Sales Tax Calculator

Because the rate you pay is a combination of several taxes layered together, not just the state's. A single retail purchase can be subject to a state rate, a county rate, a city rate, and sometimes a special-district tax (for transit, stadiums, or other local funding), all charged on the same item. The state rate is only the base layer, so the total at the register is usually higher than the headline state figure — and it can change from one town or even one ZIP code to the next within the same state. For an accurate calculation, look up the full combined rate for the exact address where the sale takes place rather than relying on the statewide rate.

It depends entirely on the state, since each one sets its own list of exempt categories. The most common exemptions are unprepared groceries, prescription medications, and, in a handful of states, clothing — though prepared or restaurant food is usually still taxed even where grocery food is not. Some states also run temporary sales tax holidays during which specific goods, such as school supplies, energy-efficient appliances, or emergency-preparedness items, are sold tax-free for a few days. Because there is no national standard, the same product can be taxable in one state and exempt in the neighboring one. When in doubt, check your state's department of revenue, and enter a 0% rate above for items you have confirmed are exempt.

Usually yes. Following the 2018 South Dakota v. Wayfair Supreme Court decision, states can require online retailers to collect sales tax even without a physical presence in the state, so most larger e-commerce sellers now add tax based on your shipping address. The rate applied is the combined rate for where the item is delivered, which is why two buyers ordering the same product can be charged differently. If a seller does not collect tax — some very small sellers fall below state thresholds — you technically owe the equivalent 'use tax' directly to your own state, typically reported on your annual return. Practical enforcement on individual consumer purchases is limited, but the legal obligation exists.

Apply the tax to the actual price paid after the discount, not the original sticker price. If a $100 item is marked down to $75, you calculate tax on $75 — at an 8% rate that is $6 of tax for a $81 total. The one common wrinkle is coupons: many states treat a store discount as simply lowering the taxable price, but a manufacturer's coupon (where the store is later reimbursed) is sometimes taxed on the full pre-coupon price, because the retailer still receives that amount. The rules vary by state, so the safest approach is to read the taxed amount printed on your receipt. To check it here, enter the final discounted price as the net amount and your local rate.

Sales tax is charged once, at the final sale to the consumer, while VAT (Value Added Tax) is collected in pieces at every stage of production and distribution, with businesses reclaiming the tax they paid on their inputs. The end consumer ultimately bears a similar burden under either system, but the mechanics and the price you see differ. VAT is normally baked into the displayed shelf price, so the tag is what you pay; US sales tax is typically added on at checkout, so the total rings up higher than the marked price. The US is one of the few developed economies that relies on retail sales tax rather than VAT — for VAT-inclusive figures, use our dedicated VAT calculator instead.