Tax Rate Changes in 2026: What Small Businesses Need to Know

Tax changes don't arrive on one date. Some start on January 1, some on April 1 or 6, some in the middle of a tax period, and some apply to the year as a whole when the law passes later. This page lists only changes we could confirm on an official source, with the jurisdiction, the effective date and what it means for the invoices you send or the returns you file. It also flags recent rate changes from 2024 and 2025 that many invoice templates and spreadsheets still haven't caught up with.

Scope: selected national changes in the US, UK, EU countries, Japan, South Africa, Israel, India and Canada that affect invoicing or small-business filings in 2026. It is not a complete list, and it doesn't cover US state and local sales tax rates, payroll rates or corporate income tax. This is general information, not tax advice; confirm with the tax authority or an adviser before you change a rate. Last reviewed: October 27, 2026.

Which tax changes take effect in 2026?

All sources accessed October 27, 2026.

Which recent rate changes do old templates still get wrong?

These changes happened in 2024 and 2025, but they still catch people in 2026 because invoice templates, spreadsheets and price lists were set up before them:

Two rates that did not change, despite headlines: South Africa's VAT is still 15% after the 2025 increase was reversed (SARS), and the UK VAT registration threshold is still £90,000 (GOV.UK). All accessed October 27, 2026.

What does a stale rate cost on one invoice? A worked example

Worked example (illustrative): a Helsinki design studio bills a Finnish client €4,000 a month for services and still uses a template set to 24%.

The studio owes VAT at the correct rate whatever its invoices say, so the €720 either comes out of its own margin or has to be recovered from the client with corrected invoices. The same mistake works the other way: a Halifax consultant still charging 15% HST on a C$2,000 invoice collects C$300 instead of C$280, C$20 more than the 14% rate allows, which needs a correction to the client. In Romania, a 10,000 lei invoice at the old 19% shows 1,900 lei of TVA instead of 2,100 lei.

How do you know which rate applies to an invoice?

It depends on the country's rules for when tax becomes due, not simply on the invoice date. Most VAT systems tie the rate to a tax point or chargeable event, such as when the goods are delivered, the service is performed or payment is received, and rate changes usually come with transitional rules for work that spans the change date. Before you issue invoices that straddle a change:

1. Read the authority's transitional guidance for that change, which usually covers advance payments and continuous services.
2. Split the work at the effective date if the guidance says so, with separate lines or invoices for before and after.
3. Correct with a credit note, not an edit. Cancel the wrong invoice with a credit note and issue a new one, so your numbering and records stay intact.
4. Tell repeat clients before the date. A short note that the rate changes from a given date avoids queries about a higher total.

How do you update the tax rate in InvoiceQuickly?

InvoiceQuickly adds one tax percentage per invoice, calculated on the subtotal after any discount and added on top. It doesn't look up or update rates for you, so when a rate changes, type the new percentage on each new invoice. The PDF shows a generic "Tax (x%)" line, not "VAT" or "GST".

That approach fits some of the 2026 changes better than others:

• Fits: a single-rate invoice where you need to change the number, such as 25.5% in Finland, 23% in Slovakia, 21% in Romania or 14% in Nova Scotia.
• Doesn't fit: an invoice that mixes rates on different lines, such as Finnish goods at 25.5% and 13.5%, or Swedish food at 6% and restaurant service at 12%. InvoiceQuickly has no per-line tax, so you'd need two invoices or different software.
• Doesn't fit: anything that needs an e-invoice format or clearance, such as India's IRN for businesses above the e-invoicing threshold, Romania's RO e-Factura, Israel's allocation number request, or Slovakia's mandatory domestic B2B e-invoicing from January 1, 2027. InvoiceQuickly produces PDF invoices only.
• Needs a workaround: your VAT or registration number isn't printed automatically. Store it in settings and add it to the notes or terms of each invoice where the law requires it.

Draft invoices can be edited before you send them, and Pro ($9 a month) includes credit notes for correcting invoices you've already sent.

What changes are already scheduled after 2026?

• Slovakia: mandatory structured e-invoicing for domestic B2B supplies from January 1, 2027 (Act 385/2025).
• United Kingdom: Making Tax Digital for Income Tax extends to qualifying income over £30,000 from April 6, 2027 and over £20,000 from April 6, 2028.
• Japan: the transitional credit for purchases from unregistered suppliers falls to 50% from October 1, 2028, then 30% from October 1, 2030, and ends on October 1, 2031.
• Sweden: the temporary 6% food rate returns to 12% on January 1, 2028.
• United States: the $2,000 information-return threshold may be adjusted for inflation from 2027.

All accessed October 27, 2026.

When is this page not enough?

• You sell taxable goods or services in several US states. State and local sales tax rates change often and aren't listed here; start with the sales tax nexus guide and each state's revenue department.
• You invoice in a country not listed above. Check that country's tax authority directly rather than a rate table; our tax rate lookup is a static reference table, not a live feed.
• A change falls mid-project or mid-contract. Transitional rules decide the rate, and getting them wrong is expensive; ask an adviser.
• You need payroll or corporate tax changes. They are outside the scope of this page.

Frequently asked questions

Do I need to reissue old invoices when a tax rate changes?

Not usually. Invoices for supplies made before the effective date generally keep the old rate. Problems arise with advance payments and work spanning the change date, where the authority's transitional rules decide. Correct any wrong invoice with a credit note and a new invoice rather than editing it.

What is the 1099-NEC threshold for 2026?

$2,000. For tax years beginning after 2025, you report nonemployee compensation of $2,000 or more on Form 1099-NEC, up from $600. Card and payment-app payments are reported on Form 1099-K instead, by the payment processor.

Does Making Tax Digital mean UK sole traders pay tax quarterly?

No. From April 6, 2026, those in scope send quarterly updates of income and expenses, but HMRC says you won't pay four tax bills a year; the payment deadline is still January 31.

What is the VAT rate in Finland in 2026?

25.5% standard (since September 1, 2024), 13.5% reduced (from January 1, 2026, previously 14%) and 10% on certain items, according to the Finnish Tax Administration.

Where can I find current tax rates?

Go to the tax authority for each country: the IRS and your state's revenue department in the US, HMRC on GOV.UK, the Canada Revenue Agency, or the national tax authority in the EU. Rate aggregators and old templates are where stale rates come from.

---

Related reading: VAT invoicing guide, VAT vs GST, invoice requirements in Canada, India and Japan, the Finland and Romania invoice templates, and regional invoicing. More on the InvoiceQuickly blog, or start free.