U.S. Sales Tax Guide by State
Understand state-by-state rates, nexus rules for online shopping, and how to legally minimize your sales tax burden.
Advertisement
🗺️ The Basics: What Is Sales Tax?
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. In the United States, there is no federal sales tax — each state sets its own rate, and counties/cities can add additional local taxes on top.
The average combined sales tax rate in the U.S. is approximately 7.5%, but it ranges from 0% (in five states) to over 10% in some Louisiana and Tennessee jurisdictions.
📊 Complete State-by-State Tax Table
| State | State Rate | Avg Local | Combined Avg | Notes |
|---|---|---|---|---|
| Alabama | 4.0% | 5.2% | 9.2% | Local rates vary widely |
| Alaska | 0.0% | 1.8% | 1.8% | No state tax; local only |
| Arizona | 5.6% | 2.8% | 8.4% | State rate relatively low |
| Arkansas | 4.5% | 3.0% | 9.3% | High combined rates |
| California | 7.25% | 1.4% | 8.7% | Highest state base rate |
| Colorado | 2.9% | 4.8% | 7.7% | Low state, high local |
| Connecticut | 6.35% | 0.0% | 6.35% | No local sales tax |
| Delaware | 0.0% | 0.0% | 0.0% | Tax-free shopping |
| Florida | 6.0% | 1.1% | 7.1% | No tax on groceries |
| Georgia | 4.0% | 3.3% | 7.3% | Atlanta area higher |
| Hawaii | 4.0% | 0.5% | 4.5% | Called GET, not sales tax |
| Idaho | 6.0% | 0.9% | 6.9% | Relatively stable |
| Illinois | 6.25% | 2.5% | 8.8% | Chicago = 10.25% |
| Indiana | 7.0% | 0.0% | 7.0% | Uniform statewide |
| Iowa | 6.0% | 0.9% | 6.9% | Local option limited |
| Kansas | 6.5% | 2.2% | 8.7% | High local variance |
| Kentucky | 6.0% | 0.0% | 6.0% | No local sales tax |
| Louisiana | 4.45% | 5.1% | 9.6% | Highest combined avg |
| Maine | 5.5% | 0.0% | 5.5% | No local tax |
| Maryland | 6.0% | 0.0% | 6.0% | Uniform statewide |
| Massachusetts | 6.25% | 0.0% | 6.25% | No clothing tax under $175 |
| Michigan | 6.0% | 0.0% | 6.0% | Uniform statewide |
| Minnesota | 6.875% | 0.6% | 7.5% | No tax on clothing |
| Mississippi | 7.0% | 0.0% | 7.0% | Uniform statewide |
| Missouri | 4.225% | 3.9% | 8.1% | Local rates vary |
| Montana | 0.0% | 0.0% | 0.0% | No sales tax at all |
| Nebraska | 5.5% | 1.4% | 6.9% | Omaha adds 2.5% |
| Nevada | 6.85% | 1.4% | 8.3% | Clark County higher |
| New Hampshire | 0.0% | 0.0% | 0.0% | No sales tax |
| New Jersey | 6.625% | 0.0% | 6.625% | Urban Enterprise Zones lower |
| New Mexico | 5.125% | 2.7% | 7.8% | Gross receipts tax model |
| New York | 4.0% | 4.5% | 8.5% | NYC = 8.875% |
| North Carolina | 4.75% | 2.2% | 7.0% | Mecklenburg = 7.25% |
| North Dakota | 5.0% | 1.9% | 6.9% | Local option limited |
| Ohio | 5.75% | 1.4% | 7.2% | Cuyahoga = 8.0% |
| Oklahoma | 4.5% | 4.4% | 8.9% | High local rates |
| Oregon | 0.0% | 0.0% | 0.0% | No sales tax |
| Pennsylvania | 6.0% | 0.0% | 6.0% | No tax on clothing |
| Rhode Island | 7.0% | 0.0% | 7.0% | Uniform statewide |
| South Carolina | 6.0% | 1.4% | 7.4% | Local option tax |
| South Dakota | 4.5% | 1.9% | 6.4% | Remote seller nexus law origin |
| Tennessee | 7.0% | 2.5% | 9.6% | Highest combined avg |
| Texas | 6.25% | 1.9% | 8.2% | Local rates capped at 2% |
| Utah | 4.85% | 1.8% | 6.7% | Resort areas higher |
| Vermont | 6.0% | 0.0% | 6.0% | No local tax |
| Virginia | 4.3% | 1.0% | 5.3% | Relatively low combined |
| Washington | 6.5% | 2.4% | 8.9% | Seattle = 10.25% |
| West Virginia | 6.0% | 0.5% | 6.5% | Local option limited |
| Wisconsin | 5.0% | 0.5% | 5.5% | Stadium tax in some areas |
| Wyoming | 4.0% | 1.4% | 5.4% | Low overall burden |
Advertisement
💡 Online Shopping & Nexus Rules
Before 2018, online retailers only collected sales tax if they had a physical presence (store, warehouse, office) in your state. The South Dakota v. Wayfair Supreme Court decision changed everything. Now, any seller doing significant business in a state must collect tax — this is called economic nexus.
What This Means for You
- Amazon: Collects tax in all 45 states with sales tax. Only Delaware, Montana, New Hampshire, and Oregon remain truly tax-free.
- eBay / Etsy sellers: Small sellers under state thresholds may not collect tax, but you're still legally required to pay use tax.
- International purchases: Import duties and VAT are separate from U.S. sales tax. Don't confuse them.
Tax-Free Shopping Strategies (Legal)
- Shop in tax-free states: If you live near Oregon, Delaware, or New Hampshire, cross-border shopping saves 5–10%.
- Buy during tax holidays: Many states offer 1–7 days of zero sales tax on back-to-school items, computers, or emergency supplies.
- Buy used: Private-party sales (Facebook Marketplace, Craigslist) are generally not subject to sales tax.
❓ Frequently Asked Questions
Do I owe sales tax if the online store didn't charge it?
Technically yes — you're required to pay "use tax" (the consumer equivalent of sales tax) on untaxed out-of-state purchases. In practice, states rarely enforce this on small consumer purchases, but they do audit large-ticket items.
Why is my Amazon tax rate different from my friend's in the same state?
Amazon collects based on the delivery address, not the billing address. If your friend lives in a different county or city with a different local tax rate, the total will differ even within the same state.
Are groceries taxable?
Most states exempt unprepared groceries, but prepared foods, soda, candy, and restaurant meals are usually taxable. Rules vary significantly — California taxes soda but not bread; Illinois taxes candy at a higher rate than groceries.
🔗 Related Tools
- Sales Tax & Final Price Calculator — Calculate your exact checkout cost by state.
- Black Friday Savings Calculator — Plan holiday shopping with tax included.
Advertisement