Online sales tax in the United States runs from 0% in five states with no statewide sales tax to more than 10% in the highest-taxed localities, based on where your order is delivered and what you bought. Since the Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc., nearly every state with a sales tax requires online retailers to collect it, even when the seller has no store or warehouse in your state.1Supreme Court of the United States. South Dakota v. Wayfair, Inc. The percentage you see at checkout is a stack of state, county, city, and special district taxes tied to your shipping address.
What Sets the Rate at Checkout
Most states use destination-based sourcing, which means the rate applied to your order is the rate for the address the package ships to, not the seller’s location. About a dozen states use origin-based sourcing for in-state sales, but even those states apply destination rules to out-of-state sellers shipping in. For online shoppers, the practical rule is simple: the tax follows your zip code.
That single “sales tax” line on your receipt is rarely one tax. A typical online order can carry a base state rate plus separate county, city, and special district taxes layered on top. Special districts fund things like transit systems, libraries, or stadium construction, and each adds a fraction of a percent. Two delivery addresses only a few miles apart can produce different totals because they sit in different combinations of these overlapping districts.
State and Local Rate Ranges
Five states impose no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Of those, only Alaska lets local governments charge their own sales taxes, so orders shipped to certain Alaska cities and boroughs still include a local tax.2Tax Foundation. State and Local Sales Tax Rates, 2026
In the 45 states and the District of Columbia that do tax sales, combined rates vary widely. As of 2026, the five highest average combined state-and-local rates are Louisiana (10.11%), Tennessee (9.61%), Washington (9.51%), Arkansas (9.46%), and Alabama (9.46%).2Tax Foundation. State and Local Sales Tax Rates, 2026 Hawaii, Wisconsin, Wyoming, and Maine sit at the low end with combined averages under 6%. On a $1,000 laptop, that spread is the difference between paying nothing and paying more than $100 in tax.
Local rates change through ballot measures and budget actions, so the total at your address can shift from one year to the next. Online retailers use automated tax software that updates the rates, and your state’s department of revenue usually offers a lookup tool if you want to estimate a total before checkout.
Which Items Get Taxed Differently
Not every item in your cart is treated the same. States exempt some categories to keep essentials cheaper, and a few categories follow rules that can surprise you.
Groceries and Prescription Medications
Most states either exempt unprepared grocery food or tax it at a reduced rate. As of 2026, only about ten states still apply their full sales tax rate to groceries, and that number has been shrinking. Prescription medications and many medical devices are exempt in the large majority of states, including when you buy them through an online pharmacy or medical supply retailer.
Clothing
Clothing is fully taxable in most states. A handful permanently exempt clothing priced under a set dollar threshold, so an inexpensive shirt might ship tax-free while a designer jacket above the cap gets taxed on the amount over the threshold, or on the full price, depending on the state. Other states exempt clothing only during designated sales tax holidays.
Digital Goods and Streaming
Ebooks, music downloads, streaming subscriptions, and software-as-a-service products are taxed in roughly half the states. The rest either haven’t updated their tax codes for digital products or have specifically left them out. You may see tax on the same streaming service in one state and not another. The service’s checkout page reflects the current rule for your billing address.
Shipping and Delivery Charges
Whether shipping is taxable depends on the state. Some tax delivery charges whenever they’re part of a taxable sale, listed separately or not. Others exempt shipping if it appears as a separate line item. A few exempt it entirely. On a heavy or expedited order, that can add a noticeable amount to your total.
Sales Tax Holidays
Close to two dozen states run annual sales tax holidays: short windows, usually a weekend or a few days, when certain categories are exempt from state and sometimes local sales tax. Back-to-school items like clothing, school supplies, and computers are the most common target. Some states also hold holidays for emergency preparedness supplies, energy-efficient appliances, or outdoor recreation gear.
These holidays apply to online purchases as long as the item qualifies and ships to an address in the participating state. Each state sets its own dates, eligible items, and price caps. A computer, for example, may qualify only if it costs less than a specified amount. Your state’s department of revenue publishes the details each year before the holiday.
When the Seller Doesn’t Charge Tax
Sometimes you’ll check out and see no sales tax at all. That usually means the seller’s sales into your state fell below the state’s economic nexus threshold, so it isn’t required to collect. Most states set that threshold at $100,000 in annual sales, though some go up to $500,000 and a few use $250,000.3Streamlined Sales Tax. Remote Seller State Guidance Purchases through major marketplaces like Amazon, eBay, and Etsy are a different story: nearly every state requires the marketplace itself to collect and remit tax on behalf of its third-party sellers, so the tax is calculated automatically at checkout.
An untaxed order does not mean a tax-free order. Every state with a sales tax also imposes a use tax at the same rate, and you owe it on purchases where sales tax wasn’t collected. The amount is identical; only who pays it changes. Most states let you report and pay use tax on your annual state income tax return, on a dedicated line or schedule for untaxed purchases. Some also accept a separate use tax return filed with the revenue department.
Marketplace facilitator laws have cut the volume of untaxed online orders sharply, but the use tax obligation still applies to direct purchases from smaller sellers, foreign retailers, and private-party sales. Not reporting it can trigger penalties and interest if your state audits your return.