QuickBooks Sales Tax Rate and Rule Updates May 1, 2026 Thank you for using QuickBooks Sales Tax. Each month states make changes to rates and rules. To keep you ahead of these changes we have put together the following summary of rate and rule changes that will occur in QuickBooks Sales Tax this month and may affect your business transactions. Knowing these changes will eliminate surprises to you or your clients. You can use our free sales tax calculator anytime to find rates for any US address. Save time with QuickBooks filing Simply review, approve, pay, and send. Find out more here. In addition to the 11 states currently available, the following states have been added for both monthly and quarterly filers: Michigan, Nevada, New Jersey, South Dakota. RATE UPDATES Rate changes will take place in the following locations on May 1, 2026. All states that are listed have local rate changes unless otherwise noted as also having a state rate change. Alaska - Pelican Missouri South Carolina (Williamsburg County) TAX ADMINISTRATION UPDATES Alabama Bayou La Batre, AL The City of Bayou La Batre is changing tax administration from Avenu to AL DOR for its sales, use, rental, and lodgings taxes. The PJ rates are ½ the corporate limit rates. Currently, the City of Bayou La Batre levies sales, use, and lodging taxes.
Eva, AL The town of Eva is changing tax administration from Avenu to AL DOR for its sales, use, and rental taxes. Lodging taxes were not included in the resolution. The Town of Eva does not levy PJ taxes. Currently, the Town of Eva levies sales, use, and rental taxes.
Selma, AL The city of Selma is changing tax administration from Avenu to AL DOR for its sales, use, rental, and lodging taxes. The PJ rates are ½ the corporate limit rates. Currently, the City of Selma levies sales and uses taxes. CONTENT UPDATES Alabama Pursuant to Act 2026-604, Alabama has suspended the state portion of the sales and use taxes on food for a two month period beginning May 1, 2026 through June 30, 2026. City and county sales and use tax rates on food are not affected. All impacted tax categories will be exempt at the state level during this time. More information may be found here. SALES TAX HOLIDAYS Texas Texas is having its annual ENERGY STAR and Water-efficient Sales Tax Holidays from May 23 through 25. During this holiday ENERGY STAR, WaterSense and water-efficient products are tax free. More information may be found here for ENERGY STAR products, and here for WaterSense and water-efficient products. All impacted tax categories will be exempt under the relevant thresholds, when applicable, during the holiday.
Please note that these are the changes that have been released by the states as of the date of this e-mail and there is a possibility other small changes could be enacted late or retroactively by the states.
QuickBooks has been updated to account for these changes. Now you will get the updated rates and rules applied automatically to your invoice. Click below to try it out.
|