The USA Sales Tax Calculator helps you quickly determine the sales tax on a purchase in any state. You can calculate sales tax by adding it to a pre-tax amount or removing it from a total amount.
USA Sales Tax Calculator
Calculate sales tax for all US states with accurate rates
Total Amount
Tax Amount
Pre-Tax Amount
Total Tax Rate
Removing Tax: Pre-Tax = Amount ÷ (1 + Tax Rate)
The USA Sales Tax Calculator helps you quickly determine the sales tax on a purchase in any state. You can calculate sales tax by adding it to a pre-tax amount or removing it from a total amount.
When adding sales tax:
- Tax Amount = Pre-Tax Amount × Tax Rate
- Total Amount = Pre-Tax Amount + Tax Amount
When removing sales tax:
- Pre-Tax Amount = Total Amount ÷ (1 + Tax Rate)
- Tax Amount = Total Amount – Pre-Tax Amount
Sales tax in the United States is set at the state level, with many states allowing local governments to add additional taxes. This calculator combines both state and local tax rates for accurate calculations.
Adding Sales Tax Example
Let’s say you want to calculate sales tax on a $100 product in California with the state sales tax rate of 7.25%:
Pre-Tax Amount = $100
Tax Rate = 7.25% or 0.0725
Calculate the tax amount:
Tax Amount = $100 × 0.0725 = $7.25
Calculate the total amount:
Total Amount = $100 + $7.25 = $107.25
Removing Sales Tax Example
Now, let’s say you have a total amount of $107.25 and want to calculate the pre-tax amount and tax:
Total Amount = $107.25
Tax Rate = 7.25% or 0.0725
Calculate the pre-tax amount:
Pre-Tax Amount = $107.25 ÷ (1 + 0.0725) = $107.25 ÷ 1.0725 = $100
Calculate the tax amount:
Tax Amount = $107.25 – $100 = $7.25
With Local Tax Example
In some areas, you need to add local tax to the state tax. Let’s calculate tax on a $100 product in New York City:
Pre-Tax Amount = $100
State Tax Rate = 4.00% or 0.04
Local Tax Rate = 4.50% or 0.045
Total Tax Rate = 8.50% or 0.085
Calculate the tax amount:
Tax Amount = $100 × 0.085 = $8.50
Calculate the total amount:
Total Amount = $100 + $8.50 = $108.50
US Sales Tax Rates by State
Sales tax rates vary significantly by state. Some states have no sales tax, while others have rates above 7%. The table below shows the base state sales tax rates for all 50 states and Washington D.C.
| State | Tax Rate | State | Tax Rate |
|---|---|---|---|
| Alabama | 4.00% | Montana | 0.00% |
| Alaska | 0.00% | Nebraska | 5.50% |
| Arizona | 5.60% | Nevada | 6.85% |
| Arkansas | 6.50% | New Hampshire | 0.00% |
| California | 7.25% | New Jersey | 6.63% |
| Colorado | 2.90% | New Mexico | 5.13% |
| Connecticut | 6.35% | New York | 4.00% |
| Delaware | 0.00% | North Carolina | 4.75% |
| Florida | 6.00% | North Dakota | 5.00% |
| Georgia | 4.00% | Ohio | 5.75% |
| Hawaii | 4.00% | Oklahoma | 4.50% |
| Idaho | 6.00% | Oregon | 0.00% |
| Illinois | 6.25% | Pennsylvania | 6.00% |
| Indiana | 7.00% | Rhode Island | 7.00% |
| Iowa | 6.00% | South Carolina | 6.00% |
| Kansas | 6.50% | South Dakota | 4.50% |
| Kentucky | 6.00% | Tennessee | 7.00% |
| Louisiana | 4.45% | Texas | 6.25% |
| Maine | 5.50% | Utah | 4.85% |
| Maryland | 6.00% | Vermont | 6.00% |
| Massachusetts | 6.25% | Virginia | 4.30% |
| Michigan | 6.00% | Washington | 6.50% |
| Minnesota | 6.88% | West Virginia | 6.00% |
| Mississippi | 7.00% | Wisconsin | 5.00% |
| Missouri | 4.23% | Wyoming | 4.00% |
| Washington D.C. | 6.00% |
Highest and Lowest Sales Tax States
States with No Sales Tax:
- Alaska
- Delaware
- Montana
- New Hampshire
- Oregon
States with Highest Sales Tax Rates:
- California (7.25%)
- Indiana (7.00%)
- Mississippi (7.00%)
- Rhode Island (7.00%)
- Tennessee (7.00%)
- Minnesota (6.88%)
- Nevada (6.85%)
- New Jersey (6.63%)
Common Sales Tax Exemptions
Most states provide exemptions from sales tax for certain types of goods and services. While exemptions vary by state, some common categories include:
- Groceries: Many states exempt or reduce tax on basic food items
- Prescription Drugs: All states exempt prescription medications
- Clothing: Some states exempt clothing or have limited exemptions
