GlobeNewswire·Aug 13, 2026, 8:00 AM ET

Vertex Report: Rising Sales Tax Rates Signal a New Era of Tax Volatility

VERX

Vertex's 2026 Mid-Year U.S. Sales Tax Report reveals the combined average sales tax rate rose to a 10-year high of 10.1881%, marking the first increase in four years.
Local tax activity accelerated in the first half of 2026 with 463 combined rate changes & new rates, surpassing the 408 recorded in the same period of 2025.
County-level rate changes exceeded the total annual count from each of the past five years, while city-level changes also increased sharply compared to 2025.
Fiscal pressure from receding pandemic funds & reduced federal support is driving jurisdictions to expand tax bases, introduce new fees, & raise rates to replace lost revenue.
The taxable base is shifting as states like Texas & Washington broaden sales taxes to include more services & digital offerings, reflecting a move from goods to services.
Global tax authorities are increasingly using advanced technology for automated enforcement & data-driven fraud detection, requiring businesses to ensure audit-ready data accuracy.
Temporary tax relief measures such as VAT reductions & holidays may lead to future pressure for higher indirect tax rates or expanded bases to compensate for revenue losses.
E-invoicing mandates are accelerating unevenly across regions including Spain, France, Germany, the UAE, & Malaysia, adding complexity for multinational compliance teams.
The report concludes that tax has evolved into a strategic function requiring agile systems capable of handling fragmented, localized, & dynamic policy changes.