State Sales Tax Rates Calculators
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How Sales Tax Works in the US
The United States has no federal sales tax. Each state sets its own base rate, and counties and cities can add their own on top of that. The rate you actually pay — called the combined rate — is the state rate plus any applicable local taxes. This is why the same product can cost different amounts in different cities within the same state.
Sales tax is applied to the retail price of taxable goods and services at the point of sale. The seller collects it from the buyer and remits it to the state government. Businesses with a physical presence (nexus) in a state are generally required to collect that state's sales tax.
States With No Sales Tax
Five states have no statewide sales tax:
- Oregon — no state or local sales tax
- Montana — no state sales tax (some resort areas have small local taxes)
- New Hampshire — no sales tax
- Delaware — no sales tax
- Alaska — no state tax, but local governments may charge up to 7.5%
States With the Highest Combined Rates
When state and average local taxes are added together, the highest combined rates in the US are:
- Louisiana: ~9.56% average combined rate
- Tennessee: ~9.55%
- Arkansas: ~9.46%
- Washington: ~9.38%
- Alabama: ~9.29%
How to Calculate Sales Tax
The math is straightforward once you know the rate:
- Tax amount = Price × (Rate / 100)
- Total with tax = Price × (1 + Rate / 100)
Example: A $75 item with an 8.5% combined rate → Tax = $75 × 0.085 = $6.38 → Total = $81.38
Common Sales Tax Exemptions
Not everything is taxed at the full rate. Common exemptions and special rules include:
- Groceries: Exempt or taxed at reduced rates in many states (e.g., 1% in Illinois, 0% in Texas)
- Prescription drugs: Exempt in most states
- Clothing: Exempt in Pennsylvania, New Jersey, Minnesota, and New York (below a price threshold)
- Digital goods and software: Increasingly taxed as states update their laws for the digital economy
Online Sales Tax After South Dakota v. Wayfair
Since the Supreme Court's 2018 ruling in South Dakota v. Wayfair, states can require online sellers to collect sales tax even without a physical store in that state. Most major e-commerce platforms now automatically calculate and collect the correct sales tax for each buyer's location at checkout.
Glossary
Frequently Asked Questions
When combining state and average local taxes, Louisiana and Tennessee consistently rank highest with combined averages around 9.5–9.6%. California has the highest state-only base rate at 7.25%, but local add-ons vary significantly by city.
Five states have no statewide sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. Note that Alaska allows local governments to impose their own sales taxes, so some Alaskan cities do charge sales tax at the local level.
Multiply the pre-tax price by the tax rate as a decimal. For a $100 item at 8.25%: $100 × 0.0825 = $8.25 in tax, giving a total of $108.25. Use our Sales Tax Calculator to get instant results for any state, city, or custom rate.
Yes, in most cases. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require out-of-state online retailers to collect sales tax based on the buyer's location. Most major platforms like Amazon, eBay, and Etsy now collect and remit sales tax automatically.