Sales tax is not one number — it depends on your state, county, and sometimes your city

There is no single sales tax rate in the United States. Every state sets its own rate, and most states let counties and cities add their own tax on top. A purchase that costs $100 in one state might have $5 in tax, while the same purchase in another state might have $10. Even within the same state, the rate changes depending on where you shop.

The state sales tax rate ranges from 0% (in Alaska, Delaware, Montana, New Hampshire, and Oregon) to 7.25% (in California). Most states fall between 4% and 7%. On top of the state rate, counties typically add between 0.5% and 2.5%, and some cities add more. The total rate you pay — called the combined rate — is what matters when you check out.

Sales tax is added at the point of sale. The price tag you see does not include it. When you buy something for $50 in a state with a 6% combined rate, you pay $53 at the register.

Key Takeaways

  • Five states have no sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon.
  • State sales tax rates range from 0% to 7.25%, and most states are between 4% and 7%.
  • Counties and cities add their own local tax on top of the state rate, so the total you pay depends on your exact location.
  • The combined rate — state plus local — is what you actually pay at checkout, and it varies even within the same state.
  • Some items like groceries or prescription drugs are taxed at a lower rate or not taxed at all in many states.

How state rates break down

State sales tax rates fall into three broad groups. The no-tax states are Alaska, Delaware, Montana, New Hampshire, and Oregon — residents pay no state sales tax on purchases. Some of these states use other taxes (like income tax or business taxes) to fund services instead.

The low-rate states (under 5%) include Colorado, Georgia, Hawaii, Louisiana, Missouri, New York, and Wyoming, among others. These states charge between 4% and 4.9% at the state level.

The standard-rate states (5% to 7.25%) make up the majority. California has the highest state rate at 7.25%. Texas, Florida, and most other states fall in the 5% to 6.5% range. You can find your state's exact rate by searching "[your state] sales tax rate" or checking your state's department of revenue website.

Local taxes add to the state rate

Even if your state has a low rate, local taxes can push your total much higher. In Louisiana, the state rate is 4.45%, but some parishes add up to 5%, bringing the combined rate to 9.45% or more. In Tennessee, the state rate is 9.55%, but some counties add local tax on top of that, reaching 9.75% or higher.

The local rate depends on your county or city. Two towns 10 miles apart in the same state can have different combined rates. This matters most if you live near a state or county border — you might pay less tax by shopping just across the line.

To find your exact combined rate, enter your address or zip code into the sales tax lookup tool on your state's revenue department website, or search "[your zip code] sales tax rate."

What items are taxed differently

Most states do not tax groceries at the full rate, or do not tax them at all. Some states tax groceries at 2% or 3% instead of the full rate. Prescription drugs are usually not taxed in any state. Clothing is taxed in most states, but a few states exempt it or tax it at a lower rate.

Services are handled differently than goods. A haircut, car repair, or plumbing service is usually not taxed, though some states tax specific services. Digital goods — like e-books, streaming subscriptions, or software — are increasingly taxed, but the rules vary by state and are still changing.

If you are unsure whether a specific item is taxed in your state, check your state's revenue department website or ask the cashier. The rules are complex and state-specific.

How to calculate what you will pay

To estimate your total cost, multiply the price by your combined sales tax rate. If an item costs $100 and your combined rate is 8%, you multiply $100 by 0.08 to get $8 in tax, for a total of $108.

Most receipts show the tax amount separately, so you can see exactly what was added. Online retailers calculate tax based on your shipping address, so the tax shown at checkout is what you will actually pay.

If you are buying something expensive or planning a large purchase, knowing your local rate ahead of time helps you budget. Many people use a calculator or their phone to multiply the price by the rate before they shop.

Sales tax online and across state lines

Online retailers are now required to collect and send sales tax to your state, even if the company is based elsewhere. The tax rate applied is based on your shipping address, not where the company is located. This means you pay the same tax buying online as you would in a physical store in your area.

If you order something from out of state and it is shipped to you, you pay tax based on your state and local rates. If you travel to another state and buy something there, you pay that state's tax at the register. You do not pay tax twice.

Frequently Asked Questions

Do I pay sales tax on everything I buy?

No. Most states do not tax groceries, prescription drugs, or medical equipment. Services like haircuts and repairs are usually not taxed. Some states exempt clothing. The rules vary by state, so check your state's revenue department website for a full list of what is and is not taxed.

Why is sales tax different in every state?

Each state sets its own tax rate to fund schools, roads, and local services. Counties and cities add their own rates to fund local needs. There is no federal sales tax, so the rate depends entirely on where you live and shop.

Can I avoid sales tax by shopping in a no-tax state?

If you live in a state with sales tax and buy something in a no-tax state, you typically owe tax in your home state when you bring it back — though this is rarely enforced. If you live in a no-tax state and shop there, you pay no tax. Online purchases are taxed based on your shipping address, not where the seller is located.

How do I find out my exact sales tax rate?

Search "[your state] sales tax rate" or visit your state's department of revenue website. Most states have a zip code lookup tool that shows your combined state and local rate. You can also call your local tax assessor's office or ask a cashier at a local store.

Is sales tax included in the price tag?

No. The price tag shows the base price only. Sales tax is added at checkout. This is different from many other countries, where the price tag includes all taxes. Always budget for the tax when you shop.