US Sales Tax Explained: Rates, States and How to Calculate

Why the US has no single national sales tax, how state, county and city rates combine, and how to add or remove sales tax from a price.

No federal sales tax

Unlike VAT countries, the US has no national sales tax. Rates are set by states, counties and cities, so your combined local rate can range from 0% to over 10% depending on where you buy.

How to calculate

Total = amount × (1 + rate). For example, $100 at a 7.25% rate is $107.25. Enter your combined local rate, which is the sum of state, county and city portions.

Exemptions vary

Some states exempt groceries, prescription drugs or clothing, or tax them at a reduced rate. A few states have no statewide sales tax at all (for example, Oregon, New Hampshire, Montana and Delaware).

FAQ

Is sales tax charged on the discounted price?

Generally yes — tax is applied after store discounts, on the price you actually pay.

Why is the rate different across town?

City and county add-ons stack on top of the state rate, so neighboring areas can differ.

Related calculators

Last updated: 2026-07-25 · This content is a 2026 reference and may differ from actual rules and rates.