Sales Tax by State: 2026 Rates, Exemptions & No-Tax States

9 min read By Sales Tax Calculator Editorial Team
#sales-tax #state-tax-rates #combined-rates #no-tax-states #exemptions #2026

Disclaimer: This article is for educational purposes only and is not tax, legal, or financial advice. Sales tax rates change periodically; always verify current rates with your state's department of revenue or consult a tax professional.

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Quick Answer: Sales Tax by State

45 states and Washington, D.C. levy a statewide sales tax. Combined rates (state + average local) range from 0% in the five NOMAD states to 9.55% in Louisiana and Tennessee.

Five states collect no state sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to impose their own sales taxes.

Key Takeaways

  • 45 states + DC impose sales tax. Only Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax.
  • Combined rates matter most. The rate you pay at the register is the state rate plus any local (city, county, district) taxes layered on top.
  • Louisiana and Tennessee have the highest combined rates. Both exceed 9.5% when you factor in average local add-ons.
  • Alaska is the odd one out. It has no state sales tax, yet local jurisdictions can charge up to ~7.5%, making the statewide average around 1.82%.
  • Rates change every year. Multiple states and hundreds of local jurisdictions adjust rates annually, so always verify before filing or remitting.
  • Online sellers must track nexus. Since the 2018 South Dakota v. Wayfair ruling, most states require remote sellers to collect sales tax once they exceed certain revenue or transaction thresholds.

2026 Sales Tax Rates for All 50 States + DC

The table below lists every state's base rate, the average local rate added on top, and the combined rate a typical buyer pays. We pulled rates from the Tax Foundation and individual state revenue departments.

2026 state and combined sales tax rates for all 50 states and Washington, D.C.
StateState RateAvg Local RateCombined Rate
Alabama4.00%5.24%9.24%
Alaska0.00%1.82%1.82%
Arizona5.60%2.77%8.37%
Arkansas6.50%2.94%9.44%
California7.25%1.60%8.85%
Colorado2.90%4.89%7.79%
Connecticut6.35%0.00%6.35%
Delaware0.00%0.00%0.00%
Florida6.00%1.02%7.02%
Georgia4.00%3.37%7.37%
Hawaii4.00%0.44%4.44%
Idaho6.00%0.02%6.02%
Illinois6.25%2.57%8.82%
Indiana7.00%0.00%7.00%
Iowa6.00%0.94%6.94%
Kansas6.50%2.20%8.70%
Kentucky6.00%0.00%6.00%
Louisiana4.45%5.10%9.55%
Maine5.50%0.00%5.50%
Maryland6.00%0.00%6.00%
Massachusetts6.25%0.00%6.25%
Michigan6.00%0.00%6.00%
Minnesota6.875%0.64%7.52%
Mississippi7.00%0.07%7.07%
Missouri4.225%4.06%8.29%
Montana0.00%0.00%0.00%
Nebraska5.50%1.44%6.94%
Nevada6.85%1.38%8.23%
New Hampshire0.00%0.00%0.00%
New Jersey6.625%-0.03%6.60%
New Mexico5.125%2.69%7.82%
New York4.00%4.52%8.52%
North Carolina4.75%2.25%7.00%
North Dakota5.00%2.04%7.04%
Ohio5.75%1.47%7.22%
Oklahoma4.50%4.47%8.97%
Oregon0.00%0.00%0.00%
Pennsylvania6.00%0.34%6.34%
Rhode Island7.00%0.00%7.00%
South Carolina6.00%1.43%7.43%
South Dakota4.20%1.90%6.10%
Tennessee7.00%2.55%9.55%
Texas6.25%1.95%8.20%
Utah6.10%1.09%7.19%
Vermont6.00%0.44%6.44%
Virginia5.30%0.47%5.77%
Washington6.50%2.79%9.29%
Washington, D.C.6.00%0.00%6.00%
West Virginia6.00%0.52%6.52%
Wisconsin5.00%0.44%5.44%
Wyoming4.00%1.36%5.36%

Reading the table: The "State Rate" is set by the state legislature. The "Avg Local Rate" is the population-weighted average of all city, county, and special-district taxes within that state. The "Combined Rate" is what you can expect to pay on a typical taxable purchase.

Rates are current as of January 2026. Local rates can vary within a state, so these averages may not match your exact city or county. Check your specific location for a precise figure.

The Five No-Sales-Tax States (NOMAD)

A handy mnemonic for remembering the five states without a general sales tax is NOMAD: New Hampshire, Oregon, Montana, Alaska, Delaware.

What "no sales tax" actually means

In four of these states (Delaware, Montana, New Hampshire, and Oregon), there is no general sales tax at the state or local level. Consumers pay $0 in sales tax on retail purchases.

Alaska is the exception. The state itself imposes no sales tax, but it grants local governments the authority to levy their own. More than 100 Alaskan jurisdictions charge local sales tax, with rates reaching as high as 7.5% in some boroughs. The statewide average local rate is about 1.82%.

