Sales Tax Calculator

US Sales Tax Calculator 2026: Calculate State & Local Taxes

Understanding sales tax in the United States can be confusing because rates vary dramatically depending on where you live or shop. Unlike many countries with a unified national sales tax (like VAT), the US allows each state—and often cities and counties—to set their own rates. This comprehensive guide will help you navigate the complexities of sales tax calculation in 2026.

How Sales Tax Works in the US

Sales tax in the United States is typically calculated as a percentage of the purchase price and added at the point of sale. The total tax rate you pay is usually a combination of:

• State Sales Tax: The base rate set by your state government, ranging from 0% to 7.25% (California has the highest state rate).
• Local Sales Tax: Additional taxes imposed by counties, cities, or special districts. These can add 1-5% on top of the state rate.
• Combined Rate: The sum of state and local taxes, which can exceed 10% in some areas (like parts of Louisiana, Tennessee, and Arkansas).

For example, if you purchase a $100 item in a location with a 7% combined sales tax rate, you'll pay $7.00 in tax for a total of $107.00. Our calculator makes this math instant and error-free.

5 States with No Sales Tax

If you're looking to save money or live tax-free, these five states have no statewide sales tax:

• Alaska: No state sales tax, though some local jurisdictions charge up to 7.5%.
• Delaware: Completely sales tax-free, making it a popular shopping destination.
• Montana: No statewide sales tax, with very limited local exceptions.
• New Hampshire: No sales tax on most goods, though there is a special tax on prepared meals and hotel rooms.
• Oregon: Zero sales tax at all levels, which attracts shoppers from neighboring states like Washington.

While these states don't charge sales tax, they often make up for lost revenue through higher property taxes, income taxes, or other fees. Still, for major purchases like cars or electronics, shopping in these states can result in significant savings.

Tax Inclusive vs. Tax Exclusive Pricing

In the United States, most retailers use tax-exclusive pricing, meaning the price displayed on the shelf or product tag does not include sales tax. The tax is calculated and added at checkout, which can surprise shoppers who aren't expecting the final price to be higher than advertised.

In contrast, tax-inclusive pricing (common in Europe and many other countries) displays the final price with tax already included. Some US businesses, particularly online retailers, are beginning to show tax-inclusive prices to reduce "checkout shock," but this remains uncommon.

For retailers and freelancers creating invoices, it's important to clearly indicate whether your prices are tax-inclusive or tax-exclusive to avoid confusion with clients.