Sales Tax by State: What You'll Actually Pay in the US
Here's the quick answer: the United States has no national sales tax. Instead, each state — and often each city and county — sets its own rate. That means the tax on the same purchase can be 0% in one state and over 10% in another. Five states charge no statewide sales tax at all, while combined state-and-local rates climb highest in parts of Louisiana, Tennessee, and Arkansas.
How US sales tax works
Sales tax is added at the register, on top of the listed price — unlike the VAT used in much of the world, which is baked into the sticker price. So a $100 item in a 8% tax area costs you $108 at checkout. The rate you pay is usually two pieces stacked together:
- State rate: set by the state, ranging from 0% up to 7.25% (California has the highest statewide base).
- Local rate: added by counties, cities, and special districts. This can tack on several more percentage points, which is why two towns in the same state can charge different totals.
Add the two together and you get the combined rate — the number that actually decides what you pay.
States with no sales tax
Five states levy no statewide sales tax, often remembered by the acronym NOMAD:
- New Hampshire
- Oregon
- Montana
- Alaska — no state tax, but local areas may add their own
- Delaware
In these states the price on the shelf is usually the price you pay. Everywhere else, expect the total to climb at the register.
How to calculate sales tax
The math is simple once you know your combined rate. To add tax, multiply the price by the rate and add it on:
| Step | Example (8% rate) |
|---|---|
| Item price | $100.00 |
| Sales tax (100 × 0.08) | +$8.00 |
| Total at checkout | $108.00 |
To work backwards and remove tax from a total — say you have a $108 receipt and want the pre-tax price — divide by 1 plus the rate (108 ÷ 1.08 = $100). Don't just subtract 8%, which gives the wrong answer. The sales tax calculator does both directions instantly.
Why the rate you pay can change
A few things quietly shift what you owe:
- Where you buy: tax is generally based on the delivery or purchase location, so online orders use your shipping address's rate.
- What you buy: many states exempt or reduce tax on groceries, prescriptions, and sometimes clothing.
- Tax holidays: some states waive sales tax on specific items (like school supplies) for a weekend each year.
If you're budgeting a big purchase, check your exact combined rate first — a couple of percentage points on a large total adds up. For more US-specific tools, see our United States calculators, including paycheck, mortgage, and federal income tax estimators.
This article is general information, not tax advice, and all figures are estimates. Rates change and vary by location — confirm your current local rate before relying on it. See our disclaimer.