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.