Sales Tax Calculator
Calculate sales tax, total price or pre-tax price from a tax rate.
How Sales Tax Works
Sales tax is a percentage added to the price of goods and services at the point of purchase. It is collected by retailers and remitted to state and local governments. Understanding how sales tax works helps you budget accurately and avoid surprises at checkout. The tax rate varies depending on your location, the type of product, and sometimes even the time of year.
Sales Tax Formula
The sales tax formula is straightforward. To calculate the tax amount, multiply the pre-tax price by the tax rate (expressed as a decimal). Add that tax amount to the original price to get the total. For example, if an item costs $100 and the tax rate is 8.5%, the tax is $100 × 0.085 = $8.50, making the total $108.50. You can also calculate the total directly by multiplying the pre-tax price by (1 + tax rate).
Finding Pre-Tax Price
Sometimes you know the total price including tax and need to find the original pre-tax amount. This is common when reviewing receipts or reconciling expenses. To find the pre-tax price, divide the total by (1 + tax rate as a decimal). For example, if the total is $108.50 and the tax rate is 8.5%, divide $108.50 by 1.085 to get $100. This reverse calculation is useful for accounting, budgeting, and verifying you were charged correctly.
State Sales Tax Rates
Sales tax rates vary significantly across the United States. Some states have no sales tax at all, while others have rates exceeding 10% when local taxes are included. The combined state and local rate determines what you actually pay. Our calculator supports all US states and their specific rates, making it easy to calculate accurate totals no matter where you are shopping. Always check the current rate for your area, as rates can change with new legislation.
Frequently Asked Questions
Multiply the pre-tax price by the sales tax rate, then add that tax amount to the pre-tax price.
Example: If an item costs $100 before tax and the rate is 8%, the tax is $8 and the total is $108.
Divide the total price by 1 plus the tax rate as a decimal.
Example: If the total is $108 and the rate is 8%, divide $108 by 1.08 to get $100.
Sales tax includes state, county, city and special district taxes. Local governments can add their own sales taxes on top of the state rate.
Sales tax is usually calculated after discounts are applied, because the discounted price is the amount paid.