Sales Tax Calculator by State
Calculate sales tax for any US state including state and local tax rates. Instantly see total tax and final purchase price.
Purchase Details
Pre-tax purchase price
State tax rate: 7.25%
City/county tax rate (varies by location)
Tax Summary
Effective Tax Rate:
9.75%
California Tax Information
• State Tax Rate: 7.25%
• Local Tax: Varies by location
Note: Local tax rates vary by city and county. Check with your local government for exact rates.
Understanding Sales Tax by State
How Sales Tax Works
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. The tax rate varies significantly by state, ranging from 0% in states like Alaska, Delaware, Montana, New Hampshire, and Oregon, to over 7% in states like California, Indiana, Mississippi, Rhode Island, and Tennessee.
Most states allow local governments (cities, counties, districts) to add their own sales tax on top of the state rate. This creates combined rates that can exceed 10% in some locations. For example, combined rates in parts of California, Louisiana, and Alabama can reach 10-11%.
Formula & Calculation
State Tax: Purchase Amount × (State Rate ÷ 100)
Local Tax: Purchase Amount × (Local Rate ÷ 100)
Total Tax: State Tax + Local Tax
Final Price: Purchase Amount + Total Tax
Example Calculation
Purchase: $1,000 in Los Angeles, California
- • State Tax (7.25%): $1,000 × 0.0725 = $72.50
- • Local Tax (2.25%): $1,000 × 0.0225 = $22.50
- • Total Tax: $72.50 + $22.50 = $95.00
- • Final Amount: $1,095.00
States with No Sales Tax (2025)
Zero State Tax:
- • Alaska (local tax allowed)
- • Delaware
- • Montana
- • New Hampshire
- • Oregon
Note:
While these states have no state sales tax, Alaska allows local jurisdictions to impose their own sales tax (up to 7% in some areas). The other four states have no sales tax at any level.
Highest Combined Sales Tax States (2025)
Top Combined Rates:
- • Louisiana: up to 11.45% (4.45% state + 7% local)
- • Tennessee: up to 9.55% (7% state + 2.55% local)
- • Arkansas: up to 11.625% (6.5% state + 5.125% local)
- • Alabama: up to 13.5% (4% state + 9.5% local)
- • Washington: up to 10.4% (6.5% state + 3.9% local)
Impact Example:
A $10,000 purchase in a 10% combined tax area results in $1,000 in sales tax, compared to $0 in a no-tax state like Oregon—a significant difference for major purchases.
What's Taxable vs. Exempt
Usually Taxable:
- ✓ Clothing (except in some states)
- ✓ Electronics
- ✓ Furniture
- ✓ Vehicles
- ✓ Restaurant meals
- ✓ Entertainment
Often Exempt:
- ✓ Groceries (most states)
- ✓ Prescription drugs
- ✓ Medical devices
- ✓ Newspapers/magazines (some states)
- ✓ Some services
- ✓ Resale purchases (with certificate)
For Businesses: Nexus & Collection
Economic Nexus (Post-Wayfair): Since the 2018 South Dakota v. Wayfair Supreme Court decision, states can require out-of-state sellers to collect sales tax if they exceed economic thresholds (typically $100,000 in sales or 200 transactions per year).
Key Points for Sellers:
- Register for sales tax permit in states where you have nexus
- Collect the correct state and local tax rate for buyer's location (destination-based) or your location (origin-based)
- File regular sales tax returns (monthly, quarterly, or annually)
- Use sales tax automation software for multi-state compliance
- Keep detailed records for audit purposes
Frequently Asked Questions
How do I find my exact local sales tax rate?
Local tax rates vary by city, county, and special districts. Visit your state's Department of Revenue website or use their sales tax rate lookup tool by entering your ZIP code or address. Many states provide free rate databases and APIs for businesses. The rates in this calculator are base state rates—always verify local rates for accuracy.
Do I pay sales tax on online purchases?
Yes, in most cases. Following the Wayfair decision, most online retailers with significant sales volume must collect sales tax in states where they have economic nexus. If the seller doesn't collect it, you may owe "use tax" (equivalent to sales tax) when filing your state tax return. Major retailers like Amazon automatically collect sales tax for all states that impose it.
Are groceries taxed?
It depends on your state. 32 states exempt most grocery items from sales tax, though some tax them at reduced rates. Prepared food, candy, and soda are often taxed even when groceries are exempt. States like Alabama, Hawaii, Idaho, Kansas, Mississippi, Oklahoma, and South Dakota tax groceries at the full rate. Check your state's specific rules for what qualifies as "grocery food."
Can I get a refund on sales tax?
Yes, in certain situations: (1) If you're tax-exempt (nonprofit, government, reseller with certificate), you can request a refund with documentation. (2) For incorrect charges, contact the seller first; if unresolved, file a claim with your state's Department of Revenue. (3) Some states offer sales tax holidays for specific items like back-to-school supplies or energy-efficient appliances.
What is the average sales tax rate in the US?
The average combined state and local sales tax rate in the US is approximately 6-7% (2025). However, this varies dramatically: from 0% in no-tax states to over 10% in high-tax areas. Weighted by population, the average is closer to 7%, since many people live in states with higher rates (California, Texas, New York, Florida, Illinois).
How often do sales tax rates change?
State rates change occasionally (every few years), usually requiring legislative action. Local rates change more frequently—cities and counties may adjust rates quarterly or annually based on local ballot measures or budget needs. Businesses must stay current with rate changes, especially if selling in multiple jurisdictions. Most states publish rate change notices 60-90 days in advance.