Sales Tax Calculator

Sales tax is calculated by multiplying the pre-tax purchase price by the applicable tax rate. The total tax rate is often a combination of state, county, and city taxes. For example, a $100 purchase in a location with a combined 8.25% sales tax rate results in $8.25 in tax and a total cost of $108.25. Some states tax different categories of goods at different rates, with groceries and clothing sometimes taxed at reduced rates or exempted entirely.

State sales tax rates vary widely across the United States, ranging from 0% in states with no sales tax to 7.25% in California. When local taxes are added, combined rates can exceed 10% in some jurisdictions. Louisiana, Tennessee, Arkansas, Washington, and Alabama have some of the highest combined average rates in the country. It is important to consider both the state and local rates when calculating the total sales tax on a purchase.

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to impose their own sales taxes, so some Alaska cities and boroughs do collect sales tax at rates up to 7.5%. Residents of these states benefit from lower costs on everyday purchases, though these states often compensate with higher income or property taxes to fund government services.

Since the landmark 2018 Supreme Court decision in South Dakota v. Wayfair, most states require online retailers to collect sales tax when they have economic nexus in a state, even without a physical presence. This means the vast majority of online purchases now include sales tax. If a retailer does not collect tax, buyers are technically required to report and pay the equivalent use tax on their state tax return, though compliance with this requirement has historically been low.