For decades, Americans interested in owning suppressors (silencers), short-barreled rifles (SBRs), or short-barreled shotguns (SBSs) have had to navigate the burdensome and expensive requirements of the National Firearms Act of 1934. The $200 tax on suppressors and other items regulated by the National Firearms Act was one of the biggest hurdles. While the fee became less prohibitive over the years due to inflation, it has also remained unchanged. Thanks to the recently passed budget reconciliation act, that transfer tax is being eliminated entirely for silencers, SBRs, and SBSs. This change represents one of the biggest modifications to the NFA in nearly a century.
What Is the National Firearms Act?
The National Firearms Act of 1934 was originally designed to regulate certain “gangster-era” weapons, such as the infamous Thompson submachine gun (Tommy Gun or Chicago Typewriter). It still governs the following categories of firearms and accessories today:
- Suppressors: Often called “silencers,” these muzzle devices reduce the intensity of sound produced when a bullet is fired.
- Short-barreled rifles: These are rifles with a barrel length under 16 inches.
- Short-barreled shotguns: These are shotguns with a barrel length under 18 inches.
- Machine guns: Firearms or components which enable a firearm to fire more than 1 round of ammunition with a single trigger action.
- Destructive devices: These are explosives, grenades, etc.
- Any other weapons (AOWs): This is a catch-all category to cover anything that does not meet traditional firearm definitions.
The $200 tax was applied to each of these items for both individual and dealer transfers. AOWs required a $5 tax. Following the change, you will no longer have to pay a $200 tax for SBRs, SBSs, and suppressors. The $5 AOW tax and the $200 tax for machine guns and destructive devices still apply.
What Is the $200 Tax Stamp?
The tax stamp that is often referred to in discussions about the NFA is a stamp applied to your paperwork which indicates that the tax has been paid. The $200 tax hasn’t changed since 1934, according to the Bureau of Alcohol, Tobacco, Firearms, and Explosives. When the NFA was originally passed, the tax represented a huge financial barrier to ownership — $200 in 1934 is equivalent to approximately $4,800 today. The $200 tax is a transfer fee of sorts. You must pay it when you are transferring a regulated NFA item between two people, or between a person and a dealer.
Is the $200 Tax Really Gone?
The 2025 Budget Reconciliation Act (Big Beautiful Bill) was signed into law on July 4, 2025. It eliminates the $200 tax for the transfer or manufacture of suppressors, short-barreled rifles, and short-barreled shotguns. However, it does not eliminate the NFA registration process.
If you plan to buy an NFA item, you’ll need to:
- Submit a Form 4 (for transfers)
- Get fingerprinted
- Undergo a federal background check
- Wait for ATF approval
While the $200 tax has been scrapped, you still have to navigate the regulatory process. The good news is that the change essentially knocks $200 off the price of these items. Think of it as a tax relief measure for gun owners. If you are interested in purchasing an NFA-regulated item, choosing an established dealer can make the process simpler. You can apply for the item, submit your Form 4, get fingerprinted, and take the required photographs, all in one trip. The downside is that you’ll still have to wait for the ATF to approve your application. This process can take anywhere from a few days to a few months, depending on a variety of factors.
Was the Elimination of the $200 Tax the “Win” That Gun Owners Wanted?
The elimination of the $200 tax is a step in the right direction. However, it fell short of the victory that pro-2nd Amendment advocates were fighting for. The two acts they were supporting are the Stop Harassing Owners of Rifles Today Act (SHORT) and the Hearing Protection Act (HPA). The HPA proposed removing suppressors from the NFA and eliminating the $200 transfer tax. If it had passed, the HPA would allow gun owners to purchase and receive suppressors the same as other firearms. The SHORT Act would have removed short-barreled rifles and short-barreled shotguns from the NFA list of regulated items. In turn, gun owners would no longer have to pay the $200 tax stamp, or wait for weeks or months to receive their items.
The biggest concern with the changes is that suppressors and other items are still regulated under the National Firearms Act. Unfortunately, this means that future administrations could push to implement a new (and more costly) tax stamp that is more consistent with the original intent of the NFA. On the other hand, some view the removal of the $200 NFA tax stamp as a step toward deregulation. For now, it’s important for firearms owners to celebrate this win while continuing to push for less regulation and increased firearms rights.
When Does the Change Take Effect?
According to the final language in the Budget Reconciliation Act, the elimination of the $200 transfer tax for silencers, SBRs, and SBSs goes into effect on January 1, 2026. This means that forms submitted before that date will still be taxed. Any forms submitted on or after January 1, 2026, will not be subject to the $200 tax, but they’ll still need to be approved by the ATF.
