Item Price $100.00
Sales Tax $7.25
Total Out-the-Door $107.25
Effective Rate 7.25%

US Sales Tax Facts

No State Sales Tax
5 states charge no statewide sales tax:
Oregon, Montana, New Hampshire, Delaware, Alaska
(Alaska allows local sales tax)
Highest State Rates
1. California: 7.25% (statewide)
2. Indiana: 7.0%
3. Mississippi: 7.0%
4. Rhode Island: 7.0%
5. Tennessee: 7.0% + local
Tax-Free Holidays
Many states have annual tax-free weekends for:
✓ Back-to-school supplies
✓ Energy-efficient appliances
✓ Hurricane preparedness items
Usually in July-August

Local sales tax (city/county) is usually added on top of the state rate. The actual rate you pay depends on your exact location.

Frequently Asked Questions

Why do some states have no sales tax?

Five states have no state sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska (Alaska has no state-level tax but local governments can charge their own). These states typically make up the revenue with higher income taxes or property taxes. For example, Oregon has no sales tax but relatively high income tax. New Hampshire has neither sales tax nor income tax on wages, but high property taxes — which is why property taxes are such a big deal there.

Do I pay sales tax when shopping online?

Yes, since the 2018 Supreme Court decision (South Dakota v. Wayfair), online retailers must collect sales tax based on where the buyer lives, not where the seller is based. So if you order from an online store in Oregon but live in California, you pay California's sales tax rate. This is why Amazon now charges sales tax on almost everything. Before 2018, you could often dodge sales tax by buying from out-of-state — those days are over.

What's the highest sales tax in the US?

Tennessee has the highest average combined state and local sales tax at about 9.55%. Louisiana, Arkansas, Washington, and Alabama are close behind at 9%+. At the city level, places like Chicago have combined rates over 10% — which is why a $100 restaurant tab can cost you $110+ by the time tax is added. By contrast, Portland, Oregon or Fremont, California (wait, no — Fremont has tax) — places like Hamburg, Iowa or some Montana towns have essentially no tax at all.

Is food taxed differently?

Yes, in many states. Grocery food is taxed at a lower rate or entirely exempt in about half the states. For example, in Illinois, groceries are taxed at 1% while prepared food is taxed at the full 6.25%. In California, groceries are exempt from state sales tax but local taxes may still apply. Prepared food (restaurant meals, hot food from the deli) is almost always taxed at the full rate. Prescription drugs are almost always tax-exempt nationwide.

Do I pay sales tax on a car purchase?

Yes, and it's one of the biggest hidden costs of buying a car. Sales tax on a car is based on where you register it, not where you buy it. So if you live in a high-tax state like Georgia (7%) but buy a car in Oregon (0%), you still owe Georgia the difference when you register it. This is called a "use tax" and it's enforced when you try to register the car. Always factor sales tax into your car budget — on a $30,000 car at 7%, that's $2,100 extra.

Why is the price on the tag not the price I pay?

This is a uniquely American thing. In most countries, the price you see is the price you pay — tax is included. In the US, posted prices are pre-tax, and tax gets added at checkout. It's confusing for visitors and even Americans forget sometimes. This is why budget for purchases by adding about 7-10% to the sticker price, depending on your state. When you see a $99.99 item, plan on paying $107-110 out the door.

Disclaimer: Sales tax rates vary by state, county, city, and even by product category. This calculator uses approximate state-level rates. Local taxes may apply. For exact rates, check your state's department of revenue website. Not professional tax advice.