Calculate sales tax and total price with our free sales tax calculator. Find tax amounts for different states and cities with accurate tax rates and calculations.
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and services. Understanding how sales tax works helps you budget accurately and make informed purchasing decisions.
Sales tax is calculated as a percentage of the purchase price and added to the total cost. The tax rate varies by location and can include:
Five states don't impose a general sales tax:
States with the highest combined sales tax rates:
Many states exempt certain items from sales tax:
Since the 2018 Supreme Court decision in South Dakota v. Wayfair, online retailers must collect sales tax in states where they have economic nexus. This means:
Sales tax is calculated by multiplying the purchase price by the tax rate (as a decimal). For example, a $100 item with 8% tax: $100 × 0.08 = $8 tax, total = $108. The formula is: Tax Amount = Price × Tax Rate, Total = Price + Tax Amount.
State sales tax is imposed by the state government, while local sales tax is imposed by cities, counties, or special districts. The total sales tax rate is the sum of state and local rates. For example, if state tax is 6% and local tax is 2%, the total rate is 8%.
Yes, most online purchases are now subject to sales tax. Since 2018, online retailers must collect sales tax in states where they have economic nexus. The tax rate is based on your delivery address, not the seller's location.
Common tax-exempt items include groceries (in many states), prescription drugs, medical supplies, and sometimes clothing. Exemptions vary by state, so check your local tax laws. Some states have tax-free weekends for back-to-school shopping.
To find the pre-tax price from a total that includes tax: Pre-tax Price = Total ÷ (1 + Tax Rate). For example, if total is $108 and tax rate is 8%: $108 ÷ 1.08 = $100 pre-tax price.
Use tax is a tax on items purchased without paying sales tax (like online purchases from out-of-state retailers). Some states require residents to report and pay use tax on their income tax returns for untaxed purchases.