A sales tax calculator takes a pre-tax price and a percentage rate and returns the tax amount plus the final total. Use it when buying online, checking a receipt, or pricing products for sale. Switch to "Remove tax" mode to reverse-calculate the original price from a tax-inclusive total.
- 45 states and Washington D.C. levy a statewide sales tax; Alaska, Delaware, Montana, New Hampshire, and Oregon do not (Tax Foundation, 2026).
- Average combined US rate (state + local) is about 6.6%; Louisiana and Tennessee top the list at 9.55% (Tax Foundation, 2026).
- Forward formula: Tax = Price x (Rate / 100). Reverse formula: Pre-tax Price = Total / (1 + Rate / 100).
- Sales tax is charged only at the final sale - unlike VAT, which is collected at every production stage.
How to Use This Sales Tax Calculator
Enter your price and tax rate, then choose your mode. "Add tax" takes a pre-tax price and shows you the tax amount and total. "Remove tax" takes a tax-inclusive total and works backwards to the original price and the tax charged. The currency selector auto-detects your location and defaults to USD.
The calculator updates as you type. To check a rate you're unsure about, enter your state or country rate in the tax field - the US state rates table below lists common rates for reference.
How Do You Calculate Sales Tax?
Multiply the pre-tax price by the tax rate divided by 100. For a $50 purchase at an 8% rate, the calculation is $50 x 0.08 = $4.00 in tax, giving a total of $54.00. Sales tax is a percentage calculation - the same formula used for discounts, tips, and markups. The Tax Foundation reports the average combined US rate is approximately 6.6% in 2026, though your local rate may differ significantly.
The forward formula has two steps:
$$\text{Tax Amount} = \text{Pre-tax Price} \times \frac{\text{Tax Rate}}{100}$$
$$\text{Total Price} = \text{Pre-tax Price} + \text{Tax Amount}$$
For example, a $200 item at 7.25% (California state rate): Tax = $200 x 0.0725 = $14.50. Total = $200 + $14.50 = $214.50. Most US states also allow cities and counties to add a local rate on top - so the combined rate you actually pay at checkout is often higher than the state rate alone.
How Do You Calculate Sales Tax in Reverse?
Divide the tax-inclusive total by (1 + Tax Rate / 100). This is the reverse calculation, and it's used when a receipt shows only the final total without a breakdown. For a $108.00 total with an 8% rate: $108 / 1.08 = $100.00 pre-tax price; the tax was $8.00.
The reverse formula:
$$\text{Pre-tax Price} = \frac{\text{Total Price}}{1 + \text{Tax Rate} / 100}$$
A common mistake is subtracting the rate as a straight percentage: $108.00 x 0.08 = $8.64 - which overstates the tax by $0.64. The division method is always correct. Use the "Remove tax" mode in this calculator to avoid this error.
Which US States Have No Sales Tax?
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Among these, Delaware, Montana, New Hampshire, and Oregon have no local sales taxes either, making purchases genuinely tax-free at the point of sale. Alaska is the exception: it has no state tax but allows municipalities to levy local rates, and many Alaskan cities do charge sales tax.
Shoppers sometimes cross state lines to avoid sales tax on big-ticket items. Delaware, for example, is a popular destination for car and electronics purchases from neighbouring New Jersey (6.625% state rate) or Pennsylvania (6%). That said, some states require you to pay a "use tax" if you bring a purchased item back home - which is technically owed even if rarely enforced on personal purchases.
US State Sales Tax Rates (2026)
State rates vary from 2.9% (Colorado, the lowest) to 7.25% (California, the highest). The table below shows the state-level rate only. Combined rates that include county and city taxes are higher - Louisiana and Tennessee both reach 9.55% combined, the highest in the country (Tax Foundation, 2026).
