Sales Tax Calculator
Calculate sales tax or extract it from total
Last updated: January 2025
About This Tool
Sales tax affects almost every purchase we make, yet calculating it can be confusing with varying rates. This calculator helps you quickly determine tax amounts and final prices for accurate budgeting and pricing.
What is Sales Tax Calculator?
Sales tax is a consumption tax imposed by governments on the sale of goods and services. The seller collects it from the buyer at the point of sale and remits it to the government. Rates vary significantly by location - some states have no sales tax while others exceed 10% when combining state and local rates.
How It Works
The calculator either adds tax to a pre-tax amount or extracts tax from a total amount. To add tax, multiply the price by the tax rate and add to the original. To extract tax from a total, divide by (1 + tax rate) to find the pre-tax amount.
Formula
Total = Price x (1 + Tax Rate / 100)
Before Tax
$100
Tax Amount
$8.25
Total
$108.25
Quick State Rates
💡 Note
State rates shown are base rates. Local taxes may add 1-5% more.
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When to Use This Calculator
- 1Calculating the final price of purchases before checkout
- 2Setting prices for products that include or exclude tax
- 3Preparing for business sales tax filings
- 4Budgeting for large purchases
- 5Comparing prices across different tax jurisdictions
Pro Tips
- •Know your local combined tax rate (state + county + city)
- •Remember that some items may be tax-exempt (groceries, medicines)
- •Online purchases may have different tax rules than local purchases
- •Keep receipts showing tax paid for business expense records
- •Check if your business qualifies for tax exemptions on purchases
Common Mistakes to Avoid
- •Using only the state rate and forgetting local taxes
- •Not knowing which items are taxable in your jurisdiction
- •Assuming all states have sales tax (some have none)
- •Forgetting that rates change and vary by location
- •Not collecting proper documentation for tax-exempt sales