The 2026 state and local tax (SALT) landscape was shaped by evolving federal tax policies, shifting state legislative priorities, and continued regulatory and judicial developments. As states responded to changes in federal tax law, businesses and taxpayers faced an increasingly complex and varied tax environment. With 2026 coming to a close, we will explore the year's most significant legislative, judicial, and regulatory updates affecting corporate and personal income tax, franchise tax, sales and use tax, and unclaimed property. This comprehensive review will examine key developments impacting taxpayers nationwide, including changes in state tax policy, evolving compliance requirements, and emerging legal challenges. Looking ahead to 2027, we will discuss anticipated legislative priorities, potential areas of litigation, and trends likely to shape the year ahead.

Learning Objectives:

• Understand the most significant 2026 developments affecting corporate and personal income, franchise, sales and use, and unclaimed property taxes, including legislative enactments, regulatory guidance, and judicial decisions.
• Evaluate the state and local tax implications of federal tax law changes and understand how varying state conformity approaches may impact multistate businesses and taxpayers.
• Gain insight into emerging SALT issues involving digital transactions, economic nexus, income apportionment, and the evolving scope of state taxing authority.
• Identify practical strategies to navigate multijurisdictional tax compliance, mitigate audit and litigation risks, and respond to changing state tax requirements.
• Anticipate key legislative proposals, enforcement priorities, and judicial trends likely to shape the SALT landscape in 2027.