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State rates, exemptions, nexus rules, and formulas — your definitive sales tax reference.
45 states
Impose state sales tax
7.25%
Highest state rate (CA)
0%
5 no-sales-tax states
~$400B
Annual US sales tax revenue
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services at the point of purchase. Unlike income tax, sales tax is paid by the buyer and collected by the seller who remits it to the government. In the United States, there is no federal sales tax — rates are set independently by each state, county, and city, creating over 11,000 unique tax jurisdictions.
Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon (ADMNO) — levy no state sales tax, though some Alaska municipalities do impose local sales taxes. Combined state and local rates can reach as high as 11.45% in parts of Louisiana and Alabama. Most states exempt groceries, prescription drugs, and sometimes clothing from sales tax.
Since the landmark South Dakota v. Wayfair (2018) Supreme Court decision, states can levy sales tax on remote sellers (e-commerce) even without physical presence — creating economic nexus rules that dramatically expanded online sales tax collection.
Sales Tax = Price × (Tax Rate ÷ 100) Total = Price + Sales Tax Example (8.875% NYC): $50.00 × 0.08875 = $4.44 Total = $50.00 + $4.44 = $54.44
Tax rate is the combined state + county + city rate for the purchase location.
Pre-Tax Price = Total ÷ (1 + Tax Rate) Tax Amount = Total − Pre-Tax Price Example (total $54.44, 8.875%): $54.44 ÷ 1.08875 = $50.00 Tax = $54.44 − $50.00 = $4.44
Useful when a receipt shows only the total and you need the pre-tax amount.
Combined Rate = State + County + City + Special District Example (Los Angeles, CA): State: 7.25% County: 0.25% City: 0.00% Special: 2.25% (Metro + Transit) Combined: 9.50%
Always use the destination-based combined rate for the delivery location.
Taxable Amount = Total Purchase − Exempt Items Tax = Taxable Amount × Rate Example (grocery-exempt state): Clothing: $80.00 (taxable) Groceries: $45.00 (exempt) Tax = $80.00 × 0.065 = $5.20 Total = $80.00 + $45.00 + $5.20 = $130.20
Most states exempt groceries and prescription drugs; some exempt clothing.
| State | State Rate | Avg. Local | Combined | Grocery Exempt? |
|---|---|---|---|---|
| California | 7.25% | 1.57% | 8.82% | Yes |
| Louisiana | 4.45% | 5.10% | 9.55% | No (reduced) |
| Tennessee | 7.00% | 2.55% | 9.55% | No (4% reduced) |
| Arkansas | 6.50% | 2.97% | 9.47% | No (0.125% reduced) |
| Washington | 6.50% | 2.73% | 9.23% | Yes |
| Alabama | 4.00% | 5.22% | 9.22% | No |
| New York | 4.00% | 4.52% | 8.52% | Yes |
| Texas | 6.25% | 1.94% | 8.20% | Yes |
| Illinois | 6.25% | 2.49% | 8.74% | No (1% reduced) |
| Florida | 6.00% | 1.01% | 7.01% | Yes |
| Pennsylvania | 6.00% | 0.34% | 6.34% | Yes |
| Ohio | 5.75% | 1.47% | 7.22% | Yes |
| Georgia | 4.00% | 3.29% | 7.29% | Yes |
| New Jersey | 6.625% | N/A | 6.625% | Yes |
| Oregon | 0% | 0% | 0% | N/A |
West Virginia enacted the first broad-based state sales tax at 2%. Mississippi followed in 1930, and momentum grew during the Great Depression.
24 states adopted general sales taxes between 1930 and 1940 as income tax revenue plummeted. Revenue stability made sales tax popular with state governments.
The Supreme Court ruled states cannot require out-of-state sellers to collect sales tax without physical presence — the physical presence rule stood for 51 years.
The Supreme Court reaffirmed the physical presence requirement, setting the stage for decades of lost tax revenue as e-commerce grew exponentially.
States joined the SSUT agreement to simplify and standardize sales tax rules across jurisdictions, making multi-state compliance less burdensome for sellers.
The Supreme Court overturned the physical presence test, allowing states to tax remote sellers based on economic nexus (e.g., $100K in sales or 200 transactions).
Tax Foundation
Combined state + local sales tax ranges from 0% (5 ADMNO states) to 9.55% (Louisiana, Tennessee). The national average combined rate is 6.6%.
US Census Bureau
States collected $411 billion in general sales tax in FY2023, representing about 32% of total state tax revenue — the largest single source for most states.
Government Accountability Office
Post-Wayfair, states collected an estimated $30+ billion annually from remote sellers that previously went untaxed under the physical presence standard.
Institute on Taxation and Economic Policy
Sales taxes are regressive — the bottom 20% of earners pay 7.1% of income in sales tax vs. 0.6% for the top 1%, because low-income families spend more of their income on taxable goods.
Buying online means you don't have to pay sales tax.
Since the 2018 Wayfair decision, most states require remote sellers to collect sales tax if they exceed economic nexus thresholds ($100K in sales or 200 transactions).
All states charge the same types of items.
Taxability varies enormously. Some states tax groceries, clothing, and digital goods; others exempt them entirely. Always check the specific state and item category.
Sales tax is simple — it's just one rate per state.
There are 11,000+ unique jurisdictions. A single state can have hundreds of different combined rates based on county, city, and special district overlays.
Sales tax only applies to physical products.
Many states now tax digital goods (streaming, downloads, SaaS), certain services (repair, landscaping), and even some professional services.
From sales tax to retirement planning — CalculatorApp.me has every money tool you need.
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