TaxValet Reports on 2026 Sales Tax Trends and Regulatory Shifts
The 2026 fiscal year saw significant shifts in sales tax regulations, particularly for ecommerce businesses. Several states moved toward economic nexus models based on revenue rather than transaction volume; notably, Illinois and Kentucky eliminated their transaction-count thresholds in favor of a $100,000 sales threshold. Conversely, the tax base is expanding to include digital goods, with California set to tax SaaS and prewritten software starting in 2027. Legal challenges also shaped the landscape, as the Maryland Tax Court ruled against state digital advertising taxes following litigation from major tech entities including Apple and Google. These rulings highlight ongoing constitutional tensions regarding how states levy taxes on digital services and global revenue. Businesses are advised to audit their nexus obligations and software tax classifications ahead of 2027.
Topics: Digital Advertising Tax E-commerce Regulation Legal Rulings SaaS Taxation Sales Tax