Last updated July 14, 2020
One of the most complicated things about sales tax is determining which rate to charge. At TaxJar, we strive to make this simple with tools like our Online Sales Tax Calculator.
Most of the time, if you’re making a sale to someone standing in front of you, you simply charge them the local sales tax rate. This includes the state rate plus any county, city or other special taxing district rates.
For example, the sales tax rate in the famous Beverly Hills 90210 zip code is made up of the 7.25% California statewide rate plus the Los Angeles County District tax of 2.25% for a total of a 9.5% sales tax rate.
Sales tax gets even more complicated for online sellers. You must determine in which states you have sales tax nexus, and then figure out what to charge buyers in that state (or states.)
Now that I’ve made this sound complicated, I want to offer a light at the end of the tunnel.
Some states have kept sales tax simple. They only require sellers to charge a state tax rate. That means no worrying about adding the state + any local rates. Who are these simple states? We have your list:
Which states don’t have local sales tax rates?
Connecticut – 6.35% state sales tax rate
District of Columbia – 5.75% district-wide sales tax rate
Hawaii – 4.0% state sales tax rate
Indiana – 7.0% state sales tax rate
Kentucky – 6.0% state sales tax rate
Maine – 5.5%
Massachusetts – 6.25%
Michigan – 6.0%
Rhode Island – 7.0%
Do you have questions about sales tax? Start the conversation in the comments!