Sales Tax Calculator
Add tax to a price, or reverse-calculate the pre-tax amount from a total. Select your state or city for the correct rate.
📅 Last updated: April 2026 · State rates current as of 2025–2026 · Local rates may vary
Sales Tax Rates by State
The United States has no federal sales tax. Each state sets its own rate, and local governments (cities and counties) can add their own on top. The result is thousands of different combined rates across the country. Here are the statewide base rates:
| State | State Rate | Avg. Combined Rate | Notes |
|---|
| Alaska | 0% | ~1.8% | No state tax; local taxes allowed |
| Delaware | 0% | 0% | No sales tax at any level |
| Montana | 0% | 0% | No sales tax at any level |
| New Hampshire | 0% | 0% | No sales tax at any level |
| Oregon | 0% | 0% | No sales tax at any level |
| California | 7.25% | ~8.85% | Highest state base rate in the US |
| Indiana | 7% | 7% | No local add-ons permitted |
| Mississippi | 7% | 7.07% | |
| Rhode Island | 7% | 7% | No local add-ons |
| Tennessee | 7% | ~9.55% | Among highest combined rates nationally |
| New Jersey | 6.625% | 6.6% | |
| Minnesota | 6.875% | ~7.5% | |
| Connecticut | 6.35% | 6.35% | No local add-ons |
| Florida | 6% | ~7.02% | |
| Texas | 6.25% | ~8.2% | Cities can add up to 2% |
| Washington | 6.5% | ~9.4% | Seattle reaches 10.25% |
| Colorado | 2.9% | ~7.8% | Lowest state rate; very high local rates |
How to Calculate Sales Tax
The math for sales tax is straightforward once you have the right rate. There are two common scenarios:
Adding tax to a price
Multiply the pre-tax price by the tax rate (as a decimal), then add it to the original price.
Example: $75.00 item at 8.5% tax rate → $75 × 0.085 = $6.38 tax → Total: $81.38
Removing tax from a total (reverse sales tax)
Divide the tax-inclusive total by (1 + tax rate). This is useful when you have a receipt showing the total and need to find the pre-tax amount.
Example: $81.38 total at 8.5% tax rate → $81.38 ÷ 1.085 = $75.00 pre-tax price
When Do Freelancers and Small Businesses Need to Collect Sales Tax?
Whether you need to collect sales tax depends on what you sell, where you sell it, and where your customers are located. Here are the key factors:
- Physical goods: If you sell tangible products, you almost always need to collect sales tax in any state where you have "nexus" (a physical or economic presence).
- Digital products: Software, digital downloads, and online courses are taxable in many states but not all. Rules are complex and vary significantly by state.
- Services: Most states exempt professional services from sales tax, but some states do tax certain services. Always check your specific state's rules.
- Economic nexus: After the 2018 South Dakota v. Wayfair Supreme Court decision, you may owe sales tax in states where you exceed a revenue or transaction threshold — even without a physical presence there.
If you're unsure about your sales tax obligations, consult a tax professional or your state's department of revenue. Getting this wrong can result in significant back taxes and penalties.
State vs. Local Sales Tax Rates
Every rate in the region selector above reflects either the statewide base rate or a combined city rate. The difference matters because local add-ons can be significant. Colorado, for example, has a statewide rate of just 2.9%, but Denver's combined rate is 8.81% once city and county taxes are added. Always use the combined rate for wherever the sale takes place.
For the most precise rate for your exact ZIP code, use a service like sale-tax.com or your state's official department of revenue website.
Frequently Asked Questions
How do I calculate sales tax?
Multiply the pre-tax price by the tax rate expressed as a decimal. For example, a $100 item with 8% tax: $100 × 0.08 = $8 tax, for a total of $108. Use the calculator above to do this instantly for any rate.
How do I remove sales tax from a total?
Divide the tax-inclusive total by (1 + tax rate). For example, a $108 total with 8% tax: $108 ÷ 1.08 = $100 pre-tax. Use the "Remove Tax" mode in this calculator to do this automatically.
Which states have no sales tax?
Five US states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to impose their own taxes, so some Alaskan cities do charge sales tax even though the state rate is 0%.
What is the highest sales tax state?
When combining state and average local rates, Tennessee, Louisiana, and Arkansas consistently rank among the highest. California has the highest statewide base rate at 7.25%, but combined rates in cities like Los Angeles and Oakland can reach 10.25% or higher.
Do I charge sales tax as a freelancer or service business?
It depends on your state and what you're selling. Most states do not require sales tax on pure professional services, but rules vary significantly. Some states tax digital products, software, or certain services. Consult your state's department of revenue or a tax professional to determine your specific obligation.
Is sales tax the same as VAT?
No. Sales tax is collected only at the final point of sale to the consumer. VAT (Value Added Tax), used in the UK, EU, Canada, Australia, and many other countries, is collected at each stage of the supply chain. For the end consumer, the effect is similar — they pay a percentage on top of the base price — but the mechanics are different for businesses.