page_title: Sales taxes in the United States
section_title: Taxable goods
hierarchical_section_title: Sales taxes in the United States / Taxable items / Taxable goods
caption_attribution_description: English: Break down of state and local tax revenues by six sources for each state (as well as for the U.S. average): General Sales Taxes, Selective Sales Taxes (e.g., taxes on gasoline, alcohol, and cigarettes), Property Taxes, Licenses and Other Fees, Corporate Income Taxes, Individual Income Taxes.
context_page_description: Sales taxes in the United States are taxes placed on the sale or lease of goods and services in the United States. Sales tax is governed at the state level and no national general sales tax exists. Forty-five states, the District of Columbia, the territories of the Puerto Rico, and Guam impose general sales taxes that apply to the sale or lease of most goods and some services, and states also may levy selective sales taxes on the sale or lease of particular goods or services. States may grant local governments the authority to impose additional general or selective sales taxes.
  As of 2017, 5 states do not levy a statewide sales tax. California has the highest base sales tax rate, 7.25%. Including county and city sales taxes, the highest total sales tax is in Arab, Alabama, 13.50%.
  Sales tax is calculated by multiplying the purchase price by the applicable tax rate. The seller collects it at the time of the sale. Use tax is self-assessed by a buyer who has not paid sales tax on a taxable purchase. Unlike the value added tax, a sales tax is imposed only at the retail level.
context_section_description: No state imposes sales tax on all types of goods.  State laws vary widely as to what goods are subject to tax.  Food for preparation and consumption in the home is often not taxable, nor are prescription medications.  By contrast, restaurant meals are often taxed.
  Many states provide exemptions for some specific types of goods and not for other types.  Certain types of foods may be exempt, and certain types taxable, even when sold in a grocery store for home consumption. Lists of what goods are taxable and what are not may be voluminous.
caption: The composition of state and local tax revenues by sales taxes (brown), property taxes (white), licenses and other fees (grey), individual and corporate income taxes (green) in 2007.