What are the sales tax rates by US state?
📋 Direct Answer
[Unverified] Figures may be out of date. Queued 2026-08-21 (uvq-us-sales-tax-by-state-en-F0-01). Check the official page: https://www.mtc.gov/. Public compilation, not tax advice.
Check the official page[Unverified] Figures may be out of date. Queued 2026-08-21 (uvq-us-sales-tax-by-state-en-F0-02). Check the official page: https://www.mtc.gov/. Public compilation, not tax advice.
Check the official page[Unverified] Figures may be out of date. Queued 2026-08-21 (uvq-us-sales-tax-by-state-en-F0-03). Check the official page: https://www.mtc.gov/. Public compilation, not tax advice.
Check the official page[Unverified] Figures may be out of date. Queued 2026-08-21 (uvq-us-sales-tax-by-state-en-F0-05). Check the official page: https://www.mtc.gov/. Public compilation, not tax advice.
Check the official pageUS sales tax rates vary significantly by state. No sales tax: Oregon, Montana, New Hampshire, Delaware, Alaska (local taxes possible). Highest combined: Louisiana (9.55%), Tennessee (9.55%), Arkansas (9.51%). Average state rate: ~5%. Combined state + local: 0-10.25%. States with no sales tax still require marketplace facilitators to collect in some jurisdictions.
📝 Step-by-Step Guide
Prerequisites
- •Business entity established
- •Nexus threshold analysis completed
- •Product taxability determined
- 1
Determine Nexus
Analyze economic nexus thresholds for each target state (revenue + transaction counts). Most states: $100K revenue or 200 transactions.
- 2
Identify Product Taxability
Check whether your products are taxable in each nexus state. Rules vary by state — clothing, digital goods, and food have different exemptions.
- 3
Register for Permits
File sales tax permit applications in each nexus state. Many states allow online registration. Do NOT collect tax before obtaining a permit.
- 4
Configure Collection
Set up tax calculation in your e-commerce platform or marketplace. Configure product tax codes and destination-based rates.
- 5
File Returns
File periodic sales tax returns per state requirements (monthly, quarterly, or annual). Use a tax automation tool for multi-state compliance.
- 6
Monitor Threshold Changes
Track evolving nexus thresholds and rate changes. Set calendar reminders for filing deadlines. Consider marketplace facilitator laws to reduce direct filing burden.
💰 Cost Breakdown
| Item | Cost | Frequency |
|---|---|---|
| Marketplace facilitator collection | Included in platform fees | one-time |
| Direct registration + collection | $500-5,000/year per state for compliance software + filing | annual |
| No Sales Tax States | 0% | one-time |
| Highest Rate States | 8-10%+ | one-time |
| Total Estimate | $508 – $5010 | Per US filing |
US sales tax has no single national rate — effective rates vary from 0% to 10%+ depending on state AND local jurisdiction
Incorrect collection rates lead to audit exposure in multiple states simultaneously
🛡️ Prevention Steps
- ✓Use tax automation software with real-time rate databases
- ✓Review rates quarterly as local jurisdictions change frequently
- ✓Document rate sources for audit defense
Item by Item
InfoNo Sales Tax States0%—
- 1Oregon, Montana, New Hampshire, Delaware: 0%
- 2Alaska: 0% state, but local taxes possible
- 3No sales tax collection required in these states
RequiredHighest Rate States8-10%+—
- 1Louisiana: 9.55% (state + local average)
- 2Tennessee: 9.55%
- 3Arkansas: 9.51%
- 4California: 8.68% (state + local average)
Comparison
| Marketplace facilitator collection | Direct registration + collection | |
|---|---|---|
| Pros |
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| Cons |
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| Best For | Sellers primarily on Amazon, Walmart, or other marketplaces | Sellers with significant direct-to-consumer sales |
| Est. Cost | Included in platform fees | $500-5,000/year per state for compliance software + filing |
Common Mistakes
❌ Using only the state-level rate and ignoring local/city/county taxes
💥 Consequence: Under-collecting by 2-5% on average, creating liability
✅ Fix: Always use destination-based rates including all local additions
❌ Assuming product taxability is the same across states
💥 Consequence: Collecting tax on exempt items or not collecting on taxable ones
✅ Fix: Check product-specific exemptions per state — clothing, food, digital goods vary widely
Seller Paths
State-by-State Sales Tax Registration
- 1. Identify states with nexus (economic or physical)
- 2. Register in each nexus state separately
- 3. Set up tax collection in e-commerce platform
- 4. File returns per state schedule (monthly/quarterly/annually)
Use Marketplace Facilitator Laws
- 1. Sell through Amazon/eBay/Walmart (auto-collect)
- 2. Verify marketplace handles all nexus states
- 3. File informational returns only
- 4. Focus on non-marketplace channels separately
Next Steps
Get a free compliance assessment
Continue →Related Tools
Related Questions
Sources
- • Multi-State Tax Commission
- • Tax Foundation state tax data
Disclaimer: This page is for informational purposes only and does not constitute legal or tax advice. Consult a professional for your specific situation.