State-by-State Store Startup Factors
Opening cost and compliance shift by state. This page maps the factors that vary — sales-tax base rates (sample), minimum wage, formation fees, seller’s permits, and licenses — with official sources and a verification checklist. Numbers are dated; always confirm at the source.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
State Sales-Tax Base Rates — Sample of Major States
State base only; cities/counties add on top. Retrieved 2026-08-13.
| State | State base sales tax | Note |
|---|---|---|
| California | 7.25% | Local adds common; some cities >10% combined. |
| New York | 4.00% | NYC combined ~8.875% with local. |
| Texas | 6.25% | Local can add up to 2% (8.25% cap). |
| Florida | 6.00% | Counties may add discretionary surtax. |
| Illinois | 6.25% | Chicago area combined much higher. |
| Washington | 6.50% | Local adds; Seattle combined ~10%. |
| Pennsylvania | 6.00% | Philadelphia adds 2%. |
| Ohio | 5.75% | Counties add 0.25–2.25%. |
| Georgia | 4.00% | Local adds; combined often 7–8%. |
| North Carolina | 4.75% | Local adds ~2–3%. |
| Michigan | 6.00% | No local sales tax. |
| Arizona | 5.60% | TPT includes state + local. |
| Colorado | 2.90% | State + local + special districts. |
| Massachusetts | 6.25% | No local sales tax. |
| New Jersey | 6.625% | No local sales tax. |
| Tennessee | 7.00% | Local adds; grocery food lower rate. |
| Virginia | 5.30% | Local adds ~1%. |
| Oregon | 0% | No state sales tax. |
| Montana | 0% | No state sales tax (local rare). |
| Delaware | 0% | No state sales tax; has franchise fee. |
This is a sample of major states, not the full 50. Combined (state + local) rates are what you actually charge — verify your exact address with the state revenue department. Sales tax is a pass-through you collect and remit, not your cost.
Four Factors to Verify Before You Open
Minimum wage
Set by state AND often by city/county, and it changes. Verify with the U.S. DOL and your state labor agency — budget payroll on the confirmed rate, not a guess.
LLC / formation & annual fees
State filing fees and recurring franchise/annual report fees differ sharply (some states charge little; others hundreds per year). Check the Secretary of State.
Seller’s permit & nexus
Most states require a sales-tax permit before you sell; marketplace and economic-nexus rules differ. Register with the state revenue department.
Industry licenses
Food, alcohol, and health permits are state- and city-specific. Restaurants need far more than a retail shop. Check city hall, not just the state.
Confirm Each Number at the Source
- Combined sales-tax rate for your exact address — state revenue department.
- Minimum wage (state + local) — U.S. DOL + state labor agency.
- LLC filing + annual fee — Secretary of State.
- Seller’s permit & nexus rules — state revenue department.
- Business + industry licenses — city hall + state agency.
- Fold real figures into the Startup Viability tool to size capital.
State Factors FAQs
Four things vary by state and directly hit your cost and compliance: sales-tax rate and nexus rules, minimum wage, LLC/formation and annual fees, and industry-specific licenses (food, alcohol, health). The same concept can cost and comply very differently across state lines.
No. The table shows STATE base rates only. Cities and counties add local tax on top — e.g., a 7.25% state rate can become ~10% all-in in some cities. Always check the combined rate for your exact address via the state revenue department.
Minimum wage can be set by the state AND by cities/counties, and it changes. Verify the current rate with the U.S. Department of Labor and your specific state labor agency before budgeting payroll — do not rely on a static table.
Common additions: a general business license (city), DBA/fictitious name, seller's permit, and — for food and drink — health permits, and for alcohol, a liquor license. Check city hall and your state's business portal, not just the state level.
As a checklist and starting map. Pick your state, note the factors, then confirm each number at the official source linked. Fold the real figures into the Startup Viability tool.
Authoritative References
- U.S. Small Business Administration — Register Your Business — state-by-state registration and license guidance.
- U.S. Department of Labor — State Minimum Wage Laws — current minimum-wage tiers by state.
- Sales Tax Institute — State Sales Tax Rates — state and local sales-tax references.
Educational reference only. Sales-tax base rates retrieved 2026-08-13 are stable public facts but local rates and all other figures change — verify each at the official source linked before deciding. Not legal or financial advice.