How these states fund public services

Without sales-tax revenue, NOMAD states lean on other sources:

  • New Hampshire: relies heavily on property taxes and business taxes; no income tax on wages
  • Oregon: higher state income tax rates (up to 9.9%) offset the absence of sales tax
  • Montana: income tax plus a resort tax in certain tourist areas
  • Alaska: oil revenues fund much of the state budget, plus the Permanent Fund Dividend
  • Delaware: corporate franchise taxes and gross-receipts taxes on businesses

Shopping across borders

Living near a NOMAD state can save you money. Shoppers in southern Washington State routinely drive to Portland, Oregon, for big-ticket purchases to avoid Washington's 9.29% combined rate. However, most states require residents to self-report and pay "use tax" on out-of-state purchases brought home, a rule rarely enforced on individuals but increasingly enforced on businesses.

State Rate vs. Combined Rate: The Difference You Actually Pay

The most common sales tax mistake: looking up only the state rate. The rate you pay at checkout is almost always higher because local taxes stack on top.

How combined rates work

Combined rate = state rate + county rate + city rate + special district rate (if any). In most states, the register adds all applicable layers together into one line on your receipt.

Where the gap is biggest

Some states have low base rates but large local add-ons:

  • Colorado: 2.90% state rate, but the combined average is 7.79%, a 4.89 percentage-point gap from local taxes
  • Alabama: 4.00% state rate, 9.24% combined. Local jurisdictions add over 5 percentage points
  • Louisiana: 4.45% state rate, 9.55% combined. More than 5 points of local tax
  • New York: 4.00% state rate, 8.52% combined. New York City alone adds 4.5%

Where the gap is smallest

Several states have no local sales taxes at all, meaning the state rate is the combined rate:

  • Connecticut (6.35%), Delaware (0%), Indiana (7%), Kentucky (6%), Maine (5.5%), Maryland (6%), Massachusetts (6.25%), Michigan (6%), Montana (0%), New Hampshire (0%), Oregon (0%), Rhode Island (7%)

If you are comparing cost of living between two cities, always use the combined rate for the specific ZIP code, not the state rate.

Notable 2026 Sales Tax Changes

Sales tax rates change often. Here are the updates that took effect in early 2026 or are scheduled for later this year.

Rate increases

  • Several local jurisdictions in Colorado and Louisiana approved ballot measures in November 2025 that raised local rates effective January 1, 2026. In both states, the combined averages rose compared to 2025.
  • South Dakota voters rejected a proposal to repeal the state's sales tax on groceries, keeping food subject to the full 4.2% state rate (plus locals).

Rate decreases and exemptions

  • Illinois allowed its temporary 1% grocery tax suspension (originally enacted in 2022) to expire and replaced it with a permanent grocery exemption starting January 1, 2026. Groceries are now fully exempt from the state's 6.25% rate, though local taxes may still apply.
  • Kansas continued its phased elimination of state sales tax on groceries. The rate dropped to 0% on food for home consumption as of January 2026, down from 2% in 2025.
  • Virginia expanded its sales tax holiday for school supplies and clothing, extending the exemption period from three days to five in August 2026.

Tax-free shopping holidays

More than 20 states now offer at least one sales tax holiday each year, typically in late summer for back-to-school purchases. Items like clothing, school supplies, computers, and sometimes Energy Star appliances are temporarily exempt. Check your state's department of revenue for 2026 dates and qualifying items.

What to watch later in 2026

Multiple state legislatures are considering broader grocery exemptions, and several cities have proposed local rate adjustments that could take effect mid-year. If you run a business, subscribe to your state's tax bulletin for real-time updates.

Economic Nexus: Sales Tax for Online Sellers

If you sell products online, the rules changed in 2018. The Supreme Court decided in South Dakota v. Wayfair, Inc. that states can require out-of-state sellers to collect sales tax even without a physical presence. That principle is called economic nexus.

How economic nexus works

Each state that charges sales tax defines a threshold based on revenue, number of transactions, or both. Cross that line in any state and you must register, collect, and remit sales tax there.

Common thresholds

The most widely adopted threshold is $100,000 in annual sales or 200 transactions into a state, the standard set by South Dakota. However, thresholds vary by state:

  • $100,000 in sales only (no transaction count): California, Texas, New York, and many others have dropped the transaction-count trigger
  • $100,000 or 200 transactions: still used by states like South Dakota, Indiana, and Iowa
  • $500,000 in sales: California and Texas use higher thresholds for certain obligations
  • $250,000 in sales: used by a few states like Mississippi and Pennsylvania for specific seller categories

Marketplace facilitator laws

All states with sales tax have now enacted marketplace facilitator laws. These require platforms like Amazon, Etsy, eBay, and Shopify to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through a marketplace, the platform probably handles collection for you. Still, verify that it covers every state where you have buyers.

