Sales Tax Calculator
Calculate sales tax for different US states
Results
State Rate
4%
Avg Local Rate
4.52%
Combined Rate
8.52%
Net Amount
$0.00
Before tax
Sales Tax
$0.00
0.00% effective rate
Total Amount
$0.00
Including tax & shipping
Per Item
$0.00
Total per item
Understanding Sales Tax
What is Sales Tax?
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. Unlike VAT, sales tax is generally collected only at the final point of sale to the consumer.
Components of Sales Tax
- State Tax: Base rate set by the state
- County Tax: Additional rate imposed by counties
- City/Municipal Tax: Local rates added by cities
- Special District Tax: Additional taxes for specific purposes
Major U.S. Cities Sales Tax Rates (2024)
| City | Combined Rate | City | County | State | Other |
|---|---|---|---|---|---|
| Chicago, IL | 10.25% | 1.25% | 1.75% | 6.25% | 1% |
| Los Angeles, CA | 9.5% | 0% | 2.25% | 7.25% | 0% |
| New York City, NY | 8.875% | 4.5% | 0% | 4% | 0.375% |
| Seattle, WA | 10.1% | 0% | 2.7% | 6.5% | 0.9% |
| Phoenix, AZ | 8.6% | 2.3% | 0.7% | 5.6% | 0% |
Sales Tax Exemptions
Common Exempt Items
- Groceries and unprepared food items
- Prescription medications
- Medical devices and supplies
- Certain clothing items (in some states)
- Educational materials
- Manufacturing equipment and raw materials
Tax-Exempt Organizations
- Non-profit organizations
- Religious institutions
- Educational institutions
- Government agencies
- Charitable organizations
Sales Tax Compliance
Business Requirements
- Obtain sales tax permit/license
- Collect appropriate tax rates
- File returns on time (monthly/quarterly)
- Maintain accurate records
- Handle exemption certificates
Economic Nexus
After the South Dakota v. Wayfair decision, businesses must collect sales tax if they meet either:
- $100,000 in annual sales
- 200 separate transactions
- Physical presence in the state
Sales Tax Tips
For Businesses
- Use automated tax software
- Keep detailed records
- Stay updated on rate changes
- File returns on time
Tax Holidays
- Back-to-school shopping
- Energy-efficient appliances
- Hurricane preparedness
- Holiday shopping