Sales Tax Calculator

How US sales tax works

Unlike most of the world (which uses VAT), the US uses a state-and-local sales tax system. The rate you pay depends on where the sale happens (or where it's shipped, for online orders). 45 states + DC charge a statewide sales tax; five states don't. On top of the state rate, most cities and counties add their own local rate, often 1–4%.

Example: California's state base rate is 7.25%, but Los Angeles County adds another ~2.75% in local taxes, bringing the combined rate in most of LA to ~10%. San Francisco lands around 8.625%. The calculator's custom-rate field lets you enter your actual combined rate.

The five tax-free states

• Alaska — no statewide tax. Boroughs may add up to ~7.5% locally.
• Delaware — no statewide or local sales tax. Has a gross receipts tax on businesses, but consumers don't see it.
• Montana — no statewide sales tax. Some resort towns charge up to 3% locally.
• New Hampshire — no general sales tax. Has a 9% meals/rooms tax.
• Oregon — no statewide or local sales tax. Famously a destination for big-ticket purchases by Washington state residents.

Highest combined sales tax rates

With state + local combined, the highest average rates are in:

• Louisiana — ~9.5% combined average
• Tennessee — ~9.5% combined average
• Arkansas — ~9.4% combined average
• Washington — ~9.4% combined average
• Alabama — ~9.2% combined average

Lowest combined averages (excluding the five tax-free states): Hawaii (~4.4%), Wyoming (~5.4%), Wisconsin (~5.4%), Maine (5.5%), Virginia (~5.7%). Note that Hawaii uses a general excise tax (GET) that businesses pass through to consumers — it functions like a sales tax even though it's technically different.

What gets taxed (and what doesn't)

States vary widely in what's taxed:

• Tangible goods — taxed in all sales-tax states.
• Unprepared groceries — exempt in most states; reduced or full rate in some (Alabama, Mississippi, South Dakota).
• Prepared food / restaurants — taxed at full rate in all states; some cities add a meals tax surcharge.
• Clothing — taxable in most states; exempt up to a price threshold in some (Massachusetts, Pennsylvania, Vermont). New York exempts under $110/item.
• Prescription drugs — exempt almost everywhere.
• Over-the-counter drugs — taxable in most states.
• Services — historically untaxed in most states; some now tax specific services (haircuts, gym memberships, streaming subscriptions).
• Digital products / SaaS — increasingly taxed; varies state to state.

Online sales tax: post-Wayfair

Before 2018, states couldn't require sellers without physical presence to collect sales tax. The Supreme Court's decision in South Dakota v. Wayfair changed that — states can now require any seller above a sales threshold (typically 200 transactions or $100,000 in-state sales) to collect.

Practical impact: Amazon, Walmart, Target, and most major online retailers collect sales tax for your shipping address automatically. Smaller out-of-state sellers below the threshold may not — but you legally owe “use tax” yourself in 45 states. Use tax is rarely enforced for individuals but is required to be self-reported on state income tax returns.

Sales tax holidays

About 17 states run periodic “sales tax holidays” — typically a weekend in late summer for back-to-school shopping (clothing, school supplies, computers). Some states have hurricane-prep holidays, energy-efficiency holidays, or second-amendment holidays. The exemptions usually have item-price caps. Check your state's revenue department site for specific dates and rules.

Working backward: find the pre-tax price

Common when reconciling business expenses or splitting receipts. The math:

Pre-tax = Total ÷ (1 + rate/100)
Tax amount = Total − Pre-tax

Don't multiply the total by the tax rate — that gives a different (smaller) wrong answer. The reverse-mode in our calculator handles this automatically.