- State-Specific Sales Tax Changes: In 2025, several states, including California, Texas, New York, and Florida, are expected to update sales tax rates and regulations, particularly affecting digital products and out-of-state sellers. Businesses should regularly check state Department of Revenue websites and adjust their tax software accordingly.
- Expansion of Digital Products Taxation: States are broadening sales tax laws to include more digital goods and services, such as streaming services and AI tools. Companies must review their product classifications for tax implications and consult tax professionals to ensure compliance with any new obligations.
- Economic Nexus and Compliance Enforcement: Economic nexus laws are evolving, with some states lowering sales thresholds and increasing compliance requirements. Businesses should track their sales to determine nexus status and invest in automated sales tax compliance solutions to facilitate adherence to new regulations and reduce audit risks.
Source Complyt
