Sales Tax by State 2026: All 50 State Rates in One Table
Sales tax by state for 2026: every state base rate in one table, average local rates, the 5 states with no sales tax, and how to find the rate for an invoice.
Quick answer: State sales tax rates in 2026 range from 0% in Alaska, Delaware, Montana, New Hampshire and Oregon to 7.25% in California. Indiana, Mississippi, Rhode Island and Tennessee follow at 7%. These are state-level base rates only: most states add county, city and district taxes on top, so the rate you charge depends on the sale's location.
If you sell goods or taxable services in the US, you need the right rate on every invoice. This guide lists sales tax by state for 2026 in one table, explains why the state base rate is only the starting point, shows how to find the exact combined rate for an address, and walks through a worked invoice example. Rates come from a single source, the Tax Foundation's 2026 midyear table (rates as of July 1, 2026), and the Tax Foundation reports no state base rate changes between January and July 2026. This is general information, not tax advice; confirm rates with each state's revenue department.
What is state sales tax?
Sales tax is a tax on retail sales of goods and some services, collected by the seller from the buyer and paid to the state. Forty-five states and the District of Columbia levy a statewide sales tax. The state sets a base rate and a tax base (what is taxable), and in 38 states local governments add their own rates. The seller is responsible for charging the right rate, filing returns and paying the tax over. Use tax is the matching tax a buyer owes when the seller did not collect sales tax on a taxable purchase. For the bigger picture, see our guide to sales tax on US invoices.
Sales tax by state 2026: state base rates table
State rates below are the statewide base rates. The average local rate is the population-weighted average of local add-ons. The combined figure is an average, not a rate you can charge. Rates for California, Utah and Virginia include mandatory statewide local add-ons (1.25%, 1.25% and 1%).
| State | State rate | Avg local rate | Avg combined |
|---|---|---|---|
| Alabama | 4.00% | 5.46% | 9.46% |
| Alaska | 0.00% | 1.82% | 1.82% |
| Arizona | 5.60% | 2.94% | 8.54% |
| Arkansas | 6.50% | 2.98% | 9.48% |
| California | 7.25% | 1.78% | 9.03% |
| Colorado | 2.90% | 4.99% | 7.89% |
| Connecticut | 6.35% | 0.00% | 6.35% |
| Delaware | 0.00% | 0.00% | 0.00% |
| District of Columbia | 6.00% | 0.00% | 6.00% |
| Florida | 6.00% | 0.98% | 6.98% |
| Georgia | 4.00% | 3.56% | 7.56% |
| Hawaii | 4.00% | 0.50% | 4.50% |
| Idaho | 6.00% | 0.03% | 6.03% |
| Illinois | 6.25% | 2.73% | 8.98% |
| Indiana | 7.00% | 0.00% | 7.00% |
| Iowa | 6.00% | 0.94% | 6.94% |
| Kansas | 6.50% | 2.21% | 8.71% |
| Kentucky | 6.00% | 0.00% | 6.00% |
| Louisiana | 5.00% | 5.13% | 10.13% |
| Maine | 5.50% | 0.00% | 5.50% |
| Maryland | 6.00% | 0.00% | 6.00% |
| Massachusetts | 6.25% | 0.00% | 6.25% |
| Michigan | 6.00% | 0.00% | 6.00% |
| Minnesota | 6.875% | 1.26% | 8.14% |
| Mississippi | 7.00% | 0.06% | 7.06% |
| Missouri | 4.225% | 4.22% | 8.44% |
| Montana | 0.00% | 0.00% | 0.00% |
| Nebraska | 5.50% | 1.48% | 6.98% |
| Nevada | 6.85% | 1.39% | 8.24% |
| New Hampshire | 0.00% | 0.00% | 0.00% |
| New Jersey | 6.625% | -0.02% | 6.60% |
| New Mexico | 4.875% | 2.80% | 7.68% |
| New York | 4.00% | 4.54% | 8.54% |
| North Carolina | 4.75% | 2.35% | 7.10% |
| North Dakota | 5.00% | 2.09% | 7.09% |
| Ohio | 5.75% | 1.54% | 7.29% |
| Oklahoma | 4.50% | 4.56% | 9.06% |
| Oregon | 0.00% | 0.00% | 0.00% |
| Pennsylvania | 6.00% | 0.34% | 6.34% |
| Rhode Island | 7.00% | 0.00% | 7.00% |
| South Carolina | 6.00% | 1.49% | 7.49% |
| South Dakota | 4.20% | 1.91% | 6.11% |
| Tennessee | 7.00% | 2.61% | 9.61% |
| Texas | 6.25% | 1.95% | 8.20% |
| Utah | 6.10% | 1.32% | 7.42% |
| Vermont | 6.00% | 0.43% | 6.43% |
| Virginia | 5.30% | 0.47% | 5.77% |
| Washington | 6.50% | 3.07% | 9.57% |
| West Virginia | 6.00% | 0.60% | 6.60% |
| Wisconsin | 5.00% | 0.72% | 5.72% |
| Wyoming | 4.00% | 1.39% | 5.39% |
Source: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026. Hawaii and New Mexico levy gross receipts or general excise taxes that function like sales taxes but are legally imposed on the business. New Jersey's negative local average reflects reduced rates in Urban Enterprise Zones. South Dakota's 2023 rate cut is scheduled to sunset in 2027 under current law.
