When a seller doesn’t collect your home state’s sales tax, the obligation to self-assess and pay it doesn’t disappear — it becomes use tax, owed directly by the buyer.
How it works
Multiplying the purchase amount by your home-state use tax rate gives the tax owed, minus a credit for any sales tax already paid to another state on the same purchase.
What this does not include
This does not include exemptions some states offer for specific purchase types, or the different reporting mechanisms (a business use tax return vs. a line on an individual income tax return) different states and taxpayer types use.
How to use this calculator
- Enter the purchase amount, your home-state use tax rate, and any sales tax already paid.
Frequently asked questions
Who actually pays use tax in practice?
Businesses making untaxed out-of-state purchases (equipment, supplies) are the most common filers, though individuals technically owe it too on things like out-of-state online purchases that weren’t taxed.
Is use tax the same rate as sales tax?
Generally yes — most states set the use tax rate equal to their sales tax rate, since it’s meant to put in-state and out-of-state purchases on equal tax footing.
How is use tax enforced for individuals?
Enforcement is historically light for individual consumer purchases, though many states now include a use tax line on the individual income tax return, and marketplace facilitator laws have shifted much of the collection burden back onto sellers.
