US Sales Tax Explained: State vs Local Rates
America has no national sales tax. Instead there are thousands of overlapping state, county, city, and district taxes, which is why the same $100 purchase can cost $100.00 in Portland, about $108 in Dallas, and over $110 in parts of Louisiana. Here's how the system works in 2026. To check your own rate, use the free sales tax calculator.
In short: your real rate is the state rate plus whatever your county, city, and special districts add. The national average combined rate is roughly 7.5%, but it ranges from zero to over 10% depending on where the register sits.
The two layers: state and local
Forty-five states and DC levy a statewide sales tax, ranging from Colorado's 2.9% to California's 7.25%. On top of that, 38 states allow local sales taxes. In some states the local layer is bigger than the state layer: Alabama's 4% state rate carries an average of 5.46% in local add-ons, and Colorado's low 2.9% state rate is more than doubled by an average 4.99% of local taxes.
A few quirks worth knowing: California, Utah, and Virginia bake a mandatory statewide local rate into their advertised state rates, and Hawaii technically charges businesses a general excise tax rather than charging you a sales tax, though it shows up on receipts all the same.
The highest and lowest rates in 2026
| State | Avg combined rate | |
|---|---|---|
| Highest | Louisiana | 10.13% |
| Tennessee | 9.61% | |
| Washington | 9.57% | |
| Arkansas | 9.48% | |
| Alabama | 9.46% | |
| Lowest (with a sales tax) | Alaska | 1.82% |
| Hawaii | 4.50% | |
| Wyoming | 5.39% |
And five states charge no statewide sales tax at all, remembered by the acronym NOMAD: New Hampshire, Oregon, Montana, Alaska, and Delaware. Alaska is the asterisk, since its cities and boroughs levy their own local taxes even though the state does not.
Adding tax to a price
Multiply the price by the combined rate. A $250 purchase at a combined 8.2% rate (Texas average): $250 × 0.082 = $20.50 of tax, for a total of $270.50. The calculator splits the state and local portions for you.
Working backwards from a total
The reverse question comes up constantly in bookkeeping: the receipt says $270.50, so what was the price and what was the tax? Divide by 1 plus the rate: $270.50 ÷ 1.082 = $250.00, so tax was $20.50. Don't multiply the total by the rate; that overstates the tax, because tax was charged on the pre-tax price, not on the total.
Why online orders get taxed now
For years, online shopping was a sales tax loophole. The Supreme Court's 2018 South Dakota v. Wayfair decision closed most of it: states may now require out-of-state sellers to collect tax once their sales into the state pass an economic threshold. Large retailers collect based on your delivery address, at your local combined rate. Technically, anything a seller doesn't collect is still owed by the buyer as "use tax," though enforcement against individuals is rare.
What's taxed varies by state
The rate is only half the story; the base matters too. Most states exempt unprepared groceries, many exempt prescription medicine, and a handful exempt clothing up to a limit. Prepared food, restaurant meals, and soda are usually taxable everywhere. Services are a patchwork: some states tax almost none, others tax many. This calculator applies one rate to the whole amount, so treat results for mixed baskets as an approximation.
Frequently asked questions
Which state has the highest sales tax?
Louisiana, at a 10.13% average combined rate as of July 2026, followed by Tennessee (9.61%) and Washington (9.57%).
Which states have no sales tax?
New Hampshire, Oregon, Montana, Alaska, and Delaware (NOMAD). Alaska allows local sales taxes averaging about 1.82%.
How do I calculate sales tax backwards?
Divide the total by 1 plus the rate as a decimal. $108.20 at 8.2%: $108.20 ÷ 1.082 = $100.00 pre-tax.
Is there a federal sales tax?
No. Sales tax in the US is entirely state and local. Federal consumption taxes exist only as excise taxes on specific goods like fuel, alcohol, and tobacco.
Are groceries taxed?
Depends on the state: most exempt unprepared groceries, some tax them at a reduced rate, and a few tax them fully. Restaurant and prepared food is taxed almost everywhere.
Check your state's exact 2026 rates with the free sales tax calculator, or jump straight to your state's page from the list on the homepage.
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