Sales Tax Calculator

Calculate sales tax for any purchase amount. Find the before-tax price, after-tax price, or tax rate based on the values you know. Includes a comprehensive table of U.S. state sales tax rates.

Select what you want to calculate, then enter the known values.

Price Breakdown

U.S. State Sales Tax Rates (2025)

The table below shows general state sales tax rates and maximum combined rates (including local taxes) for all U.S. states. Click on a state to use its rate in the calculator.

State State Rate Max Combined Rate Avg Local Rate

State Sales Tax Comparison

Comparison of state sales tax rates across the United States. States without sales tax are highlighted.

Understanding Sales Tax

What is Sales Tax?

Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is typically calculated as a percentage of the purchase price and collected by the seller at the point of sale. The seller then remits the collected tax to the government.

In the United States, sales tax is primarily levied by state and local governments, not the federal government. This creates a patchwork of different tax rates across the country, with some states having no sales tax at all, while others have combined state and local rates exceeding 10%.

How Sales Tax is Calculated

Tax Amount = Before-Tax Price × (Tax Rate / 100)

After-Tax Price = Before-Tax Price + Tax Amount

Before-Tax Price = After-Tax Price / (1 + Tax Rate / 100)

Tax Rate = ((After-Tax Price / Before-Tax Price) - 1) × 100

Types of Sales Tax

  • State Sales Tax: The base rate set by the state government, applied uniformly across the entire state.
  • Local Sales Tax: Additional taxes imposed by counties, cities, or special districts on top of the state rate.
  • Use Tax: A tax on goods purchased out-of-state for use within the state, designed to prevent tax avoidance through out-of-state purchases.
  • Excise Tax: Special taxes on specific goods like gasoline, alcohol, tobacco, and luxury items.

States Without Sales Tax

Five states have no state-level sales tax:

  • Alaska: No state sales tax, though some local jurisdictions impose local sales taxes.
  • Delaware: No sales tax at any level.
  • Montana: No general sales tax, though some resort areas may impose local taxes.
  • New Hampshire: No sales tax at any level.
  • Oregon: No sales tax at any level.
Did You Know? While Alaska has no state sales tax, it allows local governments to levy their own sales taxes. Some Alaskan cities have local sales tax rates as high as 7.5%.

Sales Tax Exemptions

Most states exempt certain categories of items from sales tax:

  • Groceries: Many states exempt unprepared food items from sales tax, though prepared foods (restaurant meals) are typically taxed.
  • Clothing: Some states like Pennsylvania, New Jersey, and New York exempt most clothing items.
  • Prescription Medications: Nearly all states exempt prescription drugs from sales tax.
  • Medical Equipment: Durable medical equipment is often exempt.
  • Sales Tax Holidays: Many states offer temporary periods where certain items (like school supplies or emergency preparedness items) are tax-free.

Sales Tax vs. VAT (Value Added Tax)

The U.S. uses a sales tax system, while most other developed countries use a Value Added Tax (VAT). Key differences include:

  • Collection Point: Sales tax is collected only at the final point of sale, while VAT is collected at each stage of production and distribution.
  • Visibility: Sales tax is typically added to the listed price at checkout, while VAT is usually included in the displayed price.
  • Administration: VAT systems generally have more comprehensive record-keeping requirements.
  • Rate: VAT rates in countries like the UK (20%) and Germany (19%) are typically higher than U.S. sales tax rates.

History of Sales Tax in the United States

Sales tax has a relatively short history in the United States:

  • 1930: Mississippi became the first state to implement a general sales tax during the Great Depression.
  • 1930s-1940s: Most other states followed suit, seeking new revenue sources during economic hardship.
  • 1960s-Present: The rise of local sales taxes and increasing complexity in rate structures.
  • 2018: The Supreme Court's South Dakota v. Wayfair decision allowed states to require online retailers to collect sales tax, even without physical presence in the state.

Impact on Consumers and Businesses

For Consumers:

  • Sales tax is a regressive tax, meaning it takes a larger percentage of income from lower-income individuals.
  • High sales tax rates may encourage cross-border shopping or online purchases.
  • Tax-inclusive pricing (common in other countries) would simplify shopping but is rarely used in the U.S.

For Businesses:

  • Businesses must track and remit sales tax to multiple jurisdictions, which can be complex.
  • Nexus rules determine which businesses must collect tax in which states.
  • Software solutions and services exist to help businesses manage sales tax compliance.

Federal Income Tax Deduction

Taxpayers who itemize deductions on their federal income tax returns can choose to deduct either state and local income taxes OR state and local sales taxes. This is particularly beneficial for residents of states without income tax, who can deduct their sales tax payments instead.

SALT Deduction Cap: Since 2018, the combined deduction for state and local taxes (including sales tax) has been capped at $10,000 per year for federal income tax purposes.

Tips for Managing Sales Tax

  • Keep Records: Save receipts for major purchases if you plan to deduct sales tax on your federal return.
  • Know Your Local Rate: Combined rates vary significantly even within the same state.
  • Take Advantage of Holidays: Plan major purchases around sales tax holidays when available.
  • Understand Exemptions: Know which items are exempt in your state to budget accurately.
  • Use Tax Calculators: Tools like this one help you quickly determine the true cost of purchases.
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