Sales Tax Calculator
Calculate sales tax on any purchase by state. See state base rates, check if groceries are exempt, find the total cost including tax, and understand post-Wayfair economic nexus for online sellers.
Total Cost
$107.25
| Detail | Amount |
|---|---|
| Purchase Price | $100.00 |
| State Tax Rate | 7.250% |
| Sales Tax | $7.25 |
| Total | $107.25 |
Groceries are exempt from sales tax in California.
Sales Tax
$7.25Tax Rate
7.250%Total Cost
$107.25State-level base rates only. Many states allow cities and counties to add local sales taxes which are not included here. Check your local rate for exact calculations.
Edit inputs ↑How US sales tax actually works
Unlike most countries' VAT (value-added tax) systems, the US uses a RETAIL sales tax — applied once at the final consumer transaction, not at each step of production. Sales tax is administered entirely at the STATE and LOCAL level — there's no federal sales tax. The result is 11,000+ separate tax jurisdictions, each with its own rate, exemption schedule, and filing requirements.
Three structural decisions vary by state: (1) the BASE — what items are subject to tax (goods vs services, groceries, clothing, prescription drugs); (2) the RATE — state base plus locally-stacked rates; (3) the SOURCING — whether the rate applied is based on seller location ("origin-based") or buyer location ("destination-based"). The IRS publishes the official Publication 600 sales tax tables for the federal deduction.
2025 combined state + local sales tax averages
State rate + average local rate, ranked. Source: Tax Foundation 2025 Facts & Figures. The "average local" is a weighted average across every locality in the state.
| State | State rate | Avg. local rate | Combined avg. |
|---|---|---|---|
| Louisiana | 4.45% | 5.11% | 9.56% |
| Tennessee | 7.00% | 2.55% | 9.55% |
| Arkansas | 6.50% | 2.96% | 9.46% |
| Washington | 6.50% | 2.88% | 9.38% |
| Alabama | 4.00% | 5.29% | 9.29% |
| Oklahoma | 4.50% | 4.49% | 8.99% |
| California | 7.25% | 1.60% | 8.85% |
| New York | 4.00% | 4.53% | 8.53% |
| Texas | 6.25% | 1.94% | 8.19% |
| Florida | 6.00% | 1.00% | 7.00% |
| Alaska | 0.00% | 1.81% | 1.81% |
| Delaware / Montana / NH / Oregon | 0.00% | 0.00% | 0.00% |
Note: state-rate-only doesn't tell the full story — Louisiana has only 4.45% state but 5.11% average local makes it the highest combined. Conversely, California's 7.25% is the highest state-only rate even though combined falls behind Louisiana/Tennessee/Arkansas.
Post-Wayfair economic nexus — when sellers must collect
South Dakota v. Wayfair, Inc. (138 S.Ct. 2080, June 21, 2018) overturned the prior "physical presence" rule (Quill Corp. v. North Dakota, 1992) — states can now impose sales tax collection on remote sellers based on ECONOMIC nexus, even without physical presence.
All 45 sales-tax states + DC have now enacted economic nexus thresholds. The most common thresholds:
$100k OR 200 transactions
Most common threshold (originally from the Wayfair case itself). Adopted by 30+ states. Crossing EITHER threshold in current or previous calendar year triggers collection obligation.
$500k+ sales only
CA ($500k), NY ($500k AND 100 sales), TX ($500k). Higher thresholds shield smaller sellers from compliance burden.
Just $100k
Several states dropped the "or 200 transactions" prong (KS, OH 2024 update) — recognizing that 200 small-dollar transactions doesn't warrant the same compliance burden as $100k+ revenue.
Marketplace facilitator override
If you sell ONLY via Amazon/eBay/Etsy and never your own site, the platform handles collection — your individual nexus tests don't apply for those sales. Direct Shopify/website sales DO count toward your nexus.
Sales tax SALT deduction election
Under IRC §164(b)(5)(A), itemizers can elect to deduct STATE and LOCAL SALES tax instead of STATE INCOME tax — one or the other, not both. The choice is made annually on Schedule A line 5a (check the box for "general sales taxes" instead of "state and local income taxes").
When is sales tax the better election?
- No state income tax. AK, FL, NV, NH, SD, TN, TX, WA, WY residents have no state income tax — so sales tax is the ONLY SALT-able state tax (other than property). Always elect sales tax.
- Low-income / high-purchase year. If state income tax is low (e.g., retiree with $40k income) but you made a big car/boat purchase, the sales tax on the vehicle plus the IRS Pub 600 table amount may exceed the small state income tax bill.
- State with low income tax + high local sales. Tennessee has no state income tax but 9.55% combined sales rate — sales tax is the only state tax to deduct.
The IRS Pub 600 table gives a baseline deduction based on state + family size + AGI. ADD documented major purchases:
- Motor vehicles (car, truck, motorcycle, RV)
- Aircraft, boats
- Building materials for a major home renovation
Within the OBBBA SALT cap of $40,000 (2025; phasing down to $10,000 above $500,000 MAGI; rising to $40,400 in 2026). Combined SALT = property tax + GREATER of state income or sales tax — capped at $40,000.
