$0 NFA Tax Stamp: The Complete FFL Dealer Guide to Suppressor and SBR Transfers in 2026
On January 1, 2026, the $200 federal tax stamp for suppressors, short-barreled rifles, short-barreled shotguns, and Any Other Weapons dropped to $0. The change, enacted through H.R. 1 — the One Big Beautiful Bill Act — signed into law on July 4, 2025, represents the most significant shift in NFA processing since the National Firearms Act was originally passed in 1934.
For consumers, it means suppressors and SBRs just became dramatically more accessible. For FFLs, it means a surge in NFA demand, updated forms and workflows, and a compliance environment that still requires the same level of precision — just without the $200 line item.
This guide covers everything dealers need to know to handle NFA transfers correctly under the new framework.
What Changed — and What Didn't
Understanding the scope of this change is critical, because the most common misconception among both customers and dealers is that the $0 tax stamp means NFA items are now "deregulated." They are not.
What Changed
The making and transfer tax for the following NFA items was reduced from $200 to $0:
Silencers/suppressors
Short-barreled rifles (SBRs)
Short-barreled shotguns (SBSs)
Any Other Weapons (AOWs) — previously $5 for transfers, now $0
The ATF updated Form 1 (Application to Make and Register a Firearm) and Form 4 (Application for Tax Paid Transfer and Registration of Firearm) to reflect the $0 tax on qualifying items. The eForms system was updated accordingly after a brief shutdown from December 26 through January 1.
What Did Not Change
Everything else about the NFA process remains fully in effect. The $0 tax is one piece of a broader ATF reform agenda — see our complete guide to the ATF's New Era of Reform for the full picture. Here's what hasn't changed:
ATF Form 4 is still required for every transfer of an NFA item from dealer to customer.
ATF Form 1 is still required for every NFA item manufactured by an FFL or individual.
ATF Form 3 is still required for dealer-to-dealer transfers.
Background checks remain mandatory. Every NFA transfer still requires FBI processing.
Fingerprint cards must still be submitted with Form 1 and Form 4 applications.
Passport-style photos or photo ID copies are still required for applicants.
Serial number records must be accurately maintained for every NFA item in your inventory.
The NFA item must remain with the dealer until the application is approved. Customers cannot take possession early.
Machine guns and destructive devices still carry the $200 tax. The $0 change does not apply to these categories.
The simplest way to explain it to customers: the paperwork is the same, the wait is the same, the background check is the same — you just don't pay $200 anymore for most NFA items.
Updated Forms: What's Different
The ATF revised both Form 1 and Form 4 to accommodate the tax change. Here's what's new in the updated forms.
ATF Form 1 (Application to Make and Register)
The January 2026 revision includes several notable changes beyond the tax field update. The title has been revised for clarity. The photo box on the form has been removed, replaced with the option to attach either a passport-style photo or a copy of a photo identification document. Race and ethnicity items have been combined into a single field. The form now accepts additional types of electronic and digital signatures. The fillable PDF has been updated so that Copy 1 and Copy 2 are linked — filling in Copy 1 automatically populates Copy 2, except for checkboxes and signatures. References to eForms and Pay.gov have been added throughout. A reference to the refund process has been added for applicants who may have overpaid. The CLEO (Chief Law Enforcement Officer) notification requirement and its associated copy have been removed. Instructions have been added for married couples who are jointly making, transferring, and registering a firearm as an "other legal entity."
The tax field now reads: "Tax payment of $0 for other types of firearms does not require completion of item 19."
ATF Form 4 (Application for Tax Paid Transfer)
Form 4 received parallel updates to reflect the $0 tax, with similar formatting and signature improvements. The core process — dealer submits Form 4 on behalf of the transferee, background check is conducted, approval is returned, 4473 is completed at the point of transfer — remains unchanged.
eForms System
The ATF shut down the eForms system from midnight December 26 through midnight January 1 to implement the necessary updates. Since reopening, the system has been processing submissions under the new rules, though significant backlogs were anticipated given the expected surge in volume.
Dealers should be aware that processing times may be extended during the initial months of 2026 as the system absorbs what many industry analysts predicted would be a flood of new submissions from buyers who had been waiting for the tax to drop.
Managing the Demand Surge
The elimination of the $200 tax has predictably driven a massive increase in consumer interest in NFA items. For many buyers, the tax was the primary barrier — not the paperwork or the wait time. With that barrier removed, FFLs across the country are reporting significantly higher NFA inquiry and transaction volumes.
Inventory Planning
If you sell suppressors, SBRs, or other affected NFA items, the time to have increased your inventory was late 2025. If you didn't, you're likely competing with every other dealer for distributor stock. Consider establishing relationships with multiple distributors if you haven't already, and be transparent with customers about current stock levels and lead times.
For dealers who haven't previously stocked NFA items, this may be the inflection point to start. The reduced financial barrier to entry for consumers means a larger addressable market, and dealers who can offer NFA items alongside their standard inventory gain a competitive advantage.
