Sales tax is one of those costs you only notice at the register, and it varies a lot by state. Five states don’t charge a statewide sales tax at all. Others charge 7% or more before any local tax is added. Here is how it breaks down.
The short version
- No statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon.
- Alaska still has local sales taxes in many cities and boroughs.
- Highest statewide rate: California at 7.25%, then Indiana, Mississippi, Rhode Island and Tennessee at 7%.
- Across the 45 states that charge one, the simple average statewide rate is 5.65%.
The five states without a statewide sales tax
| State | Statewide sales tax | The catch |
|---|---|---|
| Alaska | None | Many cities and boroughs charge their own local sales tax. |
| Delaware | None | No state or local sales tax. |
| Montana | None | Some resort communities charge a local resort tax. |
| New Hampshire | None | A separate tax applies to meals and room rentals. |
| Oregon | None | No state or local general sales tax. |
So if you are shopping in Anchorage or Juneau, expect a local tax at many stores. In Delaware or Oregon, the price on the tag is the price you pay for most purchases.
Do these states make up for it elsewhere?
Often, yes. States need revenue, and those without a sales tax tend to rely more on other taxes, such as income, property or business taxes, or on resources like oil. Whether a state is cheaper overall depends on what you earn, own and buy, not on sales tax alone. Compare the full picture before you decide where to live or shop.
The states with the highest statewide rates
| State | Statewide rate |
|---|---|
| California | 7.25% |
| Indiana | 7% |
| Mississippi | 7% |
| Rhode Island | 7% |
| Tennessee | 7% |
| Minnesota | 6.875% |
| Nevada | 6.85% |
The statewide rate is only the starting point. Cities, counties and transit districts add their own. In Washington, combined rates run from 7.6% to 10.7% depending on the city; Seattle is 10.55%. In North Carolina, Mecklenburg County (Charlotte) is 8.25%. See every place we cover on our local sales tax rates page.
What a few percentage points mean on real purchases
| Purchase | No sales tax | 6% (e.g. Florida) | 7.25% (California base) | 10.55% (Seattle) |
|---|---|---|---|---|
| $100 groceries or household items | $100.00 | $106.00 | $107.25 | $110.55 |
| $800 laptop | $800.00 | $848.00 | $858.00 | $884.40 |
| $1,500 furniture | $1,500.00 | $1,590.00 | $1,608.75 | $1,658.25 |
Example
Ryan lives in Vancouver, Washington, where the combined rate is 8.9%, a few minutes from Portland, Oregon, which has no sales tax. On an $800 laptop, Washington tax would be $71.20. That is why many Vancouver shoppers cross the river for big purchases. Washington residents can still owe use tax on some items bought out of state, so check the rules before planning a big purchase around it.
Find your rate
Every state’s rate, with a quick tax table and its official source, is on our sales tax by state page, for example Oregon, California and Texas. To work out tax on any amount, use our sales tax calculator, or read how to calculate sales tax.
Statewide rate vs. what you actually pay
Most of the price difference you notice at the register comes from local taxes. Colorado’s statewide rate is only 2.9%, the lowest of any state that charges one, but cities and counties add their own, so combined rates in many Colorado cities are much higher. Washington’s state rate is 6.5%, yet combined rates there reach 10.7% in Edmonds and Lynnwood. Always look up the combined rate for the place you are buying.
Use tax: the other side of sales tax
States with a sales tax usually also have a “use tax” on items bought elsewhere without tax and used in the state. Buying a big item in a no-tax state doesn’t always mean it is tax-free once you bring it home. Rules and enforcement vary, especially for vehicles, which are generally taxed where they are registered.
Sales tax holidays
Several states run tax-free weekends, often before the school year, when items such as clothing and school supplies under a price limit are exempt. The dates and rules change each year and are announced by each state’s revenue department, so check close to the date.
Example
Lauren lives in Nashua, New Hampshire, and works in Massachusetts. Buying a $1,200 laptop in New Hampshire, she pays no sales tax; at the Massachusetts statewide rate of 6.25%, the same laptop would add $75. Because she lives and uses the laptop in New Hampshire, no use tax applies.