Why the state rate is not the rate you charge
The table above shows state-level rates only. Local rates sit on top: counties, cities, transit districts and special purpose districts can each add a percentage. In Colorado, for example, the 2.9% state rate is the lowest of any state with a sales tax, but local rates average nearly 5%, so many buyers pay more than in a state with a higher base rate. A single ZIP code can contain several tax jurisdictions, which is why rate lookups work on full street addresses.
Two more rules decide the rate on a given sale:
- Sourcing. Most states use destination sourcing: the rate where the buyer receives the goods. A few states, such as Texas and Illinois for many in-state sales, use forms of origin sourcing. California uses a hybrid: state, county and city taxes are origin-based while district taxes are destination-based.
- Taxability. The rate only applies to taxable items. Groceries, prescription drugs, clothing (in some states) and many services are exempt or taxed differently. See which states tax services and whether shipping is taxable.
How to find the exact sales tax rate for an invoice
- Confirm you have nexus in the buyer's state, through physical presence or economic nexus. Our sales tax nexus guide lists the thresholds.
- Register for a seller's permit before collecting; see how to get a seller's permit.
- Check taxability of what you sell in that state.
- Check exemption certificates. Resellers and exempt buyers may give you a resale certificate or exemption certificate.
- Look up the combined rate for the delivery address using the state's official lookup tool.
- Apply the rate to the taxable subtotal; use our sales tax calculator to check the math.
- Show it on the invoice as a separate line, then file and pay on your assigned schedule; see how to file a sales tax return.
Worked example: an invoice with state and local sales tax
A furniture maker in Austin, Texas sells and delivers to a customer in the city. Texas's state rate is 6.25%, and local jurisdictions can add up to 2%; Austin addresses commonly total 8.25%, but confirm the exact rate for the delivery address with the Texas Comptroller's lookup. In Texas, delivery charges on taxable items are part of the taxable sales price.
| Line item | Qty | Unit price | Amount |
|---|---|---|---|
| Walnut dining table, 72 in | 1 | $2,400.00 | $2,400.00 |
| Matching bench | 1 | $480.00 | $480.00 |
| Local delivery and setup | 1 | $120.00 | $120.00 |
| Taxable subtotal | $3,000.00 | ||
| State sales tax (6.25%) | $187.50 | ||
| Local sales tax (2.00%) | $60.00 | ||
| Total due | $3,247.50 | ||
The same order delivered to a customer in Oregon would carry no sales tax at all, and one delivered to a Colorado address could carry a combined rate well above 8% even though Colorado's state rate is only 2.9%. Some states also have item-level quirks, such as Tennessee's cap on local tax for single articles above $1,600, which is why state guidance matters as much as the headline rate. You can build an invoice like this with our free invoice generator, which lets you add a tax line and rate.
States with no sales tax and the highest rates
| Group | States | What to know |
|---|---|---|
| No statewide sales tax | Alaska, Delaware, Montana, New Hampshire, Oregon | Alaska localities and some Montana resort towns still tax sales |
| Highest state base rates | California (7.25%); Indiana, Mississippi, Rhode Island, Tennessee (7%) | Local add-ons push combined rates higher in CA and TN |
| Highest average combined rates | Louisiana, Tennessee, Washington, Arkansas, Alabama | Driven by high local rates |
| No local sales taxes | Connecticut, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Rhode Island, DC | One statewide rate makes invoicing simpler |
How does economic nexus decide which state rates apply to you?
Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, every state with a sales tax can require remote sellers to collect once they pass an economic threshold, even with no physical presence. Many states use $100,000 of sales into the state in the current or previous calendar year; a few use higher figures, such as $500,000 in California, New York and Texas, and several states have dropped the old 200-transaction test. Once you cross a threshold, you register in that state and start charging its state rate plus the local rate for each delivery address.