- Manufacturing Equipment: Equipment used in production is often exempt
- Agricultural Supplies: Items used in farming are frequently exempt
- Religious and Charitable Organizations: Purchases by qualifying organizations
- Government Agencies: Purchases by federal, state, and local governments
Sales Tax Holidays
Many states offer sales tax holidays, which are temporary periods when sales tax is not charged or is reduced on specific items. These holidays typically occur before the school year and may apply to:
- Clothing and footwear under a certain price threshold
- School supplies
- Computers and computer accessories
- Energy-efficient appliances
- Disaster preparedness items
Sales tax holidays vary by state in terms of timing, duration, and eligible items. Some states have multiple holidays throughout the year targeting different categories of goods.
Understanding USA Sales Tax
What is Sales Tax?
Sales tax is a consumption tax imposed by the government on the sale of goods and services. In the United States, sales tax is governed at the state level rather than the federal level, which is why rates vary significantly across the country.
Origin vs. Destination
Sales tax can be based on either the origin (seller’s location) or destination (buyer’s location) of the sale. Most states use destination-based sourcing, meaning tax is calculated based on where the buyer receives the goods or services.
Combined Tax Rates
The total sales tax rate in most locations is a combination of state, county, city, and special district taxes. While this calculator includes state tax and allows for local tax input, actual local rates can vary significantly within a state.
Use Tax
Use tax is complementary to sales tax and applies when sales tax has not been paid on taxable items. This typically occurs when purchasing from out-of-state sellers who don’t collect sales tax, or when buying items for business use that were originally purchased tax-free.
Nexus
Nexus is the connection between a business and a taxing jurisdiction that requires the business to collect and remit sales tax. Nexus can be established through physical presence, economic activity, or other relationships with a state.
Resale Certificates
Businesses that purchase items for resale can provide resale certificates to sellers to avoid paying sales tax on those purchases. The tax is then collected when the items are sold to the end consumer.
Sales Tax for Businesses
Registration Requirements
Businesses with nexus in a state must register for a sales tax permit with that state’s tax authority. Registration is typically required before making any taxable sales and must be renewed periodically. Failure to register can result in penalties and interest.
Filing Frequency
Sales tax returns must be filed on a schedule determined by the state and the business’s sales volume. Common filing frequencies include monthly, quarterly, and annually. High-volume sellers typically file more frequently.
Economic Nexus
Following the Supreme Court’s South Dakota v. Wayfair decision in 2018, states can require remote sellers to collect sales tax based on economic activity rather than physical presence. Most states have established economic nexus thresholds based on sales revenue or transaction volume.
Marketplace Facilitators
Many states have marketplace facilitator laws that require online marketplaces like Amazon and eBay to collect and remit sales tax on behalf of third-party sellers. This has shifted compliance responsibilities from individual sellers to the marketplaces.
Audit Risk
Sales tax audits can be triggered by various factors, including late filings, inconsistencies in returns, random selection, or tips from competitors. During an audit, tax authorities examine sales records, exemption certificates, and other documentation to verify compliance.
Automation Solutions
Given the complexity of sales tax compliance across thousands of jurisdictions, many businesses use automated solutions to calculate, collect, and remit sales tax. These services help maintain accurate tax rates, manage exemption certificates, and file returns.