Sales Tax Changes in 2026: Every State That Moved
2026's strange headline: not one state changed its statewide rate in the first half of the year — yet receipts changed everywhere, through grocery handovers, exemption repeals, transit increases and a rolling wave of local votes. Here is the complete change log, each entry with its effective date and source.
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Quick answer: the big 2026 moves are Illinois (grocery-tax handover to 600+ localities, nexus-threshold repeal, Chicago to 10.5% on 1 Aug)1, Ohio's exemption repeals, Rhode Island's lodging changes, Washington's rolling 0.1% local public-safety taxes — and, still ahead, DC's rise from 6% to 7% on 1 October 20263. No state changed its statewide rate in the first half of the year2.
The 2026 change log
| Effective | State | What changed | Type |
|---|---|---|---|
| Jan 1 | Illinois | 1% state grocery tax eliminated; 600+ localities adopt their own 1% (second wave Jul 1) | Base |
| Jan 1 | Illinois | 200-transaction nexus threshold repealed ($100k test only); destination-based ROT extended to out-of-state retailers with IL presence and to service occupation/use taxes | Rules |
| Jan 1 | Arkansas | Final 0.125% state grocery tax eliminated (Grocery Tax Relief Act) | Base |
| Jan 1 | Ohio | HB 96 repeals: electronic-information-services 25% refund, warranty rental/loaner-vehicle exemption, plus newspaper, advertising-material, film-rental, call-center and digital-audio-works exemptions | Base |
| Jan 1 | Rhode Island | Local hotel tax doubled 1% → 2%; whole-home short-term rentals become taxable (the FY2026 budget also extended tax to parking services) | Base |
| Jan 1 | Hawaii | GET exemption for Medicare, Medicaid and TRICARE healthcare receipts | Base |
| Jan 1 | Missouri | Broadband machinery and equipment exemption | Base |
| Jan 1 | Colorado | State vendor discount (timely-filer allowance) eliminated | Rules |
| Jan 1 | Louisiana | Mandatory electronic filing and payment | Rules |
| All year | Washington | Councilmanic 0.1% public-safety local taxes: Seattle + King County Jan 1 (Seattle 10.55%), Tacoma to 10.5% by Jul 1, more each quarter | Local rates |
| Aug 1 | Illinois | Chicago-area transit (RTA) tax +0.25pt: 1.25% Cook / 1% collar counties — Chicago reaches 10.5% | Local rates |
| Aug 1 – Oct 31 | Illinois | Remote-retailer amnesty window for past under-collection | Rules |
| Oct 1 | Washington DC | Sales tax rises 6% → 7% (scheduled; official OTR notice) | State rate |
Verified August 2026 against state revenue departments and the Tax Foundation Midyear 2026 review2. National average combined rate: 7.53%.
The pattern: bases and local rates, not state rates
The Tax Foundation's midyear review recorded something unusual: no statewide rate change at all between January and July 20262. Every change that hit receipts came from the other two dials — what's taxed (Ohio's repeals, Illinois' grocery handover, Rhode Island's rentals) and local rates (Washington's public-safety wave, the Chicago transit increase, and enough local movement that North Carolina jumped four places in the rankings). It's exactly why quarter-day rate hygiene matters more than watching legislatures: the changes that catch sellers are the small local ones.
Still biting: the 2025 changes you'll feel all through 2026
| Effective | State | What changed |
|---|---|---|
| Jan 2025 | Louisiana | State rate 4.45% → 5% (through 2029); digital products and services newly taxable |
| Jan 2025 | Kansas | State grocery rate reached 0% — final step of the phase-out (locals still apply) |
| Jul 2025 | Mississippi | Grocery rate cut 7% → 5% (SNAP-eligible foods) |
| Jul 2025 | Maryland | New 3% tax on data and IT services (SaaS, IaaS, PaaS, custom development, IT consulting) |
| Sep 2025 | Alabama | State grocery rate cut 3% → 2% |
| Oct 2025 | Washington | ESSB 5814: sales tax extended to IT services, custom software and websites, digital automated services, advertising, security, staffing |
The two with the widest blast radius are service expansions: Washington's ESSB 58144 pulled IT services, custom software, advertising and staffing into sales tax (with a penalty-relief program for the transition), and Maryland's 3% data/IT tax reaches SaaS and cloud services. If you sell services into either state, 2025 changed your invoices — details in Washington sales tax by city and the taxability guides.
Scheduled next — put these on the calendar
- 1 October 2026 — Washington DC: 6% → 7%. Note the widely repeated claim that DC rose to 6.5% in 2025 is wrong: the official OTR notice holds 6% through 30 September 20263.
- 1 July 2027 — South Dakota: 4.2% → 4.5%. The temporary cut sunsets; 2026 legislation kept the sunset in place.
- June 2027 — Minnesota: the accelerated June prepayment for vendors with $250k+ annual liability begins — details here.
- 1 January 2030 — Louisiana: 5% → 4.75%, the scheduled step-down of the 2025 increase.
What to actually do with this list
If you sell into the moved states: re-pull rates on each quarter day, check whether a base change (services, groceries, rentals) touches your products, and use the Illinois amnesty window (through 31 October 2026) if the 2021–2025 sourcing changes caught you under-collecting. Every current rate on this site reflects the changes above — verify any address with the rate lookup, and see how the moves reshuffled the state rankings and city rankings.
Frequently asked questions
Quick answers to the most common questions users ask.
What sales tax changes took effect in 2026?
The biggest: Illinois ended its 1% state grocery tax (600+ localities adopted their own), repealed its 200-transaction nexus threshold, and raised the Chicago-area transit tax on 1 August (Chicago to 10.5%); Ohio repealed several exemptions including the electronic-information-services refund; Rhode Island doubled its local hotel tax and made whole-home short-term rentals taxable; Washington cities layered on 0.1% public-safety taxes all year; Arkansas eliminated its last state grocery tax.
