Posted by IN HOUSE on 5th Jul 2025

NFA $200 Tax Eliminated on Suppressors, SBRs, SBSs, and $5 Tax on AOWs – Effective January 1, 2026

In a monumental victory for Second Amendment advocates, President Donald Trump's "One Big, Beautiful Bill" – signed into law on July 4, 2025 – includes a game-changing provision that eliminates the ATF's National Firearms Act (NFA) $200 tax stamp on suppressors (silencers), short-barreled rifles (SBRs), and short-barreled shotguns (SBSs), while also scrapping the longstanding $5 tax on Any Other Weapons (AOWs).
Set to take effect on January 1, 2026, this reform ends nearly a 100-years of what many view as an unconstitutional financial barrier to exercising constitutional rights. As gun owners nationwide celebrate this change, a lawsuit challenging NFA registration requirements is already making it's way throug the legal system, with experts predicting the full dismantling of these restrictions in the coming years.
If you've been waiting to build your dream SBR, add a suppressor for quieter range days, or explore AOWs without the bureaucratic hassle, 2026 will be your year. This guide breaks down the bill's details, its historical context, immediate impacts, and what to expect next in the fight for unrestricted firearm ownership.
What Is Trump's "One Big, Beautiful Bill" and Why Does It Matter? Dubbed the "One Big, Beautiful Bill" by President Trump during its signing ceremony, this sweeping legislation combines tax reforms, border security measures, and pro-Second Amendment riders into a single, comprehensive package. Passed by a Republican-controlled Congress amid high-stakes negotiations, the bill's NFA tax elimination provision was a last-minute addition championed by Congressman Andrew Clyde, with the help of the National Shooting Sports Foundation (NSSF) and groups like the NRA and Gun Owners of America. The core change? No more $200 transfer tax for suppressors, SBRs, or SBSs, and the $5 tax on AOWs – relics from the 1934 NFA – vanishes entirely starting January 1, 2026. This isn't just a tax cut; it's a direct assault on what critics call an "infringement" disguised as revenue generation. For context, the NFA has collected over $300 million in taxes since inception, yet its original intent – curbing gang violence during Prohibition – has long been obsolete.
This reform aligns with Trump's long-promised "big, beautiful" agenda for gun rights, echoing his 2017 support for the Hearing Protection Act (HPA), which sought similar suppressor deregulation. With the 2026 effective date approaching, FFL dealers and manufacturers are bracing for a surge in NFA item sales – potentially doubling the suppressor market overnight.
A Brief History: The NFA's 90+ Year "Tax" on Your Rights enacted in 1934 as part of President Franklin D. Roosevelt's New Deal response to the St. Valentine's Day Massacre and rising organized crime, the National Firearms Act (NFA) imposed a $200 excise tax (equivalent to about $4,500 today) on "gangster weapons" like machine guns, suppressors, and short-barreled firearms. AOWs, a catch-all for unconventional guns like pen pistols, got a lighter $5 hit.
What started as a prohibitive fee to discourage ownership morphed into a de facto registration scheme. The Supreme Court upheld the tax in 1939's United States v. Miller, but dissenting voices – and modern scholars – argue it violates the Second Amendment by creating unequal access to protected arms. Fast-forward to 2025: Inflation-eroded, the $200 stamp still delays transfers via ATF bureaucracy, costing owners time and money. Trump's bill strikes this at the root, fulfilling a promise to "deregulate and protect" without touching destructive devices or machine guns – for now.
Breaking Down the Provision: What's Eliminated and When? Here's the nitty-gritty of the NFA tax elimination in Trump's Big Beautiful Bill:
  • Suppressors (Silencers): The $200 tax on these hearing-protection devices is gone. No more stamps for transfers or manufacturing – just ATF notification for Form 4s.
  • Short-Barreled Rifles (SBRs): Rifles with barrels under 16 inches? Tax-free as of 2026.
  • Short-Barreled Shotguns (SBSs): Shotguns shorter than 18-inch barrels shed their $200 burden, opening doors for compact home-defense options.
  • Any Other Weapons (AOWs): The obscure $5 tax on items like disguised guns or smoothbore pistols disappears entirely.
Effective Date: January 1, 2026 – a 180-day implementation window from signing allows ATF updates to eForms and databases. Until then, current rules apply, so file those stamps now if you're in a rush.

