Calculate sales tax by entering an amount and tax rate, or select your US state for automatic rate lookup.
Sales tax is calculated by multiplying the purchase amount by the tax rate. The formula is: Tax = Amount x (Rate / 100). The total you pay equals the original amount plus the tax.
Example: A $100 item with 7.25% sales tax: Tax = $100 x 0.0725 = $7.25. Total = $107.25.
State sales tax rates shown are the base state rates. Many localities add additional taxes on top, so your actual rate may be higher.
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 many countries that use a national value-added tax (VAT), the US has no federal sales tax. Instead, 45 states and the District of Columbia impose their own sales taxes, with rates and rules varying significantly from state to state. Five states -- Alaska, Delaware, Montana, New Hampshire, and Oregon -- have no state sales tax at all, though Alaska allows local jurisdictions to levy their own sales taxes.
The complexity of US sales tax lies in its layered structure. A state may have a base rate of 6%, but the county might add 1%, and the city might add another 0.5%, bringing the combined rate to 7.5%. Some special taxing districts, like transit authorities or stadium districts, can push rates even higher. As a result, there are over 11,000 distinct sales tax jurisdictions across the country. The highest combined state and local rates in the country often exceed 10%, with some areas in Louisiana, Tennessee, and Arkansas reaching 11% or more.
Sales tax applies differently to different categories of goods. Most states exempt groceries (unprepared food) from sales tax or tax them at a reduced rate. Prescription medications are exempt in nearly all states. Clothing is taxable in most states, but a few -- notably Pennsylvania, New Jersey, and parts of New York -- exempt clothing purchases. Digital goods, streaming services, and software have become a battleground for tax policy, with states increasingly moving to tax these items as the economy shifts online.
This table shows the base state sales tax rate for all 50 states. Remember that local taxes can add 1-5% on top of these rates depending on your city and county.
| State | Rate | State | Rate |
|---|---|---|---|
| Alabama | 4.00% | Montana | 0% |
| Alaska | 0% | Nebraska | 5.50% |
| Arizona | 5.60% | Nevada | 6.85% |
| California | 7.25% | New York | 4.00% |
| Florida | 6.00% | Oregon | 0% |
| Texas | 6.25% | Tennessee | 7.00% |
| Indiana | 7.00% | Washington | 6.50% |
| Mississippi | 7.00% | Rhode Island | 7.00% |
The formula: Sales Tax = Purchase Price x (Tax Rate / 100). Total Price = Purchase Price + Sales Tax. For reverse calculation (finding the pre-tax price from a total), use: Pre-Tax Price = Total / (1 + Tax Rate / 100).
Example 1: You buy a $299.99 television in Texas (6.25% state rate). Tax = $299.99 x 0.0625 = $18.75. Total = $318.74. If the city adds 2% local tax for a combined 8.25%, then Tax = $299.99 x 0.0825 = $24.75, and Total = $324.74.
Example 2: Your receipt shows a total of $53.50 and you know the tax rate is 7%. To find the pre-tax price: $53.50 / 1.07 = $50.00. The tax was $3.50.
Quick estimation trick: For a 7% tax rate, multiply the price by 7 and move the decimal two places left. A $45 item: 45 x 7 = 315, move decimal = $3.15 tax. For 10%, just move the decimal one place: $45 becomes $4.50 tax. These mental shortcuts help you estimate the total before you reach the register.
Many states offer sales tax holidays -- specific weekends when certain items are tax-free. These typically occur before the school year starts, covering school supplies, clothing, and sometimes computers. States like Texas, Florida, and Virginia regularly hold back-to-school sales tax holidays that can save families significant amounts on bulk purchases.
Nonprofit organizations and government entities can often make purchases exempt from sales tax by providing a valid exemption certificate. Resellers buying inventory for their businesses also qualify for exemption through resale certificates, since the tax will ultimately be collected from the end consumer. Manufacturing equipment, raw materials used in production, and agricultural supplies often qualify for exemptions or reduced rates in many states as well.
Online shopping and sales tax became a major issue after the 2018 Supreme Court decision in South Dakota v. Wayfair, which allowed states to require out-of-state sellers to collect sales tax even without physical presence in the state. Before this ruling, many online purchases were effectively tax-free. Now, virtually all major online retailers collect sales tax based on the buyer's location, though thresholds for when out-of-state sellers must begin collecting vary by state.
Multiply the purchase price by the tax rate expressed as a decimal. For example, 8% tax on a $50 item: $50 x 0.08 = $4.00 in tax, for a total of $54.00.
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to impose their own sales taxes.
California has the highest state sales tax rate at 7.25%. However, when combined with local taxes, Louisiana, Tennessee, and Arkansas often have the highest total rates, sometimes exceeding 11%.
No. Most states exempt unprepared grocery food from sales tax or apply a reduced rate. Prepared foods (restaurant meals, hot deli items) are typically taxable. A few states like Mississippi and Alabama tax groceries at the full rate.
Divide the total by (1 + tax rate as a decimal). For example, if the total is $107 with a 7% tax rate: $107 / 1.07 = $100.00 pre-tax price.
Yes, in most cases. After the 2018 South Dakota v. Wayfair Supreme Court ruling, most states require online retailers to collect sales tax based on the buyer's location if the seller meets certain revenue or transaction thresholds.