How sales tax works
Sales tax is added to the price of goods and services at the point of sale. Most states charge a base state rate, and many localities (cities, counties) add their own rate on top. The total you pay is the combined rate.
Add tax
Total = Price × (1 + Rate)
$100 at 8% → $108
Remove tax (reverse)
Pre-tax = Total ÷ (1 + Rate)
$108 at 8% → $100 pre-tax
Sales tax rates by state
Complete sales tax by state table — sorted by combined rate (highest first). Five states with no sales tax are highlighted:
| State | State Rate | Avg Local | Combined |
|---|---|---|---|
| Tennessee (TN) | 7.00% | 2.55% | 9.55% |
| Louisiana (LA) | 4.45% | 5.07% | 9.52% |
| Arkansas (AR) | 6.50% | 2.97% | 9.47% |
| Washington (WA) | 6.50% | 2.80% | 9.30% |
| Alabama (AL) | 4.00% | 5.26% | 9.26% |
| Illinois (IL) | 6.25% | 2.88% | 9.13% |
| Oklahoma (OK) | 4.50% | 4.48% | 8.98% |
| California (CA) | 7.25% | 1.57% | 8.82% |
| Kansas (KS) | 6.50% | 2.25% | 8.75% |
| New York (NY) | 4.00% | 4.52% | 8.52% |
| Arizona (AZ) | 5.60% | 2.80% | 8.40% |
| Missouri (MO) | 4.23% | 4.00% | 8.23% |
| Nevada (NV) | 6.85% | 1.37% | 8.22% |
| Texas (TX) | 6.25% | 1.94% | 8.19% |
| Colorado (CO) | 2.90% | 4.91% | 7.81% |
| Georgia (GA) | 4.00% | 3.75% | 7.75% |
| South Carolina (SC) | 6.00% | 1.75% | 7.75% |
| New Mexico (NM) | 4.88% | 2.71% | 7.59% |
| Ohio (OH) | 5.75% | 1.77% | 7.52% |
| Minnesota (MN) | 6.88% | 0.60% | 7.48% |
| Utah (UT) | 6.10% | 1.09% | 7.19% |
| Nebraska (NE) | 5.50% | 1.61% | 7.11% |
| Mississippi (MS) | 7.00% | 0.07% | 7.07% |
| Florida (FL) | 6.00% | 1.05% | 7.05% |
| North Dakota (ND) | 5.00% | 2.04% | 7.04% |
| Indiana (IN) | 7.00% | 0.00% | 7.00% |
| North Carolina (NC) | 4.75% | 2.25% | 7.00% |
| Rhode Island (RI) | 7.00% | 0.00% | 7.00% |
| Iowa (IA) | 6.00% | 0.94% | 6.94% |
| West Virginia (WV) | 6.00% | 0.39% | 6.39% |
| Connecticut (CT) | 6.35% | 0.00% | 6.35% |
| Pennsylvania (PA) | 6.00% | 0.34% | 6.34% |
| New Jersey (NJ) | 6.63% | 0.00% | 6.33% |
| Massachusetts (MA) | 6.25% | 0.00% | 6.25% |
| Vermont (VT) | 6.00% | 0.18% | 6.18% |
| South Dakota (SD) | 4.20% | 1.91% | 6.11% |
| Idaho (ID) | 6.00% | 0.03% | 6.03% |
| Kentucky (KY) | 6.00% | 0.00% | 6.00% |
| Maryland (MD) | 6.00% | 0.00% | 6.00% |
| Michigan (MI) | 6.00% | 0.00% | 6.00% |
| District of Columbia (DC) | 6.00% | 0.00% | 6.00% |
| Maine (ME) | 5.50% | 0.00% | 5.50% |
| Virginia (VA) | 4.30% | 1.15% | 5.45% |
| Wisconsin (WI) | 5.00% | 0.43% | 5.43% |
| Wyoming (WY) | 4.00% | 1.36% | 5.36% |
| Hawaii (HI) | 4.00% | 0.44% | 4.44% |
| Alaska (AK) | 0.00% | 1.82% | 1.82% |
| Delaware (DE)NO TAX | 0.00% | 0.00% | 0.00% |
| Montana (MT)NO TAX | 0.00% | 0.00% | 0.00% |
| New Hampshire (NH)NO TAX | 0.00% | 0.00% | 0.00% |
| Oregon (OR)NO TAX | 0.00% | 0.00% | 0.00% |
Rates are 2026 averages. Actual local rates vary by city/county. Source: Tax Foundation.
