Sales Tax Calculator
Determine the total cost of an item including state and local sales tax.
Sales Tax
How Sales Tax Works
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. In the United States, there is no federal sales tax — each state sets its own rate, and cities or counties may add additional local taxes on top.
State vs. Local Rates
When you make a purchase, you typically pay a combined rate consisting of the state base rate plus any applicable local (county/city) taxes. For example, in Los Angeles, California, you'd pay the state rate of 7.25% plus local additions totaling about 2.25%, for a combined rate near 9.5%.
States with Highest & Lowest Sales Tax Rates (2025)
| State | State Rate | Avg. Combined Rate |
|---|---|---|
| Louisiana | 4.45% | 9.56% |
| Tennessee | 7.00% | 9.55% |
| Arkansas | 6.50% | 9.45% |
| Colorado | 2.90% | 7.81% |
| Hawaii | 4.00% | 4.44% |
States with No Sales Tax
Five states do not levy a statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, some localities in Alaska do impose their own sales taxes.
What Is Taxable?
Most tangible goods are subject to sales tax, but rules vary by state. Common exemptions include groceries (in many states), prescription drugs, and clothing (in some states like Pennsylvania and New Jersey). Services are generally not taxed, though some states are beginning to tax digital goods and certain services.
Frequently Asked Questions
Does every state have a sales tax?
No. Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no statewide sales tax. However, some localities in Alaska may levy their own local sales taxes.
How is sales tax calculated?
Sales tax is calculated by multiplying the item price by the combined tax rate (state + local). The formula is: Total Cost = Item Price + (Item Price x Combined Tax Rate).
Are groceries subject to sales tax?
It depends on the state. Most states exempt unprepared groceries from sales tax, but some (like Alabama, Mississippi, and South Dakota) tax groceries at the full rate. Others apply a reduced rate to grocery purchases.