US sales tax rates by state — 2026
State rates, average local rates, and combined totals for all 50 states and Washington DC. Searchable and sortable. Use the sales tax calculator to apply any rate instantly.
Calculate sales tax for any amount
Find the rate you need in the table, then use the calculator to get the exact tax amount and total price.
| State | State rate | Avg. local rate | Combined rate |
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State rates are statutory. Average local rates are population-weighted averages and vary within each state. Combined rate = state + average local. Figures reflect 2026 rates. Grocery exemptions, reduced rates for specific goods, and local variations are not reflected — see state revenue authority for precise rates applicable to a specific purchase.
How US sales tax works
State rate vs combined rate
Every US state that has a sales tax sets a statewide rate as a baseline. On top of that, counties, cities, and special districts can add their own local taxes. The combined rate is what most consumers actually pay — state plus the average of applicable local taxes. In California, for example, the state rate is 7.25% but the average combined rate is around 8.85% once county and district taxes are included. The difference between state and combined rate is largest in states like Colorado, where a 2.9% state rate sits beneath combined rates that regularly exceed 8% in major cities.
The five states with no sales tax
Oregon, Montana, New Hampshire, Delaware, and Alaska levy no statewide sales tax. Of these, Alaska is the exception that proves the rule: the state itself charges nothing, but Alaskan municipalities can and do charge local sales taxes, so parts of Alaska are effectively taxed. The other four are genuinely sales-tax-free. These states typically make up the revenue difference through higher income taxes or property taxes.
How to calculate sales tax on a purchase
The formula is straightforward: multiply the pre-tax price by the combined rate expressed as a decimal. For a $250 purchase in a state with a 9% combined rate: $250 × 0.09 = $22.50 tax, giving a total of $272.50. You can also compute the total directly: $250 × 1.09 = $272.50. To reverse the calculation from a tax-inclusive total — useful for accounting and expense reporting — divide the total by (1 + rate): $272.50 ÷ 1.09 = $250. The sales tax calculator handles both directions for any amount and rate.
States with the highest combined rates
Tennessee, Louisiana, and Arkansas consistently rank among the highest combined sales tax states, all exceeding 9%. This matters for large purchases: on a $10,000 home appliance purchase, a 9.5% combined rate adds $950 in tax compared to $725 at the national weighted average. For businesses pricing products nationally, using an average rate significantly underestimates tax liability in high-rate states. The discount + tax calculator is useful for seeing exactly what a customer pays after both a promotional discount and the applicable state tax.
Groceries and exemptions
About 30 states exempt most grocery food from sales tax entirely, recognising it as a necessity. Several others apply a reduced rate — Illinois taxes food and medicine at 1% rather than the standard 6.25%. A handful of states including Alabama, Mississippi, and South Dakota apply the full rate to groceries, which disproportionately affects lower-income households. Prepared food (restaurant meals and hot take-out) is taxable in virtually every state that has a sales tax. Prescription drugs are exempt in most states; over-the-counter medicines vary.
Online purchases and economic nexus
Following the Supreme Court's 2018 ruling in South Dakota v. Wayfair, states gained the ability to require out-of-state sellers to collect sales tax even without a physical location in that state. Today, all 45 states with a sales tax have enacted economic nexus laws. Most set the threshold at $100,000 in annual sales or 200 transactions in that state per year. This means an online retailer selling nationally must track nexus across dozens of states and collect the correct rate for each customer's location — the combined rate column in the table above is the starting point for that calculation, though actual rates depend on the customer's precise county and city. For sellers with straightforward pricing, the percentage of number calculator can quickly compute the tax portion of any sale.
Sales tax vs VAT
The US system differs structurally from the Value Added Tax used in Europe, the UK, and most of the world. Under US sales tax, only the final consumer-facing transaction is taxed — businesses buying supplies or inventory for resale do not pay sales tax on those purchases. Under VAT, every stage of the supply chain is taxed, but businesses reclaim the VAT paid on their inputs, so the net burden is still borne by the end consumer. For international businesses or travellers wondering how US tax compares, the VAT calculator covers European rates in detail. The practical difference for consumers is minimal — both systems raise the final purchase price by the stated rate — but VAT is embedded into displayed prices in most countries, while US sales tax is almost always added at the register.
Using the rate table for business pricing
Retailers and e-commerce sellers most commonly use this table to sanity-check their tax engine, to price promotional offers correctly across state lines, or to plan where to hold inventory and operations. The decision of where to open a warehouse, for instance, affects nexus and therefore tax collection obligations in that state. A seller shipping from a no-sales-tax state to customers in high-rate states still collects tax at the customer's rate — the seller's location no longer provides a shield under post-Wayfair law. For margin-sensitive products, calculating the after-tax customer price in each key market using the combined rates above, then working backwards to the retail price needed to hit a target margin, is standard pricing practice. The profit margin calculator can assist with that reverse calculation.
Frequently asked questions
Five states have no statewide sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. Alaska has no state tax but allows local municipalities to levy their own, so parts of Alaska do charge sales tax. The other four are fully tax-free at both state and local level.
Tennessee has the highest average combined sales tax rate at around 9.55%, followed by Louisiana at roughly 9.52% and Arkansas at approximately 9.47%. These high combined rates reflect both a relatively high state rate and significant local add-ons.
The population-weighted average combined sales tax rate across all US states is approximately 6.6% when including states with no sales tax. Among states that do have a sales tax, the average combined rate is closer to 7.5%.
About 30 states exempt most groceries from sales tax entirely. Several states apply a reduced rate — Illinois taxes food at 1%, for example. A handful of states including Alabama, Mississippi, and South Dakota tax groceries at the full rate. Prepared food and restaurant meals are taxable in nearly all states.
No. US sales tax is only charged at the final point of sale. VAT (used in the EU, UK, and most of the world) is charged at every stage of production, but businesses reclaim the VAT on their inputs. The consumer bears the full cost under both systems, but VAT creates a paper trail across the supply chain that sales tax does not.
Multiply the pre-tax price by the tax rate as a decimal. For a $120 purchase at 8% tax: $120 × 0.08 = $9.60 tax, total $129.60. The full formula: total = price × (1 + rate ÷ 100). Use the sales tax calculator to do this instantly for any amount.
Yes, frequently. In Colorado the state rate is just 2.9%, but local jurisdictions can add their own taxes, pushing combined rates in some cities above 10%. New York City adds 4.5% local tax on top of New York State's 4%, giving an 8.875% combined rate in the city versus 4% in rural parts of the state.
Yes, following the 2018 Supreme Court ruling in South Dakota v. Wayfair. States can now require out-of-state sellers to collect sales tax without a physical presence. Most states set the threshold at $100,000 in sales or 200 transactions per year in that state.