How do I calculate sales tax?

Multiply the pre-tax price by the tax rate expressed as a decimal, then add that result back to the pre-tax amount.

What is the formula for final checkout price?

Final Price = Pre-Tax Price × (1 + Tax Rate / 100).

Is sales tax applied before or after discounts?

In most systems, tax is applied to the discounted taxable amount, not the original shelf price.

Why is shelf price different from final price?

Because shelf price in tax-exclusive systems does not include the sales tax that is added at checkout.

Are all goods taxable?

No. Taxability depends on local law. Some goods or services are exempt or taxed at reduced rates.

How do refunds affect sales tax?

If a purchase is refunded, the associated sales tax is generally refunded as well because the taxable sale is reversed.

Can sales tax be deducted as a business expense?

In some business contexts, collected sales tax is a pass-through liability rather than a revenue or expense item. Accounting treatment depends on jurisdiction and filing structure.

How do I remove sales tax from a final price?

Divide the tax-inclusive final price by 1 + rate to recover the pre-tax base.

Does this calculator include shipping taxability?

No. Shipping taxability varies by state and transaction type, so it should be added manually if required.

finance calculator

Sales Tax Calculator

Calculate sales tax, gross price, and net price instantly with step-by-step work, 50-state rate presets, reverse calculation, and a multi-item cart.

Sales tax is added to the pre-tax price: total = price × (1 + tax rate). To work backwards from a total, divide by (1 + rate). A $50 item at 8% costs $54.00, of which $4.00 is tax; working backwards, a $54.00 total at 8% implies a $50.00 pre-tax price.

Formula Verified by Dr. Elizabeth Vance, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Select Mode

Inputs

Net Price (before tax)$

Tax Rate Source

State

Local Tax Rate (county + city)%

Combined rate: 4.225% state + 2.50% local = 6.725%

Results

Gross Price (Total)

$106.73

Sales Tax Amount$6.72

Net Price$100.00

Tax Rate Applied6.725%

Step-by-Step

Tax = Net Price × (Rate ÷ 100)

Tax = $100.00 × (6.725% ÷ 100) = $6.72

Gross = Net Price + Tax

Gross = $100.00 + $6.72 = $106.73

Tip

Save this page for quick access when shopping, checking a receipt, budgeting for a large purchase, or estimating combined state and local tax.

Formula

Sales Tax Formulas

Sales Tax Amount = Net Price × (Tax Rate ÷ 100)
Gross Price = Net Price + Sales Tax Amount

Reverse:
  Net Price = Gross Price ÷ (1 + Tax Rate ÷ 100)
  Tax Rate = ((Gross Price − Net Price) ÷ Net Price) × 100

Sales tax is calculated as a percentage of the net (pre-tax) price and added on top. To reverse the process — working backward from a receipt total — divide by (1 + tax rate) rather than simply subtracting the percentage.

Step by step

How the calculation works

1Enter the net price (price before tax).
2Pick a state preset for the base rate and add your local rate, or switch to a custom combined rate.
3Review the sales tax amount, gross price, and the step-by-step work.
4Switch to Reverse Calculation to work backward from a receipt — find the net price from a gross total, or find the tax rate itself from both prices.
5Switch to Cart mode to total a real shopping list with a mix of taxable and tax-exempt items.

Example

Combined State + Local Tax Example (Missouri)

Missouri's state sales tax rate is 4.225%. Add a typical county rate of 1.5% and a city rate of 1.0%, and the combined rate comes to 6.725%. A $100 purchase would cost $106.73 after tax — exactly what the State Preset + Local Rate fields calculate above.

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finance calculator

Sales Tax Calculator

Calculate sales tax, gross price, and net price instantly with step-by-step work, 50-state rate presets, reverse calculation, and a multi-item cart.

Formula Verified by Dr. Elizabeth Vance, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Select Mode

Inputs

Net Price (before tax)$

Tax Rate Source

State

Local Tax Rate (county + city)%

Combined rate: 4.225% state + 2.50% local = 6.725%

Results

Gross Price (Total)

$106.73

Sales Tax Amount$6.72

Net Price$100.00

Tax Rate Applied6.725%

Step-by-Step

Tax = Net Price × (Rate ÷ 100)

Tax = $100.00 × (6.725% ÷ 100) = $6.72

Gross = Net Price + Tax

Gross = $100.00 + $6.72 = $106.73

Tip

Save this page for quick access when shopping, checking a receipt, budgeting for a large purchase, or estimating combined state and local tax.

