📅 2026 Update: Key Changes in Sales Tax Regulations

Since the original article was published, there have been notable changes in sales tax laws across various states. These updates are important for businesses and consumers to understand how tax obligations may have shifted. The older article continues below, providing more foundational information.

🛒 New Sales Tax Structures in North Carolina

On July 1, 2026, North Carolina introduced a new sales and use tax rate structure. Businesses operating in the state must register for a sales and use tax permit. They are also required to file returns based on this updated structure.

This change may impact how businesses calculate and report their sales taxes moving forward.

📊 Updates from the Tax Foundation

Just a few days later, on July 6, 2026, the Tax Foundation released updated data on state and local sales tax rates. This includes information about changes effective from July 1, 2026, and can help businesses and consumers stay informed about current tax rates in their areas.

📉 Brown County, Ohio's Tax Rate Change

Brown County, Ohio, reduced its sales and use tax rate from 7.25% to 7.00% effective October 1, 2025. This reduction may influence how businesses in the area approach their tax filings. It's essential for those in the county to note this change when preparing their returns.

⏰ Filing Deadlines to Keep in Mind

For North Carolina, sales and use tax returns are due on the 20th day of the month following the reporting period. In Ohio, the deadline is the 23rd day of the month. Awareness of these deadlines is crucial for businesses to avoid penalties for late filings.

📌 Key Points to Remember

  • North Carolina has a new sales tax structure as of July 1, 2026.
  • The Tax Foundation provided updates on tax rates effective July 1, 2026.
  • Brown County, Ohio, lowered its tax rate to 7.00% in October 2025.
  • Filing deadlines differ: North Carolina on the 20th, Ohio on the 23rd.

💡 Tips for Navigating Sales Tax Changes

Reviewing your specific situation with an attorney is essential to comprehend how these changes might affect you.

📝 Keep Records Organized

Maintaining organized records of all sales transactions is important. This will help ensure accurate reporting and compliance with sales tax regulations in your state.

📅 Stay Updated on Deadlines

Be aware of filing deadlines in your state. For example, North Carolina returns are due on the 20th and Ohio returns on the 23rd. Mark these dates on your calendar to avoid late fees.

📚 Understand Local Variations

Sales tax rates can vary significantly within a state. For instance, Ohio's Brown County recently reduced its rate. Businesses should check local tax rates regularly to ensure compliance.

🔍 Use Available Resources

Both the North Carolina Department of Revenue and the Ohio Department of Taxation offer resources for businesses. Utilize these tools for information on sales tax compliance and filing requirements.

💭 Consider Exemptions

Certain items may be exempt from sales tax, depending on the state. Familiarize yourself with these exemptions to ensure you are not overpaying.

📈 Regularly Review Tax Obligations

Sales tax regulations can change. Regularly consult with state and local tax authorities to stay informed about any updates that could impact your business.

🏆 Sales Tax Services Ranked by User Reviews (2026)

This section covers various services related to sales tax preparation and filing. These services have been ranked based on Trustpilot data as of October 2026. Ratings can change, so it's important to consider them alongside other customer feedback.

Remember that unhappy customers tend to leave more reviews, which can skew perceptions.

🥇 1. TaxSlayer

TaxSlayer holds a Trustpilot score of 3.8. It has been known for its affordable tax filing options and multiple filing methods. However, some users report limited customer support and occasional software glitches, which could affect the user experience.

🥈 2. H&R Block

H&R Block has a Trustpilot score of 4.2. This service is recognized for its comprehensive tax preparation services, including online filing. Still, customers note that in-person services can be pricey, and responsiveness from customer service may vary.

🥉 3. TurboTax

TurboTax has an average score of 4.0. It is widely known for its user-friendly online tax filing software. However, customers point out that the free version is somewhat limited, and there's an upsell of additional services that may not be necessary for every filer.

4️⃣ Jackson Hewitt

Jackson Hewitt has a Trustpilot score of 3.5. This service is known for providing in-person tax preparation and offers year-round support. However, customers have reported higher service fees and inconsistent quality across different locations.

5️⃣ Liberty Tax Service

Liberty Tax Service holds a Trustpilot score of 3.2. It is recognized for franchise tax preparation and seasonal promotions. Yet, users often mention variable service quality and aggressive marketing tactics, which may not suit everyone's preferences.

🆓 Free Government Assistance

Both the North Carolina Department of Revenue and the Ohio Department of Taxation offer free resources and assistance for businesses regarding sales tax. These options can be valuable for those needing guidance without incurring additional costs.

🔎 Key Considerations When Choosing a Service

  • 🏷️ Look for trust scores and customer reviews.
  • 📞 Evaluate the quality of customer support offered.
  • 💻 Consider the user interface of online tools.
  • 💵 Check for hidden fees or upselling practices.
  • 📅 Review available filing options and flexibility.

❓ Frequently Asked Questions

❓ What is the sales tax rate in North Carolina?

The general state sales tax rate in North Carolina is 4.75%, but local rates can increase this amount.

📌 How do I register for a sales tax permit in Ohio?

Businesses in Ohio must complete the registration process through the Ohio Department of Taxation to obtain a sales and use tax permit.

🔄 Can sales tax rates change frequently?

