How do I calculate sales tax manually?+
Multiply the pre-tax price by the tax rate expressed as a decimal. Example: $100 item at 8% tax → 100 × 0.08 = $8 tax → total $108. To find a pre-tax price from a total (reverse calculation): divide the total by (1 + rate). Example: $108 total at 8% → 108 / 1.08 = $100 pre-tax. This calculator handles both directions automatically.
Which states have no sales tax in 2026?+
Five states have no statewide sales tax, often remembered as the NOMAD states: New Hampshire, Oregon, Montana, Alaska, Delaware. Alaska allows local jurisdictions to charge sales tax (average local rate ~1.82%). Delaware, Montana, New Hampshire, and Oregon have no sales tax at any level — state or local. These five states are shown as 0% in this calculator.
What is the highest sales tax state in 2026?+
For statewide rate only, California has the highest at 7.25%. For combined state + average local rate, Louisiana and Tennessee are tied at approximately 9.55%, followed by Arkansas (9.47%), Alabama (9.27%), and Washington (9.23%). Some individual cities have even higher combined rates — parts of Louisiana and Alabama exceed 10% when all local taxes are included.
Is online shopping subject to sales tax?+
Yes. Since the 2018 Supreme Court decision in South Dakota v. Wayfair, states can require online retailers to collect sales tax even without a physical presence, as long as the seller exceeds the state's economic nexus threshold (typically $100,000 in sales or 200 transactions per year). Most major online retailers now collect based on your shipping address. Small sellers may not collect if they fall below the threshold.
Are groceries taxed?+
It depends on the state. Most states exempt basic groceries from sales tax. States that tax groceries at the full rate include Alabama (4%), Mississippi (7%), and South Dakota (4.2%). Some states apply a reduced rate: Illinois (1%), Missouri (1.225%), Virginia (2.5%), and Utah (3%). Prepared food, candy, and soft drinks are typically taxable even in states that exempt groceries.
Has South Dakota changed its sales tax rate for 2026?+
Yes. South Dakota temporarily reduced its statewide rate from 4.5% to 4.2% starting July 1, 2023. This reduction is set to expire after 2026, so South Dakota's rate is 4.2% for the full year 2026 and is expected to revert to 4.5% in 2027, unless the legislature extends the cut. This calculator uses the current 4.2% rate.
What is the difference between state and combined sales tax rates?+
The state rate is set uniformly by the state legislature and applies everywhere in that state. The combined rate adds local taxes (county, city, special district) on top. For example, California's state rate is 7.25%, but when Los Angeles County's 2.25% local tax is added, the combined rate is 9.5%. This calculator shows state rates only — your actual rate at the point of purchase may be higher. Enter your exact local rate in the custom field to get a precise total.
Are prescription drugs and medical items taxed?+
Prescription drugs are exempt from sales tax in all states that have a sales tax. Over-the-counter medications are typically taxable, with Illinois as a notable exception where they are taxed at 1%. Medical equipment and devices are often exempt with a valid prescription or when used for medical care. Rules vary significantly by state — always verify with your state's revenue department for specific medical item exemptions.
Do I pay sales tax on services?+
Sales tax traditionally applies to tangible goods, but states are increasingly taxing services too. Hawaii, New Mexico, and South Dakota have broad bases that include most business-to-business services. Some states tax specific services like telecommunications, digital downloads, streaming subscriptions, and SaaS software. The trend is toward taxing more services as economies shift toward service-based industries. Check your specific state's rules for the service in question.
How does sales tax work for remote workers buying items for work?+
When you buy items for business use, some states allow a sales tax exemption for items purchased for resale or direct use in manufacturing. For general business purchases (computers, furniture, office supplies), most states do not offer exemptions — you pay sales tax at the point of purchase like a regular consumer. If you purchase without paying sales tax (e.g., from an out-of-state seller who doesn’t collect), you typically owe use tax to your state, which mirrors the sales tax rate.