How This Sales Tax Calculator Works
The calculator has two modes:
- Add tax to a pre-tax price — the most common scenario at checkout. Multiply the price by the tax rate and add it to get the total you pay.
- Extract tax from a tax-included price — useful when a receipt shows a total and you want to know the pre-tax amount. The formula divides the total by (1 + tax rate).
Total with tax = Pre-tax price × (1 + rate/100)
Pre-tax price = Tax-included total ÷ (1 + rate/100)
US Sales Tax Rates by State (2026)
The United States has no federal sales tax. Each state sets its own rate, and many cities and counties add additional local taxes on top. The following are state-level rates only — your actual rate at the register may be higher due to local taxes.
| State | State Rate | Avg. Combined Rate |
|---|---|---|
| Oregon, Montana, New Hampshire, Delaware | 0% | 0% |
| Colorado | 2.9% | ~7.5% (with local) |
| Alabama, Georgia, Hawaii, New York | 4% | ~9% (with local) |
| Texas, Florida | 6.25% | ~8.2% (with local) |
| California | 7.25% | ~8.7% (with local) |
| Tennessee | 7% | ~9.5% (with local) |
| Louisiana | 4.45% | ~9.5% (with local) |
Five states have no sales tax at all: Oregon, Montana, New Hampshire, Delaware, and Alaska (Alaska has no state tax but some municipalities levy local taxes).
Sales Tax vs. VAT: Key Differences
In the United States, sales tax is collected only at the final point of sale to the consumer and is added on top of the displayed price. In most of Europe, Canada (GST/HST), and Australia (GST), a Value Added Tax (VAT) or goods-and-services tax is built into the displayed price — what you see is what you pay.
| Feature | US Sales Tax | VAT / GST |
|---|---|---|
| Where collected | Point of sale only | At each stage of production |
| Price display | Added at checkout | Included in listed price |
| Varies by location | Yes — state, county, city | Usually one national rate |
| Example rates | 0–10.25% (US) | UK: 20%, EU: 15–27%, Canada HST: 5–15% |
What Items Are Exempt from Sales Tax?
Many states exempt certain categories of goods from sales tax. Common exemptions include:
- Groceries / unprepared food — most states exempt grocery staples; some tax prepared/restaurant food differently
- Prescription medications — exempt in nearly all states
- Medical devices — often exempt
- Clothing — exempt in New York (under $110 per item), Pennsylvania, Minnesota, and others
- Digital goods — rules vary widely; downloaded software and streaming services are taxed in some states
Always check your specific state's rules, as exemptions vary significantly.
Online Shopping and Sales Tax
Since the Supreme Court's 2018 South Dakota v. Wayfair decision, online retailers are required to collect sales tax in states where they have "economic nexus" — usually defined as more than $100,000 in sales or 200 transactions per year in that state. This means most major online retailers (Amazon, eBay, Etsy) now collect the appropriate state sales tax at checkout, just like a physical store.