Sales Tax Calculator — How to Calculate Sales Tax in Any US State (2026)

Sales tax is one of those things that catches people off guard — you see a $499 laptop in California, add it to your cart, and suddenly the checkout says $535. That $36 difference is 7.25% California sales tax, and it applies to most things you buy in the US.

Unlike VAT in Europe or GST in India, US sales tax is never included in the displayed price. It's always added at the register. This guide covers the exact formula, all 50 state rates, reverse calculation, and what's actually exempt.

The Sales Tax Formula (Step by Step)

The math is simple. You need two numbers: the purchase price and the tax rate for that state.

If you're buying multiple items or want to factor in local county tax on top of the state rate, just add both percentages together before calculating. For example, in Los Angeles County, California, the combined rate is 10.25% — so use 10.25% in the formula instead of just the state's 7.25%.

Reverse Sales Tax — Find the Pre-Tax Price

Reverse sales tax is useful when you only know the total you paid and need to find the original price before tax. This comes up often for expense reports, business accounting, or checking if a receipt is correct.

5 States With No Sales Tax

Five US states collect zero state-level sales tax. If you're making a large purchase — a car, furniture, electronics — buying in one of these states can save hundreds of dollars.

• Oregon — 0% state sales tax. No local sales taxes either. Popular for large purchases by Californians and Washingtonians.
• Montana — 0% state sales tax. No local sales taxes. Particularly popular for vehicle purchases.
• New Hampshire — 0% state sales tax. Note: there is a 9% meals and rooms tax on restaurant food and lodging.
• Delaware — 0% state sales tax. This is why Delaware is a popular state for business incorporation — no sales tax on goods.
• Alaska — 0% state sales tax but local municipalities can impose their own. Some Alaskan cities charge up to 7.5% locally.

Sales Tax Rates for All 50 States (2026)

These are the base state rates for 2026. Your actual rate at checkout may be higher when county and city taxes are added.

Showing major states. Use the calculator above for all 50 states.

What's Exempt from Sales Tax?

Sales tax applies to most tangible goods, but several categories are commonly exempt. Exemptions vary by state — here are the most common ones nationwide.

Groceries

Most US states fully exempt unprepared food and groceries from sales tax. States that exempt groceries include California, New York, Texas, Florida, New Jersey, Illinois, Pennsylvania, and many others. However, prepared food, restaurant meals, and takeout are almost always taxable, even in states that exempt grocery items.

A few states tax groceries at a reduced rate rather than zero — Tennessee charges 4% on groceries (vs 7% on general goods), and Arkansas charges 0.125%.

Prescription Drugs and Medical Items

All 50 states exempt prescription drugs from sales tax. Most states also exempt medical devices, wheelchairs, prosthetics, and similar items. Over-the-counter medications vary — some states tax them, others don't.

Clothing

Several states provide clothing exemptions: Pennsylvania and New Jersey exempt clothing entirely. New York exempts clothing and footwear under $110 per item. Minnesota exempts most clothing. Other states like Massachusetts hold annual tax-free holidays where clothing purchases under $2,500 are exempt.

Online Shopping and Sales Tax

Before 2018, online retailers could avoid collecting sales tax in states where they had no physical presence. The 2018 South Dakota v. Wayfair Supreme Court decision changed everything.

Now, online sellers must collect sales tax in any state where they have "economic nexus" — typically $100,000 in annual sales or 200 transactions in that state. This means major retailers like Amazon, Walmart, Target, and most large e-commerce stores now collect sales tax based on your delivery address in all states that have it.

Small sellers below the threshold may still not collect, but you're technically supposed to self-report and pay "use tax" — the same rate as sales tax — on those purchases when filing your state return. In practice, very few individuals do this.

New York City — The 8.875% Rate Explained

New York City has one of the highest combined sales tax rates in the country at 8.875%. Here's how it breaks down:

• New York State — 4.000%
• New York City local — 4.500%
• MCTD surcharge — 0.375% (Metropolitan Commuter Transportation District)
• Total: 8.875%

So a $1,000 purchase in NYC costs $88.75 in tax. A $50,000 car? $4,437.50 in sales tax alone. This is why many New Yorkers buy large items in New Jersey (6.625%) or even ship to a state with no sales tax.

Sales Tax for Businesses

If you run a business that sells goods or taxable services in the US, you're responsible for collecting and remitting sales tax. Key things to know:

• Sales tax permit — you need to register with each state where you have nexus before collecting tax
• Filing frequency — monthly, quarterly, or annually depending on your sales volume
• Origin vs destination-based — most states are destination-based (you charge the buyer's local rate); some states like Texas and California are partially origin-based
• Resale certificates — if you buy items to resell, you can often purchase without paying sales tax using a resale certificate
• Marketplace facilitator laws — if you sell on Amazon, Etsy, eBay, etc., those platforms now collect and remit sales tax on your behalf in most states

Frequently Asked Questions