Sales Tax by State: Complete 2026 Guide With Calculator

Sales tax in the United States is anything but simple. There's no single national sales tax — instead, 45 states (plus DC) charge their own state-level sales tax, and thousands of local jurisdictions add city, county, and district taxes on top. The result? Over 13,000 different sales tax rates across the country, ranging from 0% in tax-free states to over 11% in some cities.

This guide provides a complete, up-to-date reference for 2026 sales tax rates in every state, explains which states have no sales tax, covers common exemptions, and helps businesses understand their collection obligations.

2026 Sales Tax Rates by State (Complete Table)

Below are the state sales tax rates, average local rates, and combined rates for all 50 states plus DC, updated for 2026. Click your state for a detailed breakdown with our state-specific calculator.

Note: Local rates are averages and can vary significantly within a state. Use our Sales Tax Calculator for exact rates by location.

States With No Sales Tax (2026)

Five states have no state-level sales tax:

• Alaska — No state tax, but local jurisdictions can impose sales tax up to ~7.5%. The statewide average local rate is about 1.82%.
• Delaware — No state or local sales tax at all. However, Delaware does impose a gross receipts tax on businesses.
• Montana — No state or local sales tax. Some resort communities charge a small local resort tax.
• New Hampshire — No state or local sales tax. Does charge 8.5% on prepared meals and room rentals.
• Oregon — No state or local sales tax. Truly zero sales tax on all purchases.

Living in or near a tax-free state can save significant money on major purchases. Someone buying $20,000 in taxable goods annually saves $1,200-$2,000 compared to a state with 6-10% sales tax.

States With the Highest Sales Tax (2026)

When you combine state and average local rates, these states hit consumers hardest:

1. Louisiana — 9.56% combined (4.45% state + 5.11% local)
2. Tennessee — 9.55% combined (7.00% state + 2.55% local)
3. Arkansas — 9.44% combined (6.50% state + 2.94% local)
4. Alabama — 9.29% combined (4.00% state + 5.29% local)
5. Washington — 9.18% combined (6.50% state + 2.68% local)

Note how states like Alabama and Louisiana have relatively low state rates but extremely high local rates. Always check both levels to understand your true tax burden.

States With the Lowest Sales Tax (Excluding Tax-Free States)

1. Hawaii — 4.50% combined (technically a General Excise Tax, not sales tax)
2. Wisconsin — 5.44% combined
3. Wyoming — 5.44% combined
4. Maine — 5.50% combined
5. Virginia — 5.77% combined

How Sales Tax Actually Works

Sales tax is a consumption tax collected at the point of sale. The seller adds the tax to the purchase price, collects it from the buyer, and remits it to the state and/or local government.

Common Sales Tax Exemptions by State

Not everything is taxed equally. Here are the most common exemptions across states:

Groceries

32 states exempt groceries from sales tax entirely. Notable states that DO tax groceries include Alabama, Arkansas, Hawaii, Idaho, Illinois (reduced rate of 1%), Kansas, Mississippi, Missouri (reduced rate), Oklahoma, South Dakota, Tennessee (reduced rate of 4%), and Utah (reduced rate).

Clothing

Most states tax clothing, but several exempt it: Pennsylvania, New Jersey (most clothing), New York (items under $110), Minnesota, and Vermont (items under $110). Massachusetts exempts clothing items under $175.

Prescription Medications

All 50 states exempt prescription drugs from sales tax. Over-the-counter medications are taxed in most states but exempt in some.

Digital Goods and Services

Sales tax on digital goods (streaming services, downloaded software, e-books) varies significantly by state. About 30 states now tax some or all digital goods. This area continues to evolve as more commerce moves online.

Sales Tax for Online Businesses (2026 Rules)

Since the landmark South Dakota v. Wayfair Supreme Court decision in 2018, states can require businesses to collect sales tax even without a physical presence (nexus) in the state. Here's what online sellers need to know:

Economic Nexus Thresholds

Most states set economic nexus at one of these thresholds:

• $100,000 in sales — Most common threshold (used by ~30 states)
• $100,000 in sales OR 200 transactions — Used by several states
• $500,000 in sales — California, New York, Texas

Once you exceed the threshold in a state, you must register, collect, and remit sales tax in that state. Failing to comply can result in penalties and back taxes.

