How is US sales tax calculated?
US sales tax is a combined state and local rate applied to the purchase price. The statewide base rate varies from 0% (in states like Oregon, Montana, and New Hampshire) to over 7%. Cities, counties, and special districts often add local sales tax on top, so the effective rate depends on the exact location.
Which states have no sales tax?
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska allows local sales taxes even without a state tax. In all other states, a combination of state and local rates applies.
Do I owe sales tax on online purchases?
Since the Supreme Court's South Dakota v. Wayfair decision, states can require online sellers to collect sales tax based on economic nexus, even without a physical presence. Most large online retailers now collect sales tax at the buyer's location rate.
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 the buyer's obligation to self-report tax on taxable goods bought without sales tax charged (for example, from an out-of-state seller). The rates are generally the same; use tax closes the gap when sales tax was not collected.