Be guided by the right sales tax calculator and tax laws by state to make sure you pay your dues right.
RELATED: Income Tax Rates By State | A Comprehensive List
In this article:
Your Guide to the United States Sales Tax Calculator
Understanding Sales Tax Filings and Calculation
If you run a retail store, chances are, you file and pay for sales taxes every calendar year. This is one of the easiest tax brackets to understand since you know exactly what you’re due with daily transactions.
Not paying sales taxes will incur penalties.
Of the 50 states, 38 collect local sales taxes, while 45 states plus the District of Colombia collect statewide taxes. Oregon, New Hampshire, Montana, Delaware, and Alaska do not charge a statewide tax.
What state has the highest sales tax rate? As of January 1, 2019, California has the highest rate at 7.25%.
On the other hand, which state has the lowest sales tax rate? Colorado charges its local entrepreneurs only 2.9%.
Calculating Sales Tax Rates by State
Finding an efficient sales tax calculator is not that easy, let alone figuring out the sales tax rates applicable in your state. Aside from knowing the state tax rates, you also need to know whether your city or county charges local sales tax.
Laws on calculating and collecting sales tax differ per state. Learn how to calculate sales tax in the state you’re living in with the right calculator.
For you to calculate tax accurately and manage your taxable income properly, you need to know the different rates each state imposes. This guide will help you manage your business and income tax better, especially if you plan to branch out into another state.
Continue reading to learn about your state’s sales tax rates.
1. Alabama
Alabama will soon start collecting online sales taxes https://t.co/y1u0B7qiJm pic.twitter.com/RSspkHMwbB
— WSFA 12 News (@wsfa12news) July 10, 2018
- State General Sales Tax Rate: 4%
- Highest Possible Tax Rate: 5%
- Average Combined Tax Rate: 7.755%
The sales tax of 4% applies to rental, amusement, and vending sales. Automotive rentals, farm equipment, and manufacturing sales are subject to 1.5% while sales related to lodging on the Mountain Lakes area incurs the highest sales tax rate of 5%.
2. Alaska
Alaska is one of the five states that doesn’t impose any sales and use tax. However, some cities impose local sales taxes as published on the state’s official website.
The local sales tax changes each year and has a low average rating of 1.69%. As of January 2019, the local average rate has gone down to 1.43%.
3. Arizona
- State General Sales Tax Rate: 5.6%
- Highest Possible Tax Rate: 7.7%
- Average Combined Tax Rate: 7.784%
As of June 2018, the highest taxable sales in Arizona are those related to transient lodging while commercial leasing and car rental surcharges are tax-free.
For the full list of sales taxes on all Arizona counties, refer to this page.
4. Arkansas
- State General Sales Tax Rate: 6.5%
- Highest Possible Tax Rate: 11.25%
- Average Combined Tax Rate: 8.517%
Arkansas is one of the top cities with the highest state sales tax rates in the entire United States.
In addition to the state tax rate, some cities and counties also impose local taxes with an average of 2.8%. As of January 2019, this average has gone up a bit to 2.93%.
This makes Arkansas rank as the third state to have the highest combined rate in the country. As of April 2018, the state has made current sales tax rate changes.
5. California
https://twitter.com/pointsnfigures/status/1016355885743034373
- State General Sales Tax Rate: 7.25%
- Highest Possible Tax Rate: 10.25%
- Average Combined Tax Rate: 8.17%
As of April 2018, California holds the highest sales tax with a ratio of 7.25% in the entire United States. Compton, Long Beach, and Santa Monica are among the cities in Los Angeles County to have this tax rate.
In 2019, the highest possible sales tax rate has reached 10.50%.
Refer to California Department of Tax and Fee Administration for the state’s sales tax calculator.
6. Colorado
- State General Sales Tax Rate: 2.9%
- Highest Possible Tax Rate: 11.2%
- Average Combined Tax Rate: 5.958%
While the state sales tax rate in Colorado is reasonably low, the burden of paying taxes increases due to cities and counties imposing higher local taxes that could go up to 8.3%.
For tax rates effective July to December 2018, visit Colorado’s official web page. Check the sales tax rate in your area here.
7. Connecticut
- State General Sales Tax Rate: 6.35%
- Highest Possible Tax Rate: 9.35%
- Average Combined Tax Rate: 6.351%
Connecticut has only one statewide tax applicable to all sales on goods and services. However, the state imposes another tax rate for rental of passenger motor vehicle for 30 consecutive calendar days with a ratio of 9.35%.
On the other hand, computer sales, data processing services, and web design services incur a tax rate of 1%.
