SALT Scoreboard – First Quarter 2026

Why It Matters

Understanding the evolving win‑loss landscape helps companies anticipate SALT exposure and shape proactive tax planning, especially as states like Texas intensify enforcement.

Key Takeaways

• First SALT Scoreboard tracks 2026 taxpayer win‑loss ratios
• Public Law 86-272 remains a focal point in interstate tax disputes
• Intercompany transfer cases surge, signaling tighter nexus scrutiny
• Texas litigation dominates Q1, reflecting heightened state enforcement

Pulse Analysis

The launch of Eversheds Sutherland’s 2026 SALT Scoreboard marks a new benchmark for monitoring state and local tax litigation trends. By aggregating court decisions across the United States, the report offers practitioners a quantitative view of how often taxpayers prevail versus lose, with particular emphasis on Public Law 86-272—a statute that shields businesses from state income tax when they merely solicit sales. This data helps tax advisors gauge the reliability of the law’s protections and adjust interstate sales strategies accordingly.

A striking feature of the Q1 edition is the rise in intercompany transfer disputes. Companies restructuring internal supply chains or shifting intellectual property now face heightened nexus challenges, as courts scrutinize whether such moves constitute taxable activity in a given state. The Scoreboard’s metrics reveal a growing proportion of losses for firms that fail to substantiate arm’s‑length pricing or proper documentation, prompting a shift toward more rigorous transfer‑pricing compliance programs. Tax professionals can leverage these insights to pre‑empt audit risk and align internal transactions with emerging jurisprudence.

Texas emerges as a hotbed of activity, with the Scoreboard spotlighting several high‑profile cases that illustrate the state’s aggressive enforcement posture. From franchise‑tax assessments to sales‑tax nexus arguments, the outcomes signal that Texas courts are less tolerant of aggressive tax positions. For businesses operating in or expanding to the Lone Star State, the findings underscore the need for robust tax‑risk assessments and proactive engagement with state authorities. Overall, the SALT Scoreboard equips CFOs, tax directors, and legal teams with actionable intelligence to navigate an increasingly complex state tax environment.