$8.00
$108.00
$8.00
$108.00
Sales tax is a consumption tax imposed by government authorities on the sale of goods and services. Unlike VAT, which is collected at each stage of the supply chain, sales tax in the United States is typically collected only at the point of final sale to the end consumer. The tax is calculated as a percentage of the selling price and added at checkout.
In the United States, sales tax rates are set at the state, county, and city level, resulting in thousands of different combined rates across the country. As of 2024, combined state and local rates range from 0% (in states like Oregon, Montana, and New Hampshire with no sales tax) to over 11% in some Louisiana parishes. The average combined state and local rate is approximately 8-9%.
Understanding sales tax is important for consumers budgeting for purchases, businesses pricing products and filing tax returns, and anyone making cross-border purchases. Our Sales Tax Calculator computes the exact tax amount and total price for any pre-tax price and tax rate, helping you budget accurately and avoid surprises at checkout.
Whether you are shopping online, comparing prices, or calculating tax liability for business accounting, this tool provides instant, accurate results for any sales tax rate.
Sales tax is computed as a simple percentage of the pre-tax (base) price:
$$\text{Tax Amount} = \text{Pre-Tax Price} \times \frac{\text{Tax Rate}}{100}$$
$$\text{Total Price} = \text{Pre-Tax Price} + \text{Tax Amount} = \text{Pre-Tax Price} \times \left(1 + \frac{\text{Tax Rate}}{100}\right)$$
For example, purchasing a $150 item with an 8.5% combined sales tax rate:
$$\text{Tax Amount} = 150 \times 0.085 = \$12.75$$
$$\text{Total Price} = 150 + 12.75 = \$162.75$$
The combined sales tax rate is typically the sum of the state rate plus county and/or city rates. For instance, California's base state rate is 7.25%, but specific cities may add up to 3.25%, bringing the total to 10.5% in some areas. Always use the combined rate applicable to the purchase location for accurate calculations.
For business use, the tax amount represents what must be collected from customers and remitted to the relevant tax authorities on a monthly, quarterly, or annual basis depending on sales volume.
The Tax Amount is added on top of the displayed pre-tax price at checkout. The Total Price is the actual amount you pay. When comparing prices across different states or jurisdictions, always factor in the local tax rate, as it can meaningfully affect the final cost. For large purchases such as vehicles, electronics, or furniture, sales tax can add hundreds of dollars to the total. Businesses must collect and remit this tax on behalf of the government; it is not revenue for the seller.
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Buying a $999 laptop in a California city with a 9.5% combined rate adds $94.91 in tax for a total of $1,093.91.
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Many states exempt unprepared food from sales tax. In Texas, grocery items are tax-exempt, so a $50 grocery bill has no sales tax.
Five US states have no state-level sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. However, Alaska allows local municipalities to levy their own sales taxes, so some Alaskan cities do charge sales tax. The remaining 45 states plus the District of Columbia have a state sales tax.
No. Most states allow counties, cities, and special districts to add their own tax on top of the state rate. The combined rate you pay depends on the exact location of the purchase. For example, California's base state rate is 7.25%, but local additions bring rates in some cities to 10.75% or higher.
No. Most states exempt groceries, prescription drugs, and medical equipment from sales tax. Services are often exempt too, though this varies widely. Some states tax clothing above a certain price threshold. Always check the specific exemptions for your state when calculating tax on a specific category of goods.
Businesses collect sales tax from customers at the time of sale and hold it in trust for the government. Depending on their sales volume, they file sales tax returns monthly, quarterly, or annually with each state where they have nexus, remitting the collected tax minus any allowable vendor compensation. Nexus can be created by physical presence, employees, or economic activity thresholds (economic nexus after South Dakota v. Wayfair, 2018).
Use tax is the counterpart to sales tax. If you buy a taxable item without paying sales tax (for example, from an out-of-state online retailer that does not collect your state's tax), you are technically required to self-report and pay use tax on that purchase to your state. Use tax rates are typically identical to the state sales tax rate, but compliance is historically very low for individual consumers.
Sales tax is levied only at the final point of sale to consumers, while VAT is collected at every stage of production and distribution. With VAT, each business collects tax on its sales but reclaims tax paid on purchases, remitting only the net amount. Both result in a similar tax burden on the final consumer, but VAT has better audit trails and is used in most countries outside the US.
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