8. Delaware
Delaware is another state who does not impose any state or local taxes. However, occupational gross receipts tax is imposed on all businesses selling goods or providing services in the state.
The tax rate usually ranges from 0.1037% to 2.0736%.
9. District of Columbia
- State General Sales Tax Rate: 5.75%
- Highest Possible Tax Rate: 18%
- Average Combined Tax Rate: 5.753%
All goods and services sold or leased to businesses or individuals are considered taxable in the state of DC with the exemption of groceries, some medicinal drugs, and residential utility services. The sales tax for these goods and services are at 5.75% while parking services in commercial lots hold the highest tax rate at 18%.
10. Florida
Just like Republicans in the past, Rick Scott overstates the number of times Nelson voted for higher taxes by including nonbinding budget resolutions, which accounted for almost half of the 349 votes on the list.https://t.co/YyD1cSdAdR
— Tampa Bay Times (@TB_Times) July 9, 2018
- State General Sales Tax Rate: 6%
- Highest Possible Tax Rate: 8%
- Average Combined Tax Rate: 6.774%
The sales tax calculator in Florida is quite simple. The general sales tax of 6% applies to all sales of goods and services with the exceptions of amusement machine receipts (4%), lease of commercial property (5.8%), and electricity (up to 8%).
As of January 1, 2019, the highest possible tax rate in Florida is now at 8.5%.
11. Georgia
- State General Sales Tax Rate: 4%
- Highest Possible Tax Rate: 8.9%
- Average Combined Tax Rate: 6.944%
As of April 2018, Atlanta holds the highest tax rate in the entire state of Georgia on sales related to education and transportation. Cherokee and Cobb, on the other hand, are the two counties with the lowest current tax rate.
With the latest changes in July 1, 2019, the highest possible tax rate in Georgia is now at 9%.
Refer to this page for the full list of the state’s sales and use tax rates.
12. Hawaii
Another state with a tax-free policy, Hawaii regulates the General Excise Tax (GET) instead. The GET is imposed on all business activities and the tax rate ranges from .15% to 4% depending on the transaction.
For a complete guide on Hawaii’s GET policy, please refer to this page.
13. Idaho
- State General Sales Tax Rate: 6%
- Highest Possible Tax Rate: 9%
- Average Combined Tax Rate: 6.037%
All sales and rentals of goods and services are taxed in Idaho except the sale of prescription drugs. Aside from state taxes, some cities and auditorium districts (particularly Donnelly, Driggs, Sandpoint, and Sun Valley) also impose local taxes.
Please visit Idaho’s official website to see the complete sales tax guide.
14. Illinois
- State General Sales Tax Rate: 6.25%
- Highest Possible Tax Rate: 11%
- Average Combined Tax Rate: 7.623%
Illinois is the third state to have the highest combined state and local sales tax with a ratio of 9.25%. Also, Aurora is one of the top cities in the U.S. to have the highest local sales tax.
Refer to this sales tax calculator to find your county’s sales tax rate.
15. Indiana
Low costs of living and low tax rates is benefits of running a business in Indiana: https://t.co/sUcJHnSTVf #Indiana #Hoosier #hoosiers pic.twitter.com/R4pTXGnTrm
— GUD Capital (@GUDCapital) July 6, 2018
Indiana imposes a single state tax rate of 7% for all its cities. Businesses in this state also don’t have to pay for any local or county sales taxes.
This is the main reason why Indiana doesn’t require extensive maintenance when it comes to revenue reporting.
16. Iowa
Like some states, Iowa imposes a single state sales tax rate of 6% on all cities. In addition to this, some local jurisdictions impose a local sales tax of 1% on selected cities.
17. Kansas
- State General Sales Tax Rate: 6.5%
- Highest Possible Tax Rate: 10.6%
- Average Combined Tax Rate: 7.925%
Another state that has high state sales tax rates, Kansas cities and counties also imposes high local sales taxes. This ranks the state as 9th and 8th to have the highest state sales tax and combined sales tax, respectively.
For an updated list of Kansas sales tax rates effective July 2018, refer to Kansas’ official website.
As of January 2019, the highest possible sales tax rate in Kansas is at 10.5%.
18. Kentucky
Kentucky imposes 6% state sales and uses tax rate of all gross receipts derived from sales of goods and services. None of the cities impose any local sales tax.
19. Louisiana
- State General Sales Tax Rate: 5%
- Highest Possible Tax Rate: 12%
- Average Combined Tax Rate: 9.459%
The state of Louisiana has a uniform sales tax rate of 5%. This rate is broken down by 4.97% for the state’s sales tax and .03% for the state’s tourism promotion district sales tax.