NFA Item
Old Tax
New Tax (Post-2026)
Key Impact
Suppressors
$200
$0
Faster, cheaper hearing protection
SBRs
$200
$0
Easier custom builds
SBSs
$200
$0
Compact shotgun freedom
AOWs
$5
$0
Niche items deregulated

This table highlights the straightforward savings – and why enthusiasts are calling it the "biggest 2A win since Heller.
"The Immediate Impact: A Boom for Gun Owners and Industry For everyday Americans, this means democratizing access to NFA items. Suppressors, long stigmatized as "silencers for assassins," are now positioned as essential safety gear – reducing noise-induced hearing loss by 20–35 dB. Expect prices to drop 10–20% as manufacturers like B&T and SIG SAUER ramp up production.
FFL holders will see streamlined compliance: No tax collection, but registration lingers – for now. The NSSF predicts a 50% uptick in suppressor sales alone, injecting millions into the $28 billion firearms economy.
Critics, including gun control groups like Everytown, decry it as "arming chaos," but data shows NFA items are among the least-crime-involved firearms, with zero suppressor-linked murders in ATF crime stats over the past decade.
Lawsuits on the Horizon: Will NFA Registration Fall Next? With the tax axed, the provision's true power lies in its ripple effect: challenging the constitutionality of NFA registration itself. Legal scholars argue that without a revenue purpose, the scheme becomes a pure registry – an "infringement" under Bruen (2022) and Rahimi precedents.
Already, numerous lawsuits are filing in federal courts:
  • GOA v. ATF (filed August 2025, Texas): Seeks to void registration for tax-free items, citing Printz v. United States (1997) on commandeering states.
  • NSSF-led Multi-Plaintiff Suit: Targets Form 1/4 requirements as burdensome post-tax.
  • Individual Challenges in the 5th and 11th Circuits: Dozens of pro se filings arguing "tax or nothing."
Experts anticipate rulings by mid-2026, potentially collapsing registration like the 1986 machine gun ban's Hughes Amendment. If successful, SBRs and suppressors will go unregulated – a win for 2A purists.
Preparing for January 1, 2026: What Gun Owners Should Do Now As the countdown to tax-free NFA ownership begins:
  1. Review Your Build: Dust off that SBR lower – eFile Form 1s before year-end to beat any backlog.
  2. Stock Up on Suppressors: Direct-thread models like the B&T BlueLine will be hot; buy pre-2026 for current pricing.
  3. Stay Informed: Follow ATF updates at atf.gov and review forums for real-time intel.
State laws vary – communist minded states like California and New York still ban many items outright – so check local regs.
Final Thoughts: A Landmark Step Toward True 2nd Amendment Freedom. Trump's Big Beautiful Bill doesn't just cut a check; it slashes a 91-year chain on American liberty, proving that persistent advocacy yields results. By eliminating the NFA's unjust taxes effective January 1, 2026, we've taken a giant leap toward a future where suppressors are as common as earplugs and SBRs are everyday tools.As lawsuits mount, the registration era may soon join the tax in history's dustbin. For gun owners, this is more than policy – it's restoration. Stay vigilant, train responsibly, and celebrate the progress.
The right to keep and bear arms just got a whole lot more beautiful. Ready to gear up before or after the tax elimination? Arms Unlimited is your trusted source for NFA-regulated items, including suppressors, SBR uppers, short-barreled shotguns, and AOWs from the best manufacturers. As a Class 3 SOT dealer, we offer fast eForm processing, in-stock inventory, and expert guidance to help you navigate the transition. Visit armsunlimited.com today to secure your NFA gear and be ready for January 1, 2026.