Yes, sales tax rates can change. Businesses should stay informed about updates from state and local tax authorities.

🗓️ What happens if I miss my sales tax filing deadline?

Missing a sales tax filing deadline can result in penalties and interest charges. It's essential to file on time to avoid these issues.

📊 Where can I find information on sales tax exemptions?

Sales tax exemptions can vary by state. Check with your state and local tax authorities for a list of items that may be exempt.

💰 How can I ensure compliance with sales tax laws?

Regularly consult with your state’s tax authority and keep track of changes in tax laws to maintain compliance and avoid penalties.

⚖️ Recent Cases Related to Sales Tax

Recent court rulings have addressed various issues surrounding sales tax laws and regulations. These cases can influence how businesses approach compliance and filing obligations.

For more information on recent rulings, see more rulings on the news page.

End of October 2026 Update





Sales Tax Overview: All You Need to Know

Introduction

Sales tax is a tax on the sale of goods and services that are purchased by the end consumer. It is applied at the point of sale, and as such, it is often referred to as a point-of-sale tax. In this article, we'll provide an overview of sales tax, including the types of sales tax, how it's calculated, and the importance of sales tax compliance.

Types of Sales Tax

There are two main types of sales tax in the United States.

1. State Sales Tax: State sales tax is levied by individual states on the sale of goods and services within their borders. The state sets its own tax rate, which can vary depending on the type of product being sold.

2. Local Sales Tax: Local sales tax is levied by cities, counties, and other local jurisdictions on top of the state sales tax. The rates can differ significantly, with some cities or counties not having any local sales tax at all.

How is Sales Tax Calculated?

Sales tax is calculated as a percentage of the purchase price of a product or service. The tax rate is generally determined by the state and local jurisdictions where the sale occurs.

For example, if a state has a sales tax rate of 6% and a local jurisdiction adds another 1% in sales tax, the total sales tax rate becomes 7%. If a customer purchases an item that costs $100, they would pay an additional $7 in sales tax.

The Importance of Sales Tax Compliance

Businesses that sell products or services are required to collect sales tax on behalf of the state and local jurisdictions. Failure to do so can result in costly penalties and fines, in addition to the unpaid taxes.

Moreover, sales tax compliance is essential for businesses to maintain a good relationship with their customers and preserve their brand reputation. Customers expect businesses to abide by all tax laws and regulations, and if a business is perceived as flouting the rules, it can negatively impact customer trust and loyalty.

📝 See Also

Conclusion

Sales tax is an essential source of revenue for states and local jurisdictions, and businesses play a crucial role in collecting and remitting this tax. It is essential for businesses to comply with all sales tax laws and regulations to avoid penalties and promote a positive relationship with their customers. By understanding how sales tax works and the importance of compliance, businesses can maximize their success while fulfilling their civic responsibilities.

State Sales Tax Defined:
•    Sales tax in the United States is a government-enforced and issued levy that is typically viewed as an added cost, placed onto the price of goods or services.

•    The sales tax in the United States is a form of consumption tax, which is delivered as a percentage and placed on the purchase of goods, such as clothing.

•    The sales tax is collected by local government departments to help fund and deliver public goods to the underlying community.

•     Each state in America contains different rules for applying a sales tax. Some state laws are more advantageous to the taxpayer for certain purchases or transactions. This policy and interpretative contrast is crucial to understand especially if the taxpayer is planning to run a business in a particular state.

•    Not all goods purchased are met with a sales tax. Typically items that are viewed as necessities, such as food, are not administered with an additional taxation.

•    The sales tax is collected by the merchant of the store or retail shop in which the goods were purchased. Typically, only consumers are charged a sales tax; the levy does not apply to resellers or manufacturers of the goods.

•    As is common with most local laws or taxation models, the percentage of the sales tax as well as the presence of a sales tax, will differentiate based on state interpretation. For instance, sales taxes are levied by every state except: Alaska, Delaware, Montana, New Hampshire and Oregon. Furthermore, the presence of a sales tax and the attached percentage rate may fluctuate at the county or municipal level.

•    The sales tax is a consumption tax that is charged directly at the point of purchase for certain goods and services. The amount of tax is calculated by applying a percentage (instituted by the particular state) rate to the taxable price of the item purchased. A portion of the sales price may be exempt from taxation, however, because the sales tax contains a list of specialized exemptions.

•    States may either include the tax in the price of the good (known as a tax-inclusive model) or may add the tax to the price of the at the point of sale.

•    The majority of sales taxes are collected from the buyer by the seller; the seller then remits the tax to the underlying government agency.

Types of Sales Tax

•    The conventional sales tax, known as the retail tax, is charged on the sale of an item to its final end user or consumer. Other types of sales tax include:

•    Gross Receipts Taxes: Sales tax levied on all sales of business.

•    Use Tax: A levy imposed directly on the consumer of goods who purchase items without a sales tax; this typically refers to items purchased from a vendor in another state and delivered to the purchaser by mail or common carrier.

•    Excise Taxes: A type of sales tax that is applied to only a narrow range of products (i.e. gasoline or alcohol). This type of tax is typically imposed on the producer rather than the retail seller.

•    Securities turnover excise tax: A tax levied on the trade of securities