What online sellers need to do

  1. Track your revenue and transaction counts in each state
  2. Register for a sales tax permit in states where you exceed the threshold
  3. Use sales tax automation software (TaxJar, Avalara, etc.) to apply the correct rate by address
  4. File and remit on time. Penalties for late remittance add up fast
  5. Keep records of exempt sales (resale certificates, government purchases)

Sales Tax Examples

See how sales tax adds up in different states and scenarios. Rates reflect 2026 combined averages; your actual rate depends on your exact location.

Example 1: Buying a Laptop in Tennessee (Highest Combined Rate)
  • Purchase: $1,200 laptop in Nashville, TN
  • State rate: 7.00%
  • Local rate (Nashville): 2.25%
  • Combined rate: 9.25%
  • Sales tax: $1,200 × 9.25% = $111.00
  • Total at register: $1,311.00

Tennessee has one of the highest combined rates in the country. On a $1,200 purchase, you pay $111 in sales tax alone. Groceries in Tennessee are taxed at a reduced state rate of 4%, though local taxes still apply.

Example 2: Buying the Same Laptop in Oregon (No Sales Tax)
  • Purchase: $1,200 laptop in Portland, OR
  • State rate: 0.00%
  • Local rate: 0.00%
  • Combined rate: 0.00%
  • Sales tax: $0.00
  • Total at register: $1,200.00

Oregon is one of the five NOMAD states with no sales tax at any level. The same $1,200 laptop costs exactly $1,200 out the door, $111 less than in Nashville. This is why shoppers from nearby Washington State (9.29% combined average) drive to Oregon for large purchases.

Example 3: Online Purchase with Economic Nexus
  • Scenario: You live in Texas and buy a $300 chair from an online retailer based in Oregon
  • Seller's home state: Oregon (no sales tax)
  • Your state rate (Texas): 6.25%
  • Your local rate: 2.00% (varies by city)
  • Combined rate: 8.25%
  • Sales tax charged: $300 × 8.25% = $24.75

Even though the seller is in a no-tax state, they must collect Texas sales tax if they have economic nexus there (over $500,000 in Texas sales). Thanks to marketplace facilitator laws, most major platforms handle this automatically. If the seller does not collect, Texas requires you to self-report and pay use tax on your state return.

Frequently Asked Questions

Which state has the highest sales tax?
Louisiana and Tennessee are tied for the highest combined average rate at 9.55%. Specific localities can exceed that; parts of Louisiana and Alabama reach combined rates above 11% in certain jurisdictions.
Which states have no sales tax?
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon (NOMAD). Alaska allows local jurisdictions to charge sales tax, so it is not entirely tax-free in every location.
Is food subject to sales tax?
Most states exempt unprepared groceries from sales tax, but about 13 states still tax groceries at the full rate or a reduced rate. Prepared food (restaurant meals, hot deli items) is taxable in nearly every state that has sales tax.
What is the difference between sales tax and use tax?
Sales tax is collected by the seller at the point of sale. Use tax is owed by the buyer when the seller does not collect sales tax, typically on out-of-state or online purchases. The rate is usually the same as your local sales tax rate.
Do I have to pay sales tax on online purchases?
In most cases, yes. Since the 2018 Wayfair decision, most states require online sellers (or the marketplaces they sell through) to collect sales tax once they exceed economic nexus thresholds. If tax is not collected at checkout, you may owe use tax.
Why is my sales tax rate different from the state rate?
Because local taxes are added on top. Counties, cities, and special districts can each add their own sales tax, resulting in a combined rate that is often 2 to 5 percentage points higher than the state rate alone.
What are sales tax holidays?
Sales tax holidays are temporary periods (usually a few days) when specific items are exempt from sales tax. Over 20 states offer them, most commonly for back-to-school supplies, clothing, and electronics. Dates and eligible items vary by state.
Can sales tax rates change mid-year?
Yes. While most state-level changes take effect on January 1 or July 1, local jurisdictions can adjust rates throughout the year. A city can enact a new sales tax after a special election. Businesses should monitor rate changes quarterly.

Tips to Pay the Right Sales Tax

  • Always use the combined rate for your specific location. The state rate alone underestimates what you will pay. Look up your city and county add-ons, or use our calculator for the exact amount.
  • Check for exemptions before big purchases. Many states exempt groceries, prescription drugs, and clothing. Some exempt manufacturing equipment or items for resale. Knowing the rules can save you hundreds of dollars.
  • Time your purchases around sales tax holidays. If your state offers a back-to-school or energy-efficiency holiday, plan ahead. The savings on a $1,000 laptop at a 9% rate is $90.
  • Keep records of all exempt sales. If you run a business, maintain resale certificates, exemption certificates, and documentation for every non-taxable transaction. Auditors will ask.
  • Use automation if you sell in multiple states. Manually tracking rates and filing returns across dozens of jurisdictions is impractical. Tools like TaxJar, Avalara, and Vertex handle rate lookups and filing so you don't have to.
  • Review your nexus exposure annually. As your business grows, you may cross economic nexus thresholds in new states. Check your sales by state at least once a year and register where required.

References

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