US Sales Tax Rate Updates for May 2025

The following state, county, municipal and district taxes are set to change effective May 1, 2025.

The rate changes below will be automatically reflected in the Fonoa tax engine.

Alabama

• Effective May 1, 2025, the Alabama Department of Revenue will begin administering and collecting sales and use taxes for the City of Sheffield, Alabama, following the city's adoption of Resolution No. 03172025. Businesses must file their first local tax return for the period ending May 31, 2025, by June 20, 2025.
• Effective May 1, 2025, the Alabama Department of Revenue will begin administering and collecting sales, use, rental, and lodging taxes for the City of Glencoe, Alabama, under Resolution No. 25-02. Businesses must file their first local tax return for the period ending May 31, 2025, by June 20, 2025.

Alaska

Alaska stands out as one of the few U.S. states without a statewide sales tax; however, over 100 local municipalities independently levy their own sales taxes. To streamline tax collection from remote sellers, the Alaska Remote Seller Sales Tax Commission (ARSSTC) was established, enabling participating communities to enforce local sales tax compliance on out-of-state businesses.

Effective May 1, 2025, the City of Elim has joined the ARSSTC, requiring remote sellers meeting economic nexus thresholds to collect and remit 3% local sales tax on transactions destined for Elim.

Please find further information here.

South Carolina

Effective May 1, 2025, several South Carolina counties will implement changes to their local sales tax rates:

• Georgetown County: Introducing a new 1% Capital Projects tax, resulting in a total rate of 7% for general sales and 8% for accommodations.
• Horry County: Adding a 1% Transportation tax, bringing the total to 8% for general sales and 9% for accommodations.
• Jasper County: Implementing a 1% Transportation tax, leading to a 9% general sales rate and 10% for accommodations.
• Sumter County: Applying a 1% Capital Projects tax, resulting in 8% for general sales and 9% for accommodations.

Additionally, certain local taxes are set to expire:

• Horry County: The 1% Capital Projects tax will expire on April 30, 2025.
• Williamsburg County: The 1% Capital Projects tax will expire on April 30, 2025.

Please find further information on the above changes here.