Which states have no sales tax?

Five: Oregon, Montana, New Hampshire, Delaware and Alaska (though some Alaska localities levy their own). Everywhere else, expect roughly 4–10% added at the register depending on state and city.

Why is sales tax not included in US price tags?

Because the rate varies by state, county and city — sometimes across the street — national retailers advertise pre-tax prices and add the local rate at checkout. It is convention, not law.

Do I pay sales tax on online orders?

Almost always yes now. Since the 2018 Wayfair ruling, states can require out-of-state sellers to collect their tax, and every major retailer does — based on your delivery address.

How do I work out the pre-tax price from a total?

Divide by 1 plus the rate. A $107.25 total at 7.25% is 107.25 ÷ 1.0725 = $100.00 before tax. The sales tax calculator does both directions.

US Sales Tax by State: Why Your Receipt Never Matches the Price Tag (2026)

The United States has no national sales tax — it has thousands of local ones. The rate on your receipt is a stack: state rate + county rate + city rate (sometimes + special district), which is why the same purchase costs different amounts a few miles apart, and why five lucky states charge nothing at all. This guide explains how the stack works, where the extremes are, and the two-way math — or jump straight to the sales tax calculator with your state and local rate.

State + local: how the rate is built

Each state sets a base rate (California's 7.25% is the highest; Colorado's 2.9% the lowest among taxing states). Counties and cities then add their own percentages on top. A typical build-up: Texas state 6.25% + Houston city 1% + transit authority 1% = 8.25% at the register. This is also why sales tax is quoted excluding tax on shelves — a national retailer cannot print one price that is right everywhere.

The extremes: zero-tax states and 10% cities

Group	States / examples	Combined rate
No sales tax	Oregon, Montana, New Hampshire, Delaware, Alaska*	0% (*local-only in AK)
Highest average combined	Louisiana, Tennessee, Arkansas, Washington, Alabama	~9.4–9.6%
Big-city stacks	Chicago, Seattle, parts of Alabama & Louisiana	10%+
Low-rate states	Hawaii, Wyoming, Wisconsin, Maine	~5–5.5%

The practical effect is real: a $1,000 laptop costs $1,000 in Portland, Oregon and about $1,102 in Chicago. On big-ticket purchases near a state line, Americans genuinely cross borders to shop — which is legal for the purchase, though technically most states expect you to self-report "use tax" on it (almost nobody does).

Groceries, clothes and other exemptions

What gets taxed varies as much as the rate. Most states exempt unprepared groceries entirely, a dozen or so tax them at a reduced rate, and a few tax them in full. Prescription drugs are exempt nearly everywhere. Clothing is exempt in Minnesota, New Jersey and Pennsylvania, and in New York under $110 per item. Many states also run sales-tax holidays — weekends (often before back-to-school) when clothes, supplies or electronics are temporarily tax-free.

Online shopping and sales tax

The old "buy online to skip tax" era ended with the Supreme Court's 2018 Wayfair decision: states may force remote sellers to collect their tax once sales cross a threshold, and every major retailer and marketplace now does. The rate applied is your delivery address's full local stack — so online and Main Street now cost the same, and the only remaining 0% checkout is delivery to a no-tax state.

The math: adding and removing sales tax

Adding: total = price × (1 + rate). $100 at 8.25% → $108.25.
Removing (reverse): price = total ÷ (1 + rate). A $324.75 receipt at 8.25% → 324.75 ÷ 1.0825 = $300.00 of goods, $24.75 of tax. The common mistake is subtracting 8.25% of the total, which over-removes.

Both directions — plus a rate lookup for all 50 states — are in the sales tax calculator. Rates shift as cities vote in new district taxes, so for an invoice or a large purchase, confirm the current combined rate for the exact address; and if you are budgeting a relocation, pair the sales-tax difference with the income-tax difference in the paycheck calculator — the two together are what your cost of living actually feels like.