Sales tax rates by state (2026)

Forty-five states and the District of Columbia charge a statewide sales tax, and most also allow cities and counties to add their own. This page lists the state rates and the average combined rates, and explains how to use them on an invoice.

Updated: October 2026General information, not legal or tax advice

State sales tax rates, July 2026

The table shows each state’s base rate and the average combined rate (state plus local taxes, weighted by population). The average is only a guide. The rate on your invoice is the combined rate for the exact place that applies to the sale, which can be higher or lower than the average.

Source: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (published July 6, 2026). State rates as of July 1, 2026; local averages as of January 1, 2026. Rates change; confirm the current rate with your state’s revenue department.

States without a statewide sales tax

Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska is the exception to “no tax at all”: many Alaska cities and boroughs charge their own sales tax. Some of these states have a different business tax instead, for example Delaware’s gross receipts tax. Such a tax is paid by the business and normally does not appear on the invoice as sales tax.

Why the local rate matters

• Counties, cities and special districts add their own rates in most states. Louisiana, Tennessee, Washington, Arkansas and Alabama have the highest average combined rates, all above 9%.
• In California, Utah and Virginia the table’s state rate already includes a mandatory local add-on (1.25%, 1.25% and 1%).
• Some states have no local sales tax at all, for example Connecticut, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Rhode Island and the District of Columbia, so the state rate is the full rate there.
• Many states tax by destination (where the buyer receives the goods or service), others by origin (the seller’s location), and some mix both. Look up the rate for the address, not just the state. Most state revenue departments offer a free rate lookup by address.

Are services taxable?

Sales tax was designed for goods, and most states still tax goods first. Services follow no common rule:

• Hawaii, New Mexico, South Dakota and West Virginia tax most services unless a specific exemption applies. Hawaii’s general excise tax and New Mexico’s gross receipts tax are charged on the business’s receipts rather than as a classic sales tax; businesses commonly pass them on to the customer as a separate line.
• Most other states do not tax professional services such as consulting, design, writing, legal or accounting work, but tax specific services, for example repair and installation, data processing, certain information or software services and some personal services.
• Bundles can change the answer. A service delivered together with a physical item (a printed report, a product) may be taxable as a whole in some states unless the lines are shown separately.
• Software, SaaS and digital downloads are taxable in some states and not in others.

Check the rule for your kind of work in each state where you invoice. If you are unsure, ask the state revenue department or a tax professional.

Before you collect

• Register first. Most states require a seller’s permit or sales tax registration before you charge tax. Collecting without a permit is generally not allowed.
• Selling into other states. After South Dakota v. Wayfair (2018), a state can require you to collect its tax once your sales there pass its threshold. Many states use $100,000 in sales; a few, such as California and Texas, use $500,000, and some also count transactions. Marketplaces often collect for you. Thresholds change, so check each state.
• Exempt customers. Resellers, nonprofits and government buyers may not owe the tax. Keep their certificate. See invoicing a tax-exempt customer.
• Find your state agency. The Federation of Tax Administrators lists every state tax agency.

Using the rate in Invoice Studio

Open Sales tax in the form and enter the combined rate in percent. It applies to every line you mark as taxable. Add a tax label such as “Texas sales tax” so the invoice shows which tax you charge, or put a default rate into your business settings. Leave the rate at 0 if you do not charge sales tax. See sales tax on invoices for what to show on the invoice.

Frequently asked questions

Related

• Sales tax on invoicesSales tax on invoices: what small businesses need to know
• Tax-exempt customersHow to invoice a tax-exempt customer
• What an invoice needsWhat to include on an invoice (U.S. checklist)
• Step-by-step guideHow to create an invoice in 10 steps

This page is general information as of October 2026. Rules differ by state and industry; check your situation with a tax professional or your state’s revenue department.