Summary

Key output metrics

Gross Price

$106.73

Sales Tax

$6.72

Net Price

$100.00

Tax Rate

6.725%

D3 visualization

Gross Price Breakdown

Separate the net purchase amount from the added sales tax.

Net price$100

Sales tax$7

Guide

How to understand and use this calculator

Quick Answer

What is sales tax? Sales tax is a consumption-based tax charged at the point of purchase on goods and services. The tax rate varies by state and locality.

Formula:

Sales Tax Amount = Net Price × (Tax Rate ÷ 100)
Gross Price = Net Price + Sales Tax Amount

Simple example: Net Price = $100, Tax Rate = 8%.

Sales Tax: $100 × 0.08 = $8
Gross Price: $100 + $8 = $108

Quick reference:

To find sales tax: multiply net price by tax rate
To find gross price: add tax to net price
To find net price: divide gross price by (1 + tax rate)

Use the Sales Tax Calculator

To use the sales tax calculator:

1. Enter the net price (price before tax).

2. Enter the sales tax rate — pick a state preset and add a local rate, or enter a custom combined rate directly.

3. Review the sales tax amount, gross price, and step-by-step work.

Example input: Net Price = $100.00, Sales Tax Rate = 8%.

Output:

Sales Tax Amount = $8.00
Gross Price = $108.00
Step-by-step work: $100 × 8% = $8 → $100 + $8 = $108

Reverse calculation example: Gross Price = $108.00, Sales Tax Rate = 8%.

Net Price = $100.00
Sales Tax Amount = $8.00
Step-by-step work: $108 ÷ (1 + 0.08) = $100

What is Sales Tax?

Sales tax is a consumption-based tax imposed on the sale of goods and services. It is collected by the seller at the point of purchase and remitted to the government.

Key points:

Sales tax is paid by the consumer (burden on the buyer)
Sales tax is collected by the seller (collected and remitted)
Sales tax rates vary by state, county, and city
Some items are exempt (groceries, prescription drugs)

Common sales tax rates in the US:

State tax: 0% (Delaware, Montana, and others) to 7.25% (California)
Local tax: additional 0-5% depending on city/county
Combined rate: state + local = up to 10% or more

Items often exempt from sales tax:

Groceries (in many states)
Prescription drugs
Medical devices
Some clothing items
Agricultural supplies

Sales Tax vs VAT — What's the Difference?

Feature comparison:

Type: Sales tax — single-stage tax. VAT — multi-stage tax.
When charged: Sales tax — only at final sale to consumer. VAT — at every stage of production.
Who bears it: Both — the consumer, though VAT is collected at each stage.
Where used: Sales tax — United States (state level). VAT — Europe, Canada (GST), and many other countries.
Visibility: Sales tax — clearly shown on receipt. VAT — often included in the sticker price.
Complexity: Sales tax — simpler. VAT — more complex, since each stage deducts input tax.

Example (10% rate, four-stage supply chain): raw materials ($100 value added, $10 VAT), manufacturing ($50 value added, $5 VAT), wholesale ($100 value added, $10 VAT), retail ($100 value added, $35 sales tax OR $10 VAT). Total tax collected: $35 either way.

Key takeaway: both result in the same total tax paid by the consumer, but VAT is collected at each stage of production while sales tax is only collected at the final sale. Need to work with VAT instead? Try the VAT Calculator or GST Calculator.

How to Calculate Sales Tax — Step by Step

Learning how do I figure out sales tax is simple. Here's the step-by-step method.

Step 1: Identify the net price and tax rate. Example: Net Price = $45, Tax Rate = 4%.

Step 2: Convert the tax rate to a decimal: 4% ÷ 100 = 0.04.

Step 3: Calculate the sales tax amount: Sales Tax = Net Price × Tax Rate = $45 × 0.04 = $1.80.

Step 4: Calculate the gross price: Gross Price = Net Price + Sales Tax = $45 + $1.80 = $46.80.

Answer: Sales tax = $1.80, Gross Price = $46.80

More examples:

$50 at 6% → $3.00 tax, $53.00 gross
$75 at 8% → $6.00 tax, $81.00 gross
$120 at 5% → $6.00 tax, $126.00 gross
$200 at 10% → $20.00 tax, $220.00 gross

How to Find Net Price from Gross Price (Reverse Calculation)

Sometimes you need to find the net price from the gross price — for example, working backward from a receipt total.

