Sales Tax Calculator
Calculate sales tax, total price with tax, extract tax from total, or find the tax rate. Includes 2026 state sales tax rates for all US states.
Enter a price to calculate sales tax
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About This Calculator
"How much will I actually pay after tax?" Whether you're budgeting for a big purchase, running a small business, or just trying to figure out why your $99.99 item cost $108.49, understanding sales tax is essential for everyday financial decisions.
Sales tax in the United States is surprisingly complex. Unlike countries with a single national VAT (Value Added Tax), the US has a patchwork system where states, counties, and even cities can each add their own layer of tax. This means the same product can have wildly different final prices depending on where you buy it. A $1,000 laptop in Oregon (0% sales tax) costs exactly $1,000, while the same laptop in Chicago could cost $1,101.25 with combined state, county, and city taxes.
This calculator handles all the common sales tax scenarios: calculating tax from a pre-tax price, figuring out the original price when you know the total, determining the tax rate when you know both amounts, and even managing multiple items with different tax rates. Whether you're a consumer trying to budget accurately, a business owner calculating how much tax to collect, or a shopper comparing prices across state lines, this tool gives you instant, accurate results.
Fun fact: Five US states have no state sales tax at all (Alaska, Delaware, Montana, New Hampshire, and Oregon), though Alaska allows local jurisdictions to impose their own. Meanwhile, California has the highest state sales tax rate at 7.25%, but when you add local taxes, some areas of Louisiana, Tennessee, and Arkansas can exceed 11% total tax rate.
How to Use the Sales Tax Calculator
- 1**Select your calculation mode**: Choose "Calculate Tax from Price" to find the tax amount, "Calculate Price from Total" to extract the pre-tax price from a total, or "Calculate Rate" to determine the tax rate.
- 2**Choose your state**: Select from the dropdown to automatically populate your state's base sales tax rate, or select "Custom Rate" to enter a specific local rate.
- 3**Enter your amounts**: Input the pre-tax price, the tax-inclusive total, or both values depending on which calculation mode you selected.
- 4**Add multiple items** (optional): Click "Add Item" to calculate sales tax across multiple products, each with potentially different prices.
- 5**Review the breakdown**: See the subtotal, calculated tax amount, and final total displayed clearly with a percentage and dollar breakdown.
- 6**Use reverse calculation**: If you have a receipt showing only the total amount paid, use "Calculate Price from Total" mode to extract the original pre-tax price.
- 7**Copy or print results**: Save your calculations for expense reports, budgeting, or business records using the action buttons.
Formula
Tax Amount = Price x Tax Rate; Total = Price + Tax Amount; Pre-Tax Price = Total / (1 + Tax Rate)The forward calculation multiplies the pre-tax price by the tax rate (as a decimal, e.g., 7% = 0.07) to get the tax amount, then adds it to the price for the total. For reverse calculations, divide the tax-inclusive total by (1 + tax rate) to find the original pre-tax price.
Understanding Sales Tax in the United States
How US Sales Tax Works
Unlike most countries that use a national Value Added Tax (VAT), the United States has a decentralized sales tax system. Sales tax is levied at the state, county, and sometimes city or district level, creating a complex web of rates that can vary significantly even within a few miles.
The layers of sales tax:
- State sales tax: The base rate set by each state government (0% to 7.25%)
- County tax: Additional tax imposed by county governments (0% to 2%+)
- City/Municipal tax: Local sales tax added by cities (0% to 5%+)
- Special district tax: Transit, stadium, or other special purpose taxes
States Without Sales Tax
Five states have no state-level sales tax:
| State | Notes |
|---|---|
| Alaska | No state tax, but localities can impose up to 7.5% |
| Delaware | Truly tax-free shopping statewide |
| Montana | No sales tax at any level |
| New Hampshire | No general sales tax |
| Oregon | No sales tax statewide |
Highest Combined Sales Tax Rates (2026)
| Location | Combined Rate | Breakdown |
|---|---|---|
| Tacoma, WA | 10.3% | 6.5% state + local |
| Chicago, IL | 10.25% | 6.25% state + local |
| Seattle, WA | 10.25% | 6.5% state + local |
| Los Angeles, CA | 9.5% | 7.25% state + local |
| New York City | 8.875% | 4% state + local |
2026 State Sales Tax Rates Reference
Complete US State Sales Tax Rates
Here are the 2026 base state sales tax rates. Remember that local taxes (county, city, district) can add 1-5% more in many areas.
