Sales Tax Calculator

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Last updated: June 21, 2026

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Sales Tax Calculator

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Calculation Type

Pre-Tax Price ($)

Tax Rate (%)

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Sales Tax Calculator — US State Tax Complete Guide

Sales tax in the US is a state-level and local consumption tax with rates ranging from 0% to 10.25%. Understanding how it's calculated — and which purchases are exempt — saves money and prevents compliance errors for businesses.

0%

5 states with no sales tax (OR, MT, NH, DE, AK)

10.25%

Highest combined rate (Chicago, IL — city+county+state)

45

States + DC that collect sales tax

$500B+

Annual US state and local sales tax revenue

How Sales Tax Works

Adding tax: Total = Pre-tax price × (1 + tax rate). Example: $100 item at 8.25% tax = $100 × 1.0825 = $108.25. Tax amount = $8.25.

Removing tax from inclusive price: Pre-tax = Inclusive price ÷ (1 + tax rate). Example: $108.25 total at 8.25% = $108.25 ÷ 1.0825 = $100.00 pre-tax. Tax amount = $8.25. This "reverse calculation" is needed for retail workers, accountants, and anyone working with tax-inclusive prices.

Most US sales taxes are destination-based — tax applies at the buyer's location, not the seller's. This matters for e-commerce (post-South Dakota v. Wayfair, 2018): online sellers with economic nexus (>$100K sales or 200 transactions in a state) must collect that state's sales tax even without physical presence.

Common Exemptions

→Groceries (most states — exact list varies)

→Prescription drugs (most states)

→Medical devices and equipment

→Agricultural equipment and supplies

→Resale (goods bought to resell)

→Services (most states — varies widely)

→Clothing under $110 (NY)

→Manufacturing equipment (some states)

Sales Tax by State (2024)

State	State Rate	Avg Local Rate	Avg Combined Rate
California	7.25%	1.43%	8.68% (up to 10.75% locally)
Texas	6.25%	1.95%	8.20%
Florida	6.00%	1.06%	7.06%
New York	4.00%	4.52%	8.52%
Washington	6.50%	2.73%	9.23%
Oregon / Montana / NH / DE / AK	0%	—	0% (AK: local only)
Tennessee	7.00%	2.55%	9.55%
Louisiana	4.45%	5.10%	9.55%

Source: Tax Foundation, 2024 State & Local Sales Tax Rates

Sales Tax Myths vs Facts

Myth

Online purchases are not subject to sales tax

Fact

Post South Dakota v. Wayfair (2018), all 45 taxing states can require online sellers to collect sales tax. Economic nexus thresholds (typically $100K sales or 200 transactions) mean major e-commerce sellers collect tax in all states they operate. Marketplace facilitators (Amazon, eBay, Etsy) collect and remit tax automatically. The "no-tax online shopping" era ended legally in 2018.

Myth

Sales tax and VAT work the same way

Fact

Sales tax is collected only at the final sale to the consumer. VAT (used in EU, Canada GST, India GST) is collected at every stage of the supply chain, with businesses claiming credits for tax already paid. Same economic burden on consumers, but very different compliance mechanisms. US has no federal VAT; each state administers its own sales tax independently — creating a patchwork of 11,000+ taxing jurisdictions.

Myth

If you live in a no-sales-tax state, you never pay sales tax

Fact

Alaska has no state sales tax, but 100+ local jurisdictions levy their own (average 1.76%). New Hampshire has no sales or income tax, but hotels have a 9% occupancy tax and meals have a 9% tax. Also: "use tax" applies when you purchase goods from out-of-state and bring them to your home state — technically owed to your state even without sales tax collection. Most consumers ignore use tax; it's rarely enforced on individuals.

Myth

The listed price is what you pay

Fact

In the US, retail prices are almost always listed without tax (unlike EU where prices include VAT). Tax is added at checkout. On a $50 item in California at 10% combined rate: actual cost = $55. Savvy shoppers budget for taxes on large purchases. Sales tax is a significant share of large purchases: $40,000 car in Texas (8.25%) = $3,300 in taxes alone.

Frequently Asked Questions

How do I calculate sales tax on a purchase?▾

Simple: Tax Amount = Pre-tax Price × (Tax Rate ÷ 100). Total = Pre-tax Price + Tax Amount. Or: Total = Pre-tax Price × (1 + Tax Rate ÷ 100). Example: $75 item at 7.5% tax. Tax = $75 × 0.075 = $5.63. Total = $75 + $5.63 = $80.63 (or $75 × 1.075 = $80.63). The combined rate is state rate + county rate + city rate + any special district rate.

