GlobeNewswire·Feb 3, 2026, 8:00 AM ET

Vertex Report: U.S. Sees Record-Level Growth in Sales Tax Rates and Rules Changes in 2025 Amid Fiscal Uncertainty

Vertex Inc. released its 2025 End-of-Year U.S. Sales Tax Rates & Rules Report covering 12,414 jurisdictions with significant rate & rule changes.
The year saw 681 total sales tax rate changes or new rates implemented, representing one of the highest annual totals in recent years.
335 new city, county, & district taxing jurisdictions were enacted in 2025, marking a 10-plus-year high driven by local revenue needs.
New taxing cities doubled to 108 in 2025 compared to 51 in 2024, while 219 new district taxes were enacted, the highest since 2017.
The average state sales tax rate rose to 5.5592% after three years of declines, with city-level rate increases outnumbering decreases by a 4.7:1 ratio.
Emerging 2026 trends include a shift in federal funding forcing states to rely more on indirect taxes due to unfunded mandates & revenue challenges.
AI is reshaping taxable transactions through agentic purchasing & enhancing state audit enforcement & compliance efforts.
Policymakers are adopting creative revenue strategies such as taxing digital advertising & re-evaluating exemptions for business & personal services.
Global implications for multinationals include critical e-invoicing compliance mandates & potential impacts from retaliatory tariffs & shifting digital services tax policies.
Vertex provides technology & automation solutions to help businesses manage indirect tax complexity & maintain compliance across changing regulatory landscapes.