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How to know when your sales tax rate changes

Sales tax rate changes are announced by your state department of revenue, usually weeks or months before they take effect, and local rates can change separately when a city, county, or special district adopts a new tax. To catch them, subscribe to your state revenue department’s notices, watch local ballot measures and council votes, and use an alert service such as PolyWise that flags rate changes for your location.

Why your rate changes more often than you think

In many states the rate a customer pays is a combination of the state rate plus county, city, and special district rates such as transit or tourism districts. Any one of those can change on its own schedule, often at the start of a calendar quarter. Voters may approve a local increase on a ballot, or a temporary tax may expire.

Where to watch

  • Your state department of revenue’s rate change notices and email lists.
  • Local ballot measures in your city and county, since many local sales taxes need voter approval.
  • County commission and city council agendas, where local tax proposals are discussed first.
  • Your point-of-sale or accounting provider, which may update rates automatically but not always for every district.

What to do when a change is coming

  • Confirm the new rate and effective date with your state revenue department.
  • Update your point-of-sale system, online store, and invoice templates before the effective date.
  • Decide whether to adjust prices or menu boards.
  • Tell your bookkeeper or accountant so returns are filed at the right rate.

Get notified automatically

PolyWise watches for proposed and approved sales tax changes where your business operates and sends a short alert while there is still time to update pricing and systems.

PolyWise is not a law firm, and this guide is general information, not legal or tax advice. Confirm details with the relevant agency or a professional.

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