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Sales Tax by State USA 2026 — Complete Rate Guide
Complete guide to USA sales tax rates by state 2026. Which states have no sales tax, highest rates, grocery exemptions, and online purchase rules.
📅 April 17, 2026⏱️ 9 min read🇺🇸 USA Guide📂 Finance
Key Takeaway: Sales tax in the USA ranges from 0% (Oregon, Montana, Delaware, NH) to over 10% (some Chicago districts). Use our sales tax calculator for any state instantly.
US Sales Tax by State — Complete 2026 Guide
Unlike most countries with a national sales tax (like Canada's GST or the UK's VAT), the United States has no federal sales tax. Instead, each state sets its own rate, and cities and counties can add on top of that. This creates enormous variation across the country — from 0% in Oregon to 10.25% in Chicago.
0%
5 states with no sales tax
7.12%
National average combined rate
10.25%
Chicago's combined rate (highest)
$500B+
Sales tax collected annually in USA
Sales Tax Rates by State 2026
| State | State Rate | Avg Local | Combined Avg | Notes |
|---|
| Oregon | 0% | 0% | 0% | No sales tax |
| Montana | 0% | 0% | 0% | No sales tax |
| Delaware | 0% | 0% | 0% | No sales tax |
| New Hampshire | 0% | 0% | 0% | No sales tax |
| California | 7.25% | 1.43% | 8.68% | Highest state rate |
| Texas | 6.25% | 1.95% | 8.20% | No income tax |
| New York | 4.0% | 4.52% | 8.52% | NYC: 8.875% |
| Florida | 6.0% | 1.08% | 7.08% | No income tax |
| Washington | 6.5% | 2.79% | 9.29% | No income tax |
| Illinois | 6.25% | 2.49% | 8.74% | Chicago: 10.25% |
| New Jersey | 6.625% | -0.03% | 6.60% | Urban Enterprise Zones |
| Massachusetts | 6.25% | 0% | 6.25% | No local sales tax |
| Georgia | 4.0% | 3.35% | 7.35% | County rates vary widely |
| Arizona | 5.6% | 2.77% | 8.37% | Transaction privilege tax |
| Nevada | 6.85% | 1.38% | 8.23% | No income tax |
What Items Are Exempt From Sales Tax?
Most states exempt certain categories from sales tax:
- Groceries: Exempt in most states (CA, TX, NY, FL, IL and 30+ others). However, prepared/hot food is taxed.
- Prescription drugs: Exempt in all 50 states.
- Clothing: Exempt in NY (under $110/item), Pennsylvania, New Jersey, Minnesota, and others.
- Services: Generally not taxed (varies by state).
- Farm equipment: Exempt in most agricultural states.
Do I Pay Sales Tax on Amazon and Online Purchases?
Yes. Since the 2018 South Dakota v. Wayfair Supreme Court decision, online retailers must collect sales tax in states where they have economic nexus (usually $100,000+ in sales or 200+ transactions). Amazon, Walmart, Target, and virtually all major online retailers now collect your state's sales tax automatically. The era of tax-free online shopping is over.
Shopping near a state border? Oregon, Montana, and Delaware have no sales tax. A $2,000 laptop purchase saves $145-175 by buying in Oregon instead of California. Many people make special trips for large electronics or furniture purchases.
Is Sales Tax Deductible on Federal Taxes?
Yes — you can deduct state sales tax OR state income tax on Schedule A (itemized deductions), not both. The sales tax deduction benefits residents of states with no income tax (Texas, Florida, Nevada, Washington, Wyoming) most. You can use actual receipts or the IRS Optional Sales Tax Tables. However, with the standard deduction at $15,000 for singles in 2026, most Americans don't itemize.
❓ Frequently Asked Questions
Q: Which states have the highest and lowest sales tax?
Lowest: Oregon, Montana, Delaware, New Hampshire (all 0%). Highest combined: Tennessee 9.55%, Louisiana 9.45%, Arkansas 9.43%, Washington 9.29%, Alabama 9.22%. Highest state rate: California at 7.25%, but with local taxes the combined average is 8.68%.
Q: Do you pay sales tax on groceries in the USA?
Most states don't tax grocery food: California, Texas, New York, Florida, Illinois, Pennsylvania, and 30+ others exempt groceries. However, hot/prepared food, restaurant meals, candy, soda, and alcohol are typically taxed even in grocery-exempt states. Tennessee taxes groceries at a reduced 4% rate.
Q: How do I calculate sales tax?
Formula: Tax = Price × Tax Rate. Total = Price × (1 + Tax Rate). Example: $500 item in Texas (8.25%): Tax = $500 × 0.0825 = $41.25. Total = $541.25. Use our free sales tax calculator for instant calculations for any state.
Q: Do I pay sales tax when buying a car in the USA?
Yes — vehicle sales tax applies in almost all states. Rate varies: California 7.25-10.25%, Texas 6.25%, Florida 6%, New York 4% + local. On a $35,000 car, that's $2,188-3,588 in sales tax. Some states allow you to apply your trade-in value to reduce the taxable amount.
Q: Is there sales tax on services in the USA?
Generally no — most states only tax tangible goods, not services. However, some states (like Hawaii, New Mexico, and South Dakota) tax most services. Professional services (legal, accounting, medical) are typically exempt. Repair services for tangible goods are taxed in many states.
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