The following state, county, municipal, and district taxes are set to change effective January 1, 2026.

State and Local Sales Tax Changes Effective January 1, 2026

The rate changes below will be automatically reflected in the Fonoa tax engine.

Alabama

• A notice indicates that effective January 1, 2026, the Town of Coker’s general sales and use tax rate increased from 2% to 3%.
• A notice indicates that the Town of Blountsville has changed its local sales and use tax rates effective January 1, 2026, lowering the general rate from 4.000% to 3.000% and increasing the vending machine (food) rate from 2.000% to 3.000% while other classifications remain unchanged.

Alaska

• Effective January 1, 2026, the Alaska Remote Seller Sales Tax Commission (ARSSTC) rate tables reflect updated member jurisdiction sales tax rates, including specific rate adjustments such as the City of Nome increasing its general retail sales tax from 5% to 6% and seasonal rate changes and exemptions adopted by Haines Borough.

Arkansas

• Effective January 1, 2026, Arkansas implemented multiple local sales and use tax changes, including new and adjusted local tax rates due to annexations and rate updates in various cities/counties and the continued application of local taxes even as the statewide sales tax on groceries (food and food ingredients) is eliminated under the Grocery Tax Relief Act.

California

• Effective January 1, 2026, the City of Culver City’s total sales and use tax rate increased from 10.50 % to 10.75 % following voter approval of a new 0.25 % district tax, as reflected in the CDTFA’s tax rate change notice.

Colorado

• Effective January 1, 2026, Colorado’s Sales & Use Tax Rate Changes include multiple local jurisdiction updates, new tax jurisdictions, and rate adjustments in other cities/counties, as published in the Colorado Department of Revenue’s January 1, 2026, rate change list.

Georgia

• Effective January 1, 2026, the Georgia Department of Revenue has published updated quarterly local (county and other jurisdiction) sales and use tax rate changes, meaning multiple county-level sales tax rates changed for the quarter beginning January 1, 2026 (as detailed in the updated local rate chart).

Illinois

• Effective January 1, 2026, numerous Illinois jurisdictions have imposed new local sales taxes or changed their local sales tax rates on general merchandise.

Chicago

• The City of Chicago’s Personal Property Lease Transaction Tax (PPLT) rate increased from 11% to 15% on all leases, including non-possessory computer leases (e.g., cloud computing services where the customer inputs, modifies, or retrieves their own data).

Iowa

• Effective January 1, 2026, Iowa’s local option (LOST) tax landscape changed with the disincorporation of Swan (Marion County), the removal of sunset dates for LOST in multiple cities (Black Hawk, Cedar Falls, Dunkerton, Elk Run Heights, Evansdale, Gilbertville, Hudson, La Porte City, Raymond, and others), the extension of a LOST sunset in Monroe (Jasper County) and other cities, and new or increased hotel and motel LOST rates in Nashua, Van Meter, Decatur, and an increase in Le Mars from 5% to 7%.

Kansas

• Effective January 1, 2026, the Kansas Department of Revenue published updated local sales and use tax rate tables reflecting quarterly city, county, and special jurisdiction rate changes effective on that date.

Louisiana

St. Landry Parish

• Effective January 1, 2026, the St. Landry Parish sales and use tax rate tables have been updated to reflect a local rate change in Washington within St. Landry Parish, resulting in adjusted combined local rates for that jurisdiction and others in the parish.

St. Tammany Parish

• Effective January 1, 2026, St. Tammany Parish rescinded the Northshore Square Economic Development District sales/use and hotel taxes, requiring reporting in the standard jurisdiction column, while the City of Slidell’s local sales tax rate itself remains unchanged.

Minnesota

• Effective January 1, 2026, Minnesota's local sales and use tax landscape changes, with several jurisdictions ending, starting, or adjusting local tax rates for the first quarter of 2026.

Missouri

• Effective January 1, 2026, the Missouri Department of Revenue’s January 2026 Multiletter reflects local sales and use tax rate changes for the January–March 2026 quarter, including new or extended local taxes that update combined sales/use tax rates in affected jurisdictions.

Nebraska

• Effective January 1, 2026, Nebraska implemented a new 1% local sales and use tax in the village of Filley for the calendar quarter beginning on that date.

North Dakota

• Effective January 1, 2026, North Dakota’s local sales, use, gross receipts, and lodging tax rates were changing, with the City of Medina imposing a 1% local lodging and restaurant tax, the City of Sherwood imposing a 2% city sales/use/gross receipts tax, the City of Surrey increasing its sales/use/gross receipts tax to 3%, and Walsh County increasing its sales/use/gross receipts tax to 1%.

Texas

• Effective January 1, 2026, Texas local sales and use tax updates include the elimination of San Antonio’s additional sports venue tax, adjustments to the San Antonio Advanced Transportation District transit tax rate, and the creation of new combined local tax jurisdictions resulting from district boundary and transit tax changes.

Washington

• Effective January 1, 2026, multiple Washington local jurisdictions (e.g., Algona, Bellingham, Seattle, Renton, and others) imposed or increased local sales and use taxes as reflected in the Department of Revenue’s Quarter 1, 2026 local tax change notices.

West Virginia

• Effective January 1, 2026, in West Virginia, the municipalities of Clay, Franklin, Saint Marys, and Winfield began imposing a 1% municipal sales and use tax (for a combined state/local rate of 7%).