| State | Rate | State | Rate |
|---|---|---|---|
| Alabama | 4.00% | Montana | 0.00% |
| Alaska | 0.00% | Nebraska | 5.50% |
| Arizona | 5.60% | Nevada | 6.85% |
| Arkansas | 6.50% | New Hampshire | 0.00% |
| California | 7.25% | New Jersey | 6.625% |
| Colorado | 2.90% | New Mexico | 4.875% |
| Connecticut | 6.35% | New York | 4.00% |
| Delaware | 0.00% | North Carolina | 4.75% |
| Florida | 6.00% | North Dakota | 5.00% |
| Georgia | 4.00% | Ohio | 5.75% |
| Hawaii | 4.00% | Oklahoma | 4.50% |
| Idaho | 6.00% | Oregon | 0.00% |
| Illinois | 6.25% | Pennsylvania | 6.00% |
| Indiana | 7.00% | Rhode Island | 7.00% |
| Iowa | 6.00% | South Carolina | 6.00% |
| Kansas | 6.50% | South Dakota | 4.50% |
| Kentucky | 6.00% | Tennessee | 7.00% |
| Louisiana | 4.45% | Texas | 6.25% |
| Maine | 5.50% | Utah | 6.10% |
| Maryland | 6.00% | Vermont | 6.00% |
| Massachusetts | 6.25% | Virginia | 5.30% |
| Michigan | 6.00% | Washington | 6.50% |
| Minnesota | 6.875% | West Virginia | 6.00% |
| Mississippi | 7.00% | Wisconsin | 5.00% |
| Missouri | 4.225% | Wyoming | 4.00% |
| District of Columbia | 6.00% |
Key Facts:
- Highest state rate: California (7.25%)
- States tied at 7%: Indiana, Mississippi, Rhode Island, Tennessee
- No sales tax: Alaska*, Delaware, Montana, New Hampshire, Oregon
- *Alaska allows local taxes up to 7.5%
Tax-Inclusive vs. Tax-Exclusive Pricing
Understanding How Prices Are Displayed
Tax-Exclusive Pricing (US Standard)
In the United States, prices are typically displayed before tax. The sales tax is calculated and added at checkout. A $100 item in a state with 8% sales tax will cost $108 when you pay.
This means:
- Shelf prices don't reflect what you'll actually pay
- You need to mentally add tax when budgeting
- The same item has different final costs in different locations
Tax-Inclusive Pricing (International Standard)
In most other countries (UK, EU, Australia, etc.), the displayed price already includes VAT or GST. A 100 EUR item costs exactly 100 EUR at checkout - the tax is already factored in.
Why This Matters for Budgeting
If you're planning a purchase in the US, always factor in sales tax:
| Listed Price | Tax Rate | Tax Amount | You Pay |
|---|---|---|---|
| $500 | 5% | $25.00 | $525.00 |
| $500 | 7% | $35.00 | $535.00 |
| $500 | 10% | $50.00 | $550.00 |
| $1,000 | 5% | $50.00 | $1,050.00 |
| $1,000 | 7% | $70.00 | $1,070.00 |
| $1,000 | 10% | $100.00 | $1,100.00 |
Calculating Tax-Inclusive Prices
If you want to know the pre-tax price when you have a total (reverse calculation):
Formula: Pre-tax Price = Total / (1 + Tax Rate)
Example: A receipt shows $108 total at 8% tax rate
- Pre-tax price = $108 / 1.08 = $100.00
- Tax amount = $108 - $100 = $8.00
This is useful for:
- Verifying receipts are correct
- Calculating tips on pre-tax amounts
- Expense reporting and reimbursements
- Comparing international prices
Sales Tax Calculation Formulas
Essential Sales Tax Formulas
Calculate Tax Amount (Forward Calculation):
Tax Amount = Price x Tax Rate
Total = Price + Tax Amount
Example: $75 item at 6.5% tax
- Tax = $75 x 0.065 = $4.88
- Total = $75 + $4.88 = $79.88
Extract Pre-Tax Price (Reverse Calculation):
Pre-Tax Price = Total / (1 + Tax Rate)
Tax Amount = Total - Pre-Tax Price
Example: $79.88 total at 6.5% tax
- Pre-tax = $79.88 / 1.065 = $75.00
- Tax = $79.88 - $75.00 = $4.88
Calculate Tax Rate:
Tax Rate = (Total - Pre-Tax Price) / Pre-Tax Price x 100
Example: Paid $107.50 for a $100 item
- Rate = ($107.50 - $100) / $100 x 100 = 7.5%
Quick Mental Math Tips
| Tax Rate | Mental Shortcut |
|---|---|
| 5% | Divide price by 20, or find 10% and halve it |
| 6% | Find 5% + 1% |
| 7% | Find 10% minus 3% |
| 8% | Find 10% minus 2% |
| 10% | Move decimal point one place left |
Quick Example for $80 at 7.5% tax:
- 10% of $80 = $8.00
- 2.5% of $80 = $2.00
- 7.5% = $8.00 - $2.00 + $1.00 = $6.00 tax
- Total = $86.00
What Items Are Taxable?
