In many countries the price on the tag includes tax. In the US, sales tax is usually added when you pay, which surprises almost every newcomer at the first checkout.
How it works
There’s no national sales tax. States set their own rates, and counties and cities can add more. The combined rate is what you pay.
States with no statewide sales tax
Alaska, Delaware, Montana, New Hampshire and Oregon don’t have a statewide sales tax, though some local areas in Alaska do.
What’s often exempt or reduced
- Groceries in many states
- Prescription medicine
- Some clothing in certain states
- Services, depending on the state
Quick math
If the combined rate is 8%, multiply the price by 1.08. A $50 item costs $54.
Budget tip: Add roughly 5–10% to shelf prices when estimating your monthly spending, depending on where you live.
