Sales Tax Formulas
Total Price = Pre-tax Price + Tax Amount
Reverse: Pre-tax Price = Total / (1 + Tax Rate/100)
US State Sales Tax Rates (2026)
| State | State Rate | Avg. with Local |
|---|---|---|
| Oregon, Montana, NH, DE | 0% | 0% |
| Colorado | 2.9% | ~7.8% |
| New York | 4% | ~8.5% |
| California | 7.25% | ~8.7% |
| Texas | 6.25% | ~8.2% |
| Florida | 6% | ~7.0% |
| Illinois | 6.25% | ~8.8% |
| Tennessee | 7% | ~9.5% |
| Louisiana | 4.45% | ~9.5% |
| Washington | 6.5% | ~9.2% |
Frequently Asked Questions
Why do some states have no sales tax?
Oregon, Montana, New Hampshire, Delaware, and Alaska have no statewide sales tax. They typically rely more on income taxes and property taxes for revenue. However, some Alaska municipalities impose local sales taxes, and New Hampshire taxes certain specific items like meals and hotels.
Is sales tax the same as VAT?
No. US sales tax is collected only at the final point of sale to consumers. VAT (Value Added Tax, used in Europe, Canada, Australia etc.) is collected at every stage of production — manufacturers, distributors, and retailers all pay VAT on their value-added, with credits for tax already paid. The consumer ultimately bears both taxes, but the collection mechanism differs.
What items are typically exempt from sales tax?
Exemptions vary by state but commonly include: groceries (most states), prescription medications, medical devices, agricultural supplies, and resale purchases. Some states exempt clothing (NY, PA), digital goods, or services. Always check your specific state and local rules.