Sales Tax Calculator
Enter a price, sales tax rate, and choose whether to add tax or remove tax. See the pre-tax price, tax amount, and total with tax.
Reviewed by the ToolNestr Editorial Team — July 2026
Sales tax rates vary by state, county and city, and change over time — enter your local rate and confirm it with the relevant tax authority. Estimate only, not tax advice.
How sales tax is calculated
In Add Tax mode: Tax = Price × Rate / 100 and Total = Price + Tax. In Remove Tax mode: Pre-tax = Total / (1 + Rate / 100) and Tax = Total - Pre-tax.
Sales tax is a pass-through tax — businesses collect it from customers and remit it to the government. The rate you pay depends on the jurisdiction where the sale occurs. In many states, the total rate is a combination of state, county, and city rates, which can make the final percentage surprisingly high. Understanding how to add and remove tax is essential for businesses setting prices, accountants preparing tax returns, and consumers verifying receipts.
Worked example
You buy an item for $100 with an 8.875% sales tax rate in New York City.
In reverse, if your receipt total is $108.88, the pre-tax price is $100.00.
About sales tax
Sales tax is the primary source of revenue for most state and local governments, funding schools, roads, public safety, and other essential services. Unlike income tax, sales tax is consumption-based — you only pay it when you spend money. This makes it more stable during economic downturns but also regressive, as lower-income households spend a higher percentage of their income on taxable goods.
How to use it
- Select whether you want to add tax to a price or remove tax from a total.
- Enter the sales tax rate (combined state + local rate).
- Enter the price or total amount, depending on your mode.
- See the pre-tax amount, tax amount, and total with tax.
When to use this tool
Businesses use it to set retail prices that include tax, to calculate tax for invoices, and to understand their total tax collection obligation. Consumers use it to verify receipts, compare prices across states, and estimate the tax deduction when itemizing on their federal return. Accountants use it to reconcile sales tax collected versus amounts due by jurisdiction.
Tips for sales tax
- Always use the combined rate (state + county + city + special districts) for accurate results.
- Keep records of tax collected by jurisdiction — many states require separate reporting.
- If your business sells in multiple states, you may have nexus and collection obligations in each.
Small Business Owner
Set retail prices that include sales tax, calculate how much tax to collect on each sale, and ensure you charge the correct rate for your jurisdiction.
Shopper / Consumer
Quickly calculate the total cost of an item including tax, or verify that a receipt's sales tax amount is correct based on your local rate.
Accountant / Bookkeeper
Reconcile sales tax collected against amounts owed, calculate reverse tax amounts from total receipts, and prepare accurate sales tax returns for multiple jurisdictions.
E-commerce Merchant
Calculate sales tax for online orders based on customer location. Ensure you collect the correct combined rate for each shipping address to stay compliant.
How to use the sales tax calculator
Choose add or remove mode
"Add tax" calculates the total including tax from a base price. "Remove tax" extracts the pre-tax price from a total you already paid.
Enter the tax rate
Type your combined sales tax rate as a percentage. For example, if your rate is 8.875%, enter 8.875. Check your state and local tax authority for the current rate.
See the full breakdown
View the pre-tax amount, the tax amount, and the total with tax. The calculator updates instantly as you adjust any value.
Tips for sales tax compliance
Know your combined rate
Your total sales tax rate is the sum of state, county, city, and any special district taxes. Many states provide a lookup tool on their Department of Revenue website. Use the correct combined rate for each transaction location.
Understand nexus rules
If your business has physical presence, employees, inventory, or significant sales in another state, you likely have "nexus" and must collect that state's sales tax. Economic nexus thresholds vary by state — typically $100,000-$500,000 in sales.
Keep meticulous records
Maintain detailed records of all sales transactions including the tax collected, the rate applied, and the jurisdiction. This is essential for audit protection and for preparing accurate sales tax returns, which are typically filed monthly, quarterly, or annually depending on your volume.
Related tools
- VAT/GST Calculator — Calculate value-added tax for international transactions and non-US jurisdictions.
- Property Tax Calculator — Estimate annual property taxes based on home value and local millage rates.
- Tip Calculator — Quickly calculate gratuity amounts and split bills at restaurants.
Frequently asked questions
What is sales tax?
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. The rate varies by location and can range from 0% to over 10% depending on the state, county, and city.
How is sales tax calculated?
Sales tax is calculated as: Tax Amount = Price × (Tax Rate / 100). The total is Price + Tax Amount. To remove tax from a total: Pre-tax Price = Total / (1 + Tax Rate / 100).
What is the difference between adding and removing tax?
Adding tax calculates how much tax to add to a base price (useful when setting retail prices). Removing tax extracts the pre-tax amount from a total (useful when you have a receipt total and need to report untaxed amounts).
Which states have no sales tax?
Five states have no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, some local jurisdictions in Alaska may impose their own sales taxes.
Are services subject to sales tax?
It varies by state. Some states tax services like haircuts, car repairs, and landscaping, while others only tax tangible goods. Check your state's department of revenue for specific rules.
Is sales tax the same as VAT?
No. Sales tax is collected only at the point of sale to the end consumer. VAT (Value Added Tax) is collected at every stage of production and distribution. The US uses sales tax; most other countries use VAT or GST.
Do online purchases have sales tax?
Yes, since the 2018 South Dakota v. Wayfair Supreme Court decision, states can require online retailers to collect sales tax based on the buyer's location. Most major online stores now collect sales tax on all orders.
How do I find my local sales tax rate?
Your total sales tax rate = state rate + county rate + city rate + special district rates. Many states have online lookup tools where you can enter an address to find the combined rate.
Is sales tax deductible on my federal taxes?
Yes, you can deduct state and local sales tax on your federal return if you itemize deductions. You can choose to deduct either sales tax or state income tax — whichever is larger.
What items are exempt from sales tax?
Common exemptions include most groceries (food for home preparation), prescription medications, medical devices, and some clothing items (varies by state). Many states also have tax holidays for back-to-school or emergency preparedness items.
Sources & references
This tool uses standard formulas and reference values from:
- • IRS — federal tax brackets, standard deduction and instructions for the tax year. irs.gov
- • U.S. SEC — Investor.gov, compound interest and investment reference material. investor.gov
- • Official national tax authority for the relevant country — link the exact rate schedule used.
Estimates only, not tax or financial advice. Confirm current figures with the official source or a qualified professional.