Which US states have the highest and lowest sales tax rates?

State-only (base) rates as of 2024: California has the highest state rate at 7.25%, followed by Indiana, Mississippi, Rhode Island, and Tennessee at 7%. However, combined state + local rates are often higher - Tennessee averages 9.55%, Louisiana 9.55%, Arkansas 9.46%. The five states with no state sales tax are Montana, Oregon, New Hampshire, Delaware, and Alaska (though Alaska allows local taxes up to 7.5%).

Are groceries subject to sales tax in the US?

It depends on the state. Most states exempt grocery food from sales tax or apply a reduced rate. States that fully tax groceries include Alabama, Mississippi, South Dakota, and Hawaii. States that fully exempt groceries include California, New York, Texas, and Florida. Prepared food (restaurant meals, hot food from delis) is taxed in almost every state, even when packaged groceries are exempt.

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

Divide the total (tax-inclusive) price by (1 + tax rate/100). For a 7% sales tax: Pre-tax price = Total ÷ 1.07. For example, if you paid $107 for an item with 7% sales tax, the pre-tax price was $107 ÷ 1.07 = $100, and the tax was $7. Use the 'Remove Tax' mode in this calculator to do this instantly.

Do I pay sales tax when shopping online?

Since the US Supreme Court's 2018 South Dakota v. Wayfair ruling, states can require online retailers to collect sales tax even without a physical presence in the state. Most major online retailers (Amazon, Walmart, Target) now collect sales tax on purchases in nearly all states. The requirement typically applies when a retailer exceeds $100,000 in sales or 200 transactions in a state annually.

How much is sales tax on a $1,000 purchase in California?

California has a state sales tax of 7.25%, but most purchases in California also include local district taxes, making the effective rate 8–10.75% depending on the city. In Los Angeles, the combined rate is 10.25%, so a $1,000 purchase would cost $1,102.50. In San Francisco, the rate is 8.625%, for a total of $1,086.25. Always check the combined rate for your specific location.

Is sales tax deductible on US federal tax returns?

Yes. US taxpayers who itemise deductions can deduct either state income tax or state and local sales tax paid during the year - but not both. This is the SALT (State and Local Taxes) deduction, currently capped at $10,000 per year ($5,000 if married filing separately) under the 2017 Tax Cuts and Jobs Act. The sales tax deduction is most beneficial for residents of states with no income tax (like Texas, Florida, Washington) who pay significant sales tax.

Sales Tax Calculator

Q: What is sales tax and how does it differ from VAT?

Sales tax is a single-stage tax charged only at the point of final sale to the consumer, collected entirely by the retailer. VAT is a multi-stage tax collected at every step of the supply chain, with businesses claiming back VAT paid on inputs. In the US, sales tax rates vary by state and even city or county. In Europe and most other countries, VAT is used instead. From the consumer's perspective, both add a percentage to the final purchase price.

Calculate how much sales tax you'll pay on any purchase, or find the pre-tax price.

Price (before tax) $100.00

US State (or enter custom rate) 7.25%

Pre-Tax Price

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Tax Amount

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Total Price

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🏷️ What is Sales Tax?

Sales tax is a consumption tax imposed by a government on the sale of goods and services. In the United States, sales tax is levied at the state level (and often at the city, county, or district level on top of the state rate), making it one of the most complex tax systems in the world. Unlike the income-based taxes filed annually, sales tax is collected at the point of purchase - you pay it every time you buy a taxable item.

The United States does not have a federal sales tax. Instead, each of the 50 states sets its own rate, and local governments within those states can add additional taxes on top. This means the total sales tax you pay on a purchase can vary significantly depending on exactly where you make the purchase. For example, the combined state + city sales tax in New York City is 8.875%, while it is 10.25% in Chicago, and 0% in Beaverton, Oregon (no state or local sales tax).

Sales tax applies differently to different types of goods. Virtually every state taxes most tangible personal property and most services. Common exemptions include groceries (in many states), prescription drugs, medical devices, and agricultural equipment. The rules are highly state-specific and can even vary by product category - a prepared hot sandwich may be taxed while a cold sandwich is not.

For businesses selling across multiple states, sales tax compliance is a major administrative challenge. Online sellers became subject to multi-state sales tax collection obligations after the Supreme Court's 2018 South Dakota v. Wayfair decision. This calculator helps consumers quickly calculate the final price of any purchase and helps businesses verify tax amounts across any rate.

📐 Sales Tax Formula

Sales tax calculations use simple percentage arithmetic:

Tax Amount = Price × (Tax Rate ÷ 100)

Total Price = Price + Tax Amount = Price × (1 + Tax Rate ÷ 100)

Pre-tax Price = Total Price ÷ (1 + Tax Rate ÷ 100)

Price = The pre-tax (net) price of the item

Tax Rate = Combined state + local sales tax rate as a percentage

Tax Amount = Dollar amount of tax charged

Total Price = Final amount you pay at checkout

To find the pre-tax price from a tax-inclusive total: divide the total by (1 + rate/100). Do not simply subtract the tax rate percentage - this gives an incorrect result because the rate is applied to the net price, not the total.

