Sales Tax Calculator
Calculate sales tax amounts, find total prices after tax, or reverse-calculate pre-tax prices. Works for any purchase amount with customizable tax rates to match your local jurisdiction.
How Is Sales Tax Calculated?
Sales tax adds a percentage to the purchase price of goods and services, collected by retailers and remitted to government authorities. The calculation involves multiplying the pre-tax price by the tax rate expressed as a decimal, then adding that amount to the original price.
For example, purchasing a $75 item in a jurisdiction with 8% sales tax means paying $75 × 0.08 = $6 in tax, for a total of $81. The straightforward nature of this calculation makes it easy to budget for purchases or verify receipt accuracy.
Sales Tax Formulas You Need to Know
Key Formulas:
- Tax Amount: Price × (Tax Rate ÷ 100)
- Total with Tax: Price × (1 + Tax Rate ÷ 100)
- Pre-Tax Price: Total ÷ (1 + Tax Rate ÷ 100)
- Find Tax Rate: ((Total - Price) ÷ Price) × 100
Reverse Calculating the Pre-Tax Price
Sometimes you know the total paid but need to find the original price before tax. Divide the total by (1 + tax rate as decimal). If you paid $162 total with 8% tax, the calculation is $162 ÷ 1.08 = $150 original price. The $12 difference represents the tax collected.
Understanding State and Local Sales Tax Rates
Sales tax in the United States isn't uniform - it varies significantly by state, county, city, and sometimes special districts. The total rate you pay combines all applicable jurisdictions. A purchase in downtown Chicago faces different taxation than one in rural Montana.
| State | State Rate | Avg. Local | Combined Avg. |
|---|---|---|---|
| California | 7.25% | 1.57% | 8.82% |
| Texas | 6.25% | 1.94% | 8.19% |
| New York | 4.00% | 4.52% | 8.52% |
| Florida | 6.00% | 1.02% | 7.02% |
| Oregon | 0.00% | 0.00% | 0.00% |
States Without Sales Tax
Five states impose no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska permits local jurisdictions to charge sales tax, so some Alaskan cities and boroughs do collect it. Delaware, Montana, New Hampshire, and Oregon have no sales tax at any level, making them popular for major purchases.
Tax-Exempt Items and Services
Most states exempt certain categories from sales tax. Common exemptions include unprepared groceries, prescription medications, and agricultural supplies. Some states hold sales tax holidays for back-to-school shopping or hurricane preparedness, temporarily exempting specific items. Rules vary dramatically by state, so check local regulations for specific exemptions.
Business and Consumer Sales Tax Considerations
For consumers, understanding sales tax helps with budgeting and comparing prices across jurisdictions. For businesses, proper sales tax collection and remittance is a legal obligation with penalties for non-compliance.
Online Shopping and Sales Tax
Following the 2018 Supreme Court ruling in South Dakota v. Wayfair, states can require online retailers to collect sales tax even without physical presence. Most major e-commerce platforms now calculate and collect sales tax automatically based on delivery address. If purchasing from out-of-state vendors who don't collect tax, consumers may owe "use tax" - essentially the same rate as local sales tax.
Sales Tax on Vehicles
Vehicle purchases involve sales tax in most states, calculated on the purchase price. Some states offer trade-in credits, reducing taxable value by your trade-in's worth. For example, buying a $30,000 car with a $10,000 trade-in might only incur tax on $20,000 in certain states. Our auto loan calculator can help estimate total vehicle costs including taxes.
GST and VAT: Sales Tax Around the World
Other countries use different consumption tax systems. Value Added Tax (VAT) in Europe is typically included in displayed prices, unlike US sales tax added at checkout. Canada's GST (Goods and Services Tax) and provincial sales taxes combine similarly to US state/local structures. Understanding these differences matters for international purchases and travel.
For related financial calculations, explore our tip calculator for restaurant bills or discount calculator for sale prices before tax. Accurate tax calculations ensure you're never surprised at checkout and can properly compare prices across different tax jurisdictions.
Last Updated: January 2026 | Reviewed for accuracy