Sales Tax Calculator
Total = price + (price × tax rate)
How Sales Tax Is Calculated
Sales tax is a percentage added to the purchase price of goods and services, collected by the seller and remitted to the government. The formula is straightforward: tax amount = subtotal × (tax rate ÷ 100), and total price = subtotal + tax amount. For a $100 purchase in a jurisdiction with 8% sales tax, the tax is $8 and the total is $108.
Sales tax rates vary widely across the United States. State rates range from 0% (Alaska, Delaware, Montana, New Hampshire, Oregon) to over 7% in states like California and Tennessee. Local jurisdictions add city, county, and special district taxes on top, so the combined rate in some areas exceeds 10%. Online purchases may be taxed based on the buyer's location under current e-commerce rules.
Some items are exempt or taxed at reduced rates. Groceries, prescription medications, and clothing under certain thresholds may be exempt in some states. Luxury taxes apply to high-value items like jewelry or yachts. Business purchases with a valid resale certificate are typically tax-exempt because the tax is collected when the item is sold to the end consumer.
Reverse calculation is useful when you know the total paid and need to find the pre-tax price. Divide the total by (1 + tax rate ÷ 100). A receipt total of $108 at 8% tax means the subtotal was $108 ÷ 1.08 = $100. This helps verify receipts, split bills, or extract tax from an inclusive price for business expense reporting.
Whether you are estimating checkout costs, preparing invoices for clients, or budgeting for a large purchase, this calculator gives you the tax amount and total price instantly. Enter the subtotal and your local tax rate to avoid surprises at the register.
Examples
| Example | Result |
|---|---|
| $100 subtotal, 8% tax | Tax $8, total $108 |
| $50 subtotal, 6% tax | Tax $3, total $53 |
| $250 subtotal, 9.5% tax | Tax $23.75, total $273.75 |
| $75 subtotal, 7.25% tax | Tax $5.44, total $80.44 |
| $500 subtotal, 5% tax | Tax $25, total $525 |
| $1,200 subtotal, 8.875% tax | Tax $106.50, total $1,306.50 |
| $35 subtotal, 10% tax | Tax $3.50, total $38.50 |
Frequently asked questions
Multiply the subtotal by the tax rate divided by 100. A $100 item at 8% tax costs $8 in tax for a $108 total.
Divide the total by (1 + tax rate ÷ 100). At 8% tax, divide the total by 1.08 to get the subtotal.
States set base rates and local governments add city, county, and district taxes. Combined rates can differ by several percentage points within the same state.