What Is Sales Tax?
Sales tax is a consumption-based tax levied by state and local governments on the sale of goods and certain services. Unlike federal income tax, sales tax is collected at the point of purchase and varies significantly depending on where the transaction takes place.
In the United States, there is no national sales tax. Each state sets its own base rate, and counties, cities, and special districts can add additional percentages on top of the state rate. This means the total combined sales tax rate can differ not just from state to state, but from city to city within the same state.
Example: In Illinois, the state base rate is 6.25%. However, a customer in Chicago pays 10.25% once city and county taxes are added, while a customer in Springfield pays 8.75% — same state, very different amounts.
How to Calculate Sales Tax
Calculating sales tax is straightforward once you know the applicable rate for your location.
Formula:
Total Price = Original Price + Tax Amount
Example Calculation:
| Detail | Value |
|---|---|
| Original Price | $100.00 |
| Sales Tax Rate (Illinois) | 8.92% |
| Tax Amount | $8.92 |
| Total Price | $108.92 |
Our calculator performs this calculation instantly — simply enter your purchase amount, select your state, and get your result in seconds.
Sales Tax Rates by State 2026
Sales tax rates vary significantly across the United States. Below is an overview of state base rates and average combined rates for 2026.
| State | State Rate | Avg. Combined Rate |
|---|---|---|
| California | 7.25% | 8.85% |
| Texas | 6.25% | 8.20% |
| New York | 4.00% | 8.52% |
| Florida | 6.00% | 7.02% |
| Illinois | 6.25% | 8.92% |
| Washington | 6.50% | 9.38% |
| Tennessee | 7.00% | 9.55% |
| Louisiana | 4.45% | 9.56% |
| Alabama | 4.00% | 9.29% |
| Colorado | 2.90% | 7.81% |
Note: Combined rates include average state, county, and city taxes.
Which States Have No Sales Tax?
Five U.S. states — commonly referred to as the NOMAD states — do not impose a statewide sales tax:
- New Hampshire
- Oregon
- Montana
- Alaska
- Delaware
Residents and businesses operating in these states pay no state-level sales tax on purchases. However, some local jurisdictions within Alaska do impose local sales taxes, so it is advisable to verify local rates before assuming zero tax applies.
How to Find Total Price Including Tax
If you already know the sales tax rate for your location, finding the total price is simple:
Total Price = Original Price × (1 + Tax Rate ÷ 100)
Example:
- Original Price: $250.00
- Sales Tax Rate: 8.00%
- Total Price: $250 × 1.08 = $270.00
Conversely, if you know the final price and want to find the original price before tax:
Original Price = Total Price ÷ (1 + Tax Rate ÷ 100)
Our calculator handles both calculations automatically — making it useful for shoppers, accountants, and business owners alike.
Average US Sales Tax Rate 2026
The average combined sales tax rate across the United States in 2026 is approximately 7.00%, which includes both state and local taxes weighted by population.
| Tax Type | Average Rate |
|---|---|
| State Sales Tax (avg.) | 5.20% |
| Local Sales Tax (avg.) | 1.80% |
| Combined Average | 7.00% |
However, this average can be misleading. Depending on your state and city, your effective rate could range from 0% to over 12%. Always use a location-specific calculator for accurate results.
Sales Tax for Small Businesses
If you operate a business that sells goods or services, understanding sales tax compliance is critical. Here is what you need to know in 2026:
Economic Nexus: Following the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require out-of-state sellers to collect sales tax if they meet an economic nexus threshold — typically $100,000 in sales or 200 transactions per year in that state.
What This Means for Your Business:
- You may be required to collect sales tax in multiple states
- Each state has its own nexus rules, filing deadlines, and rates
- Over 11,000 taxing jurisdictions exist across the US
- Non-compliance can result in penalties and back taxes during audits
Our calculator helps businesses quickly determine the correct tax amount to collect for transactions in any U.S. state.
Frequently Asked Questions
How do I calculate sales tax on a purchase?
Multiply the original price by the sales tax rate divided by 100. For example, on a $200 purchase with an 8% tax rate: $200 × 0.08 = $16 tax. Total price would be $216.
What is the average US sales tax rate in 2026?
The average combined US sales tax rate in 2026 is approximately 7.00%, combining an average state rate of 5.20% and an average local rate of 1.80%. Rates vary widely by location.
Which states have the highest sales tax in 2026?
Tennessee, Louisiana, and Arkansas consistently rank among the highest combined sales tax states, with combined rates exceeding 9.5% when state and local taxes are included.
Which states have no sales tax?
The five NOMAD states — New Hampshire, Oregon, Montana, Alaska, and Delaware — do not impose a statewide sales tax. Note that some Alaskan localities may still charge local sales tax.
Is sales tax the same in every city?
No. Sales tax rates vary not only by state but also by county, city, and special taxing district. Two cities in the same state can have different combined rates due to local add-ons.
Do I pay sales tax on online purchases?
Yes, in most cases. Since the 2018 South Dakota v. Wayfair ruling, online sellers are required to collect sales tax in states where they meet the economic nexus threshold, regardless of physical presence.
How is sales tax different from income tax?
Sales tax is collected at the point of purchase on goods and services. Income tax is calculated on your earnings. Sales tax is a flat percentage applied to the purchase price, while income tax uses progressive brackets based on annual income.
Can I use this calculator for business purposes?
Yes. Our sales tax calculator is suitable for both personal and business use. It provides accurate 2026 state and local rates to help you determine the correct tax amount to charge or pay on any transaction.
Last updated: 2026 | Rates sourced from state revenue departments and Tax Foundation data