US Sales Tax Calculator Calculators

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Sales tax in the United States is a consumption tax levied by state and local governments on the retail sale of goods and services. Unlike VAT (value-added tax), US sales tax is applied only at the final point of sale to the consumer. Sales tax rates vary by state (0% in Oregon, Montana, New Hampshire, Delaware, and Alaska to over 10% in some localities when combined with local taxes). To calculate the total price with tax: total = price × (1 + tax rate). To find the pre-tax price from a tax-inclusive total: pre-tax = total / (1 + tax rate).

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Sales Tax Calculation Formulas

Tax amount = price × tax rate (decimal)

Total price = price × (1 + tax rate)

Example: $45.00 item in a state with 8.5% sales tax: Tax = $45.00 × 0.085 = $3.83. Total = $45.00 + $3.83 = $48.83. Or: $45.00 × 1.085 = $48.83.

Finding Pre-Tax Price

Pre-tax price = total paid / (1 + tax rate)

Example: paid $54.00 including 8% tax: Pre-tax = $54.00 / 1.08 = $50.00. Tax = $4.00.

US Sales Tax Rates (2024 approximate)

  • No state sales tax: Oregon, Montana, New Hampshire, Delaware, Alaska
  • Low (< 5%): Hawaii 4%, Wisconsin 5%, Maine 5.5%
  • Moderate (5–7%): Florida 6%, Texas 6.25%, Georgia 4%
  • High (> 7%): California 7.25% (base); Tennessee 7%; combined with local taxes can exceed 10%

US Sales Tax vs. VAT

VAT (used in Europe and most countries): collected at each step of production; businesses recover the VAT they paid on inputs; consumer pays only the final VAT. US sales tax: collected only at the final retail sale; businesses buying inputs for resale are exempt. Both produce the same revenue from the consumer's perspective.

Glossary

Sales Tax
A consumption tax added at the point of retail sale in the US; varies by state and locality (0–10%+); total = price × (1 + rate); added at checkout, not included in displayed price.
Tax-Inclusive Price
A price that already includes the sales tax; pre-tax = total / (1 + rate); common in Europe (VAT included) but rare in US retail where tax is added at checkout.
VAT (Value Added Tax)
A multi-stage consumption tax collected at each step of production; used in Europe and most countries; prices displayed include VAT; replaces US-style single-stage sales tax.

Frequently Asked Questions

Tax amount = purchase price × tax rate (as decimal). Total price = purchase price × (1 + tax rate). Example: $120 purchase in a location with 9.5% combined sales tax: Tax = $120 × 0.095 = $11.40. Total = $120 + $11.40 = $131.40. Or directly: $120 × 1.095 = $131.40. For items exempt from sales tax (groceries in many states, prescription medications): apply 0% rate. Always check whether the quoted price is pre-tax (most US prices) or tax-inclusive (less common in retail).

Pre-tax price = total paid / (1 + tax rate). Example: receipt shows $82.68 total with 7% sales tax. Pre-tax = $82.68 / 1.07 = $77.27. Tax paid = $82.68 − $77.27 = $5.41. Never subtract 7% of the total to find the original price — that gives the wrong answer: $82.68 × 0.07 = $5.79 (incorrect); the correct tax is $5.41. The error occurs because 7% was applied to the original price, not to the total.

Five US states have no statewide sales tax: Oregon, Montana, New Hampshire, Delaware, and Alaska. Note: Alaska has no state sales tax but allows local sales taxes (up to ~7.5% in some jurisdictions). If you purchase online: sales tax rules changed after the 2018 Supreme Court decision (South Dakota v. Wayfair) — online retailers are now required to collect sales tax in states where they have economic nexus (typically > $100,000 in sales or 200 transactions per year in that state), regardless of physical presence. Most major online retailers now collect sales tax in most states.

US sales tax: a single-stage tax collected only at the final retail sale to the consumer. Businesses purchasing goods for resale use an exemption certificate to avoid paying tax on those purchases. Tax is added at checkout — not included in the displayed price (unlike Europe). Rate: varies by state and locality (0% to over 10%). VAT (Value Added Tax, used in Europe and most of the world): a multi-stage tax collected at each step of production and distribution. Each business in the supply chain pays VAT on its purchases and collects VAT on its sales, remitting only the difference to the government. Displayed prices in Europe include VAT. VAT rate: fixed nationally (5–27% in EU countries). Both systems ultimately burden the final consumer with approximately the same tax.