Sales Tax Calculator - Add or Remove Tax by State

Sales tax adds a significant cost to nearly every purchase you make, yet the amount varies dramatically depending on where you live and what you buy.

Reviewed by: CalcMojo Editorial Team

This sales tax calculator lets you enter a purchase price and tax rate to instantly calculate the total amount you will pay, the tax amount alone, or reverse-calculate the pre-tax price from a total. You can look up combined state, county, and city tax rates or enter a custom rate for any jurisdiction.

In the United States, sales tax rates range from 0% in states like Oregon, New Hampshire, and Montana to over 10% in parts of Louisiana, Tennessee, and Arkansas when state and local taxes are combined. On a $500 purchase, the difference between 0% and 10% tax is $50, and on big-ticket items like appliances, furniture, or electronics, the tax can add hundreds of dollars to the final price.

Whether you are budgeting for a large purchase, comparing prices across states, setting retail prices for a business, or simply verifying your receipt, this calculator gives you accurate numbers in seconds.

How Sales Tax Is Calculated

Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. The calculation is straightforward:

Sales Tax Amount = Purchase Price x Tax Rate

Total Price = Purchase Price + Sales Tax Amount

For a $200 purchase at a 7.5% tax rate: Sales Tax = $200 x 0.075 = $15.00. Total Price = $200 + $15.00 = $215.00.

To reverse-calculate the pre-tax price from a total (useful for checking receipts or separating tax from a lump payment):

Pre-Tax Price = Total Price / (1 + Tax Rate)

If you paid $215.00 and the tax rate is 7.5%: Pre-Tax Price = $215.00 / 1.075 = $200.00. Tax Amount = $215.00 – $200.00 = $15.00.

This calculator handles both forward and reverse calculations, so you can work from either the pre-tax price or the total paid.

Sales Tax Rates by State

Sales tax in the United States is not a single national rate. It is a patchwork of state, county, city, and special district taxes that combine to form the total rate charged at the register. Here is an overview of the landscape.

States with no sales tax (0%). Five states impose no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to levy their own sales taxes, so some Alaska cities and boroughs charge up to 7.5%.

States with the lowest state rates. Colorado (2.9%), Alabama (4.0%), Georgia (4.0%), Hawaii (4.0%), New York (4.0%), and Wyoming (4.0%) have among the lowest state-level rates. However, local taxes in some of these states push combined rates significantly higher.

States with the highest combined rates. When combining state and average local taxes, Louisiana (9.56%), Tennessee (9.55%), Arkansas (9.45%), Washington (9.29%), and Alabama (9.29%) consistently rank among the highest. Individual cities within these states can exceed 10%.

Special cases. Some states exempt certain categories from sales tax. Most states exempt groceries (unprepared food), prescription medications, and sometimes clothing. Texas, for example, charges 6.25% state sales tax on most goods but exempts groceries and medicine. New York exempts clothing and footwear under $110 per item. These exemptions can significantly affect your effective tax burden depending on your spending patterns.

How State and Local Taxes Combine

Your total sales tax rate at the register is typically the sum of multiple tax layers:

State tax is the base rate set by the state legislature. This is the same everywhere within the state.

County tax is an additional rate imposed by the county government. Not all counties levy a sales tax, and rates vary widely even within a single state.

City or municipal tax is an additional rate imposed by the city. Like county taxes, not all cities levy their own sales tax.

Special district taxes may apply in areas that have approved additional taxes for specific purposes, such as transportation, sports stadiums, convention centers, or community development. These are often small (0.1% to 1%) but add up.

For example, in Chicago, Illinois, the total sales tax on general merchandise is 10.25%, composed of: Illinois state tax (6.25%) + Cook County tax (1.75%) + Chicago city tax (1.25%) + Regional Transportation Authority tax (1.0%). A few miles outside Chicago in a different county, the total rate might be 7.5% or lower.

This layered structure means the tax rate can change by crossing a city or county line, which is why precise location matters for accurate calculations. Online retailers determine the applicable rate based on the shipping address, not the seller’s location, following the 2018 Supreme Court ruling in South Dakota v. Wayfair, Inc.

Sales Tax on Big-Ticket Purchases

Sales tax has the most noticeable impact on expensive purchases. Here is what tax adds to common big-ticket items at various combined rates:

Automobile ($35,000):

At 6%: $2,100 in tax
At 8%: $2,800 in tax
At 10%: $3,500 in tax

Furniture set ($5,000):

At 6%: $300
At 8%: $400
At 10%: $500

Appliance package ($3,000):

At 6%: $180
At 8%: $240
At 10%: $300

Electronics ($1,500):

At 6%: $90
At 8%: $120
At 10%: $150

For automobile purchases, some states cap the sales tax or offer reduced rates on vehicles. Others charge the full rate on the entire purchase price. If you live near a state border, purchasing a vehicle in a lower-tax state may save thousands, though your home state may require you to pay the difference when registering the vehicle.

Sales Tax for Business Owners

If you operate a business that sells taxable goods or services, understanding sales tax is critical for compliance, pricing, and profitability.

Registration. In most states, businesses must register for a sales tax permit before collecting tax. Selling without a permit when required can result in penalties, back taxes, and interest.

Collection. You are responsible for collecting the correct amount of sales tax on every taxable transaction based on the delivery address (destination-based sourcing in most states) or your business location (origin-based sourcing in a few states).

