Sales Tax Calculator

Calculate US sales tax with separate state and local rates for any location.

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Subtotal
$0.00
Total Tax
$0.00
Grand Total
$0.00
Combined Rate
0%
Formula
Total Tax = Price × (State Rate + Local Rate)

Understanding Sales Tax in the United States

Sales tax in the United States is a consumption tax imposed by state and local governments on the sale of goods and certain services. Unlike VAT used in most other countries, US sales tax is collected only at the final point of sale. The complexity arises from the fact that there is no federal sales tax — instead, 45 states plus DC impose their own rates, and thousands of local jurisdictions add additional taxes. Combined rates can range from 0% in states like Oregon to over 10% in parts of Louisiana, Tennessee, and Washington.

Key Sales Tax Concepts

Nexus & Tax Obligation

A business must collect sales tax in any state where it has nexus — a significant presence such as a physical location, employees, or exceeding economic thresholds (typically $100K in sales or 200 transactions per year under the South Dakota v. Wayfair ruling).

Tax-Exempt Items

Many states exempt essentials from sales tax. Common exemptions include groceries, prescription medications, and clothing. Each state maintains its own list of exempt categories.

Use Tax

When you purchase items from out-of-state sellers who do not collect sales tax, you are generally required to pay use tax at your local rate on online purchases and mail orders.

Pro Tips for Sales Tax

Always verify combined state + local rates before pricing products
Register for sales tax permits in all states where you have nexus
Consider automated sales tax software like Avalara or TaxJar for multi-state compliance
Keep records of all tax-exempt sales with proper exemption certificates
Review rates quarterly as local jurisdictions can change rates

Frequently Asked Questions

Which US states have no sales tax?
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local municipalities to impose their own sales taxes.
How do I calculate sales tax backwards from a total?
Divide the total by (1 + combined tax rate as decimal). For example, a $108 total with 8% tax: $108 / 1.08 = $100 pre-tax price.
Do I charge sales tax on shipping?
It depends on the state. Some states tax shipping charges, others do not, and some only tax shipping when not separately stated on the invoice.
What is the difference between sales tax and VAT?
Sales tax is collected only once at the final point of sale. VAT is collected at every stage of production. Businesses can reclaim VAT on inputs but cannot reclaim sales tax.
How often do sales tax rates change?
Rates can change quarterly. State rates change less frequently, but local jurisdictions may adjust rates at any time. Always verify current rates before filing.