How sales tax is calculated
Sales tax is a percentage added to the price at checkout. To add it, multiply the price by the rate. To take it out of a total that already includes tax, divide the total by one plus the rate. Do not just subtract the rate from the total, because the tax was calculated on the smaller, pre-tax price.
Worked example
A $100 item at 8.25% carries $8.25 of sales tax, so the total is $108.25. Going the other way, $108.25 divided by 1.0825 gives back $100.00. If you only know that an $80 item cost $86.60 at checkout, the rate was ($86.60 − $80) ÷ $80, which is 8.25%.
US sales tax rates by state
The United States has no federal sales tax. Forty-five states and DC charge a state rate, and most also allow cities, counties and districts to add their own. Alaska has no state tax but allows local taxes, while Delaware, Montana, New Hampshire and Oregon have none at all. That is why the calculator offers two choices when you pick a state: the state rate alone, or the state rate plus the average local rate.
See the rate for every state
| State | State rate | State plus average local |
|---|---|---|
| Alabama | 4% | 9.46% |
| Alaska | 0% | 1.82% |
| Arizona | 5.6% | 8.54% |
| Arkansas | 6.5% | 9.48% |
| California | 7.25% | 9.03% |
| Colorado | 2.9% | 7.89% |
| Connecticut | 6.35% | 6.35% |
| Delaware | 0% | 0.00% |
| District of Columbia | 6% | 6.00% |
| Florida | 6% | 6.98% |
| Georgia | 4% | 7.56% |
| Hawaii | 4% | 4.50% |
| Idaho | 6% | 6.03% |
| Illinois | 6.25% | 8.98% |
| Indiana | 7% | 7.00% |
| Iowa | 6% | 6.94% |
| Kansas | 6.5% | 8.71% |
| Kentucky | 6% | 6.00% |
| Louisiana | 5% | 10.13% |
| Maine | 5.5% | 5.50% |
| Maryland | 6% | 6.00% |
| Massachusetts | 6.25% | 6.25% |
| Michigan | 6% | 6.00% |
| Minnesota | 6.875% | 8.14% |
| Mississippi | 7% | 7.06% |
| Missouri | 4.225% | 8.44% |
| Montana | 0% | 0.00% |
| Nebraska | 5.5% | 6.98% |
| Nevada | 6.85% | 8.24% |
| New Hampshire | 0% | 0.00% |
| New Jersey | 6.625% | 6.60% |
| New Mexico | 4.875% | 7.68% |
| New York | 4% | 8.54% |
| North Carolina | 4.75% | 7.10% |
| North Dakota | 5% | 7.09% |
| Ohio | 5.75% | 7.29% |
| Oklahoma | 4.5% | 9.06% |
| Oregon | 0% | 0.00% |
| Pennsylvania | 6% | 6.34% |
| Rhode Island | 7% | 7.00% |
| South Carolina | 6% | 7.49% |
| South Dakota | 4.2% | 6.11% |
| Tennessee | 7% | 9.61% |
| Texas | 6.25% | 8.20% |
| Utah | 6.1% | 7.42% |
| Vermont | 6% | 6.43% |
| Virginia | 5.3% | 5.77% |
| Washington | 6.5% | 9.57% |
| West Virginia | 6% | 6.60% |
| Wisconsin | 5% | 5.72% |
| Wyoming | 4% | 5.39% |
Rates as of July 1, 2026, from Tax Foundation research. Local averages are weighted by population, and your own rate depends on your address.
What the rate does not tell you
Which goods are taxable, whether shipping is taxed, and when an online seller must collect tax all differ by state. Online sellers should also check whether they have passed a state's sales threshold for collecting tax. This calculator does the arithmetic for a rate you choose. It is not tax advice, so check requirements with your state tax authority or an accountant.
Frequently asked questions
How do I add sales tax to a price?
Multiply the price by the tax rate as a decimal and add the result. $100 at 8.25% is $100 × 0.0825 = $8.25, so the total is $108.25.
How do I remove sales tax from a total?
Divide the total by one plus the tax rate. $108.25 ÷ 1.0825 = $100.00. Subtracting the percentage directly would give the wrong answer.
Why is my local rate different from the state rate?
Most states let cities, counties and special districts add their own taxes on top of the state rate, so the rate at your address is usually higher than the state figure.
Is sales tax charged on shipping?
It depends on the state and on how shipping is charged. Some states tax shipping and others do not, so check the rules for the state you sell into.