Nexus. You must collect and remit sales tax in any state where you have "nexus," a sufficient connection to the state. Physical nexus includes having an office, warehouse, employees, or inventory in the state. Economic nexus (established by South Dakota v. Wayfair) means you must also collect in states where you exceed certain sales thresholds, typically $100,000 in annual sales or 200 transactions.

Filing and remitting. Sales tax collected must be filed and remitted to the appropriate state and local tax authorities on a regular schedule, which is monthly, quarterly, or annually depending on your sales volume and the state’s requirements. Late filing incurs penalties and interest.

Tax-inclusive vs tax-exclusive pricing. Most U.S. retailers display prices exclusive of tax (the tax is added at checkout). Some businesses, particularly in service industries or those competing with tax-free jurisdictions, choose to display tax-inclusive prices. This calculator helps you work with both approaches.

If you are pricing products for retail, use this calculator to determine what customers will actually pay after tax, ensuring your prices remain competitive. Use the Percentage Calculator for general markup and margin calculations.

Tax-Free Shopping Strategies

While you cannot legally avoid sales tax on taxable purchases, there are legitimate strategies to minimize the impact.

Shop during sales tax holidays. Many states offer annual sales tax holidays, typically in late summer before the school year, during which certain categories (clothing, school supplies, computers, hurricane preparedness items) are exempt from sales tax. Texas, Florida, and many other states offer these holidays, and the savings on back-to-school shopping can be significant.

Buy in tax-free states. If you live near a state with no sales tax (Oregon, New Hampshire, Delaware, Montana), purchasing big-ticket items there can save hundreds. Note that some states require residents to self-report and pay "use tax" on out-of-state purchases, though compliance with use tax obligations is low for individual consumers.

Take advantage of exemptions. Most states exempt groceries, prescription drugs, and sometimes clothing from sales tax. Knowing your state’s exemptions helps you budget more accurately.

Consider online marketplaces carefully. Since the Wayfair decision, most online retailers collect sales tax based on your shipping address. However, purchasing from smaller sellers below the economic nexus threshold may occasionally result in no tax being collected (though you may still owe use tax).

This calculator provides estimates for informational purposes only. It is not financial advice. Results may not reflect your actual loan terms, tax situation, or investment returns. Consult a licensed financial advisor, CPA, or tax professional before making financial decisions.

Frequently Asked Questions

Which states have no sales tax?

Five states have no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to levy sales taxes, so some Alaska locations do charge sales tax. Delaware, Montana, New Hampshire, and Oregon have no sales tax at any level.

How do I calculate sales tax from a total?

To find the pre-tax price from a total, divide the total by (1 + tax rate as a decimal). If you paid $107.50 and the tax rate is 7.5%, the pre-tax price is $107.50 / 1.075 = $100.00, and the tax portion is $7.50. This calculator performs this reverse calculation automatically.

Do I pay sales tax on online purchases?

In most cases, yes. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require online retailers to collect sales tax even without a physical presence in the state, provided the retailer exceeds the state’s economic nexus threshold (typically $100,000 in sales or 200 transactions per year). Most major online retailers now collect sales tax in all states that impose it.

What is use tax?

Use tax is the complement to sales tax. It applies when you purchase a taxable item from an out-of-state seller who did not collect your state’s sales tax. Legally, you owe use tax on such purchases at the same rate as your local sales tax. Most states include a use tax line on their income tax returns, but individual compliance is historically very low.

Are groceries taxed?

It varies by state. Most states exempt groceries (unprepared food) from sales tax. However, some states like Alabama, Mississippi, and South Dakota tax groceries at the full rate. Others like Illinois and Virginia tax groceries at a reduced rate. Prepared food (restaurant meals, deli items) is almost always taxable.

What is the average sales tax rate in the US?

The average combined state and local sales tax rate across the United States is approximately 6.6% to 6.8%. However, this average masks enormous variation, from 0% in tax-free states to over 10% in the highest-tax jurisdictions. Your local combined rate is what matters for budgeting.

Do businesses pay sales tax on their purchases?

Businesses generally do not pay sales tax on items purchased for resale (they collect it from the end consumer instead). However, businesses do pay sales tax on items purchased for their own use (office supplies, equipment, furniture). A resale certificate or exemption certificate is used to make tax-exempt purchases for resale.

How often do sales tax rates change?

Rates can change whenever state or local legislatures approve new taxes or adjust existing ones. State rates change infrequently (every few years), but local rates may change more often as cities and counties pass ballot measures for new projects. Businesses should verify current rates quarterly, and consumers should check rates before major purchases.

Sources & Methodology

Sales tax calculated using the standard formula: Tax = Price x Rate, universally used in retail and tax compliance.
State sales tax rates based on data from the Tax Foundation’s annual State and Local Sales Tax Rates report.
Combined average rates sourced from the Tax Foundation’s combined state and local rate rankings.
Grocery tax exemption data based on the Federation of Tax Administrators (FTA) survey of state taxation of food.
South Dakota v. Wayfair, Inc. (2018) ruling and economic nexus standards based on the Supreme Court decision (585 U.S. ___) and subsequent state implementations.
Sales tax holiday information based on the Federation of Tax Administrators annual summary.

Default rates shown are illustrative. Always verify current rates with your lender/provider. Data accurate as of: March 2026