Sales Tax Rate Changes
Sales tax compliance is constantly changing — and this July brought new local rates that businesses need to know across the country. If you sell in certain states, you’ll need to be aware of both new local sales tax rates.
New Local Sales Tax Rates
As of July 1, 2025, the following states have implemented new local sales tax rates:
- Arizona – The current statewide sales tax rate in Arizona is 5.6%
- North Dakota – The current statewide sales tax rate in North Dakota is 5%
- Illinois – The current statewide sales tax rate in 6.25%.
- South Carolina – The current statewide sales tax rate in 6%
- Washington – The current statewide sales tax rate in Washington is 6.5%.
Businesses registered in these states should confirm the updated rates before collecting and remitting sales tax to ensure compliance.
Action Steps for Businesses
- Verify new rates for any applicable jurisdictions where you collect sales tax.
- Meet all due dates to avoid penalties or interest charges.
Even if your rate hasn’t changed, this is a good reminder to review your sales tax settings at least twice a year to stay compliant.
About Davis Davis & Harmon LLC
Davis Davis & Harmon LLC is a national sales tax advisory firm headquartered in Dallas, Texas, with a mission to deliver world-class sales and use tax solutions to complex organizations. The firm specializes in audit defense, refund recovery, and compliance strategy, serving Fortune 1000 clients across industries. With more than 30 years of expertise, Davis Davis & Harmon is the go-to partner for navigating the complexities of sales tax. Learn more at www.ddhtax.com.