California and Colorado highlight a growing trend The taxation of digital goods and SaaS is becoming one of the fastest-evolving areas of US sales tax. For years, many states exempted cloud software and other digital products because their sales tax systems were designed around tangible
200-transaction economic nexus test withdrawn 1 August 2026 Kentucky has simplified its sales tax registration rules for remote sellers by removing the 200-transaction economic nexus test. Since 1 August 2026, non-resident businesses only need to register and collect Kentucky sales tax once they exceed USD
Colorado expands sales tax to SaaS, downloaded software and mobile apps, ending digital software exemptions from January 2027 Colorado has become the latest US state to expand sales tax to the digital economy, with new rules bringing Software-as-a-Service (SaaS), downloaded software and many mobile applications
Utah expands sales tax to streaming and digital access services Utah has widened its sales and use tax rules for digital products, bringing many streaming and subscription-based digital services firmly into the tax net from 1 July 2026. Under Senate Bill 162, the state has
1 January 2027 $2 billion digital sales tax reform on software-as-a-services California has approved one of the most significant US indirect tax changes in recent years by extending sales and use tax to prewritten software and Software-as-a-Service (SaaS). Signed into law by Governor Gavin Newsom
Expands Sales Tax to Streaming, gaming and digital content and Digital Services from July 2026 Utah has approved legislation extending sales and use tax to a wider range of digital products and subscription-based services from 1 July 2026. Under S.B. 162, the state will impose
US “Sales Tax Club” expands? Alaska and Montana reopen the debate Two of the five remaining US states without a statewide sales tax are again asking a once-taboo question: is it time to join the other 45? The current ‘hold out’ states are: Alaska, Montana,
