Sales Tax Calculator

There is no federal sales tax in the United States. Instead, 45 states plus DC impose a state-level sales tax, and most of those let counties, cities, transit districts, and special-purpose districts stack additional rates on top. Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no statewide sales tax at all, though some Alaskan municipalities still charge local rates.

Combined rates can vary block by block. Tennessee's average combined rate is around 9.55%, Louisiana's around 9.55%, and Arkansas's around 9.46%, while Hawaii sits near 4.50% and Wyoming near 5.44%. Within a single metro area, the difference between a city and an unincorporated county pocket can easily be 1–2 percentage points, which matters for big-ticket items like appliances and furniture.

Sales tax is calculated on the post-discount, pre-tip price. Coupons issued by the retailer reduce the taxable amount; manufacturer rebates usually do not. Tips, gratuities, and most service fees are not taxable. Shipping is a state-by-state question — taxable in some states (TX, NY) and not in others (CA, on most items).

Most states are destination-based: the rate that applies is the rate where the buyer takes possession. Online retailers must collect at the buyer's ship-to address, which is why your Amazon receipt shows a rate tied to your ZIP code, not Seattle's.

A handful of states (Arizona, Illinois, Mississippi, Missouri, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, Utah, Virginia) are origin-based for in-state sales: the seller charges the rate at their own location for sales delivered within the state. For interstate sales, destination sourcing applies under the post-Wayfair economic-nexus regime.

If you're a small seller, the Wayfair decision (2018) means you may need to collect tax in any state where you exceed the economic-nexus threshold (commonly $100k in sales or 200 transactions per year). The exact thresholds vary — check each state's revenue department before assuming you're exempt.

Groceries, prescription drugs, and many medical devices are exempt or taxed at a reduced rate in most states. Clothing is exempt in some (PA, NJ, MA up to a per-item cap). Sales-tax holidays — typically a weekend in late summer for back-to-school items — temporarily exempt qualifying purchases in about 17 states.

Business buyers can claim resale exemptions by providing a valid resale certificate. Nonprofits, government agencies, and certain agricultural and manufacturing inputs may also qualify. The exemption belongs to the buyer; the seller's job is to collect a properly completed certificate and keep it on file in case of audit.

If you're charged the wrong rate, your remedy is usually a refund request to the seller. Once the seller has remitted the tax to the state, only the seller can file for a refund and pass it back to you.

Buy the same $1,200 laptop in Portland, OR: combined sales tax is 0%. Total at checkout: $1,200.00. Tax saved: $0.

Buy it in Los Angeles, CA: the combined rate is roughly 9.50% (6% state + 1.25% local + 2.25% district). Tax = $1,200 × 0.095 = $114.00. Total: $1,314.00.

Buy it in Chicago, IL: the combined rate is about 10.25% (6.25% state + 1.75% county + 1.25% city + 1% RTA). Tax = $1,200 × 0.1025 = $123.00. Total: $1,323.00.

Same product, $123 spread between the cheapest and most expensive jurisdictions. That's why destination sourcing matters: the address on the shipping label, not the warehouse, decides the rate you pay.

If you sell products, sales tax stops being a checkout curiosity and becomes a compliance obligation. The threshold question is nexus: whether your business has enough connection to a state for that state to require you to register, collect, and remit. Physical nexus comes from an office, warehouse, inventory, employee, or contractor in the state. Economic nexus comes from crossing a sales threshold, most commonly $100,000 in sales or 200 separate transactions in a twelve-month period.

Once you have nexus you must register with that state's revenue department before collecting a single dollar. Collecting tax without a permit is illegal in most states. After registering you will be assigned a filing frequency — monthly, quarterly, or annually — based on expected volume, and you must file a return even in periods with zero sales.

Marketplace facilitator laws shift much of this burden. If you sell through Amazon, Etsy, eBay, or Walmart, the marketplace is generally required to collect and remit sales tax on your behalf in every state. You may still need to register and report those marketplace sales on your own returns, and you remain fully responsible for tax on sales made through your own website.

Product taxability is the detail that trips up most new sellers. Digital goods, software as a service, shipping charges, and services are treated inconsistently across states — SaaS is taxable in about 20 states and exempt in the rest. Automated tools such as TaxJar or Avalara handle rate lookups and filings, but the underlying classification of what you sell is a decision only you or your accountant can make.