Sales Tax by State 2026: All 50 States + Free Calculator
Sales tax is one of the most variable taxes in the United States. Unlike federal income tax, which applies uniformly nationwide, sales tax rates differ not just by state but by county and city — creating over 13,000 distinct tax jurisdictions across the country. A purchase in downtown Los Angeles is taxed at 10.25%, while the same item bought 30 miles away might be taxed at 7.25%. This guide covers every state's base rate, which states have no sales tax, where taxes are highest, and how to calculate sales tax on any purchase.
For a quick calculation, use the free Sales Tax Calculator on UtilDaily — enter a price and your state to see the exact tax amount and total.
What Is Sales Tax and Who Pays It?
Sales tax is a consumption tax imposed on the sale of goods and, increasingly, services. It's a point-of-sale tax — collected by the retailer at the time of purchase and remitted to the state (and local) government. The buyer pays it; the seller collects and remits it.
Unlike income tax, sales tax is regressive — it takes a larger percentage of income from lower-income households, who spend a higher share of their income on taxable goods.
States With No Sales Tax
Five states have no statewide sales tax:
- Oregon — No sales tax at state or local level. One of the most tax-friendly states for purchasing consumer goods.
- Montana — No statewide sales tax. Some resort communities levy a local resort tax (up to 3%).
- New Hampshire — No sales tax on most goods. Has a meals and rentals tax (8.5%) on prepared food and lodging.
- Delaware — No sales tax. Instead uses a gross receipts tax on businesses.
- Alaska — No statewide sales tax, but local jurisdictions can (and do) impose their own. Average combined rate is about 1.82%.
If you're near a border with one of these states, making large purchases there can result in significant savings — particularly on furniture, appliances, electronics, and vehicles.
States With the Highest Sales Tax Rates (2026)
These states have the highest state-level base rates:
| State | State Rate | Avg. Local Rate | Avg. Combined |
|---|---|---|---|
| California | 7.25% | 1.57% | 8.82% |
| Indiana | 7.00% | 0% | 7.00% |
| Mississippi | 7.00% | 0.07% | 7.07% |
| Rhode Island | 7.00% | 0% | 7.00% |
| Tennessee | 7.00% | 2.55% | 9.55% |
| Minnesota | 6.875% | 0.59% | 7.46% |
| Nevada | 6.85% | 1.38% | 8.23% |
| New Jersey | 6.625% | −0.03% | 6.60% |
| Kansas | 6.50% | 2.22% | 8.72% |
| Arkansas | 6.50% | 2.93% | 9.43% |
When combined with local taxes, Tennessee, Louisiana, and Arkansas often have the highest combined rates in the nation — frequently exceeding 10% in major cities.
Complete Sales Tax Table: All 50 States (2026)
| State | State Rate | State | State Rate |
|---|---|---|---|
| Alabama | 4.00% | Montana | 0% |
| Alaska | 0% | Nebraska | 5.50% |
| Arizona | 5.60% | Nevada | 6.85% |
| Arkansas | 6.50% | New Hampshire | 0% |
| California | 7.25% | New Jersey | 6.625% |
| Colorado | 2.90% | New Mexico | 5.00% |
| Connecticut | 6.35% | New York | 4.00% |
| Delaware | 0% | North Carolina | 4.75% |
| Florida | 6.00% | North Dakota | 5.00% |
| Georgia | 4.00% | Ohio | 5.75% |
| Hawaii | 4.00% | Oklahoma | 4.50% |
| Idaho | 6.00% | Oregon | 0% |
| Illinois | 6.25% | Pennsylvania | 6.00% |
| Indiana | 7.00% | Rhode Island | 7.00% |
| Iowa | 6.00% | South Carolina | 6.00% |
| Kansas | 6.50% | South Dakota | 4.50% |
| Kentucky | 6.00% | Tennessee | 7.00% |
| Louisiana | 4.45% | Texas | 6.25% |
| Maine | 5.50% | Utah | 6.10% |
| Maryland | 6.00% | Vermont | 6.00% |
| Massachusetts | 6.25% | Virginia | 5.30% |
| Michigan | 6.00% | Washington | 6.50% |
| Minnesota | 6.875% | West Virginia | 6.00% |
| Mississippi | 7.00% | Wisconsin | 5.00% |
| Missouri | 4.225% | Wyoming | 4.00% |
Local Sales Taxes: When the State Rate Is Just the Starting Point
Most states allow counties and cities to impose additional local sales taxes on top of the state rate. These stack additively:
Example: Los Angeles, California
- California state rate: 7.25%
- Los Angeles County: 2.25%
- City of Los Angeles: 0.75%
- Total combined rate: 10.25%
Example: Chicago, Illinois
- Illinois state rate: 6.25%
- Cook County: 1.75%
- Chicago city: 1.25%
- Chicago Regional Transportation Authority: 1.00%
- Total combined rate: 10.25%
This is why the actual sales tax you pay is often different from the state rate. Always check the combined local rate for your specific city and county.
