find in the
midyear update