If you’re planning on buying an NFA item and want to dodge the tax stamp, you’ll have to wait until the new year. Otherwise, you can find a shop with flexible purchasing options.
What About NFA Trusts?
When buying an NFA item, you can place it in a trust instead of transferring it to a single owner. Anyone who is in the trust can legally use and possess the item. Since placing it in a trust only constitutes a single transfer, you’ll only need to pay the $200 tax one time. After the change takes effect, you’ll be able to transfer an NFA-regulated item to a trust without paying the tax. However, the waiting period will still be longer than a single-person transfer as the ATF has to approve everyone in the trust, and review the trust language for legality.
Can You Buy Now and Wait Until January To Transfer?
Uncoiled Firearms makes it easy to buy now and wait until January to transfer your item.
We are now offering customers the ability to:
- Buy your silencer or SBR today
- Store it with us at Uncoiled until January 2026
- Use your item on our range while we hold it in-house
- Submit your paperwork on or after January 1, 2026, to avoid the $200 tax
Our offer lets you lock in the item you want now and skip the future tax. You can begin using it in a controlled environment until your transfer is finalized. How does this work? It’s simple. The tax is charged when you apply to transfer the regulated item. If you purchase it from Uncoiled Firearms and wait to transfer it, you are legally unlocking tax savings.
Just keep in mind that the ATF will not start reviewing your application until you submit the transfer form, so you won’t be able to take it home until you receive ATF approval.
What Does This Mean for Silencer Ownership?
Hollywood movies paint suppressors as tools for assassins and criminals. In reality, silencers:
- Reduce noise pollution
- Improve safety on the range
- Protect your hearing
- Are already legal in most states
Eliminating the $200 tax may finally make suppressors more accessible for recreational shooters and hunters. You’ll no longer have to pay a century-old tax in order to protect your hearing and exercise your 2nd Amendment rights.
What About SBRs and SBSs?
Short-barreled rifles and short-barreled shotguns are also getting a boost from this reform. The once-prohibitive tax meant that most people didn’t give these items a second look. With the tax gone, it’s cheaper to buy or make an SBS or SBR for home defense or recreation. They are fun and more compact than firearms with longer barrels. AR-platform builds are especially popular due to all of the customization options and aftermarket parts.
Just remember that registration is still required. This means you will have to jump through all of the hoops outlined above, including waiting for the ATF to approve your form. The only thing that changes is the $200 tax.
Why Did This Change Happen?
Several factors have led to the passing of the NFA reform, including:
- Increased support from firearm lobbying organizations: Numerous entities have devoted countless hours and monetary resources to reform
- Widespread public demand: The firearms community has been pushing for change for years
- Support in congress: The bill garnered just enough support to make it through both houses and pass
If you are a firearm enthusiast, this change is worth celebrating. It effectively lowers the cost of ownership for NFA items by $200 each. However, there is much more progress to be made, which means continuing to focus on implementing changes that promote and protect your 2nd Amendment rights. One of the top priorities for firearms organizations and pro-2A Americans is further revisions or outright deregulation of many NFA items. Removing suppressors, SBRs, and SBSs from the National Firearms Act’s list of regulated items would mean that you could obtain your item much faster. Depending on where you live and whether there are waiting periods for general firearms purchases, you could potentially leave with your item the same day.
What Do You Need To Do Right Now?
If you’re thinking about buying a silencer or short-barreled firearm, the first step is to find an item you want to purchase. Browse our selection of suppressors, SBSs, and SBRs. You can make your purchase online, or head into our shop and let one of our team members help.
If you want to buy now, you have two options. You can pay the tax stamp now and let the ATF begin reviewing your form. Alternatively, you can purchase your item and let us store it until January 1, 2026. You’ll even be able to use it on our indoor range. Come January 1, you’ll start your NFA paperwork. It’ll be tax-free, but you’ll still have to wait for the ATF to review your documents. Once they finish processing your application, the item is yours to take home.
Is Now the Right Time To Buy?
The bottom line is that the elimination of the $200 tax stamp does make NFA-regulated items more accessible. While the tax relief measure doesn’t go into effect until January 2026, you can start the process now without foregoing your savings. You just have to pay the transfer fee when you take possession of the item. Traditionally, the fee is collected when you purchase the weapon or item. However, Uncoiled Firearms has a few different options available.
If you don’t want to wait, you can purchase an NFA-regulated item in our shop. We can assist you with submitting your paperwork and fingerprints through our Silencer Shop kiosk.
Alternatively, we can hold your item for you until January 2026. While you wait for your tax stamp, you can use your silencer in our range. Give us a call or come visit our shop if you have questions!
