How to Use the Sales Tax Calculator
- Enter the amount.
- Enter your state sales tax rate and any local rate.
- Choose whether to add tax to a price or find the pre-tax price from a total.
- Press Calculate.
- Check the tax amount, pre-tax price and total.
Formula
Combined rate = state rate + local rate Add tax: total = price × (1 + rate) tax = price × rate Reverse: price = total ÷ (1 + rate) tax = total − price
Example Calculation
A $100 purchase with a 6.25% state rate and 2% local rate has a combined rate of 8.25%. The tax is $8.25, and the total is $108.25. Working backward, a $108.25 receipt at 8.25% implies a pre-tax price of $100.
What Is a Sales Tax Calculator?
A sales tax calculator applies a tax rate to a price, or removes tax from a total. It is handy for budgeting a purchase and checking receipts.
How Sales Tax Is Structured
The combined rate is typically the sum of a state rate and local rates from counties, cities or special districts. A few states have no statewide sales tax, though local taxes may apply. What is taxable varies, and some items have special rates.
Working Backward From a Total
To find a pre-tax price you divide by one plus the rate, not subtract the rate from the total. Subtracting 8.25% from $108.25 would give $99.32, which is wrong.
Tips
- Confirm the combined rate for the exact delivery or store address.
- Keep receipts for large purchases that may be deductible for businesses.
- Factor tax into budgets for big-ticket items.
Common Mistakes
- Applying the state rate only and ignoring local rates.
- Subtracting tax as a percentage instead of dividing.
- Assuming every product is taxed at the same rate.
Rates change; verify with your state’s official source. Splitting a restaurant bill? Try the tip calculator.