For a small online seller this usually means collecting in your home state from day one and adding other states one at a time as sales grow. Sales made through marketplaces such as Amazon or Etsy are generally collected and remitted by the marketplace facilitator, though some states still count them toward your threshold. Track sales by state monthly so you notice when you are getting close.
How to keep sales tax rates up to date
Rate tables like the one above are a starting point, not something to copy into your invoicing tool once and forget. Practical habits:
- Subscribe to rate change notices from each state where you are registered; most revenue departments publish them before each quarter.
- Re-check combined rates for repeat customers every January, April, July and October.
- If you sell into many states, consider sales tax software that calculates by address; states in the Streamlined Sales Tax program offer certified service providers at no cost to some remote sellers.
- Record the rate used on each invoice so you can prove what you charged if a rate changed mid-quarter.
Common sales tax rate mistakes
- Charging only the state rate. Under-collecting local tax leaves you paying the difference from your own pocket.
- Using ZIP-code rates. ZIPs cross jurisdiction lines; use full addresses.
- Using last year's rate. Local rates change quarterly in many states.
- Collecting without a permit. Register first.
- Taxing exempt sales. Over-collected tax must be refunded to customers or paid to the state; it is never yours to keep.
- Mixing up gross and net. If a price includes tax, back the tax out correctly; see reverse sales tax calculation and how to calculate sales tax.
Knowing sales tax by state is the first step; the exact combined rate for each address is what goes on the invoice. Once you have it, create a clean, itemized invoice with a tax line using our free invoice generator. It is free, needs no sign-up, and downloads a PDF built in your browser.
Frequently asked questions
Which state has the highest sales tax rate in 2026?
California has the highest state-level rate at 7.25%, which includes a mandatory 1.25% statewide local portion. When local taxes are added, Louisiana has the highest average combined rate, about 10.13% in the Tax Foundation's July 2026 data, followed by Tennessee, Washington, Arkansas and Alabama. Individual cities can be higher still, so always look up the exact address rather than relying on state averages.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska still allows local sales taxes, which average a little under 2% across the state, and some Montana resort areas levy local taxes. Delaware has a gross receipts tax paid by businesses rather than a sales tax charged to customers. Businesses in these states may still need to collect tax when selling into other states.
Is the state sales tax rate the rate I charge customers?
Usually not by itself. In most states you charge the combined rate: the state rate plus any county, city and special district rates. Which location's rate applies depends on sourcing rules. Most states use destination sourcing for shipped goods, while some use origin sourcing for in-state sellers. A rate lookup tool from the state revenue department gives the exact combined rate for an address.
Do I charge sales tax to out-of-state customers?
Only if you have sales tax nexus in the customer's state, through a physical presence or by passing that state's economic nexus threshold, which is $100,000 in sales for many states. If you have no nexus there, you normally do not collect, although the buyer may owe use tax. Marketplace sales are generally handled by the marketplace facilitator, not by you.
How often do state sales tax rates change?
State base rates change rarely, perhaps a handful of times a year across all states, usually by legislation with an effective date of January 1, April 1 or July 1. Local rates change much more often, every quarter in some states. That is why it is safer to check a state's rate lookup each quarter than to rely on a rate you saved last year.
Do I need a permit before collecting sales tax?
Yes. Before you collect sales tax in a state, register with its revenue department for a seller's permit or sales tax license. Collecting tax without a permit can be illegal in some states, and failing to register when you have nexus leaves you liable for tax you should have collected. Registration is usually free or low-cost and done online.
Are groceries taxed at the state sales tax rate?
Most states exempt groceries or tax them at a reduced rate, but the details vary. Some states tax food at the full rate, and others apply a lower state rate while localities add their own tax. Illinois, for example, eliminated its 1% state tax on groceries from January 1, 2026, though many localities now impose their own. Check your state's definition of food.
What is the average sales tax rate in the US?
The Tax Foundation calculated a population-weighted national average combined state and local sales tax rate of about 7.5% as of January 1, 2026. That average hides a wide range: from 0% in Oregon and New Hampshire to above 10% combined in parts of Louisiana, Alabama, Tennessee and Washington. The average is useful for comparisons but not for invoicing.
Should my invoice show the state and local tax separately?
Most states only require the total sales tax to be shown separately from the price, but some businesses list the state and local portions to make audits and customer questions easier. Whatever you do, show the tax rate, the taxable amount and the tax amount clearly, and keep records of which jurisdiction each sale was sourced to so you can file accurately.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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