Which US states have no sales tax?▾

Five states have no statewide sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local governments to levy sales tax — some Alaskan cities have rates up to 7.5%. New Hampshire has no sales tax but has a 9% meals and rentals tax. Delaware famously uses this as a tourism draw — "Shop tax free in Delaware." Montana has a 4% lodging sales tax and rental car tax despite no general sales tax.

Are groceries taxed in my state?▾

Grocery tax treatment varies: Fully exempt (no tax): Arizona, California, Georgia, Illinois (1% reduced), Massachusetts, Michigan, Nevada, New Jersey, New York, Pennsylvania, Texas, Vermont, Wisconsin. Fully taxable: Alabama (4%), Mississippi (7%), South Dakota (4.5%), West Virginia. Reduced rate: Arkansas (0.125%), Kansas (phased out), Louisiana (3%), Oklahoma (4.5%), Virginia (2.5%). Check your specific state for the complete list of taxable/exempt foods.

What is economic nexus and does it affect me as a seller?▾

Economic nexus is the obligation to collect sales tax in a state even without physical presence, based on sales volume. Post-Wayfair (2018): most states set thresholds at $100,000 in annual sales or 200 transactions. If you sell online and exceed these thresholds in a state, you must register, collect, and remit that state's sales tax. Platforms like Shopify, WooCommerce, and marketplaces like Amazon/Etsy handle this automatically. Individual sellers on eBay, Etsy, etc. don't need to worry — the marketplace is the "seller" for tax purposes.

How do I calculate the pre-tax price from a tax-inclusive total?▾

Reverse calculation: Pre-tax = Inclusive Total ÷ (1 + Tax Rate). Example: you have a receipt for $107.50 and the tax rate is 7.5%. Pre-tax = $107.50 ÷ 1.075 = $100.00. Tax paid = $107.50 − $100.00 = $7.50. Alternatively: Tax = Inclusive Total × (Rate ÷ (1 + Rate)) = $107.50 × (0.075 ÷ 1.075) = $7.50. This "tax-inclusive to exclusive" calculation is used by retail accountants and for expense reporting.

Are services subject to sales tax?▾

Generally no — most US states only tax tangible personal property (physical goods). However, many states increasingly tax services: Hawaii, New Mexico, South Dakota, and West Virginia broadly tax services. Digital services/software (SaaS): 17 states tax SaaS; others don't. Repair and installation services: taxable in many states. Professional services (legal, accounting, consulting): generally exempt. Check your specific state — service taxation varies enormously.

What is a sales tax exemption certificate and how does it work?▾

A sales tax exemption certificate (resale certificate or exemption certificate) is a document allowing a buyer to purchase without paying sales tax. Common uses: businesses buying goods for resale (most common), manufacturers buying raw materials, nonprofits, government entities. Sellers must collect and retain these certificates. Issuing a fraudulent certificate is a crime. If you're a buyer legitimately exempt, get the correct form from your state's revenue department and present it at purchase.

How does sales tax on cars work?▾

Most states tax vehicle purchases, but rates and structures vary. Common approaches: (1) Standard sales tax rate (Texas 6.25%, California 7.25% + local, up to 10.75%). (2) Flat vehicle excise tax (Massachusetts). (3) Trade-in deduction: many states only tax the difference between new car price and trade-in value (saves tax on the trade-in amount — can be $1,000+ savings). (4) Some states have caps (NY caps at $2,000 reduction for trade-in). Understand your state's trade-in rules — they significantly affect total tax.

What is use tax and do I owe it?▾

Use tax is a complement to sales tax — owed when you buy goods from out-of-state (or online) without paying sales tax, then use those goods in your home state. Legally, you should remit use tax to your state equivalent to what sales tax would have been. In practice: almost no individuals pay it (IRS estimates 99%+ non-compliance for consumer use tax). Businesses face stricter scrutiny in sales tax audits. States focus enforcement on businesses, not consumers. Most states have a use tax line on their income tax return (often ignored).

How do I find the combined sales tax rate for my address?▾

Combined rate = State rate + County rate + City rate + Special district rates. Best resources: (1) Your state revenue department website — usually has a rate lookup by zip code or address. (2) Sales tax API providers (TaxJar, Avalara, Vertex) for businesses. (3) Tax Foundation's interactive map (taxfoundation.org). For a specific purchase location in a major city: always look up the exact combined rate — rates vary block-by-block in some jurisdictions (special improvement districts).

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Complete Guide to US Sales Tax

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

What Is Sales Tax?

