Sales Tax Calculator by State
Calculate sales tax for any US state including state and local tax rates. Instantly see total tax and final purchase price.
Purchase Details
Pre-tax purchase price
State tax rate: 7.25%
City/county tax rate (varies by location)
Tax Summary
Effective Tax Rate:
9.75%
California Tax Information
• State Tax Rate: 7.25%
• Local Tax: Varies by location
Note: Local tax rates vary by city and county. Check with your local government for exact rates.
Understanding Sales Tax by State
How Sales Tax Works
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. The tax rate varies significantly by state, ranging from 0% in states like Alaska, Delaware, Montana, New Hampshire, and Oregon, to over 7% in states like California, Indiana, Mississippi, Rhode Island, and Tennessee.
Most states allow local governments (cities, counties, districts) to add their own sales tax on top of the state rate. This creates combined rates that can exceed 10% in some locations. For example, combined rates in parts of California, Louisiana, and Alabama can reach 10-11%.
Formula & Calculation
State Tax: Purchase Amount × (State Rate ÷ 100)
Local Tax: Purchase Amount × (Local Rate ÷ 100)
Total Tax: State Tax + Local Tax
Final Price: Purchase Amount + Total Tax
Example Calculation
Purchase: $1,000 in Los Angeles, California
- • State Tax (7.25%): $1,000 × 0.0725 = $72.50
- • Local Tax (2.25%): $1,000 × 0.0225 = $22.50
- • Total Tax: $72.50 + $22.50 = $95.00
- • Final Amount: $1,095.00
States with No Sales Tax (2025)
Zero State Tax:
- • Alaska (local tax allowed)
- • Delaware
- • Montana
- • New Hampshire
- • Oregon
Note:
While these states have no state sales tax, Alaska allows local jurisdictions to impose their own sales tax (up to 7% in some areas). The other four states have no sales tax at any level.
Highest Combined Sales Tax States (2025)
Top Combined Rates:
- • Louisiana: up to 11.45% (4.45% state + 7% local)
- • Tennessee: up to 9.55% (7% state + 2.55% local)
- • Arkansas: up to 11.625% (6.5% state + 5.125% local)
- • Alabama: up to 13.5% (4% state + 9.5% local)
- • Washington: up to 10.4% (6.5% state + 3.9% local)
Impact Example:
A $10,000 purchase in a 10% combined tax area results in $1,000 in sales tax, compared to $0 in a no-tax state like Oregon—a significant difference for major purchases.
What's Taxable vs. Exempt
Usually Taxable:
- ✓ Clothing (except in some states)
- ✓ Electronics
- ✓ Furniture
- ✓ Vehicles
- ✓ Restaurant meals
- ✓ Entertainment
Often Exempt:
- ✓ Groceries (most states)
- ✓ Prescription drugs
- ✓ Medical devices
- ✓ Newspapers/magazines (some states)
- ✓ Some services
- ✓ Resale purchases (with certificate)
For Businesses: Nexus & Collection
Economic Nexus (Post-Wayfair): Since the 2018 South Dakota v. Wayfair Supreme Court decision, states can require out-of-state sellers to collect sales tax if they exceed economic thresholds (typically $100,000 in sales or 200 transactions per year).
Key Points for Sellers:
- Register for sales tax permit in states where you have nexus
- Collect the correct state and local tax rate for buyer's location (destination-based) or your location (origin-based)
- File regular sales tax returns (monthly, quarterly, or annually)
- Use sales tax automation software for multi-state compliance
- Keep detailed records for audit purposes
Frequently Asked Questions
How do I find my exact local sales tax rate?
Local tax rates vary by city, county, and special districts. Visit your state's Department of Revenue website or use their sales tax rate lookup tool by entering your ZIP code or address. Many states provide free rate databases and APIs for businesses. The rates in this calculator are base state rates—always verify local rates for accuracy.
Do I pay sales tax on online purchases?
Yes, in most cases. Following the Wayfair decision, most online retailers with significant sales volume must collect sales tax in states where they have economic nexus. If the seller doesn't collect it, you may owe "use tax" (equivalent to sales tax) when filing your state tax return. Major retailers like Amazon automatically collect sales tax for all states that impose it.
Are groceries taxed?
It depends on your state. 32 states exempt most grocery items from sales tax, though some tax them at reduced rates. Prepared food, candy, and soda are often taxed even when groceries are exempt. States like Alabama, Hawaii, Idaho, Kansas, Mississippi, Oklahoma, and South Dakota tax groceries at the full rate. Check your state's specific rules for what qualifies as "grocery food."
Can I get a refund on sales tax?
Yes, in certain situations: (1) If you're tax-exempt (nonprofit, government, reseller with certificate), you can request a refund with documentation. (2) For incorrect charges, contact the seller first; if unresolved, file a claim with your state's Department of Revenue. (3) Some states offer sales tax holidays for specific items like back-to-school supplies or energy-efficient appliances.
What is the average sales tax rate in the US?
The average combined state and local sales tax rate in the US is approximately 6-7% (2025). However, this varies dramatically: from 0% in no-tax states to over 10% in high-tax areas. Weighted by population, the average is closer to 7%, since many people live in states with higher rates (California, Texas, New York, Florida, Illinois).
How often do sales tax rates change?
State rates change occasionally (every few years), usually requiring legislative action. Local rates change more frequently—cities and counties may adjust rates quarterly or annually based on local ballot measures or budget needs. Businesses must stay current with rate changes, especially if selling in multiple jurisdictions. Most states publish rate change notices 60-90 days in advance.
