Sales Tax Calculator

What This Calculator Does

This is a tool to solve the sales tax equation in either direction:

• Price + tax rate → sales tax amount and total price. Most common use - you are told the sticker price and the local price and want to know what you will pay.
• Total price + tax rate → pre-tax price. When you know your total receipt amount and are looking to calculate the original price before the tax was applied (sometimes referred to as "reverse sales tax" or "tax-inclusive" calculation).
• Price + total → effective tax rate. Helpful for determining what rate was actually charged, or for comparing rates for two purchases.

The calculator solves for the missing value if 2 of the 3 values are entered.

The formula for the sales tax is as follows:

The sale tax amount is computed as a simple percentage of the pre-tax amount:

Suppose the price before tax is $2300 and tax rate is 30%.

Example 1: An item that cost $70 and has a sales tax rate of 6.5%.

• Convert the rate to a decimal: 6.5 ÷ 100 = 0.065
• Multiply by the price: $70 × 0.065 = $4.55 in sales tax
• Total price: $70 + $4.55 = $74.55

Reverse example (with total come to price before tax): If you see a receipt that lists the total price as $74.55, and you know that the rate was 6.5%:

• Divide the total by (1 + tax rate as a decimal): $74.55 ÷ 1.065 = $70.00 pre-tax price
• Subtract to find the tax amount: $74.55 − $70.00 = $4.55

How the sales tax functions in the United States of America.

The USA is different to many other countries, where there is no federal sales tax; it is all applied at a state and local level, hence the variance in sales tax rates based on the purchase location.

There are currently five states that have no state wide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. Despite the fact, however, that Alaska permits local sales taxes in individual municipalities, a purchase there might still be tax based upon the municipality involved.

However, in all other states the actual rate you pay is typically a compound rate: the state rate of sales tax plus any "county, city, and special-district taxes" that are added on top. That's why the rates for two addresses in the same state or even ZIP code can be different. This tool is designed to calculate tax based on a rate you already know (from a receipt, a quote or a rate you've checked by address) — not to find the current official rate by address; for that you should contact your state department of revenue.

What is the Difference between Sales Tax and VAT?

For those who have long experience in shopping outside the U.S., the difference can be confusing:

• In most cases, if a concept of sales tax is used in sales tax, it is levied at the last sales point at the end consumer. Generally, businesses purchasing from other businesses for resale are not subject to sales tax.
• VAT, which most other countries use, is paid in stages throughout the process of manufacturing, distribution and retailing based on the value added at each stage and the final cost is paid by the end user anyway.
• The U.S. price tags usually display the price before taxes are applied and tax is collected at the point of sale. Usually, the listed price in VAT countries is already in the price of the goods.

Frequently Asked Questions