I’m in big 4 state and local tax looking to make the jump to a law firm. It seems like the demand is mostly for transactional tax. Do I need to get more experience in M&A or are any law firms hiring state and local?

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Very few big law firms do state and local. You may get more bites from a midsize local firm where the tax people at tax generalists that do everything.

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This - most firms have one or two state and local tax folks, so unless you can get into an opening in one of the few firms with a robust state and local practice it'll be hard to find a position.

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I also agree with this. It could also help if you have some controversy experience.

I do have some controversy experience and have litigated in US tax court, but not a ton. And it was all small taxpayers.

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