Stop wasting time and energy looking up rates one at a time with our sales tax calculator. Avalara has created an automated sales tax rate lookup tool, Avatax, that integrates with your exisiting software.
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A single ZIP code can have multiple sales tax rates; even neighboring houses in the same ZIP code can have different rates. For accurate sales tax calculations, sellers must use the rate that corresponds to the sales tax jurisdictions where a sale is sourced (more on this below). In addition, sales tax jurisdictions often overlap, so the right rate will be a combination of rates from all applicable state and local jurisdictions. There are over 12,000 tax jurisdictions in the U.S. alone. If you need to look up a single address, use our free sales tax calculator. If you need to look up several rates a day, use Avatax, our automated sales tax solution to look up rates and file your returns.
Businesses should use the combined sales tax rate that corresponds to the location where the sale is sourced, or source, of a sale. States define the location of a sale differently. Most states use destination sourcing, meaning rates and taxability rules are based on the location where the buyer takes possession of the goods or services. But some, like Utah and Virginia, use origin sourcing, meaning the sale is sourced to the location of the seller (e.g., the point at which the order is placed or accepted, or the point from which the order is shipped). California and Texas take a hybrid approach, using elements of both destination and origin sourcing in different situations.