Sales Tax Calculator

Calculate total price with sales tax, find pre-tax amounts, or determine tax rates. Free, accurate, and works for all US states and local jurisdictions.

All US States Supported Mobile Responsive 100% Free Instant Results

Sales Tax Calculator Tool

Select Calculation Mode:

Price Before Tax ($)

Sales Tax Rate (%)

What is Sales Tax?

Sales tax is a consumption tax imposed by governments on the sale of goods and services. In the United States, sales tax is primarily collected at the state and local levels, with rates varying significantly across different jurisdictions.

Applied at point of sale

Varies by state and locality

Collected by retailers

Major source of state revenue

How to Use This Calculator

Select your calculation mode (add tax, remove tax, or find rate)

Enter the known values in the appropriate fields

Click "Calculate Now" to get instant results

View detailed breakdown of your calculation

US Sales Tax Rates by State

Sales tax rates vary significantly across the United States. Here are some key facts about US sales tax:

Highest State Rates

California: 7.25%
Tennessee: 7.00%
Mississippi: 7.00%
Indiana: 7.00%
Rhode Island: 7.00%

No State Sales Tax

Alaska: 0%*
Delaware: 0%
Montana: 0%*
New Hampshire: 0%
Oregon: 0%

*May have local taxes

Average Combined Rates

Louisiana: 9.55%
Tennessee: 9.55%
Arkansas: 9.46%
Washington: 9.29%
Alabama: 9.24%

Pro Tip: Remember that total sales tax often includes both state and local taxes. Local taxes can add significant amounts to your final bill, especially in major cities.

Frequently Asked Questions

How do I calculate sales tax manually?

To calculate sales tax manually, multiply the pre-tax price by the tax rate (as a decimal). For example: $100 × 0.08 (8% tax) = $8 tax. Total price = $100 + $8 = $108.

What's the difference between sales tax and VAT?

Sales tax is applied only at the final point of sale to consumers, while VAT (Value Added Tax) is applied at each stage of production. The US uses sales tax, while most other countries use VAT.

Can I deduct sales tax on my federal tax return?

Yes, you can deduct state and local sales taxes on your federal return if you itemize deductions. However, the total deduction for state and local taxes (including income, sales, and property taxes) is capped at $10,000 ($5,000 if married filing separately).

Why do sales tax rates vary so much?

Sales tax rates vary because they're set by state and local governments independently. Each jurisdiction has different revenue needs and tax policies, leading to the wide variation you see across the United States.

What items are typically exempt from sales tax?

Common exemptions include groceries, prescription medications, and sometimes clothing. However, exemptions vary significantly by state. Some states tax groceries while others don't, and clothing exemptions often have dollar limits.

Understanding Sales Tax: A Complete Guide

The History of Sales Tax in America

Sales tax has a fascinating history in the United States. Ironically, the country that was founded partly due to opposition to British taxes (remember "taxation without representation"?) now relies heavily on sales taxes for state revenue. The first permanent state sales tax was implemented by West Virginia in 1921, but it was during the Great Depression that sales taxes really took off as states desperately needed revenue.

How Sales Tax Affects Your Budget

On average, Americans pay about 2% of their personal income in sales taxes. This might not seem like much, but it can add up quickly, especially for large purchases. For example, buying a $30,000 car in a state with 8% sales tax means paying an additional $2,400 in taxes.

Online Shopping and Sales Tax

The 2018 Supreme Court decision in South Dakota v. Wayfair changed the landscape of online sales tax. Now, online retailers must collect sales tax in states where they have "economic nexus," typically defined as a certain amount of sales or transactions in that state. This means you'll now see sales tax applied to most online purchases, just like in physical stores.

Tips for Managing Sales Tax

Keep receipts for major purchases if you plan to itemize deductions
Consider sales tax when budgeting for large purchases
Be aware of tax-free shopping periods in some states
Understand what's taxable in your state to avoid surprises

Sales Tax Calculator