Sales Tax Calculator
Enter a price and your local tax rate. You can also work backward from a total that already includes tax.
How to calculate sales tax
Multiply the price by the tax rate as a decimal, then add the result to the price. For a $49.99 item at 7% tax, the tax is $49.99 × 0.07 = $3.50, and the total is $53.49.
How to take tax out of a total
Divide the total by 1 plus the tax rate. A $53.49 total at 7% tax is $53.49 ÷ 1.07 = $49.99 before tax. Do not just subtract 7% of the total, because the tax was calculated on the smaller pre-tax price, so that gives a slightly wrong answer.
Which tax rate should I use?
Use the combined rate where you are buying. In the US that is the state rate plus any county, city or district rates, and it can differ between towns that are a few miles apart. Your receipt, your state department of revenue website, or the local tax rate lookup on that site will show the exact combined rate. Some states have no statewide sales tax, and some items such as groceries, clothing or prescriptions can be taxed at a lower rate or not at all.
Rounding can differ by a cent between stores, since some round per item and some round on the whole receipt.
Worked example with several items
Say you buy three items priced at $12.99, $8.49 and $24.00, and the combined tax rate is 6.5%. The subtotal is $45.48. The tax is $45.48 × 0.065 = $2.96, so the total is $48.44. If you only have the total and want to find the price before tax, divide by 1.065: $48.44 ÷ 1.065 = $45.48.
What can change the amount of tax
- Discounts and coupons. In many places a store discount lowers the taxable price, but some coupons do not. The rule depends on the state and the type of coupon.
- Shipping and delivery charges. Some states tax them and some do not.
- Online orders. Tax is often based on where the item is delivered, not where the seller is located.
- Item type. Groceries, clothing, medicine and other categories may have a lower rate or be exempt, depending on the state.
- Rounding. Stores may round tax per item or on the whole receipt, which can differ by a cent.
Working backward from a receipt
Backward calculation is useful when a price already includes tax, as with a restaurant bill in some places or a quoted total you want to compare with another store. It also works for value-added tax and goods and services tax in other countries. At a 20% rate, divide the total by 1.20 to find the price before tax.
Frequently asked questions
How do I find my local rate?
Check a recent receipt, or look up the combined rate on your state department of revenue website. Add the state, county and city portions together.
Is sales tax the same as VAT?
No. Sales tax is added once, at the final sale to the customer. Value-added tax is collected at each stage of production and is usually already included in the shelf price.
Can I use this for business purchases?
It works for the arithmetic, but business purchases can have special rules, such as exemptions for resale. Check with your state or a tax professional before relying on it for filing.
For general information only. This is not tax advice.