Sales tax rates vary across the US for a number of reasons. Sales tax rates are set at the state level, with the possibility of regional or city-wide taxes added on top. This second layer of sales tax is typically referred to as “local taxes” and the percentages are very small in comparison.

Another reason rates might vary is whether the state follows destination-based or origin-based sales tax rules. The first follows the tax rate based on the destination of your sale, i.e. where your customer is located, while the second uses the tax rate of the origin of the sale, i.e. where your business or the item is located.

Yet another reason tax rates might differ is because of the product you’re selling. Authorities often set different rates for certain products in order to encourage or discourage their sales. For example, educational products, books, and newspapers often have low or no tax added – while cigarettes and alcohol are taxed at rates higher than average.

If you’re curious about a specific location, calculate the sales tax in your area by entering a location and zip code into our Sales Tax Calculator.