Formula: Net Price = Gross Price ÷ (1 + Tax Rate)

Step-by-step example: Gross Price = $108, Tax Rate = 8% (0.08).

Step 1: Add 1 to the tax rate: 1 + 0.08 = 1.08.

Step 2: Divide gross price by this number: Net Price = $108 ÷ 1.08 = $100.

Step 3: Calculate the tax amount: Sales Tax = Gross Price − Net Price = $108 − $100 = $8.

Answer: Net price = $100, Sales tax = $8

More examples:

$53.00 gross at 6% → $50.00 net, $3.00 tax
$81.00 gross at 8% → $75.00 net, $6.00 tax
$126.00 gross at 5% → $120.00 net, $6.00 tax

How to Find the Tax Rate

If you know the net and gross prices, you can find the tax rate.

Formula: Tax Rate = ((Gross Price − Net Price) ÷ Net Price) × 100

Step-by-step example: Gross Price = $108, Net Price = $100.

Step 1: Find the tax amount: $108 − $100 = $8.

Step 2: Divide by net price: $8 ÷ $100 = 0.08.

Step 3: Multiply by 100: 0.08 × 100 = 8%.

Answer: Tax rate = 8%

How to Figure Out Sales Tax — Different Scenarios

Scenario 1: Simple tax calculation. You buy a laptop for $800. Sales tax is 7%. Tax = $800 × 0.07 = $56. Total = $800 + $56 = $856.

Scenario 2: Combined state and local tax. You buy $200 of clothing. State tax is 6%, local tax is 2%. Combined rate = 6% + 2% = 8%. Tax = $200 × 8% = $16. Total = $200 + $16 = $216.

Scenario 3: Finding net price. You paid $108.00 total. Sales tax is 8%. Net Price = $108.00 ÷ 1.08 = $100.

Scenario 4: Multiple items. You buy a $50 shirt, $30 book, and $20 accessory. Tax is 6%. Subtotal = $50 + $30 + $20 = $100. Tax = $100 × 6% = $6. Total = $100 + $6 = $106. Try this live in the Cart tab above.

Scenario 5: Tax-free items. You buy $40 of groceries (tax-free) and $60 of household goods (8% tax). Groceries: $40 (no tax). Household: $60 × 8% = $4.80 tax. Total = $40 + $60 + $4.80 = $104.80. Try this live in the Cart tab above.

Combined Sales Tax Rate — Understanding Local and State Taxes

The combined sales tax rate is the total of state, county, and city sales taxes: Combined Sales Tax Rate = State Tax Rate + Local Tax Rate.

Example (Missouri): State tax 4.225% + County tax 1.5% + City tax 1.0% = Combined rate 6.725%. A MO sales tax calculator would use this combined rate to calculate the total tax.

Highest combined rates (2026 estimates):

Louisiana: 4.45% state + 5.10% avg local = 9.55% combined
Tennessee: 7.00% state + 2.55% avg local = 9.55% combined
Arkansas: 6.50% state + 2.93% avg local = 9.43% combined
Washington: 6.50% state + 2.91% avg local = 9.41% combined
Alabama: 4.00% state + 5.07% avg local = 9.07% combined

Lowest combined rates:

Alaska: 0.00% state + 1.81% avg local = 1.81% combined
Oregon, Delaware, Montana, New Hampshire: 0.00% combined (no state or local sales tax)

Sales Tax by State (US)

Use the State preset dropdown in the calculator above to quick-fill any state's base rate, then add your local rate for the combined total. Here is a quick reference for state sales tax rates (2026 estimates):

