The Sales Tax Report
Know your community's rate? Type it here for an exact figure.
Choosing a state limits the list to brands that already operate there and fills in that state's average local rate.
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Full list
| Add | # | Retailer | Annual sales tax | Sales per store | Jobs per store | Locations | Total U.S. sales |
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How we calculate this
Definitions
Average unit sales, sometimes called AUV, is the average annual sales of one U.S. location. Total units is the current U.S. store count. Estimated overall sales is average unit sales multiplied by total units. Rank is a fixed position on the list ordered by estimated sales tax, so it does not change when you adjust your rate or filters. California ranks separately, because it uses its own taxable ratios.
Where the numbers come from
- Public companies: latest 10-K or annual report, U.S. retail revenue divided by U.S. store count.
- Franchises: latest Franchise Disclosure Document, Item 19 average unit volume disclosures.
- Restaurants: Technomic Top 500, QSR Magazine QSR 50, Restaurant Business, Nation’s Restaurant News.
- Private companies and grocery: Supermarket News, Winsight Grocery, and reputable trade press estimates.
Where the most recent hard figure predated fiscal year 2024, it was carried forward to 2025 or 2026 using the brand’s own sales trend or roughly 3 to 4 percent a year. Those brands are flagged as projected in the source data.
The Math
Estimated annual sales tax is average unit sales multiplied by a category taxable ratio multiplied by the rate you enter.
Earlier editions of this report used a simpler formula, average unit sales multiplied by the rate, which assumed every dollar a store rings up is subject to sales tax. That is not how sales tax works. Most states exempt groceries and prescriptions, and fuel is usually taxed separately. Applying a taxable ratio corrects for that, and it is why a grocery store’s estimate here is far lower than its sales would suggest.
In the list, each sales tax figure shows the taxable amount first, followed by the category ratio and the unadjusted figure it was calculated from. That unadjusted number is what earlier editions published.
Taxable ratios by category
The taxable ratio is the share of a store’s sales actually subject to sales tax. National ratios assume a population-weighted mix of state rules. The California column applies California’s rules, where groceries are exempt and clothing is taxable, and is used automatically when California is selected.
Ratios are set by category rather than by brand, based on which goods each state exempts and how much of a typical store’s sales fall into those categories. The national figure is a population-weighted blend of state rules, so it reflects the mix of rules most shoppers actually live under rather than a simple average across states. Because exemptions differ by state, a community in a state that taxes groceries at full rate will collect more than these figures suggest, and one in a state with broader exemptions will collect less.
Category | National | California |
Apparel | 85% | 92% |
Auto Parts | 95% | 95% |
Auto Service | 60% | 55% |
Beauty | 95% | 95% |
Coffee/Snack/Dessert | 95% | 95% |
Confectionery | 90% | 90% |
Consumer Electronics | 98% | 98% |
Convenience/Gas | 35% | 30% |
Crafts/Hobby | 95% | 95% |
Department Store | 95% | 92% |
Dollar/Discount | 85% | 82% |
Farm/Ranch | 85% | 85% |
Fitness | 40% | 35% |
Footwear | 85% | 92% |
Furniture | 95% | 95% |
Grocery | 30% | 15% |
Home Improvement | 95% | 95% |
Mass Merchant | 75% | 70% |
Office Supplies | 95% | 95% |
Pet | 90% | 90% |
Pharmacy | 35% | 30% |
Restaurant | 95% | 95% |
Services | 30% | 25% |
Sporting Goods | 95% | 95% |
Warehouse Club | 60% | 50% |
State Tax Rates
The rate box prefills with the population-weighted average local sales tax rate for that state, from Tax Foundation, State and Local Sales Tax Rates, as of July 1, 2026. That figure is the local portion, what cities, counties, and special districts collect on top of the state’s own rate, because the state’s share is not money your community keeps.
Local rates vary enormously. Alabama averages 5.46 percent, Louisiana 5.13 percent, and Colorado 4.99 percent, while Pennsylvania is 0.34 percent and Idaho is 0.03 percent. That spread is why a single national default would misstate most communities. The prefilled number is a starting point drawn from a statewide average, and rates differ from town to town, so enter your community’s actual local rate for a figure you can take to a council.
Fourteen states have no local sales tax at all: Connecticut, Delaware, the District of Columbia, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, Oregon, and Rhode Island. In those states a new store generates no local sales tax revenue, and the case for retail recruitment rests on jobs, property tax base, and filling vacant space instead.
Two states work differently enough to call out. In California, the 7.25 percent statewide base rate is 6.00 percent state, 1.00 percent local jurisdiction, and 0.25 percent county transportation, under the Bradley-Burns Uniform Local Sales and Use Tax Law. A city receives only the 1.00 percent local jurisdiction share, which is what the tool loads. Use 1.25 percent to include the county transportation quarter. Voter-approved district taxes sit on top and are allocated separately. In Florida, cities cannot levy a general sales tax at all. The state collects 6 percent and counties may add a discretionary sales surtax that the state remits to the county, so a municipality receives a share only through an interlocal agreement. Florida’s surtax also applies only to the first $5,000 of any single item.
This tool is informational only and is not legal, tax, or financial advice. Estimates are directional and should not be used as a revenue projection for budgeting or bond purposes.