Sales Tax Exemptions by State
Not everything is subject to sales tax. Exemptions vary significantly by state, but here are general patterns:
Commonly Exempt Items
| Category | Typically Exempt? | Notes |
|---|---|---|
| Groceries (unprepared food) | Often yes | 32+ states exempt groceries |
| Prescription medications | Almost always | Exempt in all sales tax states |
| Clothing | Sometimes | PA, NJ fully exempt; NY exempt under $110 |
| Medical equipment | Usually yes | Varies by specific item and state |
| Baby products | Increasingly yes | Many states exempting diapers, formula |
Usually Taxable Items
| Category | Notes |
|---|---|
| Electronics | Taxed in all states with sales tax |
| Prepared food | Restaurant meals, fast food, deli items |
| Soft drinks & candy | Often taxed even when groceries exempt |
| Alcohol | Usually taxed plus excise taxes |
| Most retail goods | General merchandise is taxable |
States That Tax Groceries
These states tax groceries at some rate:
- Full rate: Alabama, Kansas, Mississippi, Oklahoma, South Dakota
- Reduced rate: Arkansas, Illinois, Missouri, Tennessee, Utah, Virginia
Sales Tax Holidays
Many states offer temporary tax-free periods:
- Back-to-school (August): Clothing, school supplies, computers
- Hurricane preparedness (Spring): Generators, batteries, emergency supplies in coastal states
- Energy Star (Various): Energy-efficient appliances
Check your state's tax authority for specific dates and qualifying items.
Sales Tax for Business Owners
Collecting and Remitting Sales Tax
If you sell products, understanding your sales tax obligations is critical for compliance.
When Must You Collect Sales Tax?
You must collect sales tax if you have nexus in a state - a sufficient connection that creates tax obligations:
Physical Nexus:
- Having a store, warehouse, or office
- Employees working in the state
- Inventory stored in the state
Economic Nexus (Post-Wayfair 2018):
- Exceeding sales thresholds (typically $100,000 in sales)
- Exceeding transaction thresholds (typically 200 transactions)
- Most states now have economic nexus laws
Key Business Responsibilities
- Register for permits in each state where you have nexus
- Collect the correct rate based on customer's location (destination sourcing)
- Keep detailed records of all sales, exempt sales, and tax collected
- File returns on time (monthly, quarterly, or annually depending on volume)
- Remit collected taxes to appropriate state agencies
Common Mistakes to Avoid
| Mistake | Consequence |
|---|---|
| Collecting without a permit | Illegal in most states |
| Using wrong rates | Audit liability, penalties |
| Missing filing deadlines | Penalties and interest |
| Not tracking exemptions | May owe tax you should have collected |
| Ignoring economic nexus | Surprise tax bills and penalties |
Marketplace Facilitator Laws
If you sell through Amazon, eBay, Etsy, or similar platforms, the marketplace now collects and remits sales tax for you in most states. You still need to handle direct website sales yourself.
Use Tax: What You Need to Know
The Tax Most People Forget
Use tax is the complement to sales tax. When you buy something from an out-of-state seller who doesn't collect sales tax, you're technically obligated to pay use tax to your home state at your local rate.
