Avalara’s blog outlines the 2026 sales tax holiday schedule across the United States, detailing dates, exempt product categories, and state‑specific rules. The post highlights key holidays in Alabama, Arkansas, Connecticut, Florida, and other states, noting price caps, local tax considerations, and the need for retailers to update POS systems.
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1stopVAT · about 22 hours ago
Illinois: Use tax applies to tangible personal property purchased in Illinois when sales tax is not collected, while Chicago imposes municipal taxes on digital services such as SaaS and streaming.
The BayNet · about 24 hours ago
Maryland: The Supreme Court ruled that Potomac Edison’s transmission equipment qualifies for a sales and use tax exemption, affecting over $3.24 million in taxes. The decision clarifies which components are exempt and sets limits on refund claims.
VatIT · 2 days ago
California will tax SaaS and digital prewritten software from 1 January 2027, regardless of delivery method. The state rate is 7.25%, rising above 10% with local rates. Buyers with receipts over $5 million must self-assess use tax.
CNBC · 6 days ago
The United States has announced a 25% tariff on most Brazilian imports, effective 22 July 2026, under Section 301 of the Trade Act. The measure targets alleged unfair trade practices, with exemptions for goods such as beef, orange juice, aircraft parts and energy products, and a potential additional 12.5% duty if a forced-labour probe concludes.
1stopVAT · 6 days ago
Colorado expands sales tax to digital software under House Bill 26-1223, effective 1 January 2027. The bill removes exemptions for downloaded and remotely accessible software, potentially including SaaS.
CryptoBriefing · 6 days ago
The United States will impose a 25% tariff on most goods imported from Brazil starting 22 July 2026. The measure, triggered by a Section 301 investigation over digital trade and deforestation concerns, exempts products such as beef, coffee, and aircraft parts.
Key Takeaways
Alabama will have a severe weather preparedness holiday from Feb 20–22, 2026, exempting portable generators ≤$1,000 and supplies ≤$60; and a back‑to‑school holiday July 17–19, 2026, exempting books ≤$30, clothing ≤$100, computers/software ≤$750, and school supplies ≤$50.
Arkansas (Aug 1–2, 2026) for clothing < $100, accessories < $50, student electronics, school supplies; Connecticut (Aug 16–22, 2026) for clothing/footwear < $100; Florida (Aug 1–31, 2026) for clothing/footwear/wallets/bags ≤$100, school supplies ≤$50, learning aids ≤$30, PCs ≤$1,500.
In Alabama, the holidays exempt state sales tax but not local tax; local governments must adopt ordinances 90 days prior. In Connecticut, only state tax is exempt; no local tax.
Starting 2026, Alabama’s Department of Revenue must adjust price caps in response to the Consumer Price Index every five years.
Primary source
Read the full article at AvalaraThis summary was published on VATfaqs.com on 19 January 2026. It relates to VAT developments in United States. The original source is Avalara.