Marketplace Facilitator Laws

If you sell through platforms like Amazon, Etsy, Walmart Marketplace, or eBay, the marketplace handles sales tax collection and remittance in most states. You're generally only responsible for direct sales from your own website.

Sales Tax Holidays (2026)

Many states offer tax-free shopping periods, typically targeting back-to-school, hurricane preparedness, or energy-efficient appliances:

• Texas — Back-to-school (August): clothing under $100 and school supplies under $100 tax-free
• Florida — Multiple holidays: back-to-school (July-August), hurricane preparedness (June), Freedom Week (July), and tool time (September)
• Ohio — Back-to-school (August): clothing under $75 and school supplies under $20
• Tennessee — Back-to-school (July): clothing under $100, school supplies under $100, computers under $1,500
• Massachusetts — Annual sales tax holiday (August): most items under $2,500

Check your state's revenue department website for exact dates and qualifying items, as these can change annually.

How Sales Tax Affects Major Purchases

Sales tax adds up significantly on big-ticket items. Here's what you'd pay in tax on a $30,000 car in different states:

The difference between buying a car in Oregon vs. Louisiana is over $3,000 in tax. For residents near state borders, a short drive can mean significant savings on major purchases.

Sales Tax vs. Value-Added Tax (VAT)

Americans sometimes hear about VAT in other countries. The key difference:

• Sales tax (US): Charged only at the final point of sale to the consumer. Businesses don't pay sales tax on items purchased for resale.
• VAT (Europe, etc.): Charged at every stage of production and distribution. Businesses can claim credits for VAT paid on inputs. The consumer ultimately bears the cost, but the collection is distributed throughout the supply chain.

The US is one of the few developed countries that uses a retail sales tax instead of VAT. Some economists advocate switching to a national VAT, but it remains politically contentious.

Tips for Managing Sales Tax

For Consumers

• Use our Sales Tax Calculator to budget accurately for purchases
• Take advantage of sales tax holidays for planned purchases
• Consider tax impact when making major purchases near state borders
• Know which items are exempt in your state (groceries, clothing, etc.)

For Businesses

• Track your sales by state to monitor economic nexus thresholds
• Register for sales tax permits in states where you have nexus
• Use sales tax automation software if selling in multiple states
• File on time — late filing penalties are often 5-25% of the tax due
• Keep exemption certificates on file for B2B sales

Frequently Asked Questions

Which states have no sales tax?

Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to charge sales tax (averaging about 1.82%), so it's not completely tax-free. Delaware, Montana, New Hampshire, and Oregon have no state or local general sales tax at all. Keep in mind that tax-free states may compensate with higher income taxes, property taxes, or other fees.

Which state has the highest sales tax?

Louisiana has the highest combined average sales tax rate at approximately 9.56% (4.45% state rate plus 5.11% average local rate). Tennessee (9.55%), Arkansas (9.44%), Alabama (9.29%), and Washington (9.18%) round out the top five. California has the highest state-level rate at 7.25%, but its combined rate (8.85%) is lower due to moderate local taxes.

Do I have to pay sales tax on online purchases?

Yes, in almost all cases. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require online retailers to collect sales tax even without a physical presence in the state. Major retailers like Amazon, Walmart, and Target collect sales tax on all orders shipped to taxable states. Smaller sellers may not collect tax until they reach economic nexus thresholds — but technically, you owe "use tax" on untaxed purchases.

What items are exempt from sales tax?

Exemptions vary widely by state. Common exemptions include: groceries (exempt or reduced rate in 32+ states), prescription medications (exempt in all states), clothing (exempt in PA, NJ, MN, and partially in NY and MA), and medical devices. Some states also exempt feminine hygiene products, diapers, and school supplies. Many states hold annual sales tax holidays where additional items become temporarily exempt.

How do I calculate sales tax?

Multiply the purchase price by your combined sales tax rate (state + local) expressed as a decimal. For a $150 item with an 8.25% combined rate: $150 × 0.0825 = $12.38 in sales tax. The total price would be $162.38. For exact local rates, use our Sales Tax Calculator, which automatically applies the correct combined rate for your location.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of purchase. Use tax is a complementary tax owed by the buyer when the seller didn't collect sales tax — typically on out-of-state purchases, online orders from smaller sellers, or items bought in tax-free states and brought home. The use tax rate equals your state's sales tax rate. Technically, you're required to self-report and pay use tax on your state income tax return, though compliance is low for individual consumers.