2026 US State Sales Tax Rates & Exemptions Guide

Sales tax rates are constantly changing. As we move into 2026, staying updated on the current state base rates and exemptions is vital for both consumers and business owners.

This guide provides a complete reference for the 2026 tax landscape, including which states exempt essentials like groceries and clothing.

2026 State Sales Tax Rates (Base)

The following table lists the base state sales tax rate for all 50 states and DC. Remember, Local Taxes (city/county) are added on top of these in most states.

State	Base Rate (2026)	Max Local Rate (Approx)
Alabama	4.00%	+7.50%
Alaska	0.00%	+7.50%
Arizona	5.60%	+5.60%
Arkansas	6.50%	+5.00%
California	7.25%	+3.00%
Colorado	2.90%	+8.30%
Connecticut	6.35%	0.00%
Delaware	0.00%	0.00%
Florida	6.00%	+2.00%
Georgia	4.00%	+5.00%
Hawaii	4.00%	+0.50%
Idaho	6.00%	+3.00%
Illinois	6.25%	+4.75%
Indiana	7.00%	0.00%
Iowa	6.00%	+1.00%
Kansas	6.50%	+4.00%
Kentucky	6.00%	0.00%
Louisiana	4.45%	+7.00%
Maine	5.50%	0.00%
Maryland	6.00%	0.00%
Massachusetts	6.25%	0.00%
Michigan	6.00%	0.00%
Minnesota	6.875%	+2.00%
Mississippi	7.00%	+1.00%
Missouri	4.225%	+6.00%
Montana	0.00%	0.00%
Nebraska	5.50%	+2.50%
Nevada	6.85%	+1.53%
New Hampshire	0.00%	0.00%
New Jersey	6.625%	+3.31% (rare)
New Mexico	5.125%	+4.31%
New York	4.00%	+4.875%
North Carolina	4.75%	+2.75%
North Dakota	5.00%	+3.50%
Ohio	5.75%	+2.25%
Oklahoma	4.50%	+7.00%
Oregon	0.00%	0.00%
Pennsylvania	6.00%	+2.00%
Rhode Island	7.00%	0.00%
South Carolina	6.00%	+3.00%
South Dakota	4.20%	+2.00%
Tennessee	7.00%	+2.75%
Texas	6.25%	+2.00%
Utah	4.85%	+4.20%
Vermont	6.00%	+1.00%
Virginia	4.30%	+2.70%
Washington	6.50%	+4.10%
West Virginia	6.00%	+1.00%
Wisconsin	5.00%	+0.50%
Wyoming	4.00%	+2.00%

Note: These are standard base rates. Always verify with your local Department of Revenue.

States with No Sales Tax

As of 2026, five states remain the haven for tax-free shopping:

• Alaska (State tax is 0%, but local municipalities like Juneau do charge tax)
• Delaware
• Montana
• New Hampshire
• Oregon

Common Exemptions: Groceries & Clothing

One of the most confusing aspects of US sales tax is exemptions. What’s taxed in one state might be free in another.

Grocery Exemptions

Most states exempt groceries (unprepared food) from state sales tax to reduce the burden on lower-income households.

• Exempt States: CA, TX, NY, FL, PA, OH, MA, MI, and many others.
• Taxable States: AL, MS, and SD tax groceries at the full rate.
• Reduced Rate States: IL (1%), MO (1.225%), VA (reduced local options), UT (1.75%), TN (4%).

Clothing Exemptions

Clothing is generally taxable, but there are notable exceptions:

• Pennsylvania & New Jersey: Most clothing is fully exempt.
• Minnesota: Clothing is exempt.
• Massachusetts: Clothing under $175 per item is exempt.
• New York: Clothing and footwear under $110 per item are exempt from state tax.
• Rhode Island: Clothing is exempt.
• Vermont: Clothing is exempt.

How to Calculate Combined Rate

To get the true cost at the register, use this formula:

$Combined \ Rate = State \ Rate + County \ Rate + City \ Rate + Special \ District \ Rate$

For example, in Chicago, IL:

• State Rate: 6.25%
• Local Allocations: ~4.00%
• Total: ~10.25%

Use our Free Sales Tax Calculator to easily calculate these rates, apply exemptions automatically, and even reverse-calculate tax from a total receipt.

Understanding Local Taxes

State base rates tell only part of the story. Most states allow cities, counties, and special districts to levy additional sales tax on top of the state rate. The total rate you pay at the register is the sum of all applicable layers.

