Sales Tax Calculator
Enter a price and select the appropriate tax rate. The calculator shows the tax amount for both adding tax (pre-tax → total) and removing tax (total → pre-tax).
Tax amount (price excl. tax):
Price incl. tax:
Tax amount (price incl. tax):
Price excl. tax:
Sales Tax Calculator – Add or Remove Tax From Any Price
Sales tax affects virtually every purchase Americans make, yet the rate changes depending on where you shop. This calculator works in both directions — add sales tax to a pre-tax price, or extract the tax from a total — so you always know exactly what you're paying.
The Formulas
Adding tax to a pre-tax price:
Tax Amount = Pre-Tax Price × (Tax Rate ÷ 100)
Total = Pre-Tax Price + Tax Amount
Removing tax from a tax-inclusive total:
Pre-Tax Price = Total ÷ (1 + Tax Rate ÷ 100)
Tax Amount = Total − Pre-Tax Price
Worked Example
You're buying a laptop priced at $999 in Texas (8.25% combined rate):
- Tax: $999 × 0.0825 = $82.42
- Total: $999 + $82.42 = $1,081.42
Going the other direction — a receipt shows $1,081.42 total in Texas:
- Pre-tax: $1,081.42 ÷ 1.0825 = $999.00
- Tax paid: $1,081.42 − $999.00 = $82.42
US Sales Tax Rates by State
Sales tax in the United States is set at the state and local level — there is no federal sales tax. Rates vary significantly:
| State | State Rate | Avg. Local Rate | Avg. Combined |
|---|---|---|---|
| California | 7.25% | 1.57% | 8.82% |
| Tennessee | 7.00% | 2.55% | 9.55% |
| Texas | 6.25% | 1.94% | 8.19% |
| New York | 4.00% | 4.52% | 8.52% |
| Florida | 6.00% | 1.02% | 7.02% |
| Washington | 6.50% | 2.67% | 9.17% |
| Illinois | 6.25% | 2.56% | 8.81% |
| Colorado | 2.90% | 4.87% | 7.77% |
| Oregon | 0% | 0% | 0% |
| Montana | 0% | 0% | 0% |
Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, some Alaska localities still charge local sales tax.
Sales Tax vs. VAT — Key Differences
Most countries outside the US use a Value Added Tax (VAT) instead of sales tax. Here's how they differ:
| Feature | US Sales Tax | VAT (EU, UK, etc.) |
|---|---|---|
| Collection point | Final sale only | Every stage of production |
| Displayed price | Usually pre-tax | Usually tax-inclusive |
| Federal vs. local | State/local rates vary | Nationally uniform |
| Business recovery | Sellers remit tax | Businesses reclaim input VAT |
| Typical rate | 0 – 10.25% | 15 – 27% |
Common VAT Rates Worldwide
| Country | Standard Rate | Reduced Rate |
|---|---|---|
| United Kingdom | 20% | 5% |
| Germany | 19% | 7% |
| France | 20% | 5.5% |
| Japan (consumption tax) | 10% | 8% |
| Canada (GST) | 5% | varies by province |
| Australia (GST) | 10% | 0% (essentials) |
Tax-Exempt Items
Many states exempt certain essential items from sales tax:
- Groceries — Exempt in most states (not restaurants or prepared food)
- Prescription medications — Exempt in all states
- Clothing — Exempt in some states (PA, NJ, MN, NY under $110)
- School supplies — Exempt during back-to-school tax holidays in many states
- Medical devices — Often exempt
Tax Holidays
Many states hold annual sales tax holidays — usually in August for back-to-school shopping. During these weekends, qualifying items (clothing, school supplies, computers) are exempt from sales tax. Check your state's department of revenue for dates and item limits.
Frequently Asked Questions
How is sales tax calculated?
Multiply the pre-tax price by the tax rate (as a decimal). For example, $50 with 8% tax: $50 × 0.08 = $4.00 tax, so the total is $54.00. To reverse it, divide the total by (1 + rate): $54 ÷ 1.08 = $50.
What is the difference between VAT and sales tax?
VAT (Value Added Tax) is collected at each stage of production and distribution, with businesses reclaiming the tax they paid on inputs. Sales tax is collected only at the final point of sale by the retailer. The US uses sales tax; most other countries use VAT.
Does the US have VAT?
No — the US does not have a federal VAT or national sales tax. Instead, individual states and localities set their own sales tax rates. Combined state and local rates range from 0% to over 10% depending on location.
What are typical VAT rates in Europe?
Standard VAT rates in the EU range from 17% (Luxembourg) to 27% (Hungary). The UK standard rate is 20%. Most countries apply reduced rates of 5-10% for essentials like food, medicine, children's clothing, and books.
How do I find my exact local sales tax rate?
Your exact combined rate depends on your state, county, and city. Use your state's Department of Revenue website or enter your ZIP code at taxfoundation.org. Rates can change annually, so check before making large purchases.
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