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.

How Sales Tax Is Calculated

Basic Sales Tax

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.

Tax-Inclusive Price (Back-Calculate)

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 Calculation

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.

Exempt & Reduced Items

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.

Sales Tax Rates by State (Top 15)

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

History of Sales Tax in America

1921

West Virginia — First State Sales Tax

West Virginia enacted the first broad-based state sales tax at 2%. Mississippi followed in 1930, and momentum grew during the Great Depression.

1930s

Depression-Era Expansion

24 states adopted general sales taxes between 1930 and 1940 as income tax revenue plummeted. Revenue stability made sales tax popular with state governments.

1967

National Bellas Hess v. Illinois

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.

1992

Quill Corp v. North Dakota

The Supreme Court reaffirmed the physical presence requirement, setting the stage for decades of lost tax revenue as e-commerce grew exponentially.

2000

Streamlined Sales Tax Project

States joined the SSUT agreement to simplify and standardize sales tax rules across jurisdictions, making multi-state compliance less burdensome for sellers.

2018

South Dakota v. Wayfair

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).

Key Research & Data

Tax Foundation

State and Local Sales Tax Rates 2024

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

State Government Tax Collections

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

Sales Tax on Remote Sales (Post-Wayfair)

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

Regressivity of Sales Tax

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.

Sales Tax Myths vs. Facts

✕

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.

Frequently Asked Questions

Which states have no sales tax?▼

Alaska, Delaware, Montana, New Hampshire, and Oregon have no state-level sales tax. However, some Alaska boroughs impose local sales taxes up to ~7.5%.

What is the highest combined sales tax rate in the US?▼

As of 2024, parts of Louisiana and Tennessee have combined rates reaching 9.55%. Individual jurisdictions in Alabama can exceed 11%.

Do I owe use tax if I buy something online tax-free?▼

Technically, yes. Most states require residents to self-report and pay 'use tax' on out-of-state purchases where no sales tax was collected. Compliance is low but states are increasing enforcement.

What is economic nexus?▼

Economic nexus is a threshold (typically $100,000 in sales or 200 transactions in a state) that triggers a remote seller's obligation to collect and remit that state's sales tax.

Are groceries taxed?▼

It depends on the state. About 32 states fully or partially exempt unprepared groceries. States like Mississippi, Alabama, and South Dakota tax groceries at the full state rate.

Is clothing taxable?▼

In most states, yes. However, Pennsylvania, New Jersey, and Minnesota fully exempt clothing. New York exempts clothing items under $110 each.

How does sales tax apply to digital products?▼

Approximately 30 states tax digital goods (ebooks, streaming, downloads). Taxability depends on the state's definition of 'tangible personal property' and digital product classifications.

What is origin-based vs destination-based sourcing?▼

Origin-based states (e.g., Texas, Pennsylvania) apply the seller's location rate. Destination-based states (majority) apply the buyer's ship-to address rate.

Do SaaS products have sales tax?▼

It varies by state. About 20 states tax SaaS as either a taxable service or digital good. Others exempt it because there's no transfer of tangible property.

How do I file sales tax returns?▼

Each state has its own filing frequency (monthly, quarterly, or annually) and portal. Multi-state sellers often use automated tax software (TaxJar, Avalara) to manage filings.

What's the difference between sales tax and VAT?▼

Sales tax is collected only at the point of final sale. VAT (Value Added Tax), used in 160+ countries, is collected at every stage of the supply chain with credits for tax paid at each prior stage.

Can nonprofits avoid paying sales tax?▼

Nonprofits are typically exempt from paying sales tax on their own purchases in most states, but must apply for exemption certificates. They generally must still collect tax on taxable items they sell.

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Sales Tax Calculator — US State Tax Complete Guide

How Sales Tax Works

Common Exemptions

Sales Tax by State (2024)

Sales Tax Myths vs Facts

Frequently Asked Questions

Related Calculators

Calculate Sales Tax

Complete Guide to US Sales Tax

What Is Sales Tax?

How Sales Tax Is Calculated

Sales Tax Rates by State (Top 15)

History of Sales Tax in America

West Virginia — First State Sales Tax

Depression-Era Expansion

National Bellas Hess v. Illinois

Quill Corp v. North Dakota

Streamlined Sales Tax Project

South Dakota v. Wayfair

Key Research & Data

State and Local Sales Tax Rates 2024

State Government Tax Collections

Sales Tax on Remote Sales (Post-Wayfair)

Regressivity of Sales Tax

Sales Tax Myths vs. Facts

Frequently Asked Questions

References

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