Alabama 4.00% • Alaska 0.00% • Arizona 5.60% • Arkansas 6.50% • California 7.25%
Colorado 2.90% • Connecticut 6.35% • Delaware 0.00% • Florida 6.00% • Georgia 4.00%
Hawaii 4.00% • Idaho 6.00% • Illinois 6.25% • Indiana 7.00% • Iowa 6.00%
Kansas 6.50% • Kentucky 6.00% • Louisiana 4.45% • Maine 5.50% • Maryland 6.00%
Massachusetts 6.25% • Michigan 6.00% • Minnesota 6.875% • Mississippi 7.00% • Missouri 4.225%
Montana 0.00% • Nebraska 5.50% • Nevada 6.85% • New Hampshire 0.00% • New Jersey 6.625%
New Mexico 5.125% • New York 4.00% • North Carolina 4.75% • North Dakota 5.00% • Ohio 5.75%
Oklahoma 4.50% • Oregon 0.00% • Pennsylvania 6.00% • Rhode Island 7.00% • South Carolina 6.00%
South Dakota 4.50% • Tennessee 7.00% • Texas 6.25% • Utah 6.10% • Vermont 6.00%
Virginia 5.30% • Washington 6.50% • West Virginia 6.00% • Wisconsin 5.00% • Wyoming 4.00%

States with no state-level sales tax: Alaska (0%, but local taxes may apply), Delaware (0%), Montana (0%), New Hampshire (0%), Oregon (0%).

Sales Tax Deduction — What You Need to Know

The IRS allows you to deduct state and local sales taxes on your federal tax return — but only if you itemize deductions.

Two options:

1. Deduct state and local income taxes (standard for most people)

2. Deduct state and local sales taxes (better if you made large purchases)

When to choose the sales tax deduction:

You made a large purchase (car, boat, RV)
You live in a state with no income tax
Your sales tax paid exceeds your state income tax

How to calculate your sales tax deduction:

Option 1: Save all receipts and add up the sales tax paid
Option 2: Use the IRS Sales Tax Deduction Calculator or tables

Important: you cannot deduct both income tax AND sales tax — choose the larger one. Example: state income tax paid $3,000, sales tax paid (including a car purchase) $4,500 → deduct sales tax since it's larger.

This is general information, not tax advice — confirm your specific situation with a tax professional or the current IRS guidance before filing.

Sales Tax Calculator by Zip Code — How It Works

A sales tax calculator by zip code uses your zip code to determine the correct combined sales tax rate.

How it works:

1. User enters their zip code

2. The system looks up the tax rate for that zip code

3. The calculator applies the correct combined rate

Why zip code matters:

Different cities have different tax rates
County taxes vary by location
Special district taxes may apply

Note: this calculator doesn't look up rates by zip code — instead, use the State preset for an accurate state base rate, then add your specific local rate manually (check your receipt or your state's department of revenue for the exact local add-on).

Practice Problems

Problem 1: You buy a $75 item with 6% sales tax. How much is the tax and total? Solution: Tax = $75 × 0.06 = $4.50. Total = $75 + $4.50 = $79.50.

Problem 2: You paid $53.50 total. Sales tax is 7%. What was the original price? Solution: Net Price = $53.50 ÷ 1.07 = $50.00.

Problem 3: You buy a $200 item with 8% sales tax and a $50 item with no tax. What's the total? Solution: Tax = $200 × 0.08 = $16. Total = $200 + $50 + $16 = $266.

Problem 4: You paid $108.25 for an item. What was the net price if sales tax is 8.25%? Solution: Net Price = $108.25 ÷ 1.0825 = $100.

Problem 5: You buy a $500 laptop with 6.5% sales tax. What is the tax amount? Solution: Tax = $500 × 0.065 = $32.50.

Answers: 1) $4.50 tax, $79.50 total — 2) $50.00 — 3) $266 — 4) $100 — 5) $32.50

Common Sales Tax Mistakes

Forgetting to add local tax. Mistake: only using the state tax rate. Fix: use the combined state + local rate.
Misreading the tax rate. Mistake: treating 8% as $8 regardless of price. Fix: 8% = 0.08, so $100 × 0.08 = $8.
Adding tax to the wrong amount. Mistake: adding tax to the gross price instead of the net price. Fix: always calculate tax from the net price.
Forgetting about tax-free items. Mistake: taxing groceries or medicine. Fix: know which items are exempt in your state.
Not checking the receipt. Mistake: trusting the calculation without verification. Fix: always check the receipt for accuracy.
Confusing sales tax with VAT. Mistake: treating sales tax like VAT. Fix: sales tax is charged once at the final sale.
Missing out-of-state purchases. Mistake: not paying use tax on out-of-state purchases. Fix: check your state's use tax rules.
Not using a sales tax calculator. Mistake: mental math errors. Fix: use this calculator for accuracy.

