Sales Tax Calculator
Calculate sales tax on purchases. Supports both tax-exclusive (add tax) and tax-inclusive (extract tax) modes.
Sales Tax Details
Enter a price and tax rate to calculate sales tax.
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Pro Tip
Many states offer annual sales tax holidays (usually in August for back-to-school) where certain items like clothing, school supplies, and computers can be purchased tax-free.
VAT/GST Calculator →Understanding Sales Tax
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and certain services. Unlike income tax, sales tax is regressive -- it takes a larger percentage of income from lower-income earners.
In the United States, there is no federal sales tax. Each state sets its own rate (or has none), and cities and counties may add additional local taxes. Combined rates range from 0% in states like Oregon, Montana, and New Hampshire to over 10% in some localities.
Tax-exclusive pricing (the U.S. standard) means the listed price does not include tax -- it is added at checkout. Tax-inclusive pricing (common in Europe and some other countries) means the listed price already includes tax, and the calculator can extract the pre-tax amount.
Many states exempt certain items from sales tax, including groceries, prescription medications, and clothing. Some states also offer sales tax holidays -- temporary periods where certain items can be purchased tax-free.
Sales Tax Formulas
Where:
Price = The pre-tax item price
Rate = Combined state + local sales tax rate
Tax = The dollar amount of tax
Total = Final amount paid (price + tax)
Example
A $100 purchase with 8.25% sales tax:
- • Tax = $100 x 0.0825 = $8.25
- • Total = $100 + $8.25 = $108.25
- • Tax-inclusive reverse: Pre-tax = $108.25 / 1.0825 = $100.00