Sales tax varies dramatically across the United States — from 0% in five states to over 10% in certain cities. Whether you are budgeting for a major purchase, running a small business, or simply trying to understand your receipt, a sales tax calculator helps you determine exactly how much tax you will pay. This guide covers how sales tax works, how rates differ by state, and how to calculate it accurately for any transaction.
Calculate sales tax for any US state in seconds
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. The seller collects the tax at the point of purchase and remits it to the government. In the United States, sales tax is not set by the federal government — each state (and often each city or county) determines its own rate.
There are two components to most sales tax in the US:
The combined sales tax rate is the sum of both. Our sales tax calculator automatically uses the correct combined rate for your location.
Here is an overview of state-level sales tax rates (as of 2025). Note that local taxes can significantly increase these figures.
You buy a $500 laptop in Texas (6.25% state rate, assume 2% local for 8.25% combined).
You paid $1,075 total in California (7.25% rate). What was the pre-tax price?
You buy groceries ($50, tax-exempt in most states) and clothing ($80, taxable at 8%) in New York.
Not everything is taxable. Common exemptions include:
Since the 2018 South Dakota v. Wayfair Supreme Court decision, online retailers are required to collect sales tax in states where they have "economic nexus" — typically based on sales volume or transaction count. This means most major online purchases now include sales tax, just like in-store purchases.
Marketplace facilitators like Amazon, eBay, and Walmart collect and remit sales tax on behalf of third-party sellers. However, the rate applied depends on the destination address, not the seller's location.
If you run a business, understanding sales tax is critical:
Our sales tax calculator helps business owners quickly estimate the tax on invoices and receipts.
When buying a car, appliance, or furniture, sales tax can add hundreds of dollars. Calculating it in advance helps you set a realistic budget and avoid surprises at checkout.
If you live near a state border, comparing tax rates can save you significant money. For example, buying a $2,000 TV in Delaware (0%) vs. Pennsylvania (6%) saves $120.
Small business owners need to calculate and display sales tax correctly on invoices. Errors can lead to penalties during audits.
Online sellers need to factor in sales tax when setting product prices. A $50 item with 10% tax means the customer pays $55, but the seller only keeps $50 and must remit $5 to the state.
Your local rate is the combination of your state rate plus any city, county, or district taxes. You can find this through your state's Department of Revenue website, or use our sales tax calculator which includes local rates.
No. Sales tax is applied only at the final point of sale to the consumer. VAT (Value Added Tax) is applied at each stage of production and is common in Europe and other regions. The US does not use a federal VAT system.
In most cases, yes. Following the 2018 Wayfair decision, online retailers collect sales tax based on your shipping address. Some smaller sellers may not collect it, but you may still owe "use tax" on your state tax return.
Some states offer sales tax refunds on certain items, such as school supplies during tax-free holidays or energy-efficient appliances. Tourists from non-tax countries may also claim refunds in some jurisdictions.
The business becomes liable for the uncollected tax, plus potential penalties and interest. In some cases, the state can pursue the business owner personally. Proper registration and collection are essential for compliance.
Know your tax before you pay — accurate rates for every state