Sales Tax Calculator

Enter the amount and the combined sales tax rate for the location (state rate plus any county, city and district rates), then say whether the amount is before tax or already includes it.

How to use the sales tax calculator

1. Amount: the price or total you have.
2. Sales tax rate: the combined rate for the place of sale, in percent. You can enter up to three decimal places, for example 8.875 for New York City.
3. The amount is: choose “Before sales tax” to add tax to a price, or “Sales tax inclusive” to take the tax out of a total that already includes it.

The result shows the price with or without tax, the net amount, the tax and the total. Every figure is shown to the cent, so you can copy it straight onto an invoice or check it against a receipt.

How sales tax is calculated

Adding tax to a price is a single multiplication:

• Tax = price × rate ÷ 100
• Total = price + tax

$1,000 at 7%: tax is $70.00 and the total is $1,070.00.

Taking tax out of a total that already includes it uses division:

• Price before tax = total ÷ (1 + rate ÷ 100)
• Tax = total − price before tax

$1,000 including 7% tax: the price before tax is $1,000 ÷ 1.07 = $934.58, and the tax is $65.42.

The most common mistake

The most common error is subtracting the rate from a tax-inclusive total. Taking 7% off $1,000 gives $930.00, but 7% tax on $930 is only $65.10, giving a total of $995.10, not $1,000. Tax is a percentage of the pre-tax price, not of the total, so you have to divide. The “Sales tax inclusive” option does that for you.

A quick check: add the tax back to the net amount. If you get the original total to the cent, the split is right.

More examples

Amount	Rate	Mode	Net amount	Tax	Total
$1,000.00	7%	Before tax	$1,000.00	$70.00	$1,070.00
$1,000.00	8.875%	Before tax	$1,000.00	$88.75	$1,088.75
$249.99	6.25%	Before tax	$249.99	$15.62	$265.61
$53.50	7%	Tax inclusive	$50.00	$3.50	$53.50
$1,250.00	9.5%	Tax inclusive	$1,141.55	$108.45	$1,250.00

Discounts, coupons and trade-ins

The order of operations matters when a price is reduced:

• A store discount or a store coupon usually comes off before tax, so tax is charged on the reduced price. A $100 item with a $20 store discount at 7% costs $80 plus $5.60 tax.
• A manufacturer’s coupon is reimbursed to the store by a third party, so many states tax the price before the coupon. The same $100 item with a $20 manufacturer’s coupon may be taxed at $7.00.
• Trade-ins on vehicles reduce the taxable price in most states, but not all. In a state that allows it, a $30,000 car with a $10,000 trade-in is taxed on $20,000.
• Rebates paid to you after the sale do not reduce the tax.

To use the calculator with a discount, enter the price after any discount that reduces the taxable amount, then add tax.

How US sales tax rates work

There is no national sales tax in the United States. Each state sets its own rate and rules, and most allow counties, cities and special districts to add their own.

• Forty-five states and the District of Columbia charge a statewide sales tax.
• Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Some Alaska towns charge a local sales tax anyway.
• Local add-ons can push the combined rate past 10% in parts of several states, such as Louisiana, Tennessee, Arkansas, Washington and Alabama.

The rate that applies depends on where the sale takes place. For goods shipped to a customer, that is usually the delivery address, since most states use destination-based sourcing. A handful of states use origin-based sourcing for sales within the state, which means the seller’s location decides. Rates change often, usually on January 1, April 1, July 1 or October 1, so look up the current combined rate for the ZIP code or, better, the full address on your state’s department of revenue website.

What is taxable

Each state decides which goods and services are taxed. Common differences:

• Groceries are exempt or taxed at a lower rate in most states, but fully taxed in a few.
• Prescription drugs are exempt almost everywhere.
• Clothing is exempt in a few states, sometimes only below a price limit.
• Services are often exempt, though states increasingly tax digital products, software and some services.
• Shipping charges are taxable in some states and not in others, depending on how they are stated on the invoice.

If an invoice mixes taxable and exempt items, apply the rate only to the taxable lines, then add them together.

Sales tax for businesses

If you sell goods or taxable services, you generally need a sales tax permit in each state where you have nexus, which is a connection that obliges you to collect. Physical presence creates nexus. Since the Supreme Court’s 2018 Wayfair decision, so can sales into a state above an economic threshold, which in many states is $100,000 a year. Marketplaces such as Amazon and Etsy collect and remit tax for their sellers in most states.

When you collect sales tax, it is not your money. You hold it for the state and file returns monthly, quarterly or yearly depending on your volume. Keeping the net amount and the tax separate on every invoice makes those returns much easier. The calculator’s tax-inclusive mode is useful if your prices are set as round totals and you need to split them for your books.

Use tax

If you buy something from a seller that did not charge your state’s sales tax, for example from out of state, you may owe use tax at the same rate. It is reported on your state income tax return for individuals or on a sales and use tax return for businesses. The calculation is the same as sales tax, so you can use this calculator to work it out.

Other uses

• Checking a receipt: enter the total in tax-inclusive mode with the local rate and compare the tax with what was charged.
• Pricing: if you want a shelf price of $25.00 including tax, enter $25.00 as tax inclusive to find the price to set in your system.
• Budgeting a big purchase: add tax to the price of a car, appliance or furniture to see the real cost. Car sales tax is often based on the price after the trade-in, depending on the state.

For a total that you then need to write on a check, the check amount in words converter writes out the legal amount. If you are financing the purchase, the loan payment calculator shows the monthly payment on the amount including tax. And to check a supplier’s federal tax ID before you pay, use the EIN validator.

For a quick estimate without a calculator, move the decimal point one place to get 10% and adjust from there: 10% of $1,000 is $100, so 7% is $70.

The calculations run in your browser. Nothing you enter is stored or sent.

Learn more

How to calculate sales tax covers state, local and use tax with examples. Reverse sales tax calculation shows how to get the pre-tax price right from a receipt total.

Frequently asked questions

How do I calculate sales tax backwards from a total?

Divide the total by 1 plus the rate as a decimal. For $53.50 at 7%, divide by 1.07 to get $50.00 before tax; the tax is $3.50. Do not subtract 7% of the total, which gives the wrong figure. Choose “Sales tax inclusive” in the calculator to do this automatically.

What sales tax rate should I use?

Use the combined rate for the location where the sale happens: the state rate plus any county, city and special district rates. For shipped goods that is usually the delivery address. Your state’s department of revenue publishes rate lookup tools by address or ZIP code. Rates change several times a year, so check before you rely on an old figure.

Which states have no sales tax?

Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska allows local governments to levy one, so many Alaska towns charge sales tax anyway. Montana and New Hampshire have taxes on specific items such as lodging and meals, which work differently from a general sales tax.

Is sales tax charged on shipping?

It depends on the state. Some tax shipping and handling charges when the item itself is taxable, others exempt shipping if it is listed separately on the invoice, and some exempt it entirely. Check your state’s rules. If shipping is taxable, add it to the amount before you calculate.

How is sales tax rounded?

Most states round to the nearest cent, with half a cent rounded up. Some states require the tax to be calculated on the invoice total, others allow it per line item, which can make a cent of difference. The calculator rounds the final tax to the nearest cent.

Do I pay sales tax on online purchases?

Usually yes. Since the 2018 Wayfair decision, states can require out-of-state sellers above a sales threshold to collect their tax, and large marketplaces collect it for their sellers. If a seller did not charge tax, you may owe use tax to your state at the same rate.