As of July 1, 2025, more than 20 U.S. states enacted updated sales‑tax rates, new economic nexus rules, and sales‑tax exemptions that directly affect small businesses - especially those selling online or across state lines. Understanding these changes is essential to stay compliant, avoid penalties, and optimize cash flow.

1. What Changed and Why It Matters
- States including Florida, Maryland, Mississippi, Utah, and Tennessee adjusted sales‑tax rates and exemption thresholds.
- Maryland now taxes IT and data services at 3%, impacting SaaS, cloud, and consulting businesses.
- Utah now requires more businesses to collect sales tax, no matter how many transactions you make.
Before, you could avoid sales tax in some states if you had fewer than 200 sales, but that’s changing. In Utah and many other states, once you hit a certain dollar amount in sales, you’re required to collect sales tax, even if it's just a few big orders. This rule is called economic nexus, and it's expanding.

2. Common Risks
- If you're not keeping up with these rules, the state can say you owe thousands in back taxes, plus interest and penalties. Even if you didn’t know you had to charge sales tax, you’re still responsible. That’s where we can help you stay protected.
- Under‑ or over‑charging can erode profits or burden customers.
- Filing sales tax in multiple states manually is a headache, and one small mistake can cost you. We use tools that automatically apply the right rates and track which states you need to file in. Less stress, more confidence.
3. How TRA Protects Businesses

- Tax Planning & Preparation: We update nexus assessments, apply correct sales‑tax rates per state, and file accurate returns.
- Bookkeeping & CFO Advisory: Our systems flag escalating nexus, track exemption criteria, and forecast liability.
- Tax Resolution Support: If past periods need correction, we'll negotiate with tax authorities on your behalf.
4. Steps To Take This Week
- Review your July 1st nexus and tax‑rate changes affecting your footprint.
- Enable automation that maps rates by product, customer location, and state.
- Meet with us to revise cash‑flow forecasts and tax‑planning strategies given these updates.
5. Why This Matters Long‑Term

Sales tax changes will continue through 2025, and online commerce acceleration makes nexus exposure more dynamic. TRA’s integrated services deliver proactive planning, seamless compliance, and financial clarity.
As tax policy evolves and automation becomes standard, small business owners need more than spreadsheets - they need a partner. We offer local expertise backed by AI‑driven tools and hands‑on account guidance. Contact us to schedule your nexus audit and tax‑planning strategy review.