Off-track bets, property leases, and fuel purchases are tax-free but are subject to excise tax.
What is excise tax? This type of tax is imposed on certain product or goods levied at the time of manufacture instead of at the point of sale.
As of July 1, 2018, Lousiana’s state tax is at 4.45% with the highest at 11.45%.
For a complete list of sales tax rule exemption, refer to Louisiana’s official website.
20. Maine
- State General Sales Tax Rate: 5.5%
- Highest Possible Tax Rate: 10%
- Average Combined Tax Rate: 5.5%
In Maine, general sales, long-term auto rental, use tax, and medical marijuana are all subject to 5.5% estate taxes. Prepared food has an estate tax rate of 8% while short-term auto rentals are subject to 10%.
All counties and cities do not impose any local sales tax.
21. Maryland
This is how much it cost to live in Baltimore County Maryland. It went up big time. Why did property taxes spike so bad. #BaltimoreCounty @BaltimoreCoMD @BaltCoGov pic.twitter.com/KGNKhiGUIx
— Craig “Sunsun” Allen (@just2muchfunfun) July 4, 2018
All sales of goods and services in Maryland are subject to the state’s sales tax of 6% except for alcoholic beverage sales, which has a tax rate of 9%. Since Maryland promotes fair competition to all businesses, it does not impose any local sales taxes across all cities and counties.
22. Massachusetts
The state sales tax is currently set at 6.25% for all sales of goods and services in Massachusetts. There are no local sales taxes in any of the state’s cities and counties.
23. Michigan
Michigan is another state that imposes a single sales tax rate on all its cities. The general sales tax rate is currently set at 6%. There are no local sales taxes.
24. Minnesota
- State General Sales Tax Rate: 6.875%
- Highest Possible Tax Rate: 7.775%
- Average Combined Tax Rate: 7.246%
All sales and rentals of goods and services are taxed in Minnesota. Local taxes are also imposed, depending on certain counties. Minneapolis county has the highest combined taxes among all of Minnesota counties.
It has a total of 7.775% sales tax inclusive of the general state sales tax and an additional 0.5% local sales tax, 0.15% Hennepin county sales tax, and 0.25% transit improvement sales tax.
As of April 1, 2019, the highest possible tax rate in Minnesota has gone up to 8.875%.
For a complete guide on state’s sales taxes, visit Minnesota’s official website here. You can use the state’s sales tax calculator here.
25. Mississippi
- State General Sales Tax Rate: 7%
- Highest Possible Tax Rate: 8%
- Average Combined Tax Rate: 7.053%
General sales of goods and services are taxable with a rate of 7% in the state of Mississippi. Sales to electric power associations and sales of high-capacity automobiles have the lowest tax rate at 1%.
On the other hand, sales of food and drinks for full service vending machines incur a tax rate of 8%. In addition to state’s sales tax, cities and counties may impose local taxes of up to 1%.
Refer to this page for a complete list of Mississippi’s sales tax rates.
RELATED: What Are The Tax Friendly States For Retirees?
26. Missouri
- State General Sales Tax Rate: 4.225%
- Highest Possible Tax Rate: 10.1%
- Average Combined Tax Rate: 6.804%
The state of Missouri has released an updated tax rate effective July 2018. While the state sets a general sales tax rate of 4.225%, certain counties also impose local taxes ranging from 0% to 5.875%.
As of the January 1, 2019 update, the highest possible tax rate in Missouri is now at 10.350%.
27. Montana
Montana is another state that doesn’t impose any state general sales tax. There aren’t any local sales taxes in the entire state, either.
The state’s revenue source comes from other taxes, such as corporate income tax, natural resource taxes, and alcoholic beverage taxes.
28. Nebraska
- State General Sales Tax Rate: 5.5%
- Highest Possible Tax Rate: 7.5%
- Average Combined Tax Rate: 5.95%
Nebraska imposes 5.5% state sales tax on all goods and services sold in the state. In addition to this, a local sales tax may be imposed depending on the city, which ranges from 0.5% to 2%.
Currently, Dakota is the only county that imposes a county sales tax of 0.5%.
29. Nevada
- State General Sales Tax Rate: 6.85%
- Highest Possible Tax Rate: 8.265%
- Average Combined Tax Rate: 7.762%
Nevada has both state sales and local sales taxes. Depending on each county, the local sales taxes range from 0% to 3.665%. Washoe County holds the highest possible tax rate of 8.265%.
Refer to this page for a complete guide on Nevada’s sales tax rate.
30. New Hampshire
New Hampshire is one of the five states that does not impose any state or local sales taxes. As a substitute for this regulation, the state imposes an excise tax on certain services or products such as excise tax on restaurants (9%) and telecommunication services (7%).
