QuickBooks Sales Tax Rate and Rule Updates June 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. With many users doing business in more than one state, this summary will be sent each month so you are aware of changes that may affect your business transactions both inside and outside your state. 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
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Filing is currently available in seventeen states, with more to come. Find out more here. RATE UPDATES Rate changes will take place in the following locations on June 1, 2026. All states that are listed have local rate changes unless otherwise noted as also having a state rate change. Alabama
(Dadeville, Tuscumbia, PJs noted below) TAX ADMINISTRATION UPDATES Alabama - Police Jurisdictions (PJs) Deannexations
The Alabama police jurisdiction rates in the following localities are decreased to 0.00%. The Alabama Department of Revenue was informed by the Examiners of Public Accounts that these localities failed to file the 2024 fiscal year police jurisdiction report in accordance with Act 2021-297. As a result, these localities are prohibited from collecting municipal licenses, taxes, and fees levied in the police jurisdiction:
- Guin – ALDOR administered
- Sulligent – Neumo (previously Avenu) administered
- Sylvan Springs – Neumo (previously Avenu) administered
- Madrid – Neumo (previously Avenu) administered
USING QUICKBOOKS: TAX CATEGORIES Did you know that assigning your products or services to tax categories will automatically calculate any special rates or exemptions? Assigning a QuickBooks Tax Category to the products and services you sell helps ensure you are properly collecting sales tax in every jurisdiction where you make sales. Even if your product is fully taxable, if it’s included in a sales tax holiday, assigning to a tax category will automatically capture the exemption during the holiday period. We have over 1900 tax categories in QuickBooks. If you are curious about how to assign your products and services to tax categories, you can learn how in this quick tutorial. SALES TAX NEWS Illinois - Northern Illinois Transit Authority
Effective June 1, 2026, the Regional Transportation Authority (RTA) is being replaced by the Northern Illinois Transit Authority (NITA). This change is pursuant to Public Act 104-0457, which also authorizes an increase in the sales tax rate imposed by the NITA of 0.25%. As such, the Board can authorize that sales tax on food will be 1.5% within the region rather than 1.25% and the rate on tangible personal property will be 1.25% within the region rather than 1%. There is no rate increase as of June 1, 2026, because the Board has not yet voted to increase the rate.
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.
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