US Sales Tax Rates 2026:
State-by-State Reference Guide
No federal sales tax — but 45+ states impose rates from 2.9% to 7.25%. Learn how local add‑on taxes affect your total rate, what's exempt, and how to stay compliant.
This guide is for educational and informational purposes only. Tax rates change frequently — especially at the local level. This content does not constitute tax, legal, or financial advice. Always verify current rates with your state's official Department of Revenue before making business or compliance decisions. Rates shown reflect data as of January 1, 2026.
📋 Table of Contents
- What Is US Sales Tax?
- Key Statistics at a Glance
- States With No Sales Tax
- Complete State-by-State Rate Table
- Highest & Lowest Rate States
- Understanding Local Add-On Taxes
- Common Sales Tax Exemptions
- Sales Tax Calculator
- Rules for Online Sellers (Economic Nexus)
- How to Register & File Sales Tax
- Official State Revenue Links
- Frequently Asked Questions
1. What Is US Sales Tax?
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and, in some states, certain services. Unlike the income tax, which is based on what you earn, sales tax is based on what you spend.
There is no federal-level sales tax in the United States. Each state independently decides whether to impose a sales tax, at what rate, and on what products. This creates a complex, patchwork system of rules that varies enormously from one state to the next — and even within a single state, rates can differ between cities and counties.
When you buy a taxable item, the seller adds the applicable sales tax rate to your total. For example, purchasing a $100 item in a jurisdiction with a 7% rate means you pay $107 at the register — the seller retains $100 and remits $7 to the appropriate government authority.
💡 Key point: Sales tax is collected by the seller at the point of sale and remitted to the state (and local) government. The customer ultimately pays it, but the legal obligation to collect and file falls on the business.
2. Key Statistics at a Glance (2026)
3. States With No State Sales Tax
Five US states impose no statewide sales tax. However, each has its own nuances that consumers and businesses must understand:
🟢 Alaska
Alaska has no state sales tax but is unique because it allows local governments to levy their own. Over 100 boroughs and municipalities charge local sales taxes ranging from 1% to 7.5%.
🟢 Delaware
Delaware has no sales tax at all — state or local. It instead relies on a gross receipts tax on businesses and high income taxes.
🟢 Montana
Montana has no general sales tax. However, some resort areas may charge a small local accommodation tax.
🟢 New Hampshire
New Hampshire levies no general sales or income tax, making it a retail shopping destination.
🟢 Oregon
Oregon has no sales tax and no local sales taxes either. This makes it one of the truly "zero sales tax" states.
⚠ Caution for online sellers: Even if you're based in a no-tax state, you may owe sales tax in other states where you have customers or "economic nexus." See Section 9 below.
4. Complete State-by-State Sales Tax Rate Table (2026)
The table below lists every US state's state rate, average local rate, and combined rate as of January 1, 2026.
| # | State | State Rate | Avg. Local | Combined Rate | Notes |
|---|
* Local rates are population-weighted averages. Your specific city/county rate may vary. Sources: Tax Foundation, state revenue departments.
5. Highest & Lowest Rate States
🔴 States with Highest Combined Rates
| Rank | State | State Rate | Avg. Local | Combined |
|---|---|---|---|---|
| 1 | Louisiana | 4.45% | 5.10% | 9.55% |
| 2 | Tennessee | 7.00% | 2.55% | 9.55% |
| 3 | Arkansas | 6.50% | 2.93% | 9.43% |
| 4 | Alabama | 4.00% | 5.25% | 9.25% |
| 5 | Washington | 6.50% | 2.67% | 9.17% |
| 6 | Oklahoma | 4.50% | 4.56% | 9.06% |
| 7 | Illinois | 6.25% | 2.57% | 8.82% |
| 8 | Kansas | 6.50% | 2.19% | 8.69% |
| 9 | California | 7.25% | 1.57% | 8.82% |
| 10 | Arizona | 5.60% | 2.77% | 8.37% |
🟢 States with Lowest / Zero Rates
| Rank | State | State Rate | Avg. Local | Combined |
|---|---|---|---|---|
| 1 | Oregon | 0% | 0% | 0.00% |
| 2 | Montana | 0% | 0% | 0.00% |
| 3 | New Hampshire | 0% | 0% | 0.00% |
| 4 | Delaware | 0% | 0% | 0.00% |
| 5 | Alaska | 0% | 1.76% | 1.76% |
| 6 | Colorado | 2.90% | 4.99% | 7.79% |
| 7 | Wyoming | 4.00% | 1.36% | 5.36% |
| 8 | Hawaii | 4.00% | 0.44% | 4.44% |
| 9 | Maine | 5.50% | 0.00% | 5.50% |
| 10 | Wisconsin | 5.00% | 0.44% | 5.44% |
6. Understanding Local Add-On Taxes
Your total sales tax rate = State Rate + County Rate + City Rate + Special District Rate. In states like Louisiana, Colorado, and Alabama, local add-ons are often significant.
| State | State Rate | Avg. Local | Max Possible Combined |
|---|---|---|---|
| Alabama | 4.00% | 5.25% | ~11%+ |
| Louisiana | 4.45% | 5.10% | ~12% |
| Colorado | 2.90% | 4.99% | ~11% |
💡 Three states — California, Utah, and Virginia — require mandatory statewide local add-on taxes.
7. Common Sales Tax Exemptions
Most states exempt certain goods and services like unprepared groceries, prescription drugs, agricultural supplies, and manufacturing equipment.
⚠ Exemptions are highly state-specific. Always check the official state Department of Revenue website for a complete and current list.
8. Free Sales Tax Calculator
🧮 Sales Tax Calculator
9. Rules for Online Sellers — Economic Nexus (2026)
Following South Dakota v. Wayfair, Inc., states can require out-of-state sellers to collect and remit sales tax based on economic nexus. Most common thresholds: $100,000 in annual sales OR 200 transactions.
⚠ Penalties for non-compliance: interest, audits, fines.
10. How to Register & File Sales Tax
Step 1: Determine nexus. Step 2: Register with state's DOR. Step 3: Collect correct rate. Step 4: File returns. Step 5: Remit payment.
11. Official State Revenue Department Links
12. Frequently Asked Questions
Is there a federal sales tax in the US?
No. The United States does not have a federal sales tax.
Which state has the highest sales tax in 2026?
California highest state-level (7.25%). Highest combined: Louisiana/Tennessee (9.55%).
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire, Oregon.
Do I pay sales tax when shopping online?
Yes, most online retailers collect based on economic nexus.
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