Did any state change its statewide sales tax rate in 2026?
Remarkably, no — the Tax Foundation's Midyear 2026 review found zero state-level rate changes between January and July. All of 2026's movement has been local rates and the tax base: which items and services are taxed, not the headline state number. The next scheduled headline change is Washington DC's rate rising from 6% to 7% on 1 October 2026.
Is DC's sales tax going up?
Yes — but later than widely reported. Despite claims that DC rose to 6.5% in October 2025, the Office of Tax and Revenue's official notice keeps the rate at 6.0% through 30 September 2026, with a single jump to 7.0% on and after 1 October 2026.
What happened to the Illinois grocery tax?
The 1% state tax ended 1 January 2026, and the same law let localities impose their own 1% by ordinance. Over 600 municipalities did so effective 1 January, with a second wave on 1 July — so most Illinois shoppers still pay 1%, now labeled as a local tax. General merchandise was never affected.
What did Ohio change in 2026?
House Bill 96 repealed a batch of exemptions effective 1 January 2026: the 25% partial refund of sales tax paid by electronic-information-service providers, the exemption for rental and loaner vehicles reimbursed under warranty, and exemptions for newspapers, advertising material, motion-picture film rentals, call-center telecom, and digital audio works.
What is the Washington 'public-safety wave'?
A 2025 law let cities and counties adopt 0.1% public-safety sales taxes by council vote, no ballot needed — and adoptions rolled through 2026 in quarter-day steps: Seattle and King County on 1 January (Seattle to 10.55%), Tacoma reaching 10.5% by July, with the councilmanic authority running to mid-2028. Washington rates now genuinely need a quarterly re-check.
Which 2025 changes are still reshaping receipts?
Five carry real weight into 2026: Washington extended sales tax to IT services, custom software, advertising and staffing (October 2025); Maryland's 3% tax on data and IT services began July 2025; Alabama's grocery rate fell to 2% (September 2025); Mississippi's to 5% (July 2025); and Louisiana's state rate rose to 5% while newly taxing digital products (January 2025).
What sales tax changes are scheduled after 2026?
Three dates worth calendaring: Washington DC's rate rises to 7% on 1 October 2026; South Dakota's temporary 4.2% reverts to 4.5% on 1 July 2027; Minnesota's June accelerated payment for large filers begins June 2027; and Louisiana's 5% is scheduled to step down to 4.75% in 2030.
References
- Bulletins FY 2026-03, FY 2026-11, FY 2026-12, FY 2026-34Illinois Dept. of Revenue↩
- State and Local Sales Tax Rates, Midyear 2026Tax Foundation↩
- Sales tax 6% through Sept 30, 2026; 7% from Oct 1, 2026DC Office of Tax and Revenue↩
- ESSB 5814 services expansion and 2026 local changesWashington Dept. of Revenue↩
- FY2026 changes: local hotel tax and short-term rentalsRhode Island Division of Taxation↩
Primary sources are linked directly. Rates and thresholds change on their own schedules — always confirm against the issuing authority before relying on a figure.
Check a current rate
Every 2025–2026 change above is reflected in the lookup — state, county, city and district.
Related guides
Keep reading — these cover the next step in the same chain.
All rates, thresholds, and regulatory guidance cited on this page are sourced from official government publications and non-partisan research institutions.
State Departments of Revenue
California CDTFA
Official CA tax rates portal, address-specific lookup tools, and district tax publications.
cdtfa.ca.govTexas Comptroller
The official Texas sales tax rate locator, local jurisdiction database, and nexus guidance.
comptroller.texas.govNew York Tax & Finance
Official NY jurisdiction lookup for combined state, local, and MTA rates, and clothing exemptions.
tax.ny.govFlorida Dept. of Revenue
Official FL resource for state sales tax rates, county surtaxes, and annual tax holidays.
floridarevenue.comMyTax Illinois
Official Illinois Department of Revenue portal for address-based tax rate lookups and filings.
tax.illinois.govPennsylvania Revenue
Official PA portal for sales, use, and hotel occupancy tax rates and regulatory guidance.
revenue.pa.govOhio 'The Finder'
Official Ohio Department of Taxation tool for looking up rates by address, ZIP, or GPS coordinates.
thefinder.tax.ohio.govGeorgia Dept. of Revenue
Official Georgia sales and use tax rate charts and local jurisdiction tax distribution data.
dor.georgia.govNorth Carolina DOR
Official NCDOR portal for state, local, and transit tax rates by county and jurisdiction.
ncdor.govMichigan Treasury
Official Michigan Department of Treasury resources for the statewide 6% sales and use tax.
michigan.govFederal & National Sources
IRS Sales Tax Calculator
The official Internal Revenue Service tool for determining deductible state and local sales tax for federal income tax purposes.
irs.govU.S. Census Bureau
Official government repository for quarterly state and local tax revenue statistics and government finance data.
census.govSupreme Court — Wayfair Decision
The official government opinion for South Dakota v. Wayfair, Inc., establishing modern economic nexus standards for remote sellers.
supremecourt.govSBA Business Tax Guide
Official Small Business Administration guidance on understanding federal and state tax obligations for small business owners.
sba.govStreamlined Sales Tax Board
The official inter-governmental organization facilitating the simplification of sales tax administration across 24 member states.
streamlinedsalestax.orgTaxesLedger is an independent educational tool. We are not affiliated with any government agency. Rate records include source metadata and verification status; always confirm with your jurisdiction's official Department of Revenue before filing. Last registry update: September 11, 2026.
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