Sales Tax Calculator

Sales tax is calculated by multiplying the purchase price by the applicable tax rate. For example, a $100 item with 8.25% sales tax would have $8.25 in tax for a total of $108.25. Our calculator handles both adding tax to a price and removing tax from a total amount to find the original price.

California has the highest state sales tax rate at 7.25%, followed by Indiana, Mississippi, Rhode Island, and Tennessee at 7%. Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, local jurisdictions may still impose sales taxes even in states without statewide taxes.

After the 2018 U.S. Supreme Court case South Dakota v. Wayfair, ecommerce businesses are required to collect sales tax in states where they meet certain economic thresholds. Most online retailers now collect sales tax at checkout based on your shipping address. If tax isn't collected, you may owe use tax when filing your state tax return.

Common exemptions include prescription medications, many groceries, medical equipment, and some clothing items (varies by state). Services may or may not be taxed depending on the state. Educational materials, certain agricultural products, and items for resale are often exempt. Each state has different exemption rules, so check local regulations.

Total sales tax combines state, county, city, and special district taxes. These local taxes are weighted by population to compute average local rates. Some areas may have total rates exceeding 10% when all jurisdictions are combined, while others may only have the state rate. Our calculator shows state rates, but always check local rates for precise calculations.

Sales taxes are an essential part of state revenue toolkits, responsible for 24% of combined state and local tax collections. States set rates based on their revenue needs, economic policies, and other tax sources. States with no income tax often have higher sales taxes, while states with high income taxes may have lower sales tax rates to balance their overall tax burden.

Businesses can use our calculator to determine customer pricing, understand costs across different states, and plan for tax collection requirements. Calculate total prices to quote to customers, determine what portion of revenue goes to taxes, and compare costs when considering business locations or shipping to different states.

Sales tax is only charged at the final point of sale to consumers, while VAT (Value Added Tax) is charged at each stage of production and distribution. In most countries, the sales tax is called VAT or GST (Goods and Services Tax), but the U.S. uses a sales tax system. VAT is typically included in listed prices, while U.S. sales tax is usually added at checkout.

Online sales tax calculators are highly accurate when using current tax rates and proper formulas. They provide precise calculations for state-level taxes, though local taxes may vary. Our calculator uses verified state tax rates for 2025 and standard mathematical formulas. For exact local rates, always check with local tax authorities as rates can change and include additional local jurisdictions.

Yes! Our calculator includes a "Remove Tax" mode that calculates the original price before tax when you know the total price including tax. This is useful when you see a total price and want to know how much was the original cost versus the tax amount. Simply enter the total price and tax rate, then switch to "Remove Tax" mode for the calculation.