2025 tax rates and adjustments

Staying on top of sales tax changes is crucial for keeping your business compliant. Here are the key updates and trends affecting small businesses in 2025.

State rate changes

Several states have implemented new tax rates:

• Louisiana: Increased from 4.45% to 5%.

• California: Adjusted to 7.25%.

Ensure you're up-to-date about tax changes where you do business.

Changes in nexus requirements

Economic nexus laws, which determine whether a business has a tax obligation in a state based on its economic activity rather than physical presence, have been a significant focus of recent sales tax changes. 

In 2025, several states have updated their nexus thresholds, making it easier for remote sellers to comply with sales tax regulations. For example, Alaska has eliminated its 200-transaction economic nexus threshold, potentially affecting remote sellers operating within the state (Alaska Department of Revenue).

Digital economy impact

States are modernizing tax codes to capture digital sales:

• Digital products are now taxable in many states

• Examples of digital products include audiobooks, apps and games

• Streaming services face new requirements

• Online marketplaces see expanded obligations

If you sell digital products, check the tax codes where you conduct business for more information.

New delivery fees

Retail delivery fees (additional charges applied to deliveries made by businesses) have been implemented in Colorado and Minnesota. Nebraska, New York, and Washington are considering similar measures.

These fees may require pricing strategy adjustments and could impact shipping policies–keep an eye out for new regulations to ensure you’re in compliance.

Sales tax holidays

Some states are expanding tax-free shopping periods in 2025. For example, Ohio has lengthened and expanded its back-to-school sales tax holiday, affecting more businesses and products than before.

Quick guide: Avoiding compliance issues

Non-compliance with new sales tax regulations can result in fines, audits, and loss of credibility, especially for marketplaces and large companies. 

Staying informed about the latest changes and meeting tax obligations is crucial. Here’s how to prepare:

• Monitor updates from state and local tax authorities

• Keep accounting and point-of-sale systems updated

• Train staff on new sales tax requirements

• Consult with tax professionals 

• Review supplier and customer contracts regularly

Need help with your sales tax requirements? Contact our firm for guidance on maintaining compliance while growing your business.