The Short Answer: President Trump signed legislation on July 4, 2025, reducing the NFA making and transfer taxes to $0 for suppressors, SBRs, SBSs, and AOWs starting January 1, 2026. A federal court ruled against enforcement of certain NFA requirements for these items in August 2026. On October 9, 2026, ATF announced nationwide nonenforcement of the covered NFA approval and registration requirements for suppressors, short-barreled rifles, short-barreled shotguns, and any other weapons (AOWs). The NFA remains law, and state and local restrictions still apply.
For federal firearms licensees (FFLs), the NFA has represented both opportunity and regulatory burden since 1934. The elimination of the $200 tax stamp on suppressors, short-barreled rifles, short-barreled shotguns, and “any other weapons” marks one of the most significant changes to federal firearm regulation in the United States in decades. However, this shift introduces new legal questions that could affect how FFLs handle NFA transfers moving forward.
Understanding the NFA Tax Stamp Changes
The tax elimination affects specific categories under the NFA. Since January 1, 2026, the NFA making and transfer taxes for suppressors, short-barreled rifles, short-barreled shotguns, and AOWs have been $0. Machine guns and destructive devices remain subject to existing taxation.
Legislative Background
Republican lawmakers originally planned complete NFA deregulation through the Hearing Protection Act and SHORT Act provisions. These measures would have removed affected items from NFA oversight entirely, treating suppressors like standard firearms under the Gun Control Act (GCA). The Senate Parliamentarian blocked comprehensive reforms under the Byrd Rule, determining that eliminating registration requirements constituted policy changes beyond the reconciliation scope. The final legislation, H.R. 1 (the One Big Beautiful Bill Act), signed into law on July 4, 2025.
Practical Implementation
Under the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) policy effective October 9, 2026, ATF no longer enforces the requirement to obtain Form 1 or Form 4 approval before making or transferring suppressors, SBRs, SBSs, or AOWs. ATF continues to accept voluntary applications, and state law may still require federal registration. FFLs that continue using the NFA application process must follow the applicable form instructions and documentation requirements.
With the tax now at $0 and ATF’s enforcement policy updated, FFLs should prepare for customer questions about suppressors and short-barreled firearms. Inventory planning should account for possible changes in demand and manufacturer availability.
Constitutional Legal Challenges
Multiple Second Amendment organizations argue that the remaining registration and transfer restrictions on $0-tax items lack proper constitutional authorization.
The Taxing Power Foundation
In Sonzinsky v. United States (1937), the Supreme Court upheld the NFA specifically under Congress’s Article I taxing power. The Court ruled the law remained constitutional as a tax measure despite secondary regulatory effects. On August 5, 2026, the Northern District of Texas accepted the plaintiffs’ argument that the challenged NFA provisions for $0-tax items were no longer a valid exercise of Congress’s taxing power. The injunction protects the plaintiffs and others specified in the order, and other courts may reach different conclusions.
Legal challenges also draw parallels to the Affordable Care Act’s mandate. When Congress reduced that tax to $0, some courts ruled the mandate could no longer be justified under taxing authority, though the Supreme Court ultimately dismissed that case on standing grounds without adopting the theory. Plaintiffs are advancing similar arguments here.
Current Federal Lawsuits
Silencer Shop Foundation v. ATF (Northern District of Texas): On August 5, 2026, the court barred enforcement of specified NFA approval, registration, and related provisions for $0-tax items against the plaintiffs and others covered by its order. The injunction took effect August 12, 2026. The Department of Justice chose not to appeal, and ATF separately extended nonenforcement nationwide through its October 9, 2026 policy.
Brown v. ATF (Eastern District of Missouri): The National Rifle Association, American Suppressor Association, Firearms Policy Coalition, and Second Amendment Foundation joined this lawsuit, filed August 1, 2025. It challenges the remaining NFA restrictions following the reduction of the tax to $0. The case remains active as of October 13, 2026.
