VAT Atlas · entry № 32 · current as of April 2026
🇺🇸
of America

United States

Non-EU · US dollar · code US

Standard VAT rate, reduced categories, registration thresholds, and e-invoicing rules for United States.

Standard rate
0%
California (max) 10.25% state 7.25% + local up to 3%, varies by county/city
New York City 8.875% state 4% + city 4.5% + MTA 0.375%
Texas (avg) 8.25% state 6.25% + local up to 2%
Florida 6% state rate, no income tax state
Oregon, Montana, Delaware, NH 0% no state sales tax
Threshold None No federal sales tax. State & local rates vary 0–13%. Most freelance services are exempt from sales tax.
Filing Varies by state (quarterly or annually)
Calculate United States VAT now →
§ Invoicing rules what you need to know
Invoice language English
Reverse charge The US does not have a VAT reverse charge mechanism. Use tax obligations apply when sales tax was not collected by an out-of-state seller — the buyer must self-assess.
Digital services The US has no federal VAT on digital services. Some states impose sales tax on digital goods and SaaS (e.g., Texas, New York, Pennsylvania). Rules vary significantly by state.
Penalties The US has no VAT. State sales tax penalties vary: typically 5–25% of underpaid tax per month plus interest. Federal income tax late filing penalty is 5% per month (max 25%).
Invoice requirements
  • No federal invoice format requirements (no VAT system)
  • State sales tax permits may require specific invoice elements
  • Invoices should include seller and buyer details, description, and amount
  • Freelancers should include payment terms and EIN or SSN if required
  • Records must be kept for 3–7 years depending on situation
§ Calculator try the rate now
Net amount
USD
Country
State
Rate
The result
Net amount$1,000.00
VAT (0%)$0.00
Gross total$1,000.00
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Frequently Asked Questions

What is the standard VAT rate in United States?

The standard VAT rate in United States is 0%.

What are the reduced VAT rates in United States?

10.25% (California (max)): applies to state 7.25% + local up to 3%, varies by county/city. 8.875% (New York City): applies to state 4% + city 4.5% + MTA 0.375%. 8.25% (Texas (avg)): applies to state 6.25% + local up to 2%. 6% (Florida): applies to state rate, no income tax state. 0% (Oregon, Montana, Delaware, NH): applies to no state sales tax.

What is the VAT registration threshold in United States?

The VAT registration threshold in United States is no threshold (registration required from first taxable supply). No federal sales tax. State & local rates vary 0–13%. Most freelance services are exempt from sales tax.

§ Sales tax by state

The US has no federal sales tax. Each state sets its own rate. Five states have no sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. Rates below are state-level only — local taxes may apply on top.

AL
Alabama 4%
avg 9.24%
AK
Alaska No tax
AZ
Arizona 5.6%
avg 8.4%
AR
Arkansas 6.5%
avg 9.47%
CA
California 7.25%
avg 8.68%
CO
Colorado 2.9%
avg 7.77%
CT
Connecticut 6.35%
DE
Delaware No tax
FL
Florida 6%
avg 7.02%
GA
Georgia 4%
avg 7.4%
HI
Hawaii 4%
avg 4.44%
ID
Idaho 6%
avg 6.02%
IL
Illinois 6.25%
avg 8.82%
IN
Indiana 7%
IA
Iowa 6%
avg 6.94%
KS
Kansas 6.5%
avg 8.71%
KY
Kentucky 6%
LA
Louisiana 4.45%
avg 9.55%
ME
Maine 5.5%
MD
Maryland 6%
MA
Massachusetts 6.25%
MI
Michigan 6%
MN
Minnesota 6.875%
avg 7.49%
MS
Mississippi 7%
avg 7.07%
MO
Missouri 4.225%
avg 8.39%
MT
Montana No tax
NE
Nebraska 5.5%
avg 6.94%
NV
Nevada 6.85%
avg 8.23%
NH
New Hampshire No tax
NJ
New Jersey 6.625%
NM
New Mexico 4.875%
avg 7.72%
NY
New York 4%
avg 8.52%
NC
North Carolina 4.75%
avg 6.99%
ND
North Dakota 5%
avg 6.96%
OH
Ohio 5.75%
avg 7.24%
OK
Oklahoma 4.5%
avg 8.98%
OR
Oregon No tax
PA
Pennsylvania 6%
avg 6.34%
RI
Rhode Island 7%
SC
South Carolina 6%
avg 7.43%
SD
South Dakota 4.2%
avg 6.4%
TN
Tennessee 7%
avg 9.55%
TX
Texas 6.25%
avg 8.2%
UT
Utah 6.1%
avg 7.19%
VT
Vermont 6%
avg 6.24%
VA
Virginia 5.3%
avg 5.75%
WA
Washington 6.5%
avg 9.29%
WV
West Virginia 6%
avg 6.57%
WI
Wisconsin 5%
avg 5.43%
WY
Wyoming 4%
avg 5.36%
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