America’s patchwork consumption tax
The United States is one of the few major economies without a national VAT or GST. Instead, 45 states (plus DC) levy their own sales tax, thousands of counties and cities add local surtaxes on top, and five states levy no statewide sales tax at all. The result: the same $100 purchase can carry $0 of tax in Oregon and over $10 in parts of California or New York City.
This calculator adds sales tax to a price or extracts it from a tax-inclusive total, with base state rates built in and clear notes on where local taxes apply. It also flags the small-business issue that trips up online sellers: economic nexus — the sales thresholds that can force you to collect tax in states where you have no physical presence.
Rates last reviewed: October 2026. State and local rates change frequently — verify against the official state revenue site before collecting.
Estimate only. This uses the statewide base rate - county, city and special-district taxes can add several more percent, so your actual combined rate may be higher. Check your state revenue department or a local tax lookup for the exact rate at your address. Not professional tax advice.
How to use it
- Select the state (and city/county where offered) to load the base rate, or enter a custom combined rate.
- Choose the direction: add sales tax to a pre-tax price, or extract tax from a tax-inclusive total.
- Enter the amount. The tool shows the pre-tax price, the tax and the total.
- For sellers: check the nexus note for the state — it summarises the economic-nexus threshold that may require you to register and collect.
What it calculates and how the formulas work
| Direction | Formula |
|---|---|
| Add tax (pre-tax → total) | Total = price × (1 + combined rate) |
| Extract tax (total → pre-tax) | Pre-tax = total ÷ (1 + combined rate) |
| Tax amount from total | Tax = total − total ÷ (1 + combined rate) |
The combined rate is the state base rate plus applicable local (county/city/district) rates. Local layers are the reason two addresses in the same state can have different totals.
Assumptions:
- State presets load the statewide base rate. Local additions vary by exact address — the tool flags this and accepts a custom combined rate for precision.
- The calculator does arithmetic. It does not determine whether your product is taxable in a given state (groceries, clothing and digital goods are treated differently across states).
State notes (base rates, October 2026)
| State | Base rate | Notes |
|---|---|---|
| California | 7.25% | Plus district taxes; combined rates often 8–10%+ |
| Texas | 6.25% | Local additions up to 2% more |
| New York | 4% | NYC combined 8.875% with city/county layers |
| Florida | 6% | Counties add discretionary surtax |
| Illinois | 6.25% | Chicago-area combined rates among the highest nationally |
| Washington | 6.5% | No income tax; heavy reliance on sales tax |
| Alaska, Delaware, Montana, New Hampshire, Oregon | 0% | No statewide sales tax (local taxes may still apply in AK) |
Base rates are stable but local layers change often. For an exact figure at a specific address, use the custom-rate field with the combined rate from the state’s official lookup.
Worked example: the New York City purchase
A customer in New York City buys a laptop advertised at $1,299 (pre-tax). NYC’s combined rate is 8.875%:
- Sales tax: $1,299 × 8.875% = $115.29
- Total at checkout: $1,414.29
Reverse: a receipt shows $1,414.29 total in NYC and you need the pre-tax price: $1,414.29 ÷ 1.08875 = $1,299.00. The calculator runs both directions so receipts and quotes reconcile.
Important considerations and limitations
- Nexus creates obligations. Since the 2018 South Dakota v. Wayfair decision, states can require out-of-state sellers to collect sales tax once sales exceed thresholds (commonly $100,000 in sales or 200 transactions). Selling online into many states can mean many registrations.
- What is taxable varies. Most states tax general merchandise; many exempt or reduce groceries and prescription drugs; clothing and digital goods are a patchwork. The rate is only half the question — taxability is the other half.
- Marketplace facilitator laws mean platforms like Amazon, Etsy and eBay collect and remit in many states on sellers’ behalf. Know whether your platform already handles it before registering yourself.
- Local taxes need exact addresses. Two streets apart can mean different combined rates. For invoicing, confirm the delivery address’s combined rate from the state revenue site.
- This is not tax advice. Nexus, registration and filing are legal questions — consult a tax professional for multi-state selling.
- Browser-local: your figures never leave your browser.
Frequently asked questions
How do I calculate sales tax on a purchase?
Multiply the pre-tax price by the combined rate (state + local). A $100 item at 8.875% = $8.88 tax, $108.88 total.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. (Alaska allows local sales taxes.) This is about statewide tax — always check local layers.
What is the sales tax in California / Texas / New York?
Base rates: California 7.25%, Texas 6.25%, New York 4% — but local additions raise the actual checkout rate significantly (NYC is 8.875% combined; parts of California exceed 10%). Use the combined rate for the exact address.
What is sales tax nexus?
The connection between your business and a state that obliges you to collect its sales tax. Physical presence (office, warehouse, employees) always creates nexus; since 2018, economic activity above state thresholds ($100,000 in sales or 200 transactions is common) does too.
Do I need to collect sales tax as an online seller?
If you have nexus in a buyer’s state and your product is taxable there, generally yes. Marketplace facilitator laws may mean your platform collects for you. The rules are state-specific — this is squarely “talk to a tax professional” territory.
What is the difference between sales tax and VAT?
Sales tax is charged once, at the final retail sale. VAT/GST is collected at every stage of production with credits for tax already paid. The maths on a receipt can look similar, but the systems — and the compliance — are very different.
Is my data uploaded anywhere?
No. All calculations run locally in your browser.
Related tools
External references
This tool provides estimates for guidance only and is not professional financial, tax, or legal advice.