Sales Tax Calculator: Add or Remove Sales Tax

The sales tax formula

Tax = price × rate. Total = price × (1 + rate). A $249.99 purchase at 7.25 percent: 249.99 × 0.0725 = $18.12 tax, $268.11 total. Enter the rate as a percentage, and include every layer that applies: state, county, city, and special district.

Finding the pre-tax price

If you only have the total, divide by 1 plus the rate. A $108.25 receipt in an 8.25 percent area: 108.25 ÷ 1.0825 = $100.00, so the tax was $8.25. Do not subtract 8.25 percent of the total; that gives $99.32, which is wrong because the tax was charged on the smaller number.

This reverse calculation is handy for expense reports, reimbursements, and figuring out whether a "tax included" price is a deal.

US sales tax rates in brief

There is no federal sales tax in the US. Forty-five states and DC have a statewide sales tax. Five do not: Alaska, Delaware, Montana, New Hampshire, and Oregon, though some Alaska and Montana localities charge their own.

California has the highest statewide base rate at 7.25 percent, and local add-ons push some cities past 10 percent. Combined state and local averages are highest in Louisiana, Tennessee, Arkansas, Washington, and Alabama, all around 9 to 10 percent. Colorado has a low 2.9 percent state rate but many local layers.

Rates change every year, sometimes quarterly. For an exact rate, look up the full address on your state's department of revenue site; ZIP codes can span several tax jurisdictions.

What is taxed varies by state

Groceries are exempt or taxed at a reduced rate in most states. Prescription drugs are exempt almost everywhere. Clothing is exempt in a few states, such as Pennsylvania, New Jersey, and Minnesota, and New York exempts clothing under $110 per item from the state portion. Digital goods and SaaS subscriptions are taxable in some states and not others.

Many states run sales tax holidays, usually back-to-school weekends in July or August, when clothing and school supplies under a price cap are tax-free.

Use tax: the tax most people forget

If you buy something from a seller that does not charge your state's sales tax, most states say you owe use tax at the same rate. It applies to out-of-state purchases, some online orders, and items bought while traveling and brought home. Many states include a line for it on the state income tax return.

For individuals, most large online retailers now collect sales tax, so use tax mostly comes up with smaller sellers and big-ticket purchases like furniture or equipment bought across a state line. Businesses face it more often and should track it.

Big purchases: cars and electronics

Vehicle sales tax is usually charged where you register the car, not where you buy it. Many states tax only the difference between the new car price and your trade-in value, which can save real money: trading in a $10,000 vehicle on a $35,000 car in a 7 percent state saves $700 in tax. Some states, including California, do not give that credit.

For a $1,299 laptop in a 6.25 percent state, tax is $81.19. That line alone can justify a sales tax holiday purchase when the item qualifies.

For online sellers

Since the 2018 South Dakota v. Wayfair decision, states can require remote sellers to collect sales tax once they pass an economic nexus threshold, commonly $100,000 in sales into the state per year. Marketplaces like Amazon and Etsy generally collect and remit on your behalf. If you sell on your own site, you likely need to track destination-based rates.

Use this calculator for quick quotes, receipts, and budget checks. It runs in your browser and does not look up rates for you, so enter the combined rate for the location.