Sales Tax Calculator 2026

How Sales Tax Works

Sales tax is a consumption tax imposed on the sale of goods and services. It's typically calculated as a percentage of the purchase price and added at the point of sale.

The total sales tax rate is usually the sum of state, county, and city tax rates, which can vary significantly by location.

Taxable vs Non-Taxable

Most tangible goods are taxable, but many services and certain items may be exempt. Common exemptions include groceries, prescription drugs, and clothing in some states.

Online purchases are generally subject to sales tax if the seller has a physical presence in your state or meets economic nexus requirements.

Use Tax

Use tax applies to items purchased without paying sales tax (often online or out-of-state). Many states require residents to report and pay use tax on such purchases.

Use tax rates typically match your local sales tax rate and help ensure fair competition between local and remote sellers.

For Consumers

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  Factor sales tax into your total purchase budget
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  Consider tax-free shopping days in your state
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  Keep receipts for tax-deductible business purchases
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  Understand exemptions for necessities like groceries

For Businesses

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  Register for sales tax permits in required states
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  Implement proper tax collection and remittance
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  Stay updated on changing tax rates and rules
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  Consider tax automation software for compliance