Sales Tax Calculator · Practical guide
Do You Pay Sales Tax on Online Purchases?
Yes, in almost every case — online sellers now collect your local rate at checkout, and use tax applies when they do not.
At a glance
The Short Answer
Yes — online purchases are generally taxable at the same combined state and local rate as in-store purchases. Since the 2018 Supreme Court Wayfair decision, every state with a sales tax requires large remote sellers to collect it at checkout. If a seller does not collect, you owe an equivalent use tax at the same rate.
Interactive tool
Sales Tax Calculator
Enter your own values, then compare the result with the examples below.
Sales Tax Result
What You Will See at Checkout
Major retailers and marketplaces calculate tax from your delivery address, not the seller's location. A $500 order delivered to an address with a 7.5% combined rate adds $37.50 in tax, for a $537.50 total — identical to buying the same item in a local store. Marketplace facilitators (the big platforms) collect tax on behalf of third-party sellers too, so even small shops' listings show tax.
When Tax Is Missing: Use Tax
If an out-of-state or small seller does not charge you tax, the obligation does not disappear — it shifts to you as use tax, at the same rate you would have paid locally. Many states include a use tax line on the annual income tax return. You can estimate what you owe with the calculator above: enter the untaxed purchase total and your combined rate.
What Commonly Stays Tax-Free Online
- Groceries — unprepared food is exempt or reduced-rate in most states, online or off.
- Prescription medications — exempt in nearly every state with a sales tax.
- Clothing — exempt in some states, sometimes only under a price threshold.
- Purchases delivered to no-tax states — Alaska, Delaware, Montana, New Hampshire, and Oregon.
Exemptions follow the item and your state's rules, not the sales channel — the same product is taxed the same whether you click or walk in.
Frequently Asked Questions
Why did my online order show no sales tax?
The seller may be below your state's small-seller threshold or shipping from a state with no sales tax. If the item is taxable where you live, you technically owe use tax at the same rate.
Is the online tax rate based on billing or shipping address?
Shipping (delivery) address in most states. The rate reflects where you receive the goods, which is why moving an item to a different address at checkout can change the tax.
Are digital products like downloads and streaming taxed?
It depends on the state. Some states tax digital goods like physical ones, others exempt them, and definitions vary — there is no single national rule.
Do I pay sales tax on international orders?
US sales tax generally does not apply to goods shipped from abroad, but import duties and customs fees may be charged separately when the package arrives.