Sales Tax Calculator
Add sales tax to a pre-tax price or remove sales tax from a total. Enter the amount and the tax rate — the calculator fills in the tax amount and the before/after totals. Works for any US state or local sales tax rate.
What Is Sales Tax?
Sales tax is a consumption tax charged at the point of sale on goods and some services. It is added to the pre-tax price and paid by the buyer. The seller collects it and remits it to the state or local tax authority.
In the United States, sales tax is set at the state level and often supplemented by county and city taxes. Total combined rates range from 0% (in states like Oregon, Montana, New Hampshire, Delaware, and Alaska) to over 10% in some cities.
Sales Tax Formulas
Adding sales tax (pre-tax → total):
Tax = Pre-Tax Amount × (Rate ÷ 100)
Total = Pre-Tax Amount + Tax
Removing sales tax (total → pre-tax):
Pre-Tax = Total ÷ (1 + Rate ÷ 100)
Tax = Total − Pre-Tax
Worked Example
A product costs $500 pre-tax, with an 8.25% sales tax:
Tax = $500 × 0.0825 = $41.25
Total = $500 + $41.25 = $541.25
Reverse: a receipt total is $541.25, with 8.25% sales tax:
Pre-Tax = $541.25 ÷ 1.0825 = $500.00
Tax = $541.25 − $500 = $41.25
US State Sales Tax Rates (Base State Rate)
- 0% — Oregon, Montana, New Hampshire, Delaware, Alaska (no statewide sales tax)
- ~4% — Alabama, Hawaii, Louisiana, Mississippi, Missouri, New York, South Dakota, Wyoming
- ~5% — Kansas, Kentucky, Maine, Maryland, Michigan, Nebraska, Wisconsin
- ~6% — Connecticut, Florida, Iowa, Idaho, New Jersey, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia
- ~6.5% — Arkansas, Georgia, South Carolina, Virginia, Washington
- ~7% — California, Indiana, Minnesota, Nevada, Tennessee, Texas, Utah
- ~7.25% — Arizona, Colorado, New Mexico
- ~8%+ — Illinois, Oklahoma
These are base state rates. Local county and city taxes add 0–5% on top. Always use the combined rate shown on your receipt or given by the seller.
Frequently Asked Questions
What is the difference between sales tax and VAT?
Sales tax is collected only once — at the final sale to the consumer. VAT is collected at every stage of the supply chain and reclaimed by each business. The US uses sales tax; most of Europe, the Middle East, and many other countries use VAT.
How do I calculate sales tax backwards?
Divide the total by (1 + rate ÷ 100). For an 8.25% rate, divide by 1.0825. For a $541.25 total, $541.25 ÷ 1.0825 = $500 pre-tax, and the tax is $41.25.
Why can't I just subtract 8.25% from the total?
Because 8.25% of the pre-tax amount is not the same as 8.25% of the total. If pre-tax is $500 and tax is 8.25%, total is $541.25. Subtracting 8.25% from $541.25 gives $496.60 — not $500. The correct math is division, not subtraction.
Is sales tax charged on services?
It depends on the state. Some states tax almost all services (Hawaii, New Mexico, South Dakota), others tax almost none (Oregon, Montana), and most fall somewhere in between. Common taxable services include hotel stays, car rentals, and certain professional services.
What is a sales tax exemption?
Certain purchases are exempt from sales tax — typically food, prescription drugs, and in some states clothing and textbooks. Businesses can also apply for resale certificates that let them buy inventory without paying sales tax, since they will collect it when they resell.
Do I charge sales tax online?
In the US, you generally charge sales tax based on the buyer's shipping address, not your own location. After the 2018 Wayfair ruling, most states require online sellers to collect sales tax once they exceed a threshold of sales or transactions in that state — typically $100,000 in sales or 200 transactions per year.