Sales Tax Calculator
Calculate sales tax, total price, or reverse-calculate the pre-tax amount from any price.
Sales Tax Formulas
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, which is based on what you earn, sales tax is based on what you spend. Understanding how sales tax works helps you budget accurately and avoid surprises at checkout.
Our sales tax calculator works both ways—calculate the total price including tax, or reverse-calculate to find the pre-tax amount when you only know the final price.
Retail Purchases
Calculate exact costs before heading to checkout.
Reverse Calculate
Find the pre-tax price from any receipt total.
State Rates
Quick access to common state base tax rates.
Budget Planning
Factor tax into your purchase decisions.
How Sales Tax Works
Sales tax in the United States is levied at multiple levels—state, county, city, and special districts. The rate you pay is the combination of all applicable taxes, which is why the same item can cost different amounts in different locations.
State Tax
Base rate set by each state, ranging from 0% (Montana, Oregon, Delaware, New Hampshire, Alaska) to 7.25% (California). This is the foundation of your sales tax.
Local Tax
Counties and cities often add their own tax on top of state tax. For example, Los Angeles County adds 2.25% to California's 7.25%, totaling 9.5%.
Special Districts
Transit, stadium, and other special districts may add additional tax. These can change the rate by 0.1% to 1% or more.
Combined Rate
The total rate can exceed 10% in some areas. Louisiana localities reach 11.45%, while Tennessee averages over 9.5% statewide.
State Sales Tax Overview
Each state sets its own base sales tax rate, and local jurisdictions can add additional taxes. Here's an overview of state base rates.
| State | Base Rate | Avg. Combined | Notes |
|---|---|---|---|
| California | 7.25% | 8.68% | Highest state rate |
| Texas | 6.25% | 8.19% | No income tax state |
| New York | 4.00% | 8.52% | High local taxes |
| Florida | 6.00% | 7.01% | No income tax state |
| Washington | 6.50% | 9.29% | No income tax state |
| Tennessee | 7.00% | 9.55% | Highest combined avg. |
| Oregon | 0.00% | 0.00% | No sales tax |
| Montana | 0.00% | 0.00% | No sales tax |
Tax-Free States
Five states have no state sales tax, making them popular destinations for large purchases. However, some allow local sales taxes.
Oregon
No state or local sales tax. Popular for large purchases by residents of neighboring states. Has no income tax alternative—relies on higher income tax.
Montana
No state sales tax, though some resort communities impose local taxes up to 3%. Popular for vehicle and RV purchases.
New Hampshire
No sales tax on most items, though 9% tax applies to restaurant meals and car rentals. No income tax either—relies on property taxes.
Delaware
No sales tax, making it a shopping destination for the Mid-Atlantic region. Some cities levy small gross receipts taxes on businesses.
Alaska
No state sales tax, but municipalities can levy local taxes. Anchorage has no sales tax, but some areas charge up to 7.5%.
Tax-Exempt Items
Not everything is subject to sales tax. Most states exempt certain categories of items, though the specifics vary significantly.
Groceries
Most states exempt unprepared food from sales tax. However, candy, soft drinks, and prepared foods are usually taxed. Some states like Mississippi and Alabama tax groceries at reduced rates.
Prescription Drugs
All states exempt prescription medications. Most also exempt over-the-counter drugs, though Illinois and a few others tax them.
Clothing
Pennsylvania, New Jersey, and a few other states exempt clothing. New York exempts items under $110 per piece. Most states fully tax clothing.
School Supplies
Many states offer annual tax-free holidays for school supplies, clothing, and computers, typically in late summer before school starts.
Sales Tax vs. Use Tax
When you buy something online or from out of state, you may owe use tax even if no sales tax was charged. Understanding this distinction helps you stay compliant.
Sales Tax
Collected by the seller at the point of sale. The seller remits the tax to the state. This is what you pay at local stores and most online retailers.
Use Tax
Same rate as sales tax, but you pay it directly to your state when the seller didn't collect sales tax. Applies to out-of-state purchases, online buys, and items brought from tax-free states.
Online Sales
Since 2018's Supreme Court ruling (South Dakota v. Wayfair), states can require online sellers to collect sales tax even without physical presence. Most major retailers now collect tax.
Reporting Use Tax
Use tax is typically reported on your state income tax return. Most people owe some use tax but few actually pay it, making it one of the most ignored taxes.
Sales Tax Tips
Smart shopping strategies can help you legally minimize sales tax and make better purchasing decisions.
Tax Holidays
Many states offer tax-free weekends for specific items like school supplies (August), hurricane supplies (May-June in coastal states), or Energy Star appliances.
Vehicle Purchases
Some states allow you to pay sales tax based on your residence state rather than where you buy the car. Research rates before traveling to purchase a vehicle.
Border Shopping
Living near a state border? You might legally shop in a lower-tax state, though your home state's use tax technically applies to items you bring back.
Keep Receipts
For large purchases, keep receipts to prove you paid sales tax. This protects you if your state audits your use tax compliance.
Business Exemptions
If buying for resale or business use, you may qualify for exemption. Get a resale certificate from your state to avoid paying tax on inventory purchases.
Educational & Nonprofit
Schools, churches, and nonprofits often qualify for sales tax exemptions. If buying on behalf of a qualifying organization, bring exemption documentation.
Calculating Sales Tax: Examples
Understanding the math behind sales tax helps you verify receipts and budget accurately.
Basic Calculation
A $100 item at 8% tax: $100 × 0.08 = $8 tax. Total = $108. Simple multiplication gives you the tax amount, then add to the price.
Reverse Calculation
Your receipt shows $108 total at 8% tax. Pre-tax price = $108 ÷ 1.08 = $100. The tax amount was $8. Divide by (1 + rate) to reverse.
Quick Estimation
For mental math, round to the nearest percent. At 8%, think '8 cents per dollar.' A $50 item is roughly $4 in tax ($50 × $0.08 = $4).
Multiple Items
Tax is calculated on the total purchase, not per item. Add all pre-tax prices first, then calculate tax once. This can make a slight difference due to rounding.
Frequently Asked Questions
Why do different stores charge different sales tax rates?
Sales tax rates vary by location because they include state, county, city, and special district taxes. Two stores in the same city might have different rates if one is in a special taxing district (like a transit authority area). Online retailers now typically charge the rate for your shipping address.
Do I have to pay sales tax on online purchases?
Usually yes. Since the 2018 Wayfair Supreme Court decision, most states require online sellers to collect sales tax if they have significant sales in the state. Major retailers like Amazon collect tax in all states with sales tax. If a seller doesn't collect tax, you technically owe use tax directly to your state.
Is sales tax included in the price tag?
In the US, sales tax is almost always added at checkout, not included in the displayed price. This differs from many other countries where prices include all taxes. The sticker price is the pre-tax amount; your actual cost will be higher after tax is added.
Can I get a sales tax refund when returning an item?
Yes, when you return an item for a full refund, the sales tax should also be refunded. If you exchange for a different-priced item, the tax adjusts accordingly. Keep your receipts to ensure you receive proper tax refunds on returns.
Do services have sales tax?
It depends on the state and service type. Most states don't tax professional services (legal, accounting), but may tax services like car repairs, haircuts, or landscaping. Hawaii and New Mexico are notable for taxing most services. Always check your state's rules for specific services.
What's the highest sales tax rate in the US?
The highest combined state and local sales tax rates are found in Louisiana (up to 11.45%), Tennessee (up to 9.75%), Arkansas (up to 11.625%), and Alabama (up to 11%). California has the highest state-level base rate at 7.25%, which can exceed 10% with local additions.
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