About This Calculator
Calculate sales tax for all 50 US states plus DC with 2025 rates. Input purchase amount, select state, add local tax rates (0-8%), and instantly see state tax, local tax, total tax, and final purchase price. Includes 5 tax-free states (Alaska, Delaware, Montana, New Hampshire, Oregon) and combined rates up to 11.5%. Essential for e-commerce sellers, businesses, and consumers to understand exact tax obligations.
Frequently Asked Questions
Which states have the highest and lowest sales tax rates in 2025?
**Highest state base rates**: California (7.25%), Indiana/Mississippi/Rhode Island/Tennessee (7.0%). **Highest combined rates** (state + average local): Tennessee 9.55%, Louisiana 9.56%, Arkansas 9.45%, Washington 9.38%, Alabama 9.29%. **Lowest/Zero tax states**: Alaska, Delaware, Montana, New Hampshire, Oregon (0% state sales tax). **Lowest taxable states**: Colorado (2.9% state), Alabama/Georgia/Hawaii/New York/Wyoming (4.0%). Note: Effective rates vary by locality鈥擟alifornia can reach 10.75% in some cities, while Oregon remains 0% statewide.
How do I calculate sales tax when selling online to different states?
Follow **economic nexus rules** (post-South Dakota v. Wayfair, 2018): **1) Nexus threshold** = $100,000 revenue OR 200 transactions in a state per year (most states). **2) Register** in each nexus state for sales tax permit. **3) Collect** destination-based tax (buyer's location) using this calculator: $100 item to CA with 7.25% state + 2.5% local = $109.75 total. **4) File returns** monthly/quarterly/annually per state. **5) Use marketplace facilitator** (Amazon, Etsy) who auto-collect tax in 45+ states, relieving you of compliance in those states. **Critical**: Each state has different rates, exemptions (clothing exempt in PA/NJ, groceries in 32 states), and filing deadlines. Non-compliance = penalties 5-25% + interest.
What items are exempt from sales tax?
Common exemptions vary by state: **Groceries**: Exempt in 32 states (taxed in AL, HI, ID, KS, MS, OK, SD at reduced/full rate). **Prescription drugs**: Exempt in all states except IL (1%). **Clothing**: Fully exempt in MN, NJ, PA, VT; partially exempt in MA ($175+ taxed), NY ($110+ taxed), RI ($250+ taxed). **Manufacturing equipment**: Exempt for resale in 38 states (not exempt in CA, WA). **Medical devices**: Exempt in most states. **Digital goods** (software, e-books, streaming): Taxed in 30+ states (exempt in OR, MT, NH, DE, AK). **Services**: Generally exempt (exceptions: HI, NM, SD tax most services). **Resale certificate**: Exempt if buying for resale (requires valid resale license). Always verify current state rules鈥攖his calculator assumes general merchandise taxability.
Do I charge sales tax based on my location or the customer's location?
Depends on **origin vs. destination sourcing**: **Destination-based** (45 states + DC): Charge tax based on customer's ship-to address. Example: You're in TX, customer in CA 鈫?charge CA rate (7.25% + local). Use customer's city/county/district for precise local rate. **Origin-based** (5 states): Charge your business location's rate regardless of buyer's location. **Origin states**: Arizona (retail), California (some scenarios), Illinois (unless Chicago), Mississippi (4% state only), Missouri (some intrastate), New Mexico, Ohio (some cases), Pennsylvania (shipping exempt), Tennessee (single location), Texas (some intrastate), Utah (some cases), Virginia (most). **E-commerce rule**: If shipping across state lines, use destination sourcing even in origin states. If economic nexus exists in buyer's state, charge their rate. Use tax automation software (Avalara, TaxJar) for 11,000+ US tax jurisdictions.
How often do sales tax rates change?
Change frequency: **State rates**: Rarely change, typically 1-3 states per year (last major changes: AL 4% since 2019, CA 7.25% since 2011). **Local rates**: Change quarterly in many jurisdictions. **High-frequency states**: Over 1,000 rate changes per year across all US localities. **Quarterly change dates**: Jan 1, Apr 1, Jul 1, Oct 1 (most states). **Recent 2024-2025 changes**: Illinois various local increases, Texas voter-approved local changes, California district updates. **Ballot measures**: Nov elections often include local tax increases effective Jan 1. **Compliance risk**: Using outdated rates = collecting wrong amount = audit exposure. **Best practice**: Update rates quarterly minimum, monthly for high-volume sellers. This calculator uses 2025 Q1 base state rates鈥攙erify local rates with state DOR websites (revenue.state.xx.us) or use certified software.
Can I get a refund if I paid sales tax in a tax-free state by mistake?
Yes, but process varies: **Immediate refund** (if caught at checkout): Ask retailer to void transaction and reprocess without tax. **Merchant refund** (post-purchase): Contact seller with receipt within 30-90 days; most will refund tax if error confirmed (you bought in OR/DE/MT/NH/AK where no state tax applies). **State tax refund** (if merchant refuses): File claim with state Department of Revenue: **Required docs** = Receipt showing incorrect tax, proof of purchase location (GPS/address), completed refund form (ST-119 in some states). **Time limit** = 3-4 years from purchase (varies by state). **Common mistakes**: Tourist charged sales tax in NH (100% refundable), exempt organization not given exemption (provide exempt cert), internet seller charged origin state tax instead of destination (buyer files claim in buyer's state). **Note**: If you voluntarily paid use tax to your home state on an out-of-state purchase, that's not refundable (it's your legal obligation). **Success rate**: 70-80% if documented within 90 days, <40% after 1 year.