31. New Jersey
NJ Democrats regain full power, raise taxes on businesses & ‘the rich.’ Businesses & people flee. Expectedly. https://t.co/FXyYOVMUgz
— Guy Benson (@guypbenson) July 2, 2018
As of January 2019, all sales of goods and services in New Jersey incur a state sales tax of 6.625%. This was reduced from last year’s rate of 6.875%. Additionally, there are no local taxes in all New Jersey counties and cities.
32. New Mexico
- State General Sales Tax Rate: 5.125%
- Highest Possible Tax Rate: 9.0623%
- Average Combined Tax Rate: 7.05%
In addition to New Mexico’s state sales tax rate of 5.125%, sales of any goods and services may incur you additional local taxes.
Depending on each county, the tax rate could go up to 9.0623%. But as of January 1, 2019, the highest rate is already at 9.250%.
You may use this sales tax calculator to figure out your combined sales tax.
33. New York
The state general sales tax rate in New York is currently set at 8.875%. This comprises N.Y. city local sales tax of 4.5%, state sales tax of 4%, and Metropolitan Commuter Transportation District surcharge of 0.375%.
34. North Carolina
- State General Sales Tax Rate: 4.75%
- Highest Possible Tax Rate: 7.5%
- Average Combined Tax Rate: 6.842%
General sales of goods and services are taxable with a rate of 4.75% in the state of North Carolina. Local taxes are also imposed on all cities and counties.
Refer to this page for a complete list of the state’s sales tax rates.
35. North Dakota
- State General Sales Tax Rate: 5%
- Highest Possible Tax Rate: 8.5%
- Average Combined Tax Rate: 5.603%
In exemption to the 5% general sales tax rate in North Dakota are the sales of alcoholic beverage (7%) and sales of new farm machinery (3%). Some cities and counties also impose local sales taxes.
36. Ohio
The Internal Revenue Service says that 362,000 Americans with “seriously delinquent” overdue tax payments will be denied passports or passport renewals if they do not pay the money they owe, The Wall Street Journal reports. https://t.co/1u5vI5VPOy
— Libertarian Party OH (@LPOhio) July 7, 2018
- State General Sales Tax Rate: 5.75%
- Highest Possible Tax Rate: 8%
- Average Combined Tax Rate: 7.045%
Aside from charging state taxes, some cities and counties in Ohio also impose local taxes. Combined sales tax rates range from 5.75% to 8%.
Use this sales tax calculator to find out your state and local sales taxes in Ohio.
37. Oklahoma
- State General Sales Tax Rate: 4.5%
- Highest Possible Tax Rate: 11.5%
- Average Combined Tax Rate: 7.689%
Oklahoma has both state and local sales taxes. Boley County holds the highest possible tax rate of 11.5%.
Refer to this page for a complete guide on Oklahoma’s sales tax rate.
38. Oregon
Oregon does not impose any state sales tax but the state counties and cities may regulate local taxes. While the state is a sales tax-free state, it is also one of the states that hold the highest personal income tax rates in the entire United States.
This often discourages individuals from seeking employment in the area.
39. Pennsylvania
- State General Sales Tax Rate: 6%
- Highest Possible Tax Rate: 8%
- Average Combined Tax Rate: 6.14%
All sales of goods and services in Pennsylvania are subject to the state’s sales tax of 6% except for some food, most clothing, computer services, pharmaceutical drugs, resale items, and residential heating, which are tax-free.
A local tax of 1% is allowed on all sales made in Allegheny County and 2% in Philadelphia.
40. Puerto Rico
While Puerto Rico isn’t an official state of the United States, it has been in American territory since 1898. It is, however, self-governed.
Like the other states in the US, Puerto Rico also imposed a state tax rate for the country’s sales.
The state general sales tax rate in Puerto Rico is currently set at 7%. This comprises city local sales tax of 1.5%, state sales tax of 5.5%.
Use this sales tax calculator to find out how your state and local sales taxes in Puerto Rico.
41. Rhode Island
Rhode Island bill would keep Trump off 2020 ballot unless he releases his tax returns https://t.co/zzpIWYZTiN
— Protect nature, health coverage, SS, democracy. (@rasojka) July 4, 2018
Rhode Island is another state that imposes a single sales tax rate on all its cities. The general sales tax rate is currently set at 7%.
It also doesn’t have local sales taxes.
42. South Carolina
- State General Sales Tax Rate: 6%
- Highest Possible Tax Rate: 7%
- Average Combined Tax Rate: 7.376%
General sales of goods and services are taxable with a rate of 6% in the state of South Carolina. 1% local tax may also be imposed on a county when voters in that county approve.
