Where to find your sales tax percentage
Your sales tax rate depends on where you live and sometimes where you are buying. Most states post their current rate on the state revenue or taxation department website. You can also call your local tax assessor's office, ask at a store's customer service desk, or use an online sales tax lookup tool by entering your zip code.
The rate you see at checkout is usually a combination of state tax and local tax (city or county). A state might have 5% sales tax, but your city adds 1.5%, so you pay 6.5% total. This is why the same item costs different amounts in different parts of the same state.
Some items are taxed differently depending on what they are. Groceries, prescription medications, and clothing are often taxed at a lower rate or not taxed at all, depending on your state. Online purchases are increasingly subject to sales tax too, even if the seller is out of state.
Key Takeaways
- Your state revenue department website lists the state sales tax rate, and you can find local additions by zip code on most state sites or through a tax lookup tool.
- Sales tax is usually a combination of state and local rates, so the total percentage varies by city and county even within the same state.
- Some items like groceries, medicine, and clothing may be taxed at a lower rate or not taxed at all, depending on your state's rules.
- You can verify the exact rate by calling your local tax assessor's office or asking a cashier at a store in your area.
How to use your state's tax lookup tool
Most states have an online tool on their revenue or taxation department website where you enter your zip code and get the combined state and local rate. The tool usually takes 30 seconds and shows you the exact percentage you will pay on taxable items in that location.
To find the tool, search "[your state name] sales tax rate lookup" or go directly to your state's revenue department website. The link is usually under a section called "Sales Tax" or "Tax Rates." If you cannot find it online, call the main number for your state's revenue department and ask for the rate in your zip code.
Understanding state versus local tax
The state sales tax is set by your state legislature and applies everywhere in the state. The local sales tax is added by your city, county, or both, and varies by location. When you see a rate at the register, it is the sum of both.
For example, if your state has 6% sales tax and your county adds 0.5%, you pay 6.5%. If you drive to a neighboring county with no local addition, you pay only 6%. This is why it matters which zip code you are in, not just which state.
Items that may not be taxed or taxed differently
Most states do not tax groceries, prescription drugs, or medical equipment. Some states do not tax clothing or have a lower rate for it. A few states do not have sales tax at all (Alaska, Delaware, Montana, New Hampshire, and Oregon).
The rules vary widely. One state might tax groceries at the full rate while another taxes them at half. Restaurant meals are usually taxed at the full rate even in states that do not tax groceries. If you are unsure whether something is taxed, ask the cashier or check your state's list of taxable and non-taxable items on the revenue department website.
How to calculate the tax on a purchase
To calculate sales tax on an item, multiply the price by the tax rate as a decimal. If an item costs $100 and your tax rate is 7%, multiply $100 by 0.07 to get $7 in tax. The total you pay is $100 + $7 = $107.
If you are buying multiple items with different tax rates (for example, groceries and a magazine), calculate the tax on each separately, then add them together. Most registers do this automatically, but knowing how to do it yourself helps you spot errors or plan a budget.
Sales tax on online and out-of-state purchases
Online retailers are now required to charge sales tax in most states, even if the company is located elsewhere. The tax rate is usually based on where the item is being shipped, not where the seller is. You pay the same rate as you would in a physical store in your area.
Some small sellers and out-of-state businesses may not charge sales tax, but you may owe it anyway when you file taxes. Check the retailer's website to see whether tax is included in the price or added at checkout. If you are unsure, contact the seller or your state revenue department.
Frequently Asked Questions
Do I have to pay sales tax on everything I buy?
No. Most states do not tax groceries, prescription medications, and some medical equipment. Some states do not tax clothing. The rules vary by state, so check your state revenue department website for a list of what is and is not taxed where you live.
Why is the sales tax different in the next town over?
Local sales tax is added on top of state tax and varies by city and county. Your state might have 5% tax, but your city adds 1%, while the next town adds 1.5%. That is why the same item costs different amounts in different locations.
Do I pay sales tax on online orders?
Most online retailers now charge sales tax based on where you live, even if the company is out of state. The rate is the same as you would pay in a physical store in your area. Some small sellers may not charge it, but you may still owe it.
How do I know if my state has sales tax?
Five states have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. All other states have a state sales tax, though the rate varies. You can confirm your state's rate by searching "[your state name] sales tax rate" or calling your state revenue department.
Can the sales tax rate change?
Yes. State and local tax rates can change when legislatures pass new laws. Most changes happen once a year, but some places change rates more often. Check your state revenue department website for the current rate in your area.