Since January 1, 2026, the federal tax on making or transferring a suppressor, a short-barreled rifle, a short-barreled shotgun, or an "any other weapon" has been $0. For a dealer, that raises two fair questions: is it worth stocking these items now, and do you still need to pay SOT (special occupational tax) to sell them? Then, on October 9, 2026, ATF stopped enforcing the NFA approval and registration rules for those same items. This post covers both changes, what did not change, and what it all means for how your shop sells these items.
What changed on January 1, 2026
The change came from H.R. 1 of the 119th Congress, commonly called the One Big Beautiful Bill Act. It became law on July 4, 2025, as Public Law 119-21. Section 70436 removed the $200 excise tax on certain National Firearms Act (NFA) firearms other than machine guns and destructive devices.
According to the Congressional Research Service (CRS), effective January 1, 2026, the law sets a $0 tax rate for the making or transfer of all NFA firearms that are not machine guns or destructive devices. That covers:
- Suppressors (silencers)
- Short-barreled rifles (SBRs)
- Short-barreled shotguns (SBSs)
- "Any other weapons" (AOWs), which already carried a $5 transfer tax before this change
Machine guns and destructive devices did not change. The $200 tax still applies to them, and ATF states that the NFA requirements apply in full to those weapons.
What did not change: SOT is still owed
This is the part that matters most for dealers. The new law cut the making and transfer taxes. It did not touch the special occupational tax. CRS states that P.L. 119-21 does not address the special occupational tax, and ATF says Congress "did not eliminate the taxes for those engaged in the business of manufacturing, importing, or dealing in these firearms."
ATF's current guidance is direct about it: federal firearms licensees "may not engage in any business involving these firearms or silencers without paying these taxes." So if you plan to deal in suppressors or short-barreled guns, a $0 stamp for your customer does not mean $0 for your business.
How much is SOT?
The rates are set by 26 U.S.C. 5801. Every importer, manufacturer, and dealer in NFA firearms pays the tax for each place of business, when first engaging in business and then on or before July 1 of each year:
- Dealers: $500 a year or fraction of a year
- Importers and manufacturers: $1,000 a year, reduced to $500 for a business with gross receipts under $500,000 in its most recent taxable year
The dealer SOT is what most of the trade calls Class 3. For the longer walkthrough on how the license and the tax fit together, see our Class III / SOT guide.
Class 3 FFL vs. SOT dealer: same shop, two pieces
Searches for "class 3 FFL" and "SOT dealer" are really asking about two separate things. CRS explains that to deal in NFA firearms, a person generally must hold a federal firearms license under the Gun Control Act and be a special occupational taxpayer under the NFA. The license comes from one law, the tax from another. Paying SOT does not replace your FFL, and your FFL alone does not cover NFA dealing.
Two long-standing SOT benefits are still in the law: transfers between SOTs are exempt from the transfer tax, and FFL holders who are SOTs (qualified manufacturers) are exempt from the making tax. With the tax on most NFA items now at $0 anyway, those exemptions matter less for suppressors and short-barreled guns, but they still matter for machine guns and destructive devices.
What still applies on every sale
ATF's guidance says suppressors, SBRs, SBSs, and AOWs remain "firearms" under the Gun Control Act and that all GCA requirements still apply. For a dealer that means:
- A Form 4473 and, unless an exemption applies, a NICS check before transferring to an unlicensed person
- Records of every transaction
- No sale or delivery to anyone you know or have reasonable cause to believe is prohibited
- With limited exceptions, sales only to residents of the state where you are licensed
State and local law still applies. ATF notes that a minority of states prohibit possession of most or all NFA items, and under federal law an FFL may not sell or deliver an NFA item in violation of state or local law. Check your state, and the buyer's local rules, before you plan inventory around these items.
What ATF changed on October 9, 2026
In August 2026 a federal district court in Texas ruled in Silencer Shop Foundation v. ATF that the NFA's making, registration and transfer provisions are no longer a valid use of Congress's taxing power for items now taxed at $0. That injunction covers only the parties to the case. ATF then announced that, as a matter of enforcement discretion, it would apply the same treatment to everyone. Starting October 9, 2026, for suppressors, SBRs, SBSs and AOWs, ATF says it will not enforce:
- The requirement to get ATF approval before making or transferring one (the Form 1 and Form 4 process)
- Registration in the National Firearms Registration and Transfer Record
- The NFA marking requirement and the ban on transporting unregistered items between states
For dealers, ATF's guidance says:
- Suppressors and AOWs are now handled like any other firearm under the Gun Control Act: a Form 4473, a NICS check unless an exemption applies, records of the sale, and in-state residents only with limited exceptions.
- Dealer to dealer: ATF no longer requires a Form 3 for transfers between SOT dealers. You may still file one voluntarily.
- SBRs and SBSs have one extra wrinkle. Federal law (18 U.S.C. 922(b)(4)) still says a dealer may not sell one without the Attorney General's authorization, and no process exists yet outside the NFA forms. ATF says it is writing new forms and rules, and will not enforce that requirement until they exist.
- Voluntary registration is still open. ATF will keep accepting and approving NFA forms for anyone who wants their item registered.
Machine guns and destructive devices are not part of this. They keep the $200 tax and every NFA requirement.
This can change. ATF itself warns that enforcement could resume if the court's injunction is overturned, Congress adds a new tax, or the Department withdraws the policy, and that federal law does not automatically grandfather unregistered items if that happens. Read ATF's NFA transfer guidance in full before you change how your shop handles these sales, and confirm your process with ATF or your attorney. This post is not legal advice.
Should you stock suppressors and short-barreled guns?
That is a business decision only you can make, but here is how we would think it through:
- Start with the fixed cost. SOT is $500 a year per location for a dealer. Work out how many suppressor or SBR sales it takes to cover that before you count anything else.
- Check your state first. If your state restricts these items, neither the federal tax change nor ATF's new policy helps you. ATF says plainly that its guidance does not override state or local law.
- Buy what you can reorder. Know which distributors carry the models your customers ask about, and how deep that stock is, before you commit shelf space.
- Plan machine guns and destructive devices separately. The $200 tax and the full NFA requirements still apply to them.
If you decide to carry NFA items, FirearmDistributors.com lets you search distributors at once for suppressors and other NFA items currently in stock, compare quantity and dealer cost side by side, and set a restock alert on the models you want. You can start a 14-day free trial and see what is out there before you pay SOT.
Quick answers
Is the NFA tax stamp really $0 in 2026?
Yes, for suppressors, short-barreled rifles, short-barreled shotguns, and AOWs. Under P.L. 119-21, the making and transfer tax on those items is $0 starting January 1, 2026.
Which NFA items still cost $200?
Machine guns and destructive devices. The law left their $200 tax in place, and ATF says the NFA requirements apply in full to them.
Do I still need to pay SOT to sell suppressors?
Yes. The new law did not change the special occupational tax, and ATF states that FFLs may not engage in business involving these items without paying it. For a dealer, the rate is $500 a year for each place of business.
When is SOT due?
Under 26 U.S.C. 5801, you pay when you first engage in the business and then on or before July 1 of each year.
Does the $0 tax override my state's NFA laws?
No. State and local restrictions still apply, and federal law bars an FFL from selling or delivering an NFA item in violation of them.
Do I still file a Form 4 to sell a suppressor?
Not under ATF's current policy. Since October 9, 2026, ATF says it will not enforce the approval and registration requirements for suppressors, SBRs, SBSs and AOWs, and dealers process suppressor and AOW sales like other firearms, with a Form 4473. Form 1, 3 and 4 filings are now voluntary for those items. Machine guns and destructive devices still need the full NFA process.