Worked 2025 sales tax scenarios
$25,000 car purchase in Texas
TX state rate 6.25% × $25,000 = $1,562.50 sales tax paid at titling. No local motor-vehicle sales tax. Itemizing federal? Add to Pub 600 base + this $1,563 → ~$2,500 total sales tax deduction for the year.
$500 furniture in Los Angeles
LA County 10.25% (7.25% CA state + 2.25% local + 0.75% transit). $500 × 10.25% = $51.25 sales tax. Destination-based — applies whether bought in store or shipped to LA address from out-of-state.
$200 grocery run in Mississippi
MS taxes groceries at full state rate 7% (one of six full-tax states). $200 × 7% = $14 grocery tax. Same purchase in Massachusetts: $0 (groceries exempt).
Shopify seller, $80k revenue, no marketplace
Under most states' $100k or 200-transaction threshold. Likely safe from collection. But if 250 small-dollar transactions accumulate, the transaction-count prong triggers in $100k-or-200-transactions states. Track BOTH metrics by state.
Etsy seller, $200k revenue (all Etsy)
Marketplace facilitator law — Etsy collects and remits sales tax. The seller doesn't need to register in 45 states. The seller's nexus tests apply only to non-Etsy sales (Shopify, in-person, etc.).
Retiree, $60k AGI in Tennessee, $30k car
No state income tax. Sales tax election. Pub 600 base for TN family of 1 at $60k AGI ≈ $1,200 + $30k × 9.55% car sales tax ≈ $2,865 → $4,065 sales tax deduction. With property tax $2k, total SALT ≈ $6,065 — well under the $40,000 cap.
Common sales tax mistakes
- Online sellers ignoring nexus. Even small Shopify or Squarespace sellers can cross the $100k or 200-transaction threshold in a single state — triggering registration, collection, and remittance obligations. Use Avalara, TaxJar, or Vertex to monitor multi-state thresholds.
- Buyers ignoring use tax. Pre-Wayfair internet purchases now require seller-side collection, but use tax still applies for purchases from out-of-state retailers below their nexus threshold. Audit risk is highest for big-ticket items where titling/registration triggers state notice (cars, boats).
- Double-counting state tax election. You elect EITHER state income OR state sales tax — not both. Schedule A line 5a checkbox is exclusive. Software handles it, but manual filers sometimes try to add both.
- Missing the Pub 600 add-back for big purchases. The Pub 600 table is a BASELINE deduction. Add the actual sales tax paid on cars, boats, RVs, and major home renovation materials separately. Many filers stop at the table and leave $1,000+ deductions on the table.
- Treating online tax as voluntary. Post-Wayfair, sellers are legally required to collect once over nexus. Selling cross-state without collection creates a state-level tax liability with penalties + interest for the seller — not the buyer.
- Forgetting marketplace facilitator coverage. Etsy/Amazon/Walmart handle their portion. If you also sell direct, count only the DIRECT sales toward your individual nexus tests.
Frequently asked questions
Which states have no sales tax?
Five states levy no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon ("NOMAD" + Alaska — the New-Old-Mt-Alaska-Delaware mnemonic). Alaska, however, allows local jurisdictions to impose their own sales taxes — Anchorage, Sitka, and other localities charge 1-7%. Delaware has a 0% sales tax but a Gross Receipts Tax on sellers (passed through indirectly). New Hampshire has a 9% Meals and Rooms tax in lieu of general sales tax. So even in "no sales tax" states, some transactions are taxed.
Are groceries taxed?
Most states exempt unprepared grocery food. Six states tax groceries at the full state rate: Alabama, Hawaii, Idaho, Mississippi, Oklahoma, South Dakota. Seven states tax at a REDUCED rate: Arkansas (0.125%), Illinois (1%), Missouri (1.225%), Tennessee (4%), Utah (1.75%), Virginia (1%), Kansas (food-tax fully phased out by 2025 under SB 169). PREPARED FOODS (restaurant meals, deli items, hot foods) are typically taxed at the full rate regardless of state. "Grocery" definitions are state-specific — candy and soda are often EXCLUDED from the exemption (taxed as junk food).
What about local sales taxes?
38 states permit local (city, county, transit district) sales taxes on top of state rates. Combined rates can exceed 10% in some jurisdictions: Chicago (10.25%), Long Beach CA (10.25%), Birmingham AL (10%). The highest combined statewide AVERAGE is in Louisiana (9.56%), Tennessee (9.55%), Arkansas (9.46%), Washington (9.38%), and Alabama (9.29%) per Tax Foundation 2025. Origin-based sourcing means tax follows the seller's location; destination-based means tax follows the buyer's location (more common, especially for online sales).
Which state has the highest sales tax?
Highest state-only rate: California at 7.25%. Highest COMBINED state + local averages: Louisiana 9.56%, Tennessee 9.55%, Arkansas 9.46%, Washington 9.38%, Alabama 9.29% (Tax Foundation 2025). Specific jurisdictions can exceed these averages: Chicago combined 10.25%, parts of LA County 10.25%, Birmingham AL 10%. The lowest combined averages (excluding no-tax states) are Alaska 1.81%, Hawaii 4.5%, Wisconsin 5.7%, Wyoming 5.44%.
