Sales Tax in the United States: A State-by-State Overview
A comprehensive overview of sales tax across the US, including state rates, local additions, and common exemptions.
Use the Sales Tax Calculator
Calculate sales tax by state or custom %
How US Sales Tax Works
Unlike the Value Added Tax (VAT) system used in most countries, US sales tax is a single-stage consumption tax applied only at the final point of sale to the consumer. The total rate a shopper pays is typically a combination of three separate taxes layered on top of each other: a state tax, a county tax, and sometimes a city or special district tax. There is no federal sales tax in the United States. Total combined rates range from 0 percent in a handful of states to over 10 percent in certain cities and counties. This patchwork system means that the tax you pay can change significantly depending on which side of a county or city line you are standing on when you make a purchase.
States With No Sales Tax
Five states currently impose no state-level sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska is a special case because it allows local municipalities to levy their own sales tax, so some Alaskan cities and boroughs do charge it.
Common Exemptions
Most states exempt certain categories of goods from sales tax.
Online Shopping and Sales Tax
For many years, online purchases were a significant sales tax loophole. If an online retailer had no physical presence in your state, it was not required to collect sales tax on your purchase. Technically, consumers were supposed to report and pay 'use tax' on these purchases, but almost nobody actually did. That changed in 2018 with the Supreme Court's decision in South Dakota v. Wayfair, Inc. The ruling allowed states to require online retailers to collect sales tax even without a physical presence, as long as the retailer exceeds a certain sales threshold in that state (typically $100,000 in annual sales or 200 transactions). Today, most major online retailers collect sales tax in all states that impose one.
More Currency & Fees Tools
Related Articles
Tipping Etiquette Around the World: A Complete Guide
Tipping customs vary dramatically worldwide. This guide covers the norms for restaurants, hotels, and taxis in every major region.
How Currency Exchange Rates Work
Learn the mechanics behind exchange rates, what causes currencies to strengthen or weaken, and tips for getting the best deal.
The Power of Compound Interest: A Beginner's Guide
Learn how compound interest can grow your savings exponentially and why starting early matters more than investing large sums.
How Mortgage Payments Work: Principal, Interest, and Amortization
A clear explanation of mortgage math, amortization schedules, and practical strategies for paying down your home loan faster.