Sales Tax Calculator
Calculate item purchase total including state, county, and local sales tax rates, or reverse-calculate pre-tax amounts.
Tax Output
Adding it on, and taking it back out
Sales tax is added at the point of purchase, so the shelf price in most US jurisdictions is not what you pay. Adding it is simple — multiply by 1 plus the rate, so $200 at 7.25% is $214.50. Removing it from a tax-inclusive total is the step that trips people up: divide by 1 plus the rate. A $214.50 total at 7.25% came from $200, not from subtracting 7.25% of $214.50.
The rate itself is rarely one number. US sales tax typically combines state, county, city and special district rates, so a single state can contain hundreds of distinct totals and the correct one usually depends on the delivery address rather than the seller's. Five states levy no state sales tax at all, though local taxes may still apply in some of them.
What is taxable varies as much as the rate. Groceries, prescription drugs and clothing are exempt or reduced in many jurisdictions and fully taxable in others, and services are treated inconsistently across states. This differs fundamentally from a VAT system, where tax is collected at each stage of production and the advertised price is usually tax-inclusive — which is why a US receipt has a line for tax and a European one generally does not.
Frequently asked questions
How to calculate total price with sales tax?
Total Price = Purchase Amount + (Purchase Amount × Sales Tax Rate / 100).
How do I calculate sales tax?
Multiply the pre-tax price by the tax rate and add it, or multiply by (1 + rate) in one step. To work backwards from a tax-inclusive total, divide by (1 + rate) - dividing $107 by 1.07 gives the $100 base, whereas subtracting 7% of $107 gives the wrong answer.
Why do sales tax rates vary so much within one US state?
Because state, county, city and special district rates stack. A state rate of 6% can become 9.5% once local levies are added, and the combined rate can change across a street. Five states - Alaska, Delaware, Montana, New Hampshire and Oregon - levy no statewide sales tax, though Alaska permits local ones.
What is nexus and why does it matter?
Nexus is the connection that obliges a seller to collect tax in a jurisdiction. Since the 2018 South Dakota v. Wayfair decision, economic nexus based on sales volume or transaction count is sufficient - physical presence is no longer required. This is why online retailers now collect tax in most states.