Skip To Primary Navigation Skip To Main Content Skip To Footer

By the Numbers: 2025 U.S. Sales Tax Rates and Rules Changes

How to Conduct a Reverse Sales Tax Audit

While taxes have long been described as a constant, they also serve as a barometer of economic and business trends.

This may explain why 2025 sales and use tax rates and rules changes broke records. More new state and local taxes were enacted in 2025 compared to any year in the past decade. The number of new taxing cities that came online last year also marks a 10-year high.

In 2025, U.S. indirect tax policymaking reflected a turbulent year – one that had economists and business analysts straining to coin new phrases to describe the unprecedented magnitude of change taking place. Isolated crises gave way to “compound volatility”. Global trade, regulatory regimes and technology advancements underwent “structural reconfigurations”, whose implications and ripple effects are likely to last for decades.

Similar levels of disruption took place in state and local tax jurisdictions, as they struggled to keep pace with growing fiscal uncertainty, looming budget shortfalls and the ongoing digitisation of commerce. As indirect tax leaders respond to heightened tax policymaking volatility in the coming 12 months, they can view the Vertex 2025 End-of-Year Rates and Rules Report for clues about what’s probably on the horizon.

Notable 2025 numbers include:

  • 681: There were 681 total combined sales tax rate changes and new rates in 2025. That’s the third highest number of total annual changes in the past decade.
  • 335: This figure marks the total of new city, county and district taxes that were enacted in 2025 – a 10-plus-year high.
  • 219: A total of 219 new district taxes came online in 2025, the highest number of new district taxes since 2017 (237)
  • 2X: More than twice as many new taxing cities were enacted in 2025 (108) compared to 2024 (51).
  • 4.5:1: Sales tax rate increases outnumber rate decreases at the city level by a 4.5:1 ratio. This represents a reduction from 2024 when city rate increases outnumbered decreases by an 8:1 ratio.
  • 5.5592%: This is the average state sales tax rate in 2025; following three years of declines, the average state sales tax rate increased last year. Average sales tax rates for the city, county and district levels also increased in 2025.
  • 12,414: The total number of new and updated sales and use tax jurisdictions in 2025 at the city (7,123), county (1,972), district (3,273) and state (46) levels.

The complete report, which is based on rates and rules data collected from 1 Jan. to 31 Dec. 2025, provides many more figures along with additional context. Our annual analysis of (2026) indirect tax trends examines the implications of these rates and rules changes.

Disclaimer

Please remember that the Vertex blog provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information. The views and opinions expressed in the Vertex blog are those of the authors and do not necessarily reflect the official policy, position or opinion of Vertex Inc.

Blog Author

Chris Hall

Chris Hall

Senior Tax Officer, Chief Strategy Office

See All Resources by Chris

Chris Hall is the Senior Tax Officer in the Chief Strategy Office at Vertex, with a focus is on global taxes and compliance. Prior to Vertex, Chris served as Managing Director for Global Indirect Tax Strategy at Ford Motor Company from 2017 and served in multiple leadership roles in North America and Europe since joining Ford in 2001. Between 1988 and 2001, Chris worked for General Electric Company, running GE’s shared services tax organisation in his last role there.

Chris has been responsible for all aspects of indirect tax including compliance, audits, controversy, planning, legislation and leading systems automation projects for centralised tax determination and reporting processes using Vertex and other platforms.

He holds a B.S. in Finance from Florida Tech and an MBA from University of South Florida, is a Certified Member of the Institute or Professionals in Taxation (IPT) and was a Certified Management Accountant and a member in good standing with the Institute of Management Accountants from 1993 to 2013. 

2025 End-of-Year Report

2025 data reveals a 10-year high in new taxes enacted, and the first increase in average state sales tax rates in three years, as jurisdictions pivot to address budget shortfalls.

Read Now
An over-the-shoulder view of a senior IT manager, dressed in yellow. They are working at their laptop, plugged into a monitor behind it, and looking at raw data for tax insights.