For example, a purchase in Los Angeles, CA carries:

• State Rate: 7.25%
• County Rate: 0.25%
• City Rate: 0.75%
• Special District Rate: 1.50%
• Total: 9.50%

Meanwhile, a purchase in Portland, Oregon carries a 0.00% total rate because Oregon doesn’t have state or local sales tax. This difference means the same $1,000 purchase costs $1,095 in Los Angeles and $1,000 in Portland.

Local rates change frequently. Cities may increase rates to fund transportation projects, school bonds, or infrastructure improvements. Always verify the current combined rate for your specific address before making large purchases or filing business tax returns.

Sales Tax Holidays

Several states offer periodic sales tax holidays during which certain purchases are exempt from state and sometimes local sales tax. These holidays typically occur in late summer before the school year starts.

Common sales tax holiday categories:

• Back-to-school: Clothing, footwear, school supplies, and computers under certain price thresholds
• Hurricane preparedness: Generators, batteries, flashlights, and weather radios (Florida, Texas, Virginia)
• Energy Star: Qualifying energy-efficient appliances (several states)

States with annual sales tax holidays include: Alabama, Arkansas, Connecticut, Florida, Iowa, Maryland, Massachusetts, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

Check your state’s Department of Revenue website for exact dates, qualifying items, and price caps. Most holidays last 2 to 7 days and apply to in-store and online purchases shipped to the state.

Online Sales Tax Rules (Post-Wayfair)

Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require online retailers to collect sales tax even if they have no physical presence in the state. This fundamentally changed e-commerce taxation.

Key thresholds vary by state:

• Most states use either $100,000 in sales or 200 transactions as the trigger
• Some states use only a dollar threshold
• Marketplace facilitators (Amazon, eBay, Etsy) now collect and remit tax on behalf of sellers in most states

What this means for consumers: You should expect to pay sales tax on nearly all online purchases, regardless of where the seller is located. The rate applied will be your delivery address rate, not the seller’s location rate.

What this means for businesses: If you sell online and exceed the nexus threshold in a state, you must register, collect, and remit sales tax in that state. Multi-state compliance software (Avalara, TaxJar) can automate this process.

Resale Certificates and Business Exemptions

Businesses purchasing goods for resale can avoid paying sales tax by providing a valid resale certificate to the seller. This prevents double taxation, since the end consumer will pay the tax at the point of final sale.

To use a resale certificate:

1. Apply for a sales tax permit in your state
2. Obtain a resale certificate form from your state’s Department of Revenue
3. Complete the form with your business details and sales tax permit number
4. Provide the certificate to your supplier at the time of purchase

Using a resale certificate for personal purchases is tax fraud and carries penalties including fines and back taxes with interest.

Other common business exemptions include purchases by nonprofit organizations, government entities, and manufacturers buying raw materials for production. Each state defines these exemptions differently, so verify with your state’s tax authority.

Frequently Asked Questions

Which states have the highest total sales tax rates?

Tennessee, Louisiana, Arkansas, Washington, and Alabama consistently rank among the highest when combining state and local rates. Tennessee’s combined rate reaches 9.55% in some areas. Louisiana can exceed 11% in certain parishes due to stacked local taxes. The effective rate depends heavily on your specific city and county, since local taxes vary dramatically within a single state.

Do I have to pay sales tax on food and groceries?

It depends on the state. Most states exempt unprepared food (groceries) from state sales tax, including California, Texas, New York, Florida, and Pennsylvania. However, Alabama, Mississippi, and South Dakota tax groceries at the full rate. States like Illinois, Missouri, Virginia, and Utah apply a reduced rate to groceries. Prepared food (restaurant meals, deli items, hot food) is almost always taxable regardless of state.

Is clothing taxable in every state?

No. Pennsylvania, New Jersey, Minnesota, Rhode Island, and Vermont fully exempt clothing from sales tax. Massachusetts exempts clothing under $175 per item. New York exempts clothing and footwear under $110 per item from state tax. Most other states with sales tax do charge tax on clothing at the standard rate. During sales tax holidays, many additional states temporarily exempt clothing purchases under certain price thresholds.

How do I determine the correct sales tax rate for my address?

Your total sales tax rate combines state, county, city, and any special district rates for your specific delivery or purchase address. Rates can differ between addresses just a few blocks apart if they cross city or district boundaries. Use a rate lookup tool or your state’s Department of Revenue website to find the exact combined rate for your address. Businesses should use automated tax software to ensure compliance.

Do online purchases require sales tax?

Yes, in nearly all cases since the 2018 Wayfair Supreme Court ruling. Online retailers that exceed sales thresholds in a state must collect and remit sales tax, even without a physical presence there. Major marketplaces like Amazon, eBay, and Etsy now collect tax automatically for all states that require it. The tax rate applied is based on your shipping address. The five states without sales tax (AK, DE, MT, NH, OR) are still the exceptions.