How to use the sales tax calculator
- Choose Add tax to a price to find the total you'll pay, or Remove tax from a total to find the pre-tax price.
- Enter the amount.
- Enter your combined sales tax rate (state plus any county and city taxes).
Sales tax formulas
Examples
Adding tax
A $100 purchase with an 8.25% sales tax rate has $8.25 in tax, for a total of $108.25.
Removing tax (reverse sales tax)
If you paid $54.13 including 8.25% tax, the pre-tax price was 54.13 ÷ 1.0825 = $50.00, and the tax was $4.13.
Common mistake: you can't remove tax by subtracting the percentage from the total. 8.25% of $108.25 is $8.93, which would give $99.32 — not the correct $100.00. Always divide by (1 + rate).
How sales tax works in the U.S.
There is no federal sales tax in the United States. Instead, 45 states and the District of Columbia charge a statewide sales tax, and many counties and cities add local taxes on top. Five states — Alaska, Delaware, Montana, New Hampshire and Oregon — have no statewide sales tax, though Alaska allows local sales taxes. Combined rates range from 0% to more than 10% depending on where you shop, and some items such as groceries or prescription drugs are taxed at lower rates or exempt in many states.
VAT and GST
Many countries use a value-added tax (VAT) or goods and services tax (GST) instead of a sales tax. Prices in shops are usually shown including VAT, so use Remove tax from a total to find the net price. For example, with a 20% VAT, a £120 price includes £20 of VAT on a £100 net price.
Frequently asked questions
How do I calculate sales tax?
Multiply the price by the tax rate expressed as a decimal. For a $40 item with 6% tax, the tax is $40 × 0.06 = $2.40, so the total is $42.40.
How do I calculate the price before tax?
Divide the total by 1 plus the tax rate as a decimal. If you paid $107 with 7% tax, the pre-tax price is $107 ÷ 1.07 = $100.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska does allow cities and boroughs to charge local sales taxes.
Is sales tax calculated on the discounted price?
In most cases, yes — sales tax applies to the price you actually pay after store discounts. Rules for manufacturer coupons vary by state.
Can I use this calculator for VAT or GST?
Yes. The math is the same. Enter your VAT or GST rate, then choose whether to add tax to a net price or remove it from a gross price.
Results are provided for convenience and rounded for display. Sales tax rules, tipping customs and date conventions differ by location, so check local rules when it matters.
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