Example:
- You live in California (7.25% base rate)
- You buy a $500 item from an Oregon retailer (0% tax collected)
- You legally owe California $36.25 in use tax
Why Use Tax Exists
Use tax ensures tax fairness between:
- Local retailers who must collect sales tax
- Out-of-state sellers who historically didn't
Without use tax, consumers could simply buy everything from no-tax states and avoid contributing to their home state's revenue.
How States Collect Use Tax
- Self-reporting on tax returns - Most states include a use tax line on income tax forms
- Estimated use tables - Some states offer simplified calculation based on income
- Economic nexus laws - Since 2018, most online sellers collect tax anyway
- Vehicle purchases - Strictly enforced; must prove tax paid before registration
Practical Reality
For small consumer purchases, use tax is largely unenforced on the honor system. However:
- Vehicle purchases are strictly tracked
- Businesses face audit risk
- Large purchases (boats, RVs, jewelry) may trigger review
Pro tip: If you paid sales tax to another state on a purchase, you typically receive credit against your home state's use tax obligation.
Reverse Sales Tax Calculator Explained
When You Need Reverse Calculation
The reverse calculation extracts the pre-tax price from a total that includes tax. Common uses:
- Verifying receipts - Confirm the tax charged was correct
- Tipping on pre-tax amounts - Calculate appropriate restaurant tips
- Expense reports - Separate taxable amounts for reimbursement
- International comparisons - Compare US prices with tax-inclusive prices abroad
- Budget tracking - Know actual product cost vs. tax paid
The Reverse Formula
Pre-Tax Price = Total / (1 + Tax Rate)
Step-by-Step Example:
You paid $97.20 total. Tax rate is 8%. What was the original price?
| Step | Calculation | Result |
|---|---|---|
| 1. Convert rate to decimal | 8% / 100 | 0.08 |
| 2. Add 1 | 1 + 0.08 | 1.08 |
| 3. Divide total | $97.20 / 1.08 | $90.00 |
| 4. Calculate tax paid | $97.20 - $90.00 | $7.20 |
Common Mistake to Avoid
Wrong approach: Calculating the tax percentage of the total
- Wrong: $97.20 x 8% = $7.78 (NOT the correct tax amount!)
Correct approach: Divide total by (1 + rate)
- Correct: $97.20 / 1.08 = $90.00 pre-tax
The error from the wrong method grows larger with higher tax rates and bigger purchases.
Why It Works Mathematically
When tax is added: Original x (1 + Rate) = Total Therefore: Original = Total / (1 + Rate)
Pro Tips
- 💡Always budget 5-10% more than listed prices to account for sales tax - an 8% tax on a $1,000 purchase adds $80 to your cost.
- 💡For major purchases, compare total cost including tax across nearby jurisdictions - crossing into a lower-tax area could save significant money.
- 💡Remember that discounts are applied before tax - a 20% off coupon saves you money on both the price AND the tax you would have paid.
- 💡Check your state's sales tax holiday schedule before making large back-to-school or emergency supply purchases.
- 💡When dining out, calculate tips on the pre-tax amount unless you intentionally want to tip extra.
- 💡Business owners: Register for a sales tax permit BEFORE collecting any tax - collecting without proper registration is illegal.
- 💡Keep receipts showing tax paid separately for expense reports, potential reimbursements, and tax deduction records.
- 💡Use the reverse calculation to verify receipts are correct - divide the total by (1 + rate) to find the pre-tax amount.
- 💡If shopping near state borders, know which state has lower rates - Oregon (0%) borders Washington (10%+) for major savings.
- 💡Online sellers: marketplace facilitators like Amazon, eBay, and Etsy now collect and remit sales tax for you in most states.
- 💡When comparing US prices with international prices, remember US prices exclude tax while most international prices include VAT.
- 💡Track use tax obligations for large out-of-state purchases - especially vehicles, which are strictly enforced at registration.
Frequently Asked Questions
To calculate sales tax, multiply the pre-tax price by the tax rate (expressed as a decimal). For example, a $50 item with 7% tax: $50 x 0.07 = $3.50 tax. Add this to the original price for the total: $50 + $3.50 = $53.50. Our calculator above does this instantly for any amount and automatically uses your selected state's rate.