How US sales tax actually works
There is no national sales tax. Rates are set by state, county, city and sometimes special districts, and they stack. A 6% state rate plus 2.5% local gives 8.5% combined on a taxable sale.
Nexus decides whether you charge it
You only collect where you have nexus — physical presence, or economic nexus after crossing a state's revenue or transaction threshold (commonly $100,000 or 200 transactions). Registering in the wrong state creates filing obligations with no benefit.
Product taxability varies
- Clothing is exempt or reduced in some states, fully taxable in others
- Food and supplements differ wildly by state
- Digital goods are taxable in about half the states
- Marketplace facilitator laws mean Amazon collects for you on marketplace sales
Operational reality
Use a tax engine for live checkout rates — they change quarterly. This calculator is for pricing scenarios and quick checks, not for filing.
Frequently Asked Questions
Do I charge sales tax in every state?
Only where you have nexus. Economic thresholds typically trigger it.
Are local rates included?
Enter them separately; this tool sums state and local into one combined rate.
Does Amazon collect sales tax for me?
On marketplace sales, yes — marketplace facilitator laws make Amazon the seller of record.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
Privacy & Your Data
BizCalcTool runs entirely in your browser. The figures you enter are never uploaded, stored or shared — there is no backend to send them to.