How do I find my local sales tax rate?

Your local rate is the sum of state, county, city, and special district taxes. Check your state Department of Revenue website or use online ZIP code lookup tools.

Most states exempt or reduce sales tax on groceries. Prepared food is typically taxed at the full rate. Some states tax groceries at the full rate.

What's the difference between sales tax and use tax?

Sales tax is collected by the seller at purchase. Use tax is self-reported by the buyer when sales tax wasn't collected, like on out-of-state purchases.

Sales Tax Calculator 2026 - Calculate Sales Tax on Any Purchase

Understanding Sales Tax in 2026: A Complete Guide

Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. In the United States, 45 states and the District of Columbia collect sales tax, with rates ranging from 0% to over 10% when combined with local taxes. Our sales tax calculator helps you determine the exact tax on any purchase.

State Sales Tax Rates for 2026

State sales tax rates vary significantly across the country. Some states have no sales tax at all, while others have rates exceeding 7%. Here's a breakdown of the current landscape:

States with No Sales Tax

Delaware0% state sales tax

Montana0% state sales tax

New Hampshire0% state sales tax

Oregon0% state sales tax

Alaska0% state (local taxes may apply)

Highest Sales Tax States (State + Average Local)

Tennessee9.55% combined average

Arkansas9.46% combined average

Washington9.41% combined average

Louisiana9.41% combined average

California8.82% combined average

How Sales Tax Is Calculated

Sales tax is calculated as a percentage of the purchase price. The formula is simple:

Sales Tax Formula

Sales Tax = Purchase Price x (Tax Rate / 100)

Total Cost = Purchase Price + Sales Tax

Example: $100 purchase with 8% tax = $100 x 0.08 = $8 tax. Total = $108.

Common Sales Tax Exemptions

Many states exempt certain items from sales tax. Common exemptions include:

Groceries: Most states exempt or reduce tax on unprepared food
Prescription Drugs: Generally tax-exempt in most states
Clothing: Some states (like Minnesota, Pennsylvania) exempt clothing under certain amounts
Medical Equipment: Often exempt when prescribed by a doctor
Manufacturing Equipment: Business equipment often exempt

Online Purchases and Sales Tax

Following the 2018 Supreme Court decision in South Dakota v. Wayfair, states can now require online retailers to collect sales tax even if they don't have a physical presence in the state. This means most online purchases now include sales tax based on your delivery address.

Major marketplaces like Amazon, eBay, and Etsy automatically collect and remit sales tax for most states. When shopping online, the sales tax shown at checkout is based on your shipping address, not the seller's location.

Frequently Asked Questions About Sales Tax

Delaware, Montana, New Hampshire, and Oregon have no state sales tax. Alaska has no state sales tax but allows local governments to impose their own sales taxes.

Your local rate is the sum of state, county, city, and special district taxes. Search '[your state] sales tax rate lookup' or check your state Department of Revenue website. Many states offer online tools where you enter your ZIP code to find the exact rate.

Most states exempt or reduce sales tax on groceries. However, prepared food (restaurant meals, deli items) is typically taxed at the full rate. Some states like Alabama, Mississippi, and South Dakota tax groceries at the full rate.

Yes, since the 2018 Wayfair decision, states can require online retailers to collect sales tax based on your delivery address. Most major online retailers now automatically collect and remit sales tax for purchases.

Sales tax is collected by the seller at the time of purchase. Use tax is self-reported and paid by the buyer when sales tax wasn't collected (like out-of-state purchases). In practice, most people owe use tax but rarely pay it.

Sales Tax Calculator 2026