| State | State Rate | Note |
|---|---|---|
| Alaska | 0% | No state tax; local taxes apply in many cities |
| Delaware | 0% | No state or local sales tax |
| Montana | 0% | No state or local sales tax |
| New Hampshire | 0% | No state or local sales tax |
| Oregon | 0% | No state or local sales tax |
| Colorado | 2.9% | Lowest non-zero state rate |
| New York | 4.0% | NYC adds 4.5% local on top |
| Georgia | 4.0% | |
| Ohio | 5.75% | |
| Pennsylvania | 6.0% | |
| Florida | 6.0% | No personal income tax |
| Michigan | 6.0% | |
| Texas | 6.25% | No personal income tax |
| Illinois | 6.25% | |
| Nevada | 6.85% | No personal income tax |
| Indiana | 7.0% | |
| Mississippi | 7.0% | |
| Rhode Island | 7.0% | |
| Tennessee | 7.0% | Combined with local: 9.55% |
| California | 7.25% | Highest state rate |
Source: Tax Foundation, 2026 State Sales Tax Rates. Combined rates (state + average local) are used for comparing total tax burden across states.
How Is Sales Tax Different from VAT?
Sales tax is collected once, at the final point of sale, and paid entirely by the end consumer. VAT (Value Added Tax) is collected at every stage of the supply chain - manufacturer, wholesaler, retailer - with each business reclaiming the VAT it paid on purchases. The Tax Foundation notes that over 170 countries use VAT, while the US is the only major economy that relies on retail sales tax instead.
In practical terms, the math looks the same to a consumer: a 10% rate adds 10% to the sticker price in both systems. The difference is how the tax is remitted to the government. Under VAT, if a product moves through three businesses before reaching you, the government collects a small slice at each step. Under sales tax, nothing is collected until you buy it.
One important implication: prices in VAT countries are usually quoted tax-inclusive (the sticker price is what you pay). In the US, prices are typically quoted pre-tax, and the tax is added at checkout. This is why the "Remove tax" mode in this calculator is so useful - European visitors or anyone dealing with tax-inclusive pricing can reverse out the base price in one step.
Common Mistakes When Calculating Sales Tax
The most common error in reverse calculation is subtracting the percentage directly from the total. If a total is $108 and the rate is 8%, subtracting $108 x 0.08 = $8.64 gives a wrong pre-tax price of $99.36 - the correct answer is $100.00. Only the division method works: $108 / 1.08 = $100.00.
- Using only the state rate: Most US cities and counties add a local rate on top. A purchase in Los Angeles costs California's 7.25% state rate plus local rates that push the combined total to 10.25%.
- Forgetting use tax: If you buy online from a retailer who doesn't collect your state's sales tax, you may owe a "use tax" to your home state at the same rate.
- Taxing exempt items: Groceries, prescription drugs, and some clothing are exempt from sales tax in many states. Always check what's exempt before applying a blanket rate.
- Wrong rate for the destination: For shipped goods, the tax rate that applies is the destination address, not the seller's location (since the South Dakota v. Wayfair ruling in 2018).
Frequently Asked Questions
How do I calculate sales tax on a purchase?
Multiply the pre-tax price by the tax rate expressed as a decimal. For an 8% rate on a $50 item: $50 x 0.08 = $4.00 tax, giving a total of $54.00. The formula is: Tax Amount = Pre-tax Price x (Tax Rate / 100). Enter the price and rate above and the calculator does this instantly.
How do I remove sales tax from a total price?
Divide the tax-inclusive total by (1 + Tax Rate / 100). For a $54.00 total at 8%: $54 / 1.08 = $50.00 pre-tax. The tax was $4.00. Don't subtract the percentage directly from the total - that method gives the wrong answer and overstates the tax amount. Use "Remove tax" mode in the calculator above.
Which US states have no sales tax?
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Delaware, Montana, New Hampshire, and Oregon also have no local sales taxes. Alaska has no state tax but allows local taxes, so rates above 0% apply in many Alaskan cities. The other 45 states plus Washington D.C. all levy a state sales tax.
What is the average sales tax rate in the US?
The average combined state and local sales tax rate in the US is approximately 6.6% in 2026, according to the Tax Foundation. State-only rates range from 0% to 7.25% (California). Louisiana and Tennessee top the combined rate rankings at 9.55%, which includes both state and average local taxes stacked together.
Is sales tax the same as VAT?
No. Sales tax is collected only at the final point of sale. VAT is collected at every stage of production, with each business reclaiming the VAT paid on its inputs. VAT is standard across Europe and most of the world; the US uses retail sales tax instead. Prices in VAT countries are usually tax-inclusive; US prices are shown pre-tax and the tax is added at checkout.