How does the post-Wayfair economic nexus work?
Before South Dakota v. Wayfair (2018), states could only require sellers with PHYSICAL presence to collect sales tax. After Wayfair, states can impose collection on REMOTE sellers based on "economic nexus" — typically $100k in sales OR 200 transactions per year into the state. All 45 sales-tax states + DC now have economic nexus thresholds. Online retailers (Amazon, Shopify-based stores, Etsy sellers) must register and collect in every state where they exceed the threshold. Marketplace facilitator laws (50 states) shift the collection burden from individual third-party sellers to the platform itself.
What's marketplace facilitator law?
Marketplace facilitator laws require ONLINE PLATFORMS (Amazon, eBay, Etsy, Walmart Marketplace, DoorDash) to collect and remit sales tax on behalf of their third-party sellers — even if individual sellers wouldn't otherwise have nexus. All 50 states + DC have enacted these since 2018, replacing the patchwork of state-by-state third-party seller registration. As a small Etsy seller you typically DON'T need to register in 45 states yourself — the platform handles it. But selling on your OWN Shopify site triggers your individual nexus + registration obligation.
Is sales tax deductible on federal taxes?
IRC §164(b)(5)(A) lets itemizers ELECT to deduct state and local SALES tax instead of state INCOME tax — one or the other, not both, within the same SALT cap. Worth electing in no-income-tax states (AK, FL, NV, NH, SD, TN, TX, WA, WY). The IRS publishes Publication 600 sales tax deduction tables based on state, AGI, and household size. You can ADD documented big-ticket purchases (cars, boats, RVs) on top of the table amount. Combined SALT (income or sales + property) capped at $40,000 (2025), phasing to $10,000 above $500,000 MAGI under OBBBA §70120.
What is use tax and when does it apply?
Use tax is the legal complement to sales tax — owed by the BUYER when sales tax wasn't collected at the point of sale. Examples: buying a $5,000 item from an out-of-state retailer who doesn't collect your state's tax (pre-Wayfair era); ordering an item online from a non-marketplace site with no nexus in your state; purchasing items in a no-tax state and bringing them home. All 45 sales-tax states have use tax. Most go uncollected from consumers (low audit rates), but states do enforce on big-ticket items (cars: titling triggers the audit; boats: registration triggers).
Sales tax on services — what changed?
Traditionally, sales tax applied to GOODS only — services were exempt. Post-2018 several states have expanded the tax base to selected services: digital products (subscriptions, software, streaming) in 30+ states; haircuts in HI; lawn care in IA; landscaping in CT; data processing in TX; pet grooming in WV. South Dakota and Hawaii tax MOST services. The trend is gradual expansion since service-economy growth eroded the historical good-tax base. Check your state's revenue department's list of taxable services.
What about clothing exemptions?
Three states fully exempt clothing: Minnesota (yes), New Jersey (yes), Pennsylvania (yes, mostly). Three states have partial: New York (exempt under $110 per item), Massachusetts (under $175 per item), Vermont (under $110 per item). All other states tax clothing at the full state rate. The exemption typically excludes formalwear, sports protective gear (helmets, pads), fur clothing — definitions vary. Massachusetts also exempts CHILDREN'S clothing regardless of price.
Tax-free weekends — what are they?
Most states with sales tax host 1-2 "tax-free weekends" or "sales tax holidays" each year for back-to-school items, hurricane preparedness, or energy-efficient appliances. Typically 2-3 days where qualifying items (clothing under $100, school supplies under $75, computers under $1,500, etc.) are exempt from state sales tax. Examples: Alabama mid-July weekend, Texas first weekend in August, Massachusetts mid-August weekend (state and local). State revenue departments publish the annual schedule. Retailers may NOT charge sales tax on covered items during the holiday window.
Origin-based vs destination-based sourcing?
For SELLERS within a state: origin-based rules apply the tax of the SELLER'S location to all in-state sales (TX, MO, NM, OH, PA, TN, UT, VA mostly use this). Destination-based rules apply the tax of the BUYER'S location (most other states). For INTERSTATE sales: destination is universal post-Wayfair — the buyer's address determines the rate, regardless of origin. This is why online retailers must compute thousands of local rates based on shipping zip code — a major compliance burden for small Shopify sellers.
Are cars and boats taxed at sales tax or a separate rate?
Motor vehicles are typically subject to sales tax in nearly all states — collected at vehicle TITLING/REGISTRATION, not at the dealer. Some states have a special "motor vehicle excise tax" instead (Connecticut, Massachusetts) calculated annually on assessed value. Trade-in allowances often reduce the taxable price (44 states allow). Boats follow similar rules — taxed at registration. RVs are sometimes treated as vehicles, sometimes as real-estate-adjacent depending on state. Sales tax on car purchases is OFTEN the largest single SALT line for filers in no-income-tax states.
Sources
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