Both cases argue that Article I provides no alternative constitutional basis for NFA registration and transfer restrictions once the revenue-generating tax is eliminated.
Political Response and Counter-Measures
Democratic lawmakers responded to NFA tax elimination. Senator Chris Murphy of Connecticut introduced Senate Amendment 2973 in July 2025, proposing to raise the transfer tax from $0 to $4,709 per item.
The $4,709 Tax Proposal
Murphy’s amendment proposed a $4,709 transfer tax for each NFA firearm. It also proposed a $4,709 making tax for machine guns and destructive devices and a $55 making tax for the other NFA categories. The $55 figure was a proposed making tax, not an AOW transfer tax. Gun control organizations praised the proposal, claiming it adjusts the 1934 tax rate for current inflation.
The amendment was submitted to H.R. 3944, the appropriations bill covering military construction, the Department of Veterans Affairs, and related agencies. These proposed amounts are not the current NFA tax rates. ATF’s October 2026 guidance confirms that making and transfer taxes remain $0 for suppressors, SBRs, SBSs, and AOWs, while the $200 tax remains for machine guns and destructive devices.
State-Level Implications
Many states condition suppressor, SBR, and/or SBS legality on federal registration or compliance with federal law. ATF’s October 9, 2026 policy does not change those state requirements or establish that an unregistered item qualifies for an exception under state law. Federal law also continues to prohibit FFLs from selling or delivering firearms in violation of state or local law.
FFLs should confirm the applicable state and local requirements before changing their transfer procedures. They should also check the laws of jurisdictions through which covered items will be transported.
Impact on Federal Firearms Licensees and Market Outlook
The $0 tax lowered customer costs for the covered items. ATF’s October 9, 2026 policy also ended enforcement of specified NFA approval and registration requirements. FFLs should review their written procedures, inventory records, and staff instructions before changing how they handle these transfers.
Operational Considerations
ATF continues to accept voluntary NFA applications for covered items. FFLs that retain the established NFA process should follow the applicable documentation and approval procedures. Gun Control Act requirements also continue to apply, including transaction records and, for transfers to unlicensed buyers, Form 4473 and applicable background checks. FFLs should plan inventory based on actual customer demand and supplier availability.
Customer Decision Points
For suppressors, SBRs, SBSs, and AOWs, the decision is no longer whether to wait for the tax reduction. Customers should consider applicable state law and the consequences of proceeding without NFA registration. ATF continues to accept voluntary applications, but warns that enforcement could resume and that unregistered items have no automatic grandfather protection.
FFLs should explain these considerations and refer customers to qualified counsel for advice about their circumstances. ATF also states that an item removed from registration cannot be registered again unless the Attorney General declares an amnesty.
Long-Term Legal and Market Evolution
ATF’s nationwide nonenforcement policy took effect on October 9, 2026, following the August ruling in Silencer Shop Foundation v. ATF. The NFA has not been repealed. ATF states that enforcement could resume if Congress imposes a new tax, the injunction is dissolved or overturned, or the Department of Justice withdraws the guidance.
Under ATF’s current guidance, dealer transfers of suppressors and AOWs to unlicensed buyers remain subject to Form 4473, applicable NICS checks, transaction records, residency rules, and state and local law. Applicable special occupational taxes also remain. SBRs and SBSs have additional requirements. ATF is temporarily not enforcing the dealer-transfer authorization provision in 18 U.S.C. § 922(b)(4) while developing a replacement process. Individuals must still obtain ATF approval through Form 20 before transporting an SBR or SBS across state lines.
FFLGuard: Your Partner in NFA Compliance Navigation
Partner with FFLGuard today to ensure your FFL operations remain compliant and competitive as the firearms industry adapts to these historic regulatory changes.
A lower tax does not answer every question about an NFA transfer. Dealers still need clear procedures, accurate records, and guidance on how federal and state requirements apply to their business.
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