Sales Tax Calculator

Unlike most developed nations that levy a national Value-Added Tax (VAT), the United States has no federal sales tax. Instead, 45 states plus the District of Columbia impose their own statewide sales taxes, and many allow counties, cities, and special districts to layer additional local sales taxes on top. Five states—Delaware, Montana, New Hampshire, Oregon, and (for the state level) Alaska—have no statewide sales tax, though Alaska permits local sales taxes and a few Montana/Oregon resort towns levy local taxes.

State rate, local rate, and combined rate

Your combined sales tax rate is the sum of the state rate, any county rate, any city rate, and any special district taxes (transit, stadium, public safety, etc.). California has the highest statewide rate at 7.25%, but local add-ons push many California cities above 10%. Tennessee, Arkansas, Louisiana, and Washington also routinely see combined rates above 9%. The combined rate is what you actually pay at checkout—not the state rate alone.

How tax is calculated

The basic formula is straightforward: sales tax = pre-tax amount × combined rate, and total = pre-tax amount + sales tax. For example, a $100 purchase in California at 8.82% combined generates $8.82 in tax, for a total of $108.82. If you only know the total (some receipts show all-in pricing), reverse the calculation: pre-tax = total ÷ (1 + rate), and tax = total − pre-tax. A $108.82 total at 8.82% yields $108.82 ÷ 1.0882 = $100 pre-tax, with $8.82 of tax.

What's taxable—and what's not

Taxability rules vary dramatically by state. Most states exempt or reduce tax on groceries (though a few, like Mississippi and Alabama, fully tax them). Prescription drugs are universally exempt, but over-the-counter medication rules vary. Clothing is exempt in Pennsylvania, New Jersey, Minnesota, and Vermont (with caps), but fully taxed in most states. Digital goods, services, software-as-a-service, and streaming subscriptions are taxed in some states and not others. Many states hold annual sales tax holidays for back-to-school items, emergency supplies, or energy-efficient appliances.

The post-Wayfair era of online sales tax

Before the 2018 Supreme Court decision South Dakota v. Wayfair, online sellers needed a physical presence (nexus) in a state to be forced to collect its sales tax. After Wayfair, states can require remote sellers to collect and remit sales tax once they cross an economic nexus threshold—typically $100,000 in annual sales or 200 separate transactions in the state. The practical result: nearly all major online retailers now collect sales tax at checkout. Marketplace facilitators (Amazon, eBay, Etsy) are responsible for collecting tax on third-party sales in most states.

Use tax: the often-ignored counterpart

When you buy something tax-free (typically out of state or online from a small seller below the nexus threshold) and use it in your home state, you technically owe use tax at the same rate as your state's sales tax. Consumers rarely pay it, but states are increasing enforcement—especially for businesses. Many state income tax returns now include a use-tax line for consumers to self-report. Buying a car out of state? You'll typically pay use tax when registering it at home.