Skip To Primary Navigation Skip To Main Content Skip To Footer

By the numbers: 2024 U.S. sales tax rates and rules changes

Image of two line graphs showing positive trends, one blue and one green.

ERP cloud migrations, fee compliance, new AI tools, tax data analytics, e-invoicing mandates in the EU, a rise in global value added tax (VAT) rate increases, tax exemption certificates, hiring challenges, a rosier M&A outlook…

Indirect tax leaders and their teams have a lot on their minds in 2025, and it’s only January. This also means that it’s a good time to take a quick look back – at 2024 sales and use tax rates and rules changes – to help prepare for what’s likely to unfold this year. Vertex’s 2024 year-end sales tax Rates and Rules Report, which is now available, contains several pages of noteworthy numbers, including:

  • 588: There were 588 total combined sales tax rate changes and new rates in 2024. That’s lower than 2023’s near-record of 676, but well above 2022’s 542 total rate changes.
  • 251: This is how many city sales tax rate changes that took place last year. That’s the second highest number of city rate changes in the past decade (254 occurred in 2017).
  • 171: That’s how many new district taxes took effect last year – the third highest figure in the past seven years. Additionally, 51 new city taxes and three new county-level taxes were enacted. Local governments continue to add new sales taxes at a high rate.
  • 8:1: This is the ratio of city sales tax rate increases to decreases; for every 1 city rate decrease, there were more than eight city rate increases.
  • 5:1: At the county level, rate increases also far outpaced rate decreases – by a 4.75-to-1 ratio.
  • 12,000+: In 2024, there were a total of 12,120 U.S. sales and use tax jurisdictions: 7,024 cities, 1,966 counties, 3,084 districts and 46 states.
  • 610: The annual average number of new and updated sales and use taxes that have occurred since 2014.

Our complete report, which is based on rates and rules data collected Jan. 1 through Dec. 31, 2024, provides more figures along with context around those numbers. So, too, does my look at the trends we expect to influence indirect tax policymaking in 2025.

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

Michael J. Bernard, Chief Tax Officer – Transaction Tax at Vertex Inc. Vertex's Chief Tax Office (CTO) provides insight regarding the impact of tax regulations, policy, enforcement, and emerging technology trends on global tax department operations.

Michael J. Bernard

Vice President of Tax Content and Chief Tax Officer

See All Resources by Michael

Michael Bernard is the Chief Tax Officer of Transaction Tax. In his role, he provides insight and thought leadership around tax department operations, U.S. indirect tax, tax risk management, and tax policy, as well as emerging tax trends. He is an executive-level tax attorney with a diverse portfolio of experience in corporate tax, administration, and finance, including a substantive knowledge of U.S. and international tax laws.

Prior to joining Vertex, Michael was in various tax leadership roles at Microsoft Corporation for 28 years, the most recent being Senior Director – Tax Counsel. Michael led teams in the following functional areas: direct and indirect tax controversy, sales and use, business license, property, tax IT, SOX, and telecommunications. He also co-led a corporate taxpayer advocacy group with the Washington Department of Revenue and was a Director on the Board of the Washington Research Council. Michael has also testified before administrative and lawmakers at both the federal and state level.

Michael earned both a J.D. and a Bachelor of Science in Business Administration from Creighton University. He is a part-time lecturer of Law in the LLM program at the University of Washington School of Law. Michael also served on the board of directors, executive committee, and chaired committees for The Tax Executives Institute (TEI) for nearly 25 years.

Explore 2024 tax trends and changes.

Keeping up with the latest tax rate changes and regulatory updates is crucial for compliance and optimizing tax strategies in an ever-changing landscape.

LEARN MORE
two business women working on a laptop