Sales Tax Calculator — How Sales Tax Works and US Tax Rates by State
Sales tax is a consumption tax imposed by state and local governments on the sale of goods and, in many cases, services. In the United States, sales tax is not included in the sticker price — it is added at the point of sale, which means the amount you pay at the register is always higher than the price on the shelf. This sales tax calculator lets you instantly compute the tax amount and final price, reverse-calculate the pre-tax cost from a tax-inclusive total, or build a multi-item receipt with an itemized tax breakdown. Everything runs in your browser with no data sent to any server.
How Sales Tax Is Calculated
The formula for adding sales tax to a price is straightforward:
Tax Amount = Price × (Tax Rate ÷ 100)
The total you pay is simply the original price plus the tax amount. For example, if you buy an item priced at $75.00 in a jurisdiction with an 8.875% combined sales tax rate, the tax is $75.00 × 0.08875 = $6.66, and you pay $81.66 at checkout.
To reverse the calculation — finding the pre-tax price from a total that already includes tax — divide the total by (1 + the tax rate as a decimal). Using the same example: $81.66 ÷ 1.08875 = $75.00. The "Remove Tax from Price" mode in this calculator handles that math for you automatically.
US Sales Tax Rates by State
Sales tax in the United States is a patchwork system. There is no federal sales tax; instead, 45 states and the District of Columbia impose their own state-level sales tax, and many allow cities and counties to add local taxes on top. Combined rates — state plus local — can vary dramatically even within a single state. Here is a general overview of state base rates:
- No sales tax — Alaska (no state tax, but local taxes apply in some areas), Delaware, Montana, New Hampshire, and Oregon.
- Low rates (under 5%) — Colorado (2.9%), Alabama (4%), Georgia (4%), Hawaii (4%), Louisiana (4.45%), New York (4%), Wyoming (4%), and others.
- Mid-range (5%–7%) — Most states fall here, including Florida (6%), Texas (6.25%), Pennsylvania (6%), Ohio (5.75%), Illinois (6.25%), and Michigan (6%).
- High rates (7%+) — California has the highest base state rate at 7.25%, followed by Indiana (7%), Mississippi (7%), Rhode Island (7%), and Tennessee (7%). When local surcharges are added, combined rates in parts of California, Louisiana, and Tennessee can exceed 10%.
Because local jurisdictions add their own levies, the actual rate you pay depends on the exact city or county where the purchase is made. This calculator lets you enter any rate — including fractional rates like 8.875% (the combined rate in New York City) — so you can match your local tax precisely.
When Sales Tax Applies (and When It Doesn't)
Most tangible goods are subject to sales tax, but many states exempt essentials. Groceries are exempt in about 30 states, and prescription medications are exempt nearly everywhere. Clothing is exempt in a handful of states including Pennsylvania, New Jersey, and Minnesota. Some states hold annual "tax-free weekends" for back-to-school shopping, where qualifying items under a price threshold are temporarily exempt. Always check your state's department of revenue for current exemption rules.
Frequently Asked Questions
How do I calculate sales tax?
Multiply the item price by the tax rate as a decimal. For a $50 item at 8% tax: $50 × 0.08 = $4.00 in tax, so you pay $54.00 total. Enter any price and rate above and the calculator does it instantly.
How do I find the pre-tax price from a total that includes tax?
Divide the total by (1 + the tax rate as a decimal). If you paid $54.00 and the rate was 8%: $54 ÷ 1.08 = $50.00 before tax. Use the "Remove Tax from Price" mode above to do this automatically.
Which states have no sales tax?
Five states have no state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska is unique because it allows local municipalities to levy their own sales taxes, so some Alaskan cities do charge a local sales tax.
Is sales tax included in the listed price in the US?
No. Unlike many countries where VAT or GST is built into the displayed price, US retailers show the pre-tax price on the shelf. Tax is calculated and added at the register, which is why your receipt total is higher than the sticker price.
What is a use tax?
Use tax is a companion to sales tax that applies when you buy goods from an out-of-state retailer that did not collect sales tax. The rate is typically identical to your state's sales tax rate, and you are technically required to self-report and pay it on your state tax return.
This sales tax calculator is free, runs entirely in your browser, and stores nothing on a server. Bookmark it for the next time you need to figure out tax on a purchase, verify a receipt, or compare prices across tax jurisdictions.
Related reading: How to Create a Professional Invoice as a Freelancer