Sales Tax Calculator
Enter a price and a rate. Switch direction to work backwards from a total that already includes tax.
- Before tax
- —
- Tax
- —
- Total
- —
Enter an amount to see the tax.
Adding and removing sales tax
To add tax, multiply by (1 + rate). To remove it, divide by (1 + rate) — never subtract. A $100 item at 8.25% tax costs $108.25. Working backwards from that $108.25, dividing by 1.0825 correctly returns $100. Subtracting 8.25% of $108.25 would give $99.32, which is wrong by 68 cents, because the tax was charged on the smaller pre-tax figure rather than on the total.
The reverse-tax mistake
This is the single most common error in sales tax arithmetic, and it always runs the same way — subtracting the percentage from the gross figure instead of dividing it out.
| Total paid | Rate | Wrong (subtract) | Right (divide) |
|---|---|---|---|
| $108.25 | 8.25% | $99.32 | $100.00 |
| $120.00 | 20% | $96.00 | $100.00 |
| $215.00 | 7.5% | $198.88 | $200.00 |
The gap widens as the rate rises. At 20% VAT the subtraction method is out by 4% of the whole invoice, which matters if you are reclaiming tax or filing accounts.
US sales tax basics
The United States has no national sales tax. Each state sets its own rate, and counties and cities frequently add their own on top, so the rate you actually pay is a combined figure that can vary between neighbouring towns.
| State | State rate | Typical combined |
|---|---|---|
| California | 7.25% | 8.85% |
| Texas | 6.25% | 8.20% |
| New York | 4.00% | 8.53% |
| Florida | 6.00% | 7.00% |
| Illinois | 6.25% | 8.86% |
| Tennessee | 7.00% | 9.55% |
| Delaware, Montana, New Hampshire, Oregon | None | None |
Combined rates are approximate averages and change regularly. Many states also exempt groceries, prescription medicine and clothing, either entirely or at a reduced rate.
Sales tax and VAT are not the same
Both end up taxing the consumer, but they are collected differently, and the difference shows up on the price tag.
- US sales tax is charged once, at the final sale, and is usually excluded from the displayed price. The number on the shelf is not what you pay.
- VAT and GST are charged at every stage of production, with businesses reclaiming what they paid. In most countries consumer prices must be shown including VAT, so the shelf price is the final price.
This is why visitors to the US are routinely surprised at the till, and why "remove tax from a total" is the more useful direction in Europe while "add tax to a price" is the common one in America.
How to use the Sales Tax Calculator
- Choose whether you are adding tax to a net price or removing it from a total.
- Enter the amount.
- Enter your tax rate — combined state and local, if that applies where you are.
Frequently asked questions
How do I calculate sales tax on a purchase?
Multiply the pre-tax price by the tax rate as a decimal. At 8.25%, a $100 item incurs $100 × 0.0825 = $8.25 of tax, for a total of $108.25.
How do I find the pre-tax price from a total?
Divide the total by 1 plus the rate as a decimal. From $108.25 at 8.25%: 108.25 ÷ 1.0825 = $100.00.
Is sales tax charged before or after a discount?
After. Tax applies to the amount you actually pay, so a discount reduces the tax with it. Manufacturer coupons are sometimes treated differently, as the retailer is reimbursed for their value.
Which US states have no sales tax?
Delaware, Montana, New Hampshire and Oregon charge no statewide sales tax. Alaska has none at state level but allows local ones, so some Alaskan towns do charge it.
Do I pay sales tax on online orders?
Usually yes. Since the 2018 South Dakota v. Wayfair decision, states can require online sellers to collect tax based on where the buyer lives, so most large retailers now charge it everywhere.
Related tools
Last reviewed September 4, 2026. Rates change and local surcharges vary. Check your jurisdiction for the exact figure.