Sales Tax Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
Sales tax equals the price times the combined tax rate. A $250 purchase at a 6% state rate plus 2.25% local rate (8.25% combined) carries $20.63 in tax, for a total of $270.63. To remove tax from a total, divide the total by (1 + rate).
How this calculator works
In the United States, sales tax is set by states, and many counties and cities add their own local rate on top. The rate you pay is the combined figure for the place of sale (or the delivery address for most online orders). A handful of states have no statewide sales tax.
This calculator adds the state and local rates together, then either adds tax to a pre-tax price or works backwards from a total that already includes tax, which is useful for receipts and expense reports.
The formula
- Combined rate
- state rate + local rate
- Add tax
- tax = price × combined rate ÷ 100
- Remove tax
- price = total ÷ (1 + combined rate ÷ 100)
Worked example
A receipt total of $86.60 in an area with an 8.25% combined rate means the pre-tax price was 86.60 ÷ 1.0825 = $80.00 and the tax was $6.60.
Tips
- 01Look up the combined rate by ZIP code on your state revenue department's website; ZIP codes can span several local rates.
- 02Many states exempt groceries or prescription drugs, or tax them at a reduced rate.
- 03Online sellers usually collect tax based on the buyer's delivery address.
Frequently asked questions
How do I calculate sales tax?
Multiply the price by the combined state and local rate as a decimal. At 7.5%, a $40 item has $3.00 of tax.
How do I remove sales tax from a total?
Divide the total by (1 + rate). A $107 total at 7% tax had a pre-tax price of $100.
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, although some Alaska localities charge their own.
Is sales tax the same as VAT or GST?
No. US sales tax is charged once at the final sale. VAT and GST are charged at each stage of the supply chain, with businesses claiming credits for tax they paid.