Add tax to a price or extract it from a tax-inclusive price.
Tax Amount = Price × (Tax Rate / 100) Total Price = Price + Tax Amount
Sales tax is calculated by multiplying the pre-tax (original) price of a product by the sales tax rate expressed as a decimal. The result is the tax amount in dollars. Add the tax amount to the original price to get the total price you pay.
This is a straightforward percentage calculation — there are no compounding effects or period adjustments needed.
Tax Amount = $149.99 × (7.25 / 100) = $149.99 × 0.0725 = $10.874275 ≈ $10.87 Total Price = $149.99 + $10.87 = $160.86
Result: Tax Amount: $10.87 | Total Price: $160.86
On a $149.99 purchase at a 7.25% sales tax rate (the statewide base rate in California), you would owe $10.87 in sales tax, bringing your total to $160.86. The tax amount is rounded to the nearest cent, consistent with standard retail practice. Keep in mind that local district taxes may be added on top of the state rate, so the actual amount charged at a specific store could be higher.
Sales tax is a consumption tax levied by state and local governments on the sale of goods and, increasingly, certain services. When you buy a taxable item, the seller collects the tax at the point of sale and remits it to the appropriate government authority.
In the United States, there is no federal sales tax. Instead, 45 states plus Washington D.C. impose a statewide sales tax, and thousands of counties, cities, and special districts add their own rates on top. This means the total rate you pay depends on the exact location of the purchase.
Most tangible personal property is taxable, but many states exempt groceries, prescription drugs, and clothing. Online purchases are now generally taxable following the U.S. Supreme Court's 2018 ruling in South Dakota v. Wayfair, Inc., which allowed states to require out-of-state sellers to collect sales tax.
Sales tax is charged only at the final point of sale to the consumer. A Value Added Tax (VAT), used in most other countries, is collected at every stage of production and distribution. For consumers, the end effect is similar — you pay a percentage on top of the goods price — but the mechanics differ significantly.
Retailers typically multiply the taxable selling price by the applicable rate and round to the nearest cent. Some jurisdictions use bracket tables for very small transactions, but for most purchases the simple percentage formula is used.
Disclaimer: This calculator provides estimates based on the rate you enter. Actual sales tax charged may vary based on local rates, product exemptions, and specific state rules. Always verify with your state or local tax authority for official amounts.
Multiply the price by the tax rate expressed as a decimal, then add that amount to the original price. Example: $50 × 0.09 = $4.50 tax; $50 + $4.50 = $54.50 total.
As of 2024, five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Note that Alaska allows local municipalities to impose their own sales taxes.
You may be able to deduct state and local sales taxes on your federal return if you itemize deductions, as an alternative to deducting state income taxes. The SALT deduction is currently capped at $10,000 per year for federal purposes.
Sales tax is collected by the seller at the point of sale. Use tax is a complementary tax owed by the buyer when a taxable item is purchased without paying sales tax (e.g., from an out-of-state seller that doesn't collect tax). Both are typically the same rate.
Use the combined rate for your specific location: state rate + county rate + city rate + any special district rate. You can look up the exact combined rate on your state's Department of Revenue website or the Sales Tax Institute's rate lookup tool.
Yes. Enter any percentage rate and any price. It works for U.S. state/local rates, Canadian GST/HST/PST, or any country's consumption tax — as long as the tax is applied as a flat percentage of the purchase price.
Divide the total price by (1 + Tax Rate/100). For example, if you paid $108.00 total at an 8% rate: Pre-tax Price = $108.00 / 1.08 = $100.00. This is called a 'reverse sales tax' calculation.
Yes, in most U.S. states. Following the Supreme Court's 2018 Wayfair decision, states can require online retailers to collect sales tax even if the seller has no physical presence in the state. Most major e-commerce platforms now collect and remit sales tax automatically.
Combined rates exceeding 10–12% exist in parts of Louisiana, Tennessee, Arkansas, and Alabama when state, county, and city taxes are all added together. Always verify the exact rate for your specific zip code.
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