Use Tax Calculator for Businesses
Last updated · Reviewed for accuracy against IRS.gov guidance
Use tax is owed on taxable items a business buys without paying sales tax, at the rate where the item is used. Multiply untaxed purchases by your combined state and local rate, then subtract sales tax already paid to another state. Rates aren't prefilled — enter the rate your state agency publishes.
Educational estimate. Your state's rules on what's taxable and on credits decide the real amount.
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Get a free reviewHow use tax works
Every state with a sales tax also imposes a use tax on taxable items brought in for use without sales tax. The Streamlined Sales Tax Governing Board publishes member-state rate and boundary information; non-member states publish rates on their own agency sites. Find your agency on our state sales tax pages.
If you owe for past years
Many states let businesses report unpaid use tax through a voluntary disclosure agreement, which can limit lookback and penalties if you come forward before an audit.
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Start the calculatorFrequently asked questions
What is use tax?
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Use tax is the companion to sales tax. When a business buys taxable goods without paying sales tax — usually from an out-of-state seller — it generally owes use tax at the rate where the item is used.
Do I get credit for sales tax paid to another state?
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Most states give credit for sales tax legitimately paid to another state on the same item, up to their own rate. Check your state agency's rules.
What purchases usually trigger use tax?
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Equipment, supplies and software bought online or out of state without tax, and inventory pulled from stock for business use.
Why does use tax come up in audits?
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Auditors review fixed-asset and expense purchases for untaxed items. Unreported use tax is one of the most common sales-and-use-tax audit findings.
Where do I find my rate?
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Your state revenue agency publishes the state rate and local add-ons. Use the combined rate for the location where the item is used.
Related
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.