Staffing and Workflow
NFA transfers are more paperwork-intensive than standard firearm transfers. Each transfer requires Form 4 submission, fingerprint collection (if done in-store), photo verification, and a separate 4473 at the point of final transfer once approval is received. If your volume is increasing significantly, ensure your staff is trained on the full NFA workflow and that you have capacity to handle the additional administrative load without letting quality slip.
Customer Education
Expect to field a high volume of customer questions about the process. The most common misconceptions you'll need to address:
"Is the tax stamp gone completely?" — No. The $200 tax is eliminated for most NFA items. The registration, background check, and approval process remains fully intact. Machine guns and destructive devices still carry the $200 tax.
"Can I take it home today?" — No. NFA items must remain with the dealer until the Form 4 application is approved by the ATF. There is no same-day transfer for NFA items regardless of the tax amount.
"Is there still a wait?" — Yes. The ATF approval process is unchanged. Processing times vary, and the anticipated surge in applications may extend wait times further.
"Do I still need to do fingerprints and photos?" — Yes. All NFA application requirements remain in effect except the tax payment for qualifying items.
Having a printed FAQ sheet or a web page on your site addressing these questions saves your counter staff from repeating the same answers hundreds of times and reduces the risk of misinformation being passed to customers.
The FFL Compliance Checklist for NFA Transfers in 2026
Whether you've been doing NFA transfers for years or you're starting in response to the new demand, this is the current process for a suppressor or SBR transfer to a customer:
Step 1: Receive the NFA item from distributor. Ensure your Form 3 (dealer-to-dealer transfer) is approved before the item ships. Log the item into your A&D book upon receipt with complete serial number, manufacturer, and model information.
Step 2: Customer initiates purchase. Collect the customer's information, including their full legal name, address, date of birth, and Social Security number (optional but recommended for faster processing). Determine whether the customer is purchasing as an individual, through a trust, or through another legal entity — this affects which forms are required.
Step 3: Prepare and submit ATF Form 4. Complete the Form 4 with the transferee's information. For individual applicants, ensure fingerprint cards and a passport photo or photo ID copy are included. Submit through eForms for fastest processing.
Step 4: Wait for approval. The NFA item remains in your possession and logged in your A&D book during the entire approval period. Do not release the item early under any circumstances. Monitor your eForms account for status updates and communicate expected timelines to the customer.
Step 5: Receive approval and complete transfer. Once the Form 4 is approved, contact the customer to come in and complete the transfer. At the point of transfer, the customer completes an ATF Form 4473 just as they would for any other firearm purchase. Conduct the required NICS background check (or verify a qualifying state permit if applicable under the Brady Chart). Upon approval, release the item to the customer and update your A&D book to reflect the disposition.
Step 6: Maintain records. Retain the approved Form 4, the completed 4473, and all supporting documentation in your files. Current retention requirements mandate that FFLs keep these records for the life of the business.
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Common Dealer Mistakes to Avoid
The $0 tax simplifies the financial transaction but does nothing to reduce the compliance complexity of NFA transfers. These are the most common mistakes dealers make — and they carry the same consequences now as they did when the tax was $200.
Releasing an NFA item before Form 4 approval. This is a serious violation regardless of circumstances. No exceptions, no workarounds, no "the customer is a regular." The item stays with you until the ATF says otherwise.
Incomplete A&D entries for NFA items. These are primary inspection findings — see our ATF Inspection Survival Guide 2026 for exactly what investigators look for. NFA items require the same meticulous A&D record-keeping as any other firearm. Missing or incorrect serial numbers, missing disposition dates, or gaps in the chain of custody are common inspection findings.
Failing to complete a 4473 at the point of NFA transfer. Some dealers mistakenly believe the Form 4 approval substitutes for a 4473. It does not. A standard 4473 and NICS check are required at the point of physical transfer, in addition to the Form 4 that was already approved.
Accepting outdated forms. The ATF revised Forms 1, 3, and 4 for the January 2026 changes. Ensure you're using the current versions. If you're using a digital compliance system, verify that it has been updated to reflect the new form revisions.
Not tracking NFA items separately. While NFA items are logged in the same A&D book as other firearms, many dealers benefit from maintaining a separate tracking system or flagged entries for NFA inventory to ensure nothing falls through the cracks during the extended approval process.
Looking Ahead
The $0 NFA tax stamp is likely to reshape the firearms retail landscape throughout 2026 and beyond. Categories like suppressors, which were previously niche products for many dealers, are becoming mainstream inventory items. In states like Texas where laws are fully permissive, demand is surging — see our guide to buying a suppressor in Texas in 2026for the state-specific breakdown. SBRs and SBSs, which many consumers avoided primarily because of the cost and hassle of the tax stamp, are experiencing similar demand increases.
For FFLs, the opportunity is clear: dealers who build efficient NFA workflows, maintain clean compliance records, and educate their customers effectively will capture a significant share of this growing market. The dealers who treat NFA transfers as an afterthought or fail to scale their processes will find themselves either overwhelmed or exposed to compliance risk.
The tax is gone. The regulation isn't. Operate accordingly.