What This Calculator Can and Cannot Do

This calculator CAN help with:

Calculating sales tax amount and gross price from a net price
Finding net price from gross price (reverse calculation)
Finding the tax rate from net and gross prices
Combined state and local tax calculations, with 50-state rate presets
Multi-item carts with mixed taxable and tax-exempt items
Budgeting and shopping planning

This calculator CANNOT do:

Determine the exact combined tax rate by zip code — use the state preset plus your known local rate, or check your state's revenue department
Automatically account for every state's specific tax exemptions
Replace professional tax advice
Calculate use tax on out-of-state purchases
Handle international tax rates directly — for VAT or GST, try the VAT Calculator or GST Calculator

Final Summary

A sales tax calculator is essential for anyone shopping, budgeting, or running a business. Understanding how to calculate sales tax — and knowing the difference between state, local, and combined rates — helps you plan your purchases accurately.

Remember the key formulas:

Sales Tax Amount: Net Price × Tax Rate
Gross Price: Net Price + Sales Tax Amount
Net Price: Gross Price ÷ (1 + Tax Rate)
Tax Rate: ((Gross Price − Net Price) ÷ Net Price) × 100

Quick reference:

5% tax on $100 → $5 tax, $105 total
8% tax on $100 → $8 tax, $108 total
10% tax on $100 → $10 tax, $110 total

Start calculating now! Just enter your values above and get instant results — completely free.

Related concepts

Combined Sales Tax Rate

The sum of state, county, and city sales tax rates that actually applies at checkout.

Use Tax

A tax on out-of-state purchases used in your home state when sales tax wasn't collected at the time of sale.

Value-Added Tax (VAT)

A multi-stage consumption tax, common outside the US, collected at every stage of production rather than only at final sale.

Frequently Asked Questions

What is a sales tax calculator?+

A sales tax calculator helps you calculate the sales tax amount and total price for a purchase based on the net price and tax rate.

How do I figure out sales tax?+

To figure out sales tax, multiply the net price by the tax rate (as a decimal). Example: $100 × 0.08 = $8.

How do I add sales tax to a price?+

To add sales tax, multiply the net price by (1 + tax rate). Example: $100 × 1.08 = $108.

How do I find the original price from the total?+

Divide the total by (1 + tax rate). Example: $108 ÷ 1.08 = $100.

What is a combined sales tax rate?+

A combined sales tax rate is the total of state, county, and city sales taxes. Example: State 6% + County 1.5% + City 1% = 8.5%.

What states have no sales tax?+

Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax.

What is the sales tax rate in Missouri?+

Missouri's state sales tax rate is 4.225%. Local taxes add roughly 0-5%, making the combined rate about 4.225-8.225%.

What is the difference between sales tax and VAT?+

Sales tax is charged once at the final sale. VAT is charged at every stage of production (multi-stage tax).

Can I deduct sales tax on my federal tax return?+

Yes, if you itemize deductions, you can deduct either state income tax or state sales tax — whichever is larger.

How do I find sales tax by zip code?+

This calculator doesn't do zip-code lookups directly — pick your state preset for the base rate, then add your known local rate for the combined total.

What items are tax-free?+

Common tax-free items include groceries (in many states), prescription drugs, and medical devices.

What is use tax?+

Use tax is a tax on items purchased out of state for use in your home state, if sales tax wasn't collected.

How much sales tax do I pay on a car?+

The sales tax rate is the same as the state's sales tax rate, plus any applicable local taxes.

Is this sales tax calculator free?+

Yes — completely free with no registration required.

Formula

Sales Tax Formulas

Sales Tax Amount = Net Price × (Tax Rate ÷ 100)
Gross Price = Net Price + Sales Tax Amount

Reverse:
  Net Price = Gross Price ÷ (1 + Tax Rate ÷ 100)
  Tax Rate = ((Gross Price − Net Price) ÷ Net Price) × 100

Step by step

How the calculation works

1Enter the net price (price before tax).
2Pick a state preset for the base rate and add your local rate, or switch to a custom combined rate.
3Review the sales tax amount, gross price, and the step-by-step work.
4Switch to Reverse Calculation to work backward from a receipt — find the net price from a gross total, or find the tax rate itself from both prices.
5Switch to Cart mode to total a real shopping list with a mix of taxable and tax-exempt items.

Example

Combined State + Local Tax Example (Missouri)

Related guides

Learn more about this calculation

Guide