US Sales Tax Calculator

How Sales Tax Works in the United States

Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. Unlike a federal income tax that is consistent nationwide, sales tax rates vary widely depending on where you shop.

State vs. Local Sales Tax

Most states charge a base sales tax rate, but cities and counties can add their own local taxes on top. For example, California has a 7.25% state rate, but many cities add 1-2.5%, pushing the total rate to 9% or higher. This means two purchases in the same state can be taxed at very different rates depending on the city.

States With No Sales Tax

Five states have no statewide sales tax:

• Alaska — no state sales tax, but some localities charge up to 7.5%
• Delaware — no sales tax at any level
• Montana — no sales tax at any level (some resort areas have a small tax)
• New Hampshire — no sales tax at any level
• Oregon — no sales tax at any level

Sales Tax vs. Use Tax

Sales tax is collected by the seller at the point of purchase. Use tax is owed by the buyer when sales tax was not collected — for example, when purchasing goods online from an out-of-state retailer that does not charge tax, or buying items in a state with no sales tax and bringing them home to a state that does have one. Use tax is typically the same rate as your local sales tax. While often underreported by individuals, businesses are expected to self-assess and remit use tax on untaxed purchases.

What Is and Isn't Taxed

Taxability rules differ by state. Most states exempt groceries (unprepared food), prescription medications, and certain clothing. Prepared food, electronics, furniture, and most retail goods are typically taxable. Some states also tax digital goods, software, and certain services. Always check your state's specific rules for the items you're purchasing.