A Major Update for NFA Firearm Owners: What the Elimination of the ATF Tax Stamp Means for You and Your Firearm Trust

As of January 1, 2026, an important change in federal firearms law has taken effect, one that many responsible gun owners have been watching closely.

The long-standing $200 ATF tax stamp required for certain National Firearms Act (NFA) items, including suppressors, short-barreled rifles (SBRs), and short-barreled shotguns (SBSs), has officially been eliminated. The fee is now $0.¹

This change stems from the federal appropriations act informally known as the “One Big Beautiful Bill,” enacted in mid-2025. While the financial barrier of the tax stamp has been removed, it’s important to understand what has changed—and what has not—especially if you own or are considering a Firearm Trust.

Let’s walk through what this means for you.

What Changed and What Didn’t

The elimination of the tax stamp fee is significant, but it does not remove federal oversight of NFA firearms.

What’s New

• The $200 tax stamp fee historically imposed under 26 U.S.C. § 5811 and administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is no longer required for NFA transfers.¹

• The cost to legally acquire NFA firearms is now substantially lower.

• More individuals and families may find legal ownership financially accessible.

What Remains the Same

• ATF registration of NFA items is still required under 26 U.S.C. § 5841.²

• Applicants must undergo a background check and submit fingerprints and photographs as part of the ATF Form 1 or Form 4 process (27 CFR Part 478).³

• ATF approval is required before possession or manufacture of NFA items.²
 All state and local laws governing possession, transportation, and use remain in force.

In short, the regulatory process still matters, only the tax is gone.

How This Update Applies to Firearm Trusts

Firearm Trusts (also known as NFA Trusts or Gun Trusts) remain one of the most effective planning tools for lawful NFA ownership, and the elimination of the tax stamp removes a longstanding financial burden.

1. Trusts Still Avoid Common Pitfalls

A properly drafted Firearm Trust:

• Allows multiple responsible persons to lawfully possess and use NFA firearms under the trust’s terms.⁴

• Helps avoid unintentional illegal possession by delineating clear authority and compliance obligations.

• Provides continuity and direction in case of incapacity or death.

The elimination of the tax stamp does not change these legal protections, it simply removes an associated cost.

2. Adding NFA Items to a Trust Is Now More Cost-Effective

Previously, each qualifying NFA item added to a trust required a separate $200 stamp under 26 U.S.C. § 5811. With that fee eliminated:

• Trust owners can expand collections without added federal taxes.

• Families can plan more strategically and affordably over time.

• Long-term ownership and succession planning become more accessible.

• This is especially meaningful for clients using trusts as part of broader estate and legacy planning.

3. ATF Requirements Still Apply to Trusts

It’s important to note:

• Responsible Persons listed in a Firearm Trust must still submit fingerprints, photographs, and undergo background checks per ATF guidance (27 CFR Part 478).³

• ATF approval timelines and procedural checks remain in place under NFA regulations.

• Accuracy in drafting and administration is still critical. Poor trust language can lead to delays or compliance issues, especially when names of trustees and responsible persons are involved.

Is Now a Good Time to Create or Review Your Firearm Trust?

For many clients, the answer is yes.

This change presents a unique opportunity to:

• Create a well-drafted Firearm Trust if cost was previously a concern.

• Review and update an existing trust to ensure it reflects current federal and state law.

• Align firearm ownership with your broader estate and legacy planning goals.

Remember federal law is only part of the picture. State law may add permitting, transport, registration, or possession requirements.

Our Commitment to Responsible Ownership

At our firm, we believe that lawful firearm ownership and thoughtful planning go hand-in-hand. The elimination of the ATF tax stamp removes a financial barrier but it does not replace the need for careful legal guidance.

If you have questions about:

• Firearm Trusts and responsible persons
  

• NFA compliance and ATF procedures
  

• Adding or transferring regulated firearms
  

• Estate planning involving firearms
  

We’re here to help you navigate these changes with clarity and confidence.

Warm guidance. Clear planning. Peace of mind for today and for the future.  

Contact our office to schedule a free 15-minute phone call with our team and learn how we can help you plan responsibly.

1.Elimination of ATF Tax Stamp Fee: The federal appropriations act (commonly referenced as the “One Big Beautiful Bill,” enacted mid-2025) removed the $200 tax imposed under 26 U.S.C. § 5811 for NFA transfers effective January 1, 2026.
2.NFA Registration Requirements: 26 U.S.C. § 5841 requires registration of NFA items; 26 U.S.C. §§ 5812-5813 outline transfer and possession prohibitions without ATF approval.

3.ATF Regulatory Procedures: Background checks, fingerprints, and photo requirements are outlined in 27 CFR Part 478 and related ATF Forms (Form 1, Form 4).

4.Use of Trusts for NFA Compliance: Firearm Trusts allow named trustees/responsible persons lawful possession per ATF interpretive guidance (see ATF Rulings and Letters on Gun Trusts).