U.S. Senators are working this weekend (really!) on their version of the One Big Beautiful Bill (OBBB) of tax laws and assorted Trump administration domestic policy preferences.
The weekend session is because Donald J. Trump wants the final bill — which must go back to the House after it clears the Senate — by July 4.
The sweeping federal legislation will affect all Americans, for ill or good.
But there’s another, earlier July date of tax significance.
July 1 is the start of the fiscal year for most states, and that means plenty of state tax changes take effect at the start of the month.
“This summer, individuals and businesses will see an especially long list of excise tax changes across the states, including statutory gas tax increases and inflation adjustments, new or increased fees on electric vehicles (EVs), increased taxes on tobacco, vapor products, and cannabis, increased taxes on sports gaming, and more,” note Tax Foundation analysts.
Part of that more cited by the Washington, D.C.-based tax policy think tank are numerous sales tax changes, as well as Washington State’s implementation of a new estate tax rate schedule with a top rate of 35 percent.
The Tax Foundation has been tracking state legislative activity in 2025, and provides a look at State Tax Changes Taking Effect July 1, 2025.
The article also covers major tax policy changes that have been enacted so far this year that are retroactively effective, as well as noteworthy changes enacted this year that take effect after July 1, but before Jan. 1, 2026.
All this new state tax information earns this weekend’s Saturday Shout Out.
You can peruse the Summary of State Tax Changes Taking Effect July 1, 2025. Then, for more details, check out the by-state listings of —
- Notable State Tax Changes Taking Effect July 1, 2025;
- Notable State Tax Changes Retroactively Effective as of January 1, 2025; and
- Other Notable Recent and Pending State Tax Changes
That should fill up the time while we wait for Congress to complete its tax work.
You also might find these items of interest:
- Higher state taxes don't drive away wealthy residents
- Illinois budget includes new per-wager sports betting tax
- 5 states, 10 cities would benefit the most by a SALT cap hike
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