Highest and lowest sales tax states
Highest combined rates
- Tennessee — 9.55%
- Louisiana — 9.52%
- Arkansas — 9.47%
- Washington — 9.30%
- Alabama — 9.26%
No sales tax
- 0% Delaware
- 0% Montana
- 0% New Hampshire
- 0% Oregon
Alaska has no state tax but some cities charge local sales tax (avg 1.82%).
How local taxes add up
In many states, the local component is significant. For example, Alabama has only a 4% state rate — but average local taxes of 5.26% bring the combined rate to 9.26%. Colorado's state rate is just 2.9%, but local taxes average 4.91%, pushing the total to 7.81%. Always use the combined rate for accurate calculations.
Tip: The rates above are state-wide averages. Your actual combined rate depends on your specific city and county. Check your local tax authority for the exact rate, or use the custom rate override in the calculator.
Reverse sales tax explained
A reverse sales tax calculator finds the pre-tax price from a total that already includes tax. The formula: Pre-tax price = Total ÷ (1 + tax rate). For example, you paid $86.25 including 7.5% tax: $86.25 ÷ 1.075 = $80.23 pre-tax, $5.97 was tax. Switch to "Remove tax" mode above to use this.
States with no sales tax
What states have no sales tax? Five states have no general sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. Delaware, Montana, New Hampshire, and Oregon have no state or local sales tax at all. Alaska has no state sales tax but allows boroughs and municipalities to levy local taxes averaging 1.82%. These states may rely more heavily on income tax, property tax, or other revenue sources.
FAQs
What is sales tax?
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. It's collected by the seller at the point of sale and remitted to the government. Sales tax rates vary widely — from 0% in five states (Alaska has no state tax but some local taxes) to over 9.5% combined in states like Louisiana and Tennessee.
How do you calculate sales tax?
Multiply the price by the tax rate as a decimal. For example, a $50 item at 8.25% sales tax: $50 × 0.0825 = $4.13 tax, total $54.13. To find the pre-tax price from a total that includes tax: divide by (1 + rate). $54.13 ÷ 1.0825 = $50.00. Use the reverse mode in the calculator above.
Which states have no sales tax?
Five states have no general state-level sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local jurisdictions to levy their own sales taxes (averaging about 1.82%). Delaware, Montana, New Hampshire, and Oregon have no state or local general sales taxes at all.
What state has the highest sales tax?
Louisiana has the highest average combined state + local sales tax rate at approximately 9.55%. Tennessee (9.548%), Arkansas (9.47%), Washington (9.30%), and Alabama (9.26%) round out the top five. California has the highest state-level rate at 7.25%, but its combined average (8.82%) is lower than several states with higher local taxes.
Do you pay sales tax on online purchases?
Yes — since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require online retailers to collect sales tax even if the seller has no physical presence in the state. Most major online retailers (Amazon, Walmart, etc.) now collect sales tax in all states that impose it. If a seller doesn't collect the tax, you technically owe 'use tax' to your state.
Is food taxed with sales tax?
It varies by state. Most states exempt unprepared grocery food from sales tax. However, some states (Alabama, Mississippi, South Dakota, and others) tax groceries at the full rate or a reduced rate. Prepared food (restaurant meals, hot deli items) is taxed in nearly all states. Candy and soft drinks are sometimes taxed differently from other food.
Is sales tax deductible on federal taxes?
Yes — if you itemize deductions, you can deduct either state income tax OR state and local sales tax (not both) on your federal return. This is especially beneficial for residents of no-income-tax states (FL, TX, WA, etc.) who can deduct their sales tax instead. The SALT deduction is capped at $10,000 ($5,000 married filing separately).
How do you reverse-calculate sales tax?
To find the pre-tax price from a total that includes tax: Pre-tax = Total ÷ (1 + tax rate). For example, you paid $107.50 including 7.5% tax: $107.50 ÷ 1.075 = $100.00 pre-tax price, $7.50 was tax. Use the 'Remove tax' mode in the calculator above for instant results.
Do I pay sales tax on a used car?
In most states, yes — you pay sales tax when you buy a used car, typically based on the purchase price or the vehicle's fair market value (whichever is higher). The tax is usually collected when you register the vehicle at the DMV. Five states (Oregon, Montana, New Hampshire, Delaware, Alaska) don't charge sales tax on vehicle purchases.
What is use tax?
Use tax is a complement to sales tax — it applies when you buy a taxable item without paying sales tax (e.g., from an out-of-state seller who doesn't collect tax, or at a duty-free shop). The rate is the same as your local sales tax rate. Technically, you're required to report and pay use tax on your state tax return, though enforcement on small purchases is minimal.