Sales Tax Calculator
Add or remove sales tax from any purchase amount.
What Is the Sales Tax Calculator?
A sales tax calculator adds the correct tax to any purchase, or strips tax back out of a total when you need the pretax figure. Sales tax in the United States is set by states, counties, and cities simultaneously, so combined rates vary widely even between neighboring towns, from zero in a few states to over 9 percent in some jurisdictions. Shoppers use the tool to predict checkout totals, small businesses use it to quote prices and verify register math, and buyers of big ticket items like laptops or appliances use it to budget the true out the door cost. The reverse mode answers the classic bookkeeping question of how much of this gross receipt was actually tax.
Key Statistics
-
45 states plus DC
Jurisdictions with a statewide sales tax
Source: Tax Foundation state tax data
-
5 states
Alaska, Delaware, Montana, New Hampshire, and Oregon charge no statewide sales tax
Source: Tax Foundation
-
Over 9%
Combined state and local rates in the highest tax US localities
Source: Tax Foundation
The Formula
Total = Price x (1 + Tax Rate). Pre-tax Price = Total / (1 + Tax Rate).
Worked Examples
A $50 purchase at 8.25% sales tax totals $54.13, with $4.13 going to tax. For a $2,000 laptop in a 10% tax region like Seattle, expect $200 in tax for a $2,200 total. Removing tax from $108.25 reveals a $100 pre-tax price.
Adding tax to a purchase
- Cart subtotal is $84.50 and the combined local rate is 8.25 percent
- Tax equals 84.50 times 0.0825, about $6.97
- Add the tax to the subtotal
Checkout total comes to $91.47.
Removing tax from a receipt total
- Receipt total is $91.47 in the same 8.25 percent jurisdiction
- Divide 91.47 by 1.0825
- The quotient recovers the pretax amount
Pretax price was $84.50, so $6.97 of the receipt was tax.
Real World Use Cases
Big ticket purchases
Add your locality's combined rate to a laptop or appliance price to see the true door price before you shop.
Small business quoting
Quote customers accurate totals including tax for their delivery addresses rather than guessing.
Bookkeeping cleanup
Back tax out of gross receipts when reconciling revenue versus remitted tax.
Cross border shopping
Compare effective prices when shopping across a state line with a different combined rate.
Expert Tips
- ✓ Use the combined state plus county plus city rate for the delivery address, not the statewide rate alone.
- ✓ Groceries, medicine, and clothing are taxed differently across states; check exemptions before assuming the general rate.
- ✓ Online purchases generally carry your home jurisdiction tax now following post 2018 rules, so budget accordingly.
- ✓ When reversing tax, divide by one plus the rate because subtracting the percentage from the total gives the wrong answer.
- ✓ Keep receipts showing tax lines separately for any purchase you plan to deduct or resell.
Frequently Asked Questions
How do I calculate sales tax? ▼
Multiply the price by the tax rate, then add that to the price for the total. A $100 item at 8% tax has $8 in tax and costs $108. This calculator handles the math for you.
How do I find the price before tax? ▼
Divide the total paid by (1 plus the tax rate). If you paid $108 at 8% tax, the pretax price is $108 divided by 1.08, which is $100.
Do I pay sales tax on shipping? ▼
It depends on your state. Some states tax shipping charges and others exempt them, and the rule can change with the shipping method. Check your state tax authority for the exact treatment.
How do online stores charge sales tax? ▼
Since the Wayfair ruling, online sellers generally collect tax based on the buyer location, not the store location. The rate uses your local state and city taxes at checkout.
Can I get a sales tax refund on returns? ▼
Yes. When you return a taxable item, the refund should include the sales tax you paid. Some states have special rules, so keep your receipt and check with the store or state authority.
What is the difference between sales tax and VAT? ▼
Sales tax is a US tax added at the final point of sale, shown separately on the receipt. VAT (value added tax) is used in most other countries and is built into the listed price at each stage of production.
How do I add sales tax to a price? ▼
Multiply the price by the tax rate as a decimal and add the product to the original price. Multiplying by one plus the rate does it in one step.
How do I take sales tax out of a total? ▼
Divide the total by one plus the tax rate. That returns the pretax amount, and the difference is the tax collected.
Common Mistakes to Avoid
- ⚠ Using Add mode when you need Subtract mode. If your receipt shows $108 total including 8% tax, using Add mode calculates tax on $108 and gives $116.64, which is wrong. Subtract mode correctly finds the $100 pre-tax price and the $8 tax that was already included.
- ⚠ Assuming a single state rate applies everywhere. California has a base rate of 7.25%, but Los Angeles adds city and county taxes for a combined rate around 10.25%. On a $1,000 purchase, that is $102.50 in tax versus $72.50, a $30 difference just for being in the wrong city.
- ⚠ Not realizing some items are exempt from sales tax. Most states exempt groceries, prescription drugs, and clothing in some cases. Applying an 8% tax to a $200 grocery bill adds $16 that would not actually be charged. Know your local exemptions before calculating.
- ⚠ Using the wrong locality rate. Combined rates can differ by several points between neighboring cities, and using the wrong one misquotes every calculation downstream.
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Last updated: · by CalculatorPro Tools