Tax Resources & Information
Understanding US Sales Tax
Sales tax in the United States is a consumption tax imposed by state and local governments on the sale of goods and services. Unlike VAT (Value Added Tax) used in many other countries, sales tax is only charged at the point of sale to the end consumer.
Key Facts:
- 45 states impose sales taxes
- 5 states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon
- Local governments (counties, cities) may add additional taxes
- Tax rates range from 0% to over 10% in some areas
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Tax-Free States in America
Five states in the US do not impose a statewide sales tax:
Alaska (AK)
No state sales tax, but local jurisdictions may impose taxes
Delaware (DE)
No sales tax at state or local level
Montana (MT)
No state sales tax, but resort areas may have local taxes
New Hampshire (NH)
Known as the "tax-free state" - no sales or income tax
Oregon (OR)
No sales tax, but has higher income taxes
How to Use Our Calculator
Our tax calculator is designed to be simple and intuitive:
- Enter the purchase amount in US dollars
- Select the state where the purchase is made
- Click "Calculate Tax"
- View your results instantly
The calculator uses current state tax rates and provides estimates for informational purposes.