Sales Tax Calculator: Understanding State-by-State Rates
Unlike most countries with a single national VAT, America has a patchwork of state and local sales taxes. Five states have no sales tax at all. Some cities add their own. The result: a complex system where the same item costs different amounts in different places. Our calculator helps make sense of it.
The American Sales Tax System
Sales tax is collected by sellers and remitted to state (and sometimes local) governments. Rates vary dramatically:
- No sales tax — Oregon, Montana, Delaware, New Hampshire, Alaska (state level)
- Low rates — Colorado 2.9%, Alabama 4%, Wyoming 4%
- High rates — California 7.25%, Tennessee 7%, Indiana 7%
- Combined rates — When you add local taxes, some areas exceed 10%
Sales Tax Calculator for any rate.
The Highest Combined Rates
- Seattle, WA — up to 10.25%
- Chicago, IL — 10.25%
- Los Angeles, CA — 9.5%
- New York City — 8.875%
- Phoenix, AZ — 8.6%
What's Taxable Varies Too
Each state decides what's taxable. Most tax physical goods. Services are often exempt but not always. Food might be taxed, reduced-rate, or exempt depending on the state. Clothing is taxed in most states but not in Pennsylvania, New Jersey, or New York (under $110).
For Online Sellers: Nexus Rules
Since the 2018 Wayfair decision, states can require out-of-state sellers to collect sales tax if they exceed certain thresholds (typically $100,000 in sales or 200 transactions). If you sell online to multiple states, you may need to collect and remit tax in each.
The Calculation Modes
- Add tax to price — Start with pre-tax price, add the tax
- Extract tax from total — You have the final price, figure out what was tax
- Multiple jurisdictions — Account for state + county + city
Use the Sales Tax Calculator for your needs.
Related Tools
The Profit Margin Calculator helps with pricing strategy. The Salary Calculator shows your income after all taxes.
Frequently Asked Questions
Which US states have no sales tax?
Oregon, Montana, New Hampshire, Delaware, and Alaska (though Alaska allows local taxes). The Sales Tax Calculator helps with calculations for all states.
What is the highest sales tax rate in America?
Combined state and local rates reach 10%+ in Louisiana, Tennessee, Arkansas, Washington, and Alabama. California state rate is 7.25% plus local additions.
Do all items have the same sales tax rate?
No. Many states exempt groceries, medicine, and clothing from sales tax or apply reduced rates. Prepared food often has higher rates than groceries.
What other tax-related calculators are available?
The Profit Margin Calculator for business pricing and the Salary Calculator for income tax estimates.
