Frequently asked questions
Which states have no sales tax?
Oregon, Montana, New Hampshire, Delaware, and Alaska have no statewide sales tax. Alaska allows local governments to levy sales tax, so some Alaskan cities do charge it. These five states are popular for large purchases — some people specifically drive to Oregon or New Hampshire to buy electronics or cars tax-free.
Why is the combined rate higher than the state rate?
Most US states allow counties, cities, and special districts to add their own sales taxes on top of the state rate. In California the state rate is 7.25% but Los Angeles County adds 2.25%, making the combined rate 9.5% or higher in some cities. This tool shows the statewide average combined rate.
Are groceries and medicine taxed?
Most states exempt prescription drugs from sales tax. About half the states exempt grocery food. The details vary significantly — some states tax prepared food but not raw groceries; some have reduced rates for food rather than full exemptions.