As of May 2018, North Charleston has the highest local tax rate in South Carolina at 9%.
43. South Dakota
- State General Sales Tax Rate: 4.5%
- Highest Possible Tax Rate: 6.5%
- Average Combined Tax Rate: 4.985%
All goods and services sold or leased to businesses or individuals are considered taxable in the state of South Dakota. With the addition of local taxes some cities and counties impose, the combined sales tax rate could go up to 6.5%.
Use this sales tax calculator to know your sales taxes in South Dakota.
44. Tennessee
- State General Sales Tax Rate: 7%
- Highest Possible Tax Rate: 10.25%
- Average Combined Tax Rate: 9.38%
Tennessee has both state sales and local sales taxes. Depending on each county, the local sales taxes range from none to 2.75%.
Refer to this page for a complete guide on Tennessee’s sales tax rate.
45. Texas
All sales of goods and services in Texas are subject to the state’s sales tax of 6.25% plus any corresponding local taxes. Additional local sales tax for all cities and counties are up to 2%.
Use this sales tax calculator to know your sales taxes in Texas.
46. Utah
Good read. Good info on how our tax dollars are being used. #utpol https://t.co/He08Y2Pycp
— J_Hadley (@J_Had87) July 7, 2018
- State General Sales Tax Rate: 4.7%
- Highest Possible Tax Rate: 8.6%
- Average Combined Tax Rate: 6.48%
Utah imposes both state and local sales taxes. Depending on each county, the local sales taxes range from 5.95% to 8.45%.
As of July 1, 2019, Park City has the highest tax rate at 9.50%.
Refer to this page for a complete guide to Utah’s sales tax rate.
47. Vermont
- State General Sales Tax Rate: 6%
- Highest Possible Tax Rate: 7%
- Average Combined Tax Rate: 6.077%
General sales of goods and services are taxable with a rate of 6% in the state of Vermont. Local taxes may also be imposed on county and city levels, that could go up to 1%.
48. Virginia
The state general sales tax rate in Virginia is currently set at 5.3%. This sales tax rate comprises 4.3% state tax and 1 % local tax.
There is an exception to this tax policy in Northern Virginia and Hampton Roads, wherein these localities’ state tax places an additional 0.7%.
Use this sales tax calculator to know your sales taxes in Virginia.
49. Washington
- State General Sales Tax Rate: 6.5%
- Highest Possible Tax Rate: 10.4%
- Average Combined Tax Rate: 8.604%
All sales of goods and services are taxable at a rate of 6.5% in the state of Washington. Local taxes may also be imposed on county and city levels, that could go up to 3.9%.
This makes the state ranked as one of the top 10 states to have both the highest state sales tax and combined sales tax rates.
As of July 1, 2019, the highest tax rate is now at 10.4%.
Refer to this page for a complete guide to Washington’s sales tax rate.
50. West Virginia
General sales of goods and services are taxable with a rate of 6% in the state of West Virginia. Local taxes may also be imposed on county and city levels that could go up to 1%.
Use this sales tax calculator to know your sales taxes in West Virginia.
51. Wisconsin
Income and property taxes are lower today than they were at the turn of the decade! That’s huge relief for hardworking Wisconsin families. pic.twitter.com/MqDkhP1f4h
— Governor Walker (@GovWalker) July 8, 2018
- State General Sales Tax Rate: 5%
- Highest Possible Tax Rate: 5.6%
- Average Combined Tax Rate: 5.439%
The state of Wisconsin imposes both state and local taxes. Out of 72 counties, 66 impose a 5% county sales tax.
Refer to this page for a complete guide on Wisconsin’s sales tax rates.
52. Wyoming
All sales of goods and services in Wyoming are subject to the state sales tax of 4%. While there are no city taxes in Wyoming, an additional local sales tax of 1% is imposed on selected Wyoming counties.
Another .25% is imposed on Goshen County for Economic Development tax. Refer to this page for a complete guide to Wyoming’s sales tax rates.
If you’re just starting your business or are already about to compute your taxes, this guide can help you determine the rate to use for your calculations. When you know your local and state tax rates, you will be able to assess your earnings and plan out your business’ future.
Using a sales tax calculator can be confusing especially when you don’t know which tax rates to use. We hope this guide will be able to help you figure out your queries on both state and local sales taxes.
Have you had any experience using a sales tax calculator? Share it with us in the comments section below.
If you owe back taxes, visit taxreliefcenter.org for more information on tax relief options.
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Editor’s Note: This post was originally published on July 9, 2018, and has been updated for quality and relevancy.
