Use Tax Calculator
Use tax is owed to your home state when you buy goods from an out-of-state seller who did not collect your state's sales tax. The use tax rate equals your combined state and local sales tax rate. If you paid some tax to another state, you only owe the difference between that amount and what you would have owed in your home state. Enter the purchase price, your state's combined use tax rate, and any tax already paid to another state to calculate the use tax you owe.
Use tax formula
Gross Use Tax = Purchase Price x (State Rate / 100)
Net Use Tax = max(0, Gross Use Tax - Tax Already Paid)
Use tax is calculated on the full purchase price at your home state's combined rate. You then subtract any sales or use tax already paid at the point of purchase. If you paid more than your state's rate, no additional use tax is owed (the result floors at zero).
When is use tax triggered?
Use tax is triggered any time you bring taxable goods into your state for use, storage, or consumption and the seller did not collect your state's sales tax. Common situations include: purchasing furniture or equipment from an out-of-state dealer, buying goods online from a seller with no nexus in your state, bringing goods back from another country (below customs de minimis but above state use tax thresholds), or purchasing a vehicle in another state.
Use tax FAQ
What is use tax?
Use tax is a complement to sales tax. When you buy goods from an out-of-state seller who does not collect your state's sales tax, you owe use tax to your home state at the same rate as the sales tax rate. Use tax ensures that in-state and out-of-state purchases are taxed equally.
Do I have to pay use tax on online purchases?
Yes, if the online seller did not collect your state's sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, most large online retailers are required to collect and remit sales tax. However, purchases from small sellers or private parties may still require you to self-report use tax.
How do I pay use tax?
Use tax for individuals is typically reported on your state income tax return. Most state income tax forms include a line for use tax on untaxed purchases. Businesses often file separately with the state Department of Revenue.
Is use tax the same rate as sales tax?
In almost all states, use tax is levied at the same combined state and local rate as sales tax. If you bought something for use in a county with a combined 8% rate, the use tax owed is 8% of the purchase price.
What if I paid some tax to another state on the purchase?
Most states allow a credit for sales or use tax paid to another state, so you only owe the difference if your state's rate is higher. For example, if you paid 5% to another state and your state rate is 8%, you would owe 3% use tax to your home state.
Official sources
- IRS: Sales and Use Taxes (IRS overview).
- Your state's Department of Revenue (search "[state] use tax" for self-reporting instructions).
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.