📖 How to Use This Calculator

Steps to Calculate Sales Tax

Choose your mode: "Add Tax" to find the total from a pre-tax price, or "Remove Tax" to find the pre-tax price from a total you already paid.

Enter the price - either the pre-tax price (Add Tax mode) or the total price you paid (Remove Tax mode).

Select your state from the dropdown to auto-fill the state rate, or type any custom rate directly in the rate field for local combined rates.

Click Calculate Sales Tax to see the pre-tax price, tax amount, and total price all at once.

💡 Example Calculations

Example 1 - Electronics Purchase in California

Laptop priced at $899.99. California state rate: 7.25%.

Mode: Add Tax · Pre-tax Price: $899.99 · Rate: 7.25%

Tax Amount = $899.99 × 0.0725 = $65.25

Pre-tax: $899.99 · Tax: $65.25 · Total: $965.24

Try this example →

Example 2 - Finding Pre-Tax Price from a Receipt in Texas

You paid $53.50 for clothing in Texas (6.25% state rate + 2% local = 8.25%).

Mode: Remove Tax · Total Paid: $53.50 · Rate: 8.25%

Pre-tax Price = $53.50 ÷ 1.0825 = $49.42 · Tax = $53.50 − $49.42 = $4.08

Pre-tax: $49.42 · Tax: $4.08 · Total: $53.50

Try this example →

❓ Frequently Asked Questions

What is sales tax and how does it differ from VAT?+

Sales tax is charged only at the final point of sale to the consumer - the retailer collects it and remits it to the government. VAT is collected at every stage of the supply chain, with each business claiming back the VAT paid on inputs. From a consumer perspective, both add a percentage to the purchase price. The US uses sales tax; most other countries use VAT or GST.

Which US states have no sales tax?+

Five states have no state-level sales tax: Montana, Oregon, New Hampshire, Delaware, and Alaska. Note that Alaska allows local governments to impose sales taxes - some Alaskan cities have rates up to 7.5%. If you live near a state border with lower or no sales tax, purchasing big-ticket items there can result in meaningful savings, though your home state may impose a "use tax" on those purchases.

Are groceries taxed in the US?+

It varies by state. Most states exempt grocery food from sales tax or apply a reduced rate. States that fully tax groceries include Alabama, Mississippi, and South Dakota. States that exempt groceries include California, New York, Texas, and Florida. Prepared food (restaurant meals, hot takeaway food) is taxed almost universally. The line between "grocery" and "prepared food" varies by state and can be surprisingly specific.

Why does my receipt show a different sales tax rate than the state rate?+

Most purchases are subject to a combined rate that includes the state rate plus local (city, county, district) rates. For example, California's state rate is 7.25%, but the total rate in Los Angeles is 10.25% after adding LA County and city taxes. Always check the combined rate for your specific location - this calculator lets you enter any custom combined rate directly.

Do I pay sales tax on online purchases?+

After the 2018 South Dakota v. Wayfair Supreme Court ruling, most states can require online retailers to collect sales tax even without a physical presence. Major retailers like Amazon, Walmart, and Target now collect sales tax in nearly all states. Small sellers below economic nexus thresholds (typically $100,000 in sales or 200 transactions per state annually) may not be required to collect - but you may still owe use tax to your state on those purchases.

Can I get a sales tax refund as a tourist in the US?+

Unlike many countries (especially EU nations with VAT refund schemes for tourists), the US does not have a federal tourist tax refund program. Louisiana is the only US state with an official tax-free shopping program for international visitors in certain stores. Some states like Texas and Florida had tourist refund programs that were discontinued. When shopping in the US as a foreign tourist, the price you pay at checkout is the final price with no refund mechanism.

What is the difference between sales tax and VAT?+

Sales tax is collected only at the final point of sale to the consumer - there is no credit for tax paid at earlier stages. VAT (Value Added Tax) is collected at every stage of the supply chain, but each business claims credit for VAT already paid (input tax credit), so the final consumer pays tax only on the net value added. Most countries have moved from sales tax to VAT or GST for this reason.

What is the average combined sales tax rate in the US?+

The average combined state and local sales tax rate in the US is approximately 7.0-7.5% as of 2024, but it varies enormously by location. California has the highest base state rate at 7.25% (combined local rates often reach 10%+). States like Oregon, New Hampshire, and Montana have no sales tax. Tennessee has one of the highest combined rates (9.5%+). Always check your specific city and county rate, as local taxes can add 2-4% on top of the state rate.

Is sales tax the same as use tax?+

No. Sales tax is collected by the seller at point of sale. Use tax is a complementary tax paid directly by buyers on purchases where sales tax was not collected (e.g., out-of-state online purchases). Most states require residents to report and pay use tax on their income tax returns, though compliance is low.