What Items Are Taxed (and What Are Exempt)
Sales tax exemptions vary significantly by state:
- Groceries: Most states exempt unprepared food from sales tax. But some states (like Tennessee at 4%) tax groceries at a reduced rate, and others (like Mississippi) tax groceries at the full 7% rate.
- Clothing: Most states tax clothing. Exceptions include Minnesota, New Jersey, New York (items under $110), Pennsylvania, and Vermont.
- Prescription drugs: Most states exempt prescription medications. Some states also exempt over-the-counter drugs.
- Digital goods: Software, streaming services, and e-books are increasingly taxable. As of 2026, about 30 states tax some categories of digital goods.
- Services: Historically untaxed, but states are increasingly expanding the tax base to cover services like haircuts, legal services, and digital subscriptions.
Online Shopping and Sales Tax: Post-Wayfair Rules
The 2018 Supreme Court decision in South Dakota v. Wayfair, Inc. changed everything for online shopping. Before Wayfair, retailers only had to collect sales tax in states where they had a physical presence (nexus). After Wayfair, states can require out-of-state sellers to collect sales tax if they exceed economic nexus thresholds — typically $100,000 in sales or 200 transactions in a state per year.
As of 2026, every state with a sales tax has enacted economic nexus rules. This means major online retailers — Amazon, Walmart, Target, eBay — collect and remit sales tax in all applicable states automatically. The era of "tax-free online shopping" is effectively over for major retailers.
How to Calculate Sales Tax
The formula is simple: Sales Tax = Purchase Price × Tax Rate
For a $150 purchase in a state with 8% combined rate:
- Sales tax = $150 × 0.08 = $12.00
- Total = $150 + $12.00 = $162.00
To find the pre-tax price when you know the total: Pre-tax price = Total ÷ (1 + Tax Rate)
- Pre-tax = $162 ÷ 1.08 = $150
Use the Sales Tax Calculator for instant calculations — enter any amount and rate to get the tax and total immediately. You can also use the Percentage Calculator for quick percentage math.
Frequently Asked Questions
Do I have to pay sales tax when buying a car?
Yes, vehicles are subject to sales tax in most states — typically based on the purchase price. Some states calculate it differently (e.g., based on fair market value or the difference between trade-in and purchase price). Vehicle sales tax rates often differ from general merchandise rates.
What is a use tax?
Use tax is the complement to sales tax. If you purchase a taxable item without paying sales tax (e.g., from an out-of-state seller who didn't collect it), you're technically required to self-report and pay use tax to your state at the same rate as sales tax. Most consumers don't do this, but businesses are generally required to comply.
Is sales tax included in the price shown at the store?
In the US, prices are almost always displayed before sales tax. The tax is added at checkout. (This differs from most other countries, where the displayed price includes all taxes — called "tax-inclusive" pricing.)
Can sales tax rates change during the year?
Yes. State and local governments can change sales tax rates, though major changes typically require legislative action and public notice. Local rates change more frequently than state rates. Always verify the current rate for significant purchases.
Which state has the highest combined sales tax rate?
When combining state and average local rates, Tennessee consistently ranks among the highest in the nation at an average combined rate around 9.55%, followed closely by Louisiana (~9.55%), Arkansas (~9.43%), and Washington (~9.38%). Specific cities can be even higher — some parts of Louisiana and Alabama see combined rates exceeding 11%.