Question 1

What's the sales tax in Chicago in 2026?

Accepted Answer

Chicago's combined rate is 10.25% — the highest of any big US city after Seattle's 10.35%. Illinois itself charges only 6.25%, but Cook County and the City of Chicago layer on their own taxes to reach 10.25% at the register. That is the number that matters: US sales tax is always the combined state + county + city rate for where you are standing, never the state rate alone.

Question 2

Which states have no sales tax?

Accepted Answer

Five states have no statewide sales tax: Oregon, Montana, New Hampshire, Delaware and Alaska. Portland, Anchorage, Manchester and Wilmington all ring up at exactly the shelf price. Alaska allows small local borough rates (Anchorage stays 0%), while Montana and New Hampshire still tax restaurants and hotels under separate meals and lodging taxes — so a restaurant meal is never fully tax-free.

Question 3

Is clothing taxed in Pennsylvania?

Accepted Answer

No. Pennsylvania, New Jersey and Minnesota exempt clothing and footwear entirely, so a $100 shirt in Philadelphia (8% general rate) rings up at exactly $100. New York exempts items under $110 apiece — a $90 jacket in Manhattan is tax-free while a $300 one pays the full 8.875%. Connecticut exempts items under $1,000 (since July 2024) and Massachusetts exempts the first $175 of each item. In most other states clothing is fully taxed.

Question 4

How does grocery tax work by state?

Accepted Answer

Most of the 45 states with a sales tax exempt unprepared groceries, but the exceptions matter: Illinois charges a reduced 1%, Mississippi 1.5%, Missouri 1.225%, Tennessee about 4%, and South Dakota and Idaho tax food at the full rate. Kansas eliminated its state grocery tax in January 2025 and Nebraska followed that same year. Restaurant meals, takeout and prepared food are taxed at the full combined rate everywhere — the grocery exemption never covers eating out.

Question 5

Why does the register price differ from the shelf price?

Accepted Answer

Because US stores display pre-tax prices — sales tax is added at checkout. A $100 bag in New York City gets 8.875% ($8.88) added, so you pay $108.88 at the register. In most major cities the add-on runs 6%–10.5% depending on the state, county and city, so the shelf tag is never the final price. Run the numbers before you get to the counter so the total never surprises you.

Question 6

My receipt total is $108.88 — what was the pre-tax price?

Accepted Answer

Divide the total by (1 + rate). In NYC: $108.88 ÷ 1.08875 ≈ $100.00, so about $8.88 of that receipt is tax. In Chicago divide by 1.1025, in Seattle by 1.1035. The reverse math matters for returns and expense reports: the tax is already inside the register total, so multiplying the total (instead of the pre-tax price) by the rate overstates the tax.

Question 7

What are the combined sales tax rates in major US cities for 2026?

Accepted Answer

2026 combined rates: New York City 8.875%, Los Angeles 9.5%, Chicago 10.25%, San Francisco 8.625%, Las Vegas 8.375%, Seattle 10.35%, Houston and Dallas 8.25%, Atlanta 8.9%, Miami 7%, Orlando 6.5%, Boston 6.25%, Honolulu 4.5%, and Portland 0%. Where you shop matters: on a $1,000 basket the spread between Seattle and Portland is a full $103.50.

Question 8

Can visitors to the US get a sales tax refund at the airport?

Accepted Answer

No. Unlike Europe's VAT, the United States has no sales-tax refund scheme — for foreign visitors or anyone else — and there are no refund desks at US airports. The tax you pay at the register is final. Visitors looking to trim it can shop in the no-sales-tax states (Oregon, Delaware, Montana, New Hampshire) or buy exempt categories like clothing in Pennsylvania, New Jersey and Minnesota.

Federal sales tax	None — 0% at the federal level
Airport refund desk	Does not exist at any US airport
NYC example ($100)	$100 + 8.875% = $108.88
Cheapest shopping cities	0% Portland · 4.5% Honolulu · 6.5% Orlando · 7% Miami
Highest-tax cities	10.35% Seattle · 10.25% Chicago
Clothing exemptions	PA, NJ, MN at 0% · NY under $110 per item
Groceries	Exempt in most states (exceptions: IL 1%, MS 1.5%)

Sales Tax Calculator by State & City — 2026 Rates