Most political campaign merchandise is taxable — here’s what campaigns should know in 2026
Many campaigns assume their swag is exempt, but most states tax political merchandise like any retail sale. Here’s how campaign stores should handle sales tax as we head into 2026 election season.
Written by Alex Lamachenka
Head of DemandGen
Published
What’s changing?
There’s no new law.
What’s changing is the number of campaign stores coming online ahead of the 2026 elections — and many are assuming that political status means “tax-exempt.”
It does not.
Across most states, shirts, hats, yard signs, stickers, mugs, and other campaign-branded goods are taxable retail sales. Section 527 organizations are exempt from income tax, not sales tax.
Campaigns also often trigger multi-state nexus through:
- out-of-state print-on-demand or fulfillment partners
- large nationwide merchandise pushes
- fundraising kits shipped across state lines
Who this affects
- Political campaigns running Shopify, Woo, Etsy, or custom stores
- Print-on-demand vendors fulfilling campaign orders
- Marketplace facilitators that process campaign merchandise
- Agencies producing and shipping merch on behalf of campaigns
Why this matters
The risk:
- Under-collecting sales tax
- Filing gaps across jurisdictions
- Notices from states right in the middle of election season
Next steps
- Confirm taxability of all merch (shirts, hats, stickers, signs, bundles)
- Review marketplace facilitator rules for on-platform sales
- Map nexus exposure based on fulfillment partners and order volume
- Automate calculation and filing before peak merch season hits
Other US Sales Tax Updates
Boulder County sales tax rate increases in 2026
Boulder County will increase its sales tax rate effective January 1, 2026, raising the combined rate across multiple cities and special districts. Sellers must update county tax calculations for all affected locations.
South Dakota sales tax returns to 4.5% on July 1, 2027
The state’s reduced 4.2% sales tax rate was always temporary and is scheduled to return to 4.5% on July 1, 2027.
New Maricopa Sales Tax Rate Takes Effect October 2025
Effective October 1, 2025, Maricopa’s city sales tax rate will increase by 0.50%, applying to both in-state sellers and remote sellers with nexus in Arizona.