How to calculate sales tax
- Enter the price before tax and your combined sales tax rate: the state rate plus any county and city rates. The default is 7.25%, the California state base rate, as an example.
- The tax and the total you pay appear instantly.
- To find the price before tax from a receipt total, choose Remove tax. Paste several prices to convert them all.
How US sales tax works
Unlike VAT, US sales tax is charged only on the final sale to the consumer, and each state sets its own rules. Most states charge a state rate, and many counties and cities add local rates on top, so the combined rate can differ between neighbouring towns. A few states, including Oregon, Montana, New Hampshire and Delaware, have no statewide sales tax. Prices in shops are usually shown before tax, which is why the total at the till is higher than the shelf price.
To add tax, multiply the price by one plus the rate: 50 at 8.25% is 50 × 1.0825 = 54.13. To remove tax from a total, divide by the same factor; subtracting the percentage from the total gives the wrong answer. Many states exempt or reduce tax on groceries, prescription drugs or clothing, and online sellers may need to collect tax in states where they have enough sales. Look up the exact combined rate for an address on your state's revenue department website. Everything is calculated in your browser.
FAQ
How do I calculate sales tax?
Multiply the price by the tax rate. For the total, multiply by one plus the rate, for example 1.08 for 8%.
How do I find the price before tax?
Divide the total by one plus the tax rate. 108 ÷ 1.08 = 100.
Which states have no sales tax?
Alaska (statewide, though local taxes apply), Delaware, Montana, New Hampshire and Oregon.