Sales Tax Calculator
The Sales Tax Calculator helps you calculate the total cost of a purchase including sales tax. Enter the pre-tax price and the applicable sales tax rate to see the tax amount and total cost. This calculator also works in reverse — enter the total price to find the pre-tax amount. Sales tax rates vary by state and locality in the US, ranging from 0% (Oregon, Montana, Delaware, New Hampshire) to over 10% (parts of California, Tennessee, Arkansas). Understanding sales tax is important for budgeting, price comparison, and business accounting.
Formula
Tax Amount = Price × (Sales Tax Rate ÷ 100) Total Cost = Price + Tax Amount Reverse (from total to pre-tax): Price = Total ÷ (1 + Sales Tax Rate ÷ 100) Tax = Total − Price
Example
If an item costs $100 and the sales tax rate is 8.25%: Tax Amount = $100 × 0.0825 = $8.25 Total Cost = $100 + $8.25 = $108.25 Reverse: If total is $108.25 and rate is 8.25%: Price = $108.25 ÷ 1.0825 = $100.00 Tax = $108.25 − $100.00 = $8.25
How to Use
- Enter the pre-tax price of the item
- Input the sales tax rate for your state/locality
- The calculator shows the tax amount and total cost
- Or enter the total cost to reverse-calculate the pre-tax price
- Use this for budgeting, price comparison, or accounting
Frequently Asked Questions
Which US states have no sales tax?
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, some localities in Alaska do charge local sales tax. Other states have varying rates.
What is the difference between sales tax and use tax?
Sales tax is collected by the seller at the time of purchase. Use tax is self-reported and paid by the buyer when sales tax was not collected (e.g., online purchases from out-of-state sellers). Most people ignore use tax, but it is legally owed.
Are groceries subject to sales tax?
Most states exempt groceries from sales tax or charge a reduced rate. However, prepared food, restaurant meals, and snacks are typically taxed. States like Alabama and Mississippi tax groceries at the full rate.
How do I calculate sales tax for online purchases?
After the 2018 Supreme Court ruling (South Dakota v. Wayfair), online retailers must collect sales tax based on the buyer's location, not the seller's. The rate depends on your state and local jurisdiction.
What is a sales tax holiday?
Some states have sales tax holidays — periods when certain items (back-to-school supplies, clothing, energy-efficient appliances) are exempt from sales tax. These are typically in August. Check your state's rules.