Sales Tax Calculator

Free sales tax calculator. Calculate sales tax on any purchase with state and local rates. Supports tax-inclusive and tax-exclusive pricing for any U.S. location.

About the Sales Tax Calculator

The Sales Tax Calculator computes the sales tax on any purchase given the state and local tax rates. Enter a price and the applicable rates to instantly see the tax amount and total cost. You can also reverse-calculate the pre-tax price from a tax-inclusive total.

Sales tax rates vary widely across the United States, with combined state and local rates ranging from 0% in states like Oregon, Montana, and Delaware to over 10% in parts of Louisiana, Tennessee, and Arkansas. Knowing the exact rate for your location helps you budget accurately for purchases.

This calculator supports both tax-exclusive pricing (add tax to the listed price) and tax-inclusive pricing (extract tax from a total that already includes tax). Sales tax rates vary widely by state, county, and city, making it difficult to predict the exact total for purchases across different jurisdictions. This calculator applies the correct combined rate and shows both the tax amount and the final price.

Why Use This Sales Tax Calculator?

Whether you are budgeting for a large purchase, comparing prices across states, or running a business that needs to collect sales tax, this calculator gives you instant, accurate results. It also supports reverse calculation for extracting tax from inclusive prices. Businesses also rely on accurate sales tax calculations for compliance and to avoid penalties from under-collection.

How to Use This Calculator

  1. Enter the price of the item or purchase.
  2. Enter the state sales tax rate (e.g., 6.25%).
  3. Enter the local sales tax rate if applicable.
  4. Select whether the price includes tax or excludes tax.
  5. View the tax amount, total price, and effective rate.
  6. Try different rates to compare across locations.

Formula

Tax-Exclusive: Tax = Price × (State Rate + Local Rate) / 100 Total = Price + Tax Tax-Inclusive: Pre-Tax Price = Total / (1 + Combined Rate / 100) Tax = Total – Pre-Tax Price Effective Rate = Tax / Pre-Tax Price × 100

Example Calculation

Result: Tax: $41.25 | Total: $541.24 | Effective rate: 8.25%

A $499.99 item with 6.25% state tax and 2.0% local tax (8.25% combined). Tax = $499.99 × 0.0825 = $41.25. Total price including tax: $541.24.

Tips & Best Practices

Sales Tax Rates by State

State sales tax rates range from 0% (Oregon, Montana, Delaware, New Hampshire) to 7.25% (California). When you add local taxes, combined rates can exceed 10% in some cities. Louisiana has the highest average combined rate at approximately 9.55%, while Oregon remains at 0%.

Sales Tax for Businesses

If you sell goods or services, you typically must register for a sales tax permit, collect the correct rate at the point of sale, and remit tax to the state on a monthly, quarterly, or annual basis. Getting rates wrong can result in audit assessments and penalties.

Economic Nexus

Since the Wayfair decision, sellers with significant sales into a state (typically $100,000+ in revenue or 200+ transactions) must collect and remit that state's sales tax. This applies to online sellers, marketplace facilitators, and SaaS companies in many states.

Frequently Asked Questions

How do I find my local sales tax rate?

Your combined rate includes the state rate plus any county, city, and special district rates. Look it up on your state's Department of Revenue website or use a ZIP code-based lookup tool. Rates can vary significantly within the same state.

What is the difference between tax-inclusive and tax-exclusive pricing?

Tax-exclusive means the listed price does not include tax — tax is added at checkout (common in the U.S.). Tax-inclusive means the listed price already includes tax — you need to extract the tax from the total (common in Europe and for some U.S. services).

Do I pay sales tax on online purchases?

In most cases, yes. Since the 2018 Wayfair Supreme Court decision, states can require online sellers to collect sales tax even if the seller has no physical presence in the state. Most major e-commerce platforms now collect applicable sales tax at checkout.

Are groceries taxed?

It varies by state. Many states exempt groceries from sales tax, some tax them at a reduced rate, and others apply the full rate. Prepared food is generally taxed even in states that exempt unprepared groceries.

What is a use tax?

Use tax applies when you buy something without paying sales tax (e.g., from an out-of-state seller who did not collect it). You are legally required to report and pay use tax to your state. The rate is typically the same as your local sales tax rate.

Can I deduct sales tax on my federal return?

Yes, if you itemize deductions. You can deduct either state income tax or state/local sales tax (but not both) as part of the SALT deduction